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Connecticut Labor Unions On Verge Of Huge Concessions Deal

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Ted Goodman Contributor
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A tentative concessions deal from public employees unions in Connecticut could save the state $1.5 billion over the next two years.

Concessions from public employees unions is widely viewed as a crucial step in solving the state’s projected $2.3 billion deficit in the first year of a two-year budget. The deficit is predicted to rise to $2.7 billion in the second year, according to U.S. News & World Report.

The potential deal would save the state $712.6 million next year and $849.4 million the following year, totaling $1.56 billion in savings over two years, according to the Connecticut Mirror. Democratic Gov. Dannel Malloy has called for $1.59 billion in concessions in order to solve the state’s financial mess.

Under the tentative deal, state employee wages would be frozen for two years, retroactively starting in 2016. In the third year of the proposal, some workers would be eligible for a $2,000 lump sum bonus, but short of a pay raise.

In years three and four of the deal, 3.5 percent general wage increases would be implemented, plus an additional increase of 2 percent annually for certain job positions. Employees would be asked to increase their pension contribution by 1.5 percent, and the new deal creates a “hybrid pension/401(k)-style retirement plan” for new employees.

The plan also calls for three furlough days and a clause that prevents layoffs. Unionized state employees would be guaranteed four years of job security, and any layoff notices that have been issued would be rescinded.

“We do not yet have a deal,” spokeswoman for the governor, Kelly Donnelly, said Monday. If 80 percent of the State Employee Bargaining Agent Coalition agrees to the deal, the state’s 50,000 employees will vote to ratify the concessions in June.

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