Connecticut Unions Agree to $1.6 Billion in Givebacks

[Omaha Steve]

http://www.nytimes.com/2011/05/14/nyregion/connecticut-reaches-deal-with-unions-to-close-budget-shortfall.html?_r=1&src=recg

By PETER APPLEBOME
Published: May 13, 2011

HARTFORD — Threatened with nearly 5,000 layoffs, representatives for 45,000 unionized state employees agreed Friday to $1.6 billion in concessions over two years to help balance a budget that Gov. Dannel P. Malloy says includes pain for everyone: record tax increases, substantial program cuts and worker givebacks in health care, pension benefits and wages.

Mr. Malloy announced the deal after two months of negotiations and the passage of a budget last week that assumed concessions before they were accepted by the unions. He said the deal, which is still subject to ratification by workers, would save Connecticut taxpayers $21.5 billion over 20 years through structural changes in employee compensation.

The governor, a Democrat who won election in November with strong union support, has carved out a national niche as a politician seeking an approach to state governance different from the confrontational stances taken by Republican counterparts like Chris Christie in New Jersey and Scott Walker in Wisconsin. Despite layoff notices that started going out this week, Mr. Malloy and labor leaders maintained a cordial public tone throughout the bargaining.

Mr. Malloy hailed the deal as “historic because of the way we achieved it — we respected the collective-bargaining process and we respected each other, negotiating in good faith, without fireworks and without anger.” He also called the deal “the most significant agreement with state employees in Connecticut history” for its long-term approach.

Republicans were far less impressed; the party’s chairman, Chris Healy, called the agreement a “budget charade,” with insufficient work force cuts because of Mr. Malloy’s close ties to employee unions.

The agreement includes a provision that no unionized employees will be laid off for four years and a two-year freeze on wages for all employees. Mr. Malloy said he nevertheless planned to reduce the size of the government through attrition and the elimination of managerial positions.

FULL story at link.


Jessica Hill/Associated Press

Gov. Dannel P. Malloy, standing center at right, on Friday announced a deal negotiated with officials of public employee unions. He released few details, but Republican leaders quickly questioned the prudence of the agreement.

[Larkspur]

1. Malloy chose not to mention that he bullied the unions and was going to lay the full blame

on them if a deal could not be reached. We still don't know where Malloy got the $2 billion number he wanted the unions to cough up. The deal that was made only came up with $1.6 billion in consessions, so where is Malloy going to get the other .4 billion?