Negotiators Zero In on New State Employee Deal

The deadline to ratify a new contract with over nine thousand state employees came and went Tuesday at midnight.

But the governor’s negotiating team and union representatives report they are making important progress.

Perhaps the most significant breakthrough- as far as union leaders are concerned- is the state’s willingness to consider sweetening buy-out deals.

The two sides must reach an agreement that saves $25 million dollars in general fund money, which will end up bringing in an additional $25 million in personnel savings from other state funds.

Lead state employee, or SEA, negotiator Dennis Kinnan says he believes more lucrative retirement packages will go a long way to meeting the $50 million dollar target.

:12 we believe, our plan, as it’s constituted right now will save the state $43 million dollars...it could be up to 500 people, it could be more, it could be less.

Kinnan says the two sides are still negotiating many details around the concept not the least of which is who would be eligible for the buy-out package.

The longer it takes union and state representatives to hammer out a deal, the more likely people will be out of work.

The governor has already said 200 people will lose their jobs with or without a new contract.

But an estimated 750 others could get pink-slipped without an agreement.

Obviously the union doesn’t want that to happen to its members.

But the reason Kinnan and others are excited about the voluntary buy-out plan is that- if their numbers are right- then fewer people will have to take unpaid leave.

3:31 for a lot of state employees, it’s really close to the edge already....that’s the reality we are living in as state employees.

At this point, the governor’s lead negotiator Tom Manning says, the state is open to a contract that includes both a voluntary buy-out program and a voluntary furlough program.

But he says he has to have a final agreement with state employees that somehow guarantees savings.

5:03 if we can construct some kind of program where we can have that delivered voluntarily, wonderful. But the governor can’t go back to the general court and say we hope we’ve saved $25 million dollars by hook or by crook somehow during the course of the biennium. That is not the charge that has been given to us.

One distinct possibility is that state workers will be given some period of time to sign up for the buyouts and furloughs.

And at the end of that time period, the state will add up the savings.

If there’s been $50 million in savings, both sides walk away happy.

If the target has not been reached, then the state will institute a mandatory furlough program to make up the difference.

Manning says he understands the opposition to mandatory furloughs.

But he says they are a vastly superior option to the alternative.

4:01 the governor is going to have to do it. The commissioners are going to have to do it. I am going to have to do it, take a cut in pay...We are not going to layoff the Governor, we are not going to layoff commissioners. The point is that its more onerous for a smaller group of people. And the fear on our side, and probably all sides is that if we were to have to resort to that for the people affected it would be devastating.

It sounds like both sides could imagine getting a tentative agreement very soon.

But there are smaller, but significant pieces that could make or break the deal.

One is finding common ground on healthcare.

As the state watches healthcare costs soar- its paying $67 million dollars for the new plan- negotiators want to restructure the coverage to emphasize preventive care, including compulsory annual physical exams.

They also want to see employees make higher co-pays for prescription drugs.

Those changes would bring in about $4 million in savings.

SEA negotiator Dennis Kinnan says at a time when employees are struggling they don’t want to pay more for healthcare.

TAPE: 11:17 I think that would be really positive thing to sell to the members. I think our members are really worried about changes in the healthcare plan, because it’s something they can’t afford, and I think if they go back with no changes that negatively affect them, I think they would be ecstatic.

How ecstatic they would be is an important question.

Would a deal with voluntary furloughs and buyouts, and no significant healthcare changes be good enough for union leaders to drop their request that the state guarantee no other layoffs during this contract?

That question might be one that negotiators spend a fair amount of time on going forward.

For NHPR News, I’m DG.