Wisconsin at epicenter of drive to curb unions

* Wisconsin assembly prepares to vote on union measures

* Unions call for more demonstrations

By James Kelleher

MADISON, Wis, March 10 (Reuters) - Wisconsin lawmakers, after three weeks of angry protests that drew tens of thousands of union workers to the state capital, were expected to vote -- and likely approve -- Republican Governor Scott Walker's plan to curb public workers' union rights.

What began in one heartland state last month as a move by the Republican governor to curtail state workers' bargaining rights has evolved into a showdown across the country over efforts by budget-strapped state governments to rein in the power of unions.

Wisconsin's Republican-led Senate on Wednesday night outflanked Democrats' three-week boycott to approve the heart of the plan. The Democratic-led State Assembly is expected to act swiftly -- but not without more raucous protests outside the capital.

Protesters crowded into Wisconsin's state Capitol again on Thursday. Capitol police hauled away some protesters and kept the public out of the building, delaying the start of the assembly meeting.

The AFL-CIO called for its members to rally on Thursday in support of public sector workers, saying Senate Republicans and Walker had exercised "the nuclear option to ram through their bill attacking Wisconsin's working families in the dark of night."

Broader challenges to teachers, firefighters and other state and local workers are being weighed by legislatures in Ohio, Indiana, Idaho, Tennessee, Kansas and other states -- a number of which saw Republicans sweep to victory in November.

The states' confrontation with unions could be the biggest challenge to labor since then President Ronald Reagan fired striking air traffic controllers nearly 30 years ago.

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Republicans who won or increased their majorities in many state chambers in the November elections say the measures are needed to gain control of deficit-ridden budgets. Democrats and their union backers say Republicans are ramming through union-busting proposals.

The stakes are high for labor. More than a third of U.S. public employees such as teachers, police and civil service workers belong to unions while only 6.9 percent of private sector workers are unionized.

Action to weaken unions, who are a key Democratic constituency and source of the party's campaign funds, would threaten prospects for Democrats including President Barack Obama's re-election in November 2012.

WISCONSIN

Some protesters spent the night in the capitol in spite of a judge's ruling they must clear out -- as the state Senate stripped out the money elements of Walker's proposal. The move allowed a vote without 14 missing Democrats, who had fled the state to deny Republicans in the chamber a quorum.

Walker has insisted the limits are needed to help the state's cash-poor municipalities deal with a projected $1.27 billion drop in aid over the next two years from the state, struggling to close its own $3.6 billion budget gap.

"We have shown we can have passionate debate. We are civil in the state of Wisconsin. We respect the law," Walker said, but he expressed concerns about outside influences coming into the state to create disturbances.

In a separate maneuver, Wisconsin officials hope to delay for a month a March 15 deadline to restructure some outstanding bonds that the governor says would save $165 million.

Senate Democratic leader Mark Miller said the senators would return to Madison after the truncated bill passes the legislature to "continue the fight." The state assembly has already passed the larger budget repair and union bill with only Republican votes.

Democrats said they may look to the courts for relief, arguing that Republicans violated public meeting laws by hastily calling for a vote.

(Reporting by James Kelleher and Jeff Mayers; Writing by Andrew Stern; Editing by Jackie Frank)