Negotiators for state employee unions and Gov. Dannel P. Malloy tentatively agreed today on a package of concessions and other labor savings that will help Malloy balance the $40.1 billion biennial budget without 4,700 announced layoffs.
The deal, which is subject to ratification by nearly 45,000 employees in 15 unions, comes after weeks of intensifying negotiations and days after the first 186 of 4,472 layoff notices went out.
Sources said the deal was expected to fall short of Malloy's demand for $1 billion in labor savings in each of the next two fiscal years, but would provide hundreds of millions of dollars in immediate and long-term savings. A union statement placed the value of the savings at $1.6 billion, but it was unclear over what time period.
Malloy is holding a press conference at 3 p.m.
Representatives of SEBAC, the State Employees Bargaining Agency Coalition, will address the press separately.
In a notice to their members, SEBAC outlined the deal:
"The agreement is intended to help reduce costs while protecting public services in the current and next fiscal years, and to help put Connecticut on a firmer footing for economic recovery. When finalized, the agreement will provide for savings of approximately $1.6 billion in combined labor cost reductions and service efficiencies. The agreement also provides job security, and does not contain any furlough days or reductions in work hours for permanent state employees."
It was unclear how many details would be released today
"In order to respect the fundamental rights of the working men and women we represent, SEBAC leaders have agreed not to publicize details until they can be presented to members of our unions. This process will begin immediately," SEBAC said.
Malloy and the union leaders have kept a tight news blackout on the talks.
"As we move forward, SEBAC leaders appreciate the solidarity, patience, and dedication that has been demonstrated by our 45,000 members. The process has been difficult and anxiety-producing as members wait for details about their future in the agreement. Given the extraordinary stakes involved, we sought to avoid the speculation and misunderstandings that would hamper our ultimate goal of reaching a mutual settlement by keeping our discussions out of the media," SEBAC said.
"The reality is that more work remains to be done," the union coalition said. "Any final agreements must be ratified by the members of our unions and approved by state lawmakers."
Negotiators for the administration and SEBAC met until 3 a.m. today, the latest in a series of talks that seemed tantalizing close to completion.
The labor contingent led by long-time SEBAC lawyer Dan Livingston resumed its internal discussions at 10 a.m., making periodical phone calls to the administration team led by Mark Ojakian, the deputy secretary of the Office of Policy and Management.
Union stewards began notifying members of a deal at midday.
The General Assembly passed and Malloy signed a $40.1 billion biennial budget a week ago that raises a broad array of taxes by $1.4 billion and relies on $1 billion in labor savings in each of the next two years. Without a deal for the savings, the budget is incomplete.
Improving revenue estimates have lessened pressure on the talks to produce a full $1 billion in savings, but Malloy never publicly changed his savings target.
Since signing the budget, Malloy has tried to increase pressure on labor, first by circulating a list of more than $1.6 billion in optional spending cuts, then by beginning to issue layoff notices Tuesday.
The optional cuts--$455 million in layoffs, plus $1.2 billion in other spending reductions--had its desired effect, drawing howls from municipal leaders and other constituency groups about what many termed "the Plan B budget."
But Plan B was a misnomer. The list of options was a menu of potential choices, not a plan for budget revisions, and legislators in both parties said many of the options, including deep cuts in aid to municipalities, have no chance of passage.
The options included largely defunding the state's vocation schools, slashing the Department of Environmental Protection budget by 60 percent, and eliminating funding for the town road aid program.
