vt.Buzz ~ a political blog

Political notes from Free Press staff writers Terri Hallenbeck, Sam Hemingway and Nancy Remsen

12.03.2009

VSEA headed for pay cut

A 3 percent pay decrease is coming for state workers in the upcoming two-year contract, if members approve it.

The Douglas administration is suggesting this should be the model for other public employees (i.e. schools) and nonprofits (i.e. all those with big salaries that get state money).

What do you make of it?

Here are the releases from the gov's office and the union:

Gov:

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.

Union:

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.

- Terri Hallenbeck

Labels: Gov. Jim Douglas, vermont politics, VSEA

posted by vt.Buzz | 3:53 PM | 24 comments

9.21.2009

Talks break down between VSEA and Douglas administration

The Douglas administration and the Vermont State Employees Association spent seven hours in talks Monday in a last ditch effort to avert layoffs, but failed.

As a result, the administration will start the layoff process Tuesday. Two hundred or more workers may lose their jobs.

The irony is that the two sides agreed on how to find $7.4 million in labor savings this year and that was supposed to be the subject of the talks. They had compromised on four furlough days and three fewer paid holidays and tapping savings from a medical plan.

The dispute was over some other strings each wanted to attach to this deal. The administration wanted the union to agreed to permanent future savings -- because the state's financial problems are long-term. First the administration asked for about $38 million in savings over two years -- with details of how to be negotiated later. Monday night, the administration was willing to settle for $20 million over two years.

The union wanted to talk about that stuff out later, but made an offer Monday of $10 million over two years. In return, the union wanted a guarantee of no more layoffs this year, next year or the year after.

The gap was too big and no deal could be reached. The two sides walked away from the table with little hope of returning.

Lawmakers will be miffed. The Joint Fiscal Committee urged the two sides to find the $7.4 million in savings without resorting to layoffs. Lawmakers even told the administration they thought it was making a mistake to push for future concessions as part of these talks.

Lawmakers couldn't, however, get in the midst of contract talks that didn't involve them -- much as they would have liked to.

Anyone see any chance this can have a different ending?

-- Nancy Remsen

Labels: Douglas administration, layoffs, VSEA

posted by vt.Buzz | 9:55 PM | 18 comments

9.10.2009

Keeping up with Gov. Jim Douglas

Gov. Jim Douglas, barely back from France, will head to Maryland next week to announce another initiative as chairman of the National Governor's Association.

The event is set for Wednesday afternoon at the Gaylord National Resort in a place called National Harbor.

Here's the announcement.

"Millions of American children face formidable challenges to their long-term health and academic success because they live in poverty and lack access to high-quality health care and constructive early learning opportunities. With this in mind, the NGA Center for Best Practices will host a first-of-its-kind summit that brings together state teams to develop a coordinated policy agenda among state health, early education and human service systems to ensure better outcomes for our children. As part of the summit, Gov. Douglas will speak at a session titled Creating a Children’s Agenda in the New Economic Reality about the importance of comprehensive initiatives that address high-quality early childhood programs and children’s health and welfare in the context of the current economic climate."

This seems like a big challenge -- at a time when governors have a lot of their plates. Next week in Vermont, for example, is the deadline for the Douglas administration and the Vermont State Employees Association to reach an agreement on $7.4 million in cuts or a bunch of state workers will be laid off.

-- Nancy Remsen

Labels: children, Gov. Jim Douglas, National Governors Association, VSEA

posted by vt.Buzz | 5:47 PM | 16 comments