Governor Jim Douglas and Secretary of Administration Neale Lunderville today announced that agreement on a new two-year contract has been reached with the Vermont State Employees Association (VSEA). The contract, which was signed by both parties earlier today, includes a 3% wage reduction as well as no automatic yearly wage adjustments or step increases for the duration of the contract. This settlement is very good news for the taxpayers of Vermont. It recognizes the Governor’s call to share the sacrifice broadly during these very challenging economic times.



“In this economy, as thousands of Vermonters are unemployed and tens of thousands more have seen their pay, hours and benefits cut, and as our state faces massive budget shortfalls in the coming years, it is appropriate that public employees share in the sacrifice,” said Governor Douglas. “This contract is a critical step towards bringing state spending in line with declining revenues.”

This new contract will produce $2 million in General Fund savings for FY2011, which will help offset a budget shortfall of at least $150 million. Importantly, wage costs will not increase over the two year period aggravating the overall deficit – although health care costs are expected to rise. The contract does not contain either changes to employee contributions for health care benefits or any modifications to the employee wellness and tuition reimbursement programs.

While net savings are small as compared to our total budget challenge, the significance of this agreement cannot be understated. “This deal sets the new standard for all public employee salaries in Vermont, as well as for non-profits who get a significant portion of their revenue from the State,” said Secretary Lunderville. “As families struggle to make ends meet, this agreement shows a common sense approach that should be applied to salaries for public sector employees and can serve as a blueprint for teachers, municipal workers and others who receive a paycheck from taxpayers.”



Economists have reported that Vermonters have lost over $1 billion dollars in income in the past year. In the last two years, state employees have received an average 7% increase. During the same two year period, the Governor, his appointees and some other elected officials took a 5% pay cut and have had wages frozen since July 1, 2008.

Representatives of the Vermont State Employees Association (VSEA) and representatives of the Douglas Administration met this morning to sign a new contract proposal covering VSEA members in three separate bargaining units for 2010-2012. The proposal will now be subject to a vote by all state employees working in the VSEA bargaining units covered by the new agreements

“As many longtime VSEA bargaining team members will attest, this round of bargaining was unlike any other they have ever participated in,” said VSEA Director Jes Kraus. “Our bargaining team members understand the reality of the current economic crisis, and they have been trying to help for nearly a year. Ultimately, it took a decision by an experienced fact finder to get the Administration to accept any help from state employees.”

Kraus explained that the fact finder’s report was accepted by both parties, leading to the formal proposal signed today. The fact finder’s recommendations include a 3 percent pay cut, followed by a two-year pay freeze. The 3 percent cut will be restored at the end of the two-year contract, when the State is likely to be on more solid economic ground.

“Nobody likes a pay cut and pay freeze, but VSEA bargaining team members determined the fact finder’s proposal to be the fairest way to help with the economic crisis, which is why they voted overwhelmingly to take the proposal to the membership,” explained Kraus.

VSEA will be holding a series of statewide “contract explanation” meetings to allow union members to ask questions and get more information about the new proposal before voting.

Labels: Gov. Jim Douglas, vermont politics, VSEA

posted by vt.Buzz  |  3:53 PM |