[T]he Labor Relations Board ruled narrowly in favor of the Vermont State Employees’ Association in a decision on contract negotiations with the state.
The Vermont board voted 3 to 2 in support of the union’s position.
The three members in the majority, including Chair Gary Karnedy, wrote that they found the last best offer from the union to be “more reasonable and in the public interest.”
The difference between the two sides’ proposals is estimated to be $7.4 million over two years.
The board Tuesday recommended going with the union’s request for a 2 percent across-the-board raise for state employees in fiscal year 2017 and 2.25 percent the following year, in addition to regular “step increases” both years. The latter recognize longevity and experience in state government.
The state had proposed a 1 percent across-the-board increase in the first year of the contract followed by a 1.25 percent increase in the second year in addition to step increases. The parties disagreed on how much the step increases would cost.
The two sides turned to the board last month after reaching a stalemate. After mediation efforts failed, the VSEA and the state had brought in a fact-finder in January but were unable to reach consensus based on the fact-finder’s report.
Secretary of Administration Justin Johnson said Tuesday that the board’s ruling will have major implications for state finances over the next two years. “This is going to make what was already a tight budget even tighter,” Johnson said.
The union’s last best offer proposal for the nonmanagement unit is estimated to total $14 million in fiscal year 2017. That’s about $3.5 million more than the estimated total for the state’s proposal. In fiscal 2018, the union’s offer is estimated at $18.8 million and the state’s at $14.9 million.
The fiscal 2017 budget is currently in the Senate Appropriations Committee, which is expected to pass the bill out later this week.
Sen. Jane Kitchel, D-Caledonia, chair of the committee, said it will be difficult to find the money to fully fund the contract. Asked if the Legislature could fully fund it, Kitchel replied, “We haven’t made that determination.”
The House reserved $3.5 million for salary increases, but part of that needs to go to fund a raise for personal care providers. Kitchel estimated that the current budget will be $2 million short.
Kitchel and President Pro Tempore John Campbell, D-Windsor, say lawmakers have several options.
The Legislature could reply to the ruling with the amount of money available and ask the parties to reach agreement based on that sum. It could raise taxes and fees to bring in the full amount. Or, it could choose to underfund the pay act, which would require the administration to absorb the increase by holding some positions vacant and finding other savings.
In a statement Tuesday, VSEA Executive Director Steve Howard hailed the Labor Relations Board’s decision as “terrific news.”
The union will be holding an event with the three Democratic gubernatorial candidates Wednesday to call on lawmakers to fund the wage increases.
Howard said Tuesday evening that the decision shows that “independent, unbiased entities” have determined that the VSEA proposal is “in the best interest of the state.”
“I hope that our (legislative) leaders will see this as a victory for Vermont, not just a victory for the people who make Vermont work,” Howard said.
However, Kitchel voiced concerns that the raise for state employees would exacerbate the gap in wages between people who work for the state in social services and those who do similar jobs for what are called designated agencies, which many perceive as unfair.
“That wage discrepancy, the more it grows, the more acute those feelings grow,” Kitchel said.
Campbell said the committee will see what other options it might have before making any decisions.
Meanwhile, the committee is still working through a $14.4 million list of items that people have requested be included in the budget.
“So, we’re going to have to ponder this,” Kitchel said.
