HARTFORD, Conn. (AP) — Both union leaders and members of Gov. Dannel P. Malloy's administration voiced optimism Tuesday that rank-and-file state employees will eventually ratify a wide-ranging labor savings deal, now that the details have been publicly released.
The tentative agreement, which negotiators maintain will save Connecticut $1.6 billion over two years and billions of dollars more over the next two decades, includes changes to state employees' health care coverage, retiree health care plans, pensions, wages and longevity bonuses. In return, the two-year no-layoff promise made by former Gov. M. Jodi Rell in 2009 is extended for four more years.
Patrice Peterson, a union president and a teacher, predicted that the no-layoff extension will be crucial to persuading the approximate 45,000 unionized state employees to ratify the complicated benefits and wage changes over the coming weeks. She said the union leaders who make up the State Employees Bargaining Agent Coalition are committed to selling the tentative deal to their members.
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"It's a matter of education and I think that's going to take a bit of time for people to do," Peterson said. "Every leader that was there believes in this agreement and that we will all be working hard to make sure that our members ratify it."
Thirteen out of the 15 SEBAC unions, as well as 80 percent of the voting union members, must approve any changes to health and retirement benefits. Wage changes must be approved by each of the 34 bargaining units.
Workers have been clamoring for details of the tentative accord, announced by the Democratic governor on Friday. SEBAC posted a summary of the agreement on its website Tuesday morning. Later in the day, Malloy's administration released a detailed breakdown of the tentative deal, which the governor has touted as a polar opposite approach to what other governors, especially Republicans, have taken across the country as they attempt to scale back collective bargaining rights to balance their budgets.
Yet the minority Republican leaders of the Democratic-controlled General Assembly were quick to criticize the tentative deal for what they consider a lack of real concessions. They questioned whether the non-concession-related savings, such as $180 million over two years from suggested government efficiencies made by workers, are realistic and doable.
They also questioned Malloy's decision to extend a 20-year health and retirement benefits deal — one he has repeatedly criticized — through 2022 and to promise no union layoffs for four more years. Malloy's officials have said non-union workers, especially managers, will face job reductions as the governor attempts to reduce bureaucracy.
"Unfortunately, the more we see the details, the less there is to like," said Senate Minority Leader John McKinney, R-Fairfield. "A four-year no-layoff pledge, which no one in the private sector has, leaves us four years from now right where we started. Unemployment in the private sector is 9.1 percent. Unemployment in government is zero percent."
House Minority Leader Lawrence Cafero Jr., R-Norwalk, said he would not advise his fellow House Republicans to vote for the agreement, if it's ratified and sent to the legislature for action.
"I would do a better job of selling this to the union membership. I don't think I have to," he said. "I cannot possibly ask my caucus to ratify this agreement in light of the fact this budget raises taxes by $1.8 billion. It is impossible for me to make that recommendation."
Malloy was originally seeking $2 billion in labor savings over two years to balance the two-year, $40.1 billion budget, which faces a $3.3 billion deficit in the first year beginning July 1. That savings includes givebacks from non-union employees, whose wages and benefits traditionally mirror those of unionized workers. There are a total of nearly 55,000 full-time employees in Connecticut's state government.
Because this agreement represents only $1.6 billion of what's needed to fill that hole, Malloy's budget director, Benjamin Barnes, is preparing a plan to make up the $400 million difference, including additional spending cuts, to present to lawmakers.
One key concession in the tentative labor deal is a two-year wage freeze. That means there will be no salary increases, step increases, annual increments or payments to individuals who have reached the top step in the job classification. The freeze is projected to save the state $138.8 million in 2011-12 and $309.5 million in 2012-13. Over 20 years, Malloy estimates the savings will be $6.3 billion.
Following the freeze, however, the proposal calls for 3 percent pay increases in each of the next three fiscal years, along with annual increments that may be due. This plan does not include any furlough days.
The tentative deal makes changes to the state's pension system, including a reduction in the minimum cost-of-living adjustment. It also increases the normal retirement age by two years for new hires or any current employee who retires after July 1, 2022. Such changes are expected to encourage older state employees, some of whom were hoping to see an early retirement incentive program, to retire sooner, possibly this year. Malloy's senior adviser, Roy Occhiogrosso, said the administration expects an additional 1,000 state employees could retire and many of those jobs might not be filled.
Longevity payments — twice-a-year bonuses for workers who have worked at least 10 years — are nixed under the plan for any new employee hired after July 1, 2011. For current employees, they will not receive a payment in October.
Also, all state workers, not just new hires, will have to begin making contributions to a trust fund to help cover retiree health benefits. The proposal also requires a new $35 co-pay for emergency room visits. According to SEBAC's internal statement to workers, some people have been using hospital emergency rooms as many as 150 times a year.
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