Shumlin administration officials and the state employees union announced on Friday afternoon that they have come to an agreement on a two-year contract that includes the restoration of the 3 percent pay cut that was instituted two and a half years ago and a 2 percent pay increase in July 2012 plus a 2 percent increase in July 2013.
The deal must be ratified by members of the Vermont State Employees Association. Members are expected to vote by mailed ballot in several weeks.
Gov. Peter Shumlin said he was pleased with the terms of the agreement and “our partnership with Vermont’s hard-working state employees.”
“While these contracts provide a modest increase for state employees, they also reflect the fiscal constraints facing Vermont taxpayers and our responsibility to maintain fiscal discipline in the coming years,” Shumlin said in a statement.
John Reese, the president of the union, which represents about 5,500 members, said he was “incredibly” happy with the arrangement.
“It’s been a tough couple of years with us taking a pay cut, no steps and no cost of living increase,” Reese said in an interview. “Getting 3 percent back is huge. It’s modest, but the extra 2 percent for the next two years is really good for our people.”
Reese said he thinks the ratification vote will be a landslide in favor of the agreement. Reese said he talked to two dozen workers and they’re “over the moon.” “We were worried we were going to end up with nothing, so they’re quite pleased. “
The deal includes the elimination of the Columbus Day holiday in 2013 and a $5 co-pay increase for office visits under the Select Care medical plan, starting in January 2013. The Shumlin administration says these two changes will generate substantial savings over time.
The complex formula known as “steps,” used to calculate individual pay grades based on experience, seniority and education will no longer be frozen.
Jeb Spaulding, secretary of the Agency of Administration, said “I think it’s a fair deal for the taxpayer and a fair deal for state employees, and the fact we can do it without an acrimonious process … is a benefit for everyone, and I hope a morale booster for state employees.”
The agreement marks the first time the three bargaining units – Corrections, Supervisory and Non-Management Units — and the state have not had to resort to mediation or fact finding as part of the negotiation process.
Spaulding said the administration projected ahead of time what it would cost to go through the longer, more typical, adversarial process and determined that if they spent months of wrangling with fact finding and legislative lobbying the result would have been the same. “We spent quite a bit of time trying to project where we would be with the acrimonious route,” Spaulding said.
“We don’t have time for that kind of a game that ends up using state employees as pawns, and it’s not the most courageous or productive way to go,” Spaulding said.
In fiscal year 2013, the restoration of the 3 percent cut will cost $9.2 million, according to Joint Fiscal Office estimates. The 2 percent increase in pay will cost $7.7 million, Spaulding said.
