May 29, 2009

Pennsylvania state employees, including those represented by AFSCME Council 13, have worked out a unique deal that will prevent the state from balancing its budget through the furloughs and job cuts currently experienced by other public employees across the nation.

Under the arrangement, the state has reduced by 20 percent its health care benefit contribution rate to the Employee Benefit Trust Fund. The state also agreed to pay back the fund in monthly installments starting as early as September 2010.

Union members will experience no reduction in the level of health benefits, and there will be no additional employee contributions, other than those that are in the contract. Importantly, there will be no wage or benefit concessions, or other changes.

Gov. Ed Rendell (D) had proposed that state workers take two unpaid days off each month to help wipe out a $2.3 billion budget deficit.

“It was imperative to prevent these rolling furloughs and it was imperative not to open the contract for concessions,” says David R. Fillman, executive director of Council 13 and an AFSCME International vice president. “This deferred payment method gave us the alternative we needed.”

Council 13 members overwhelmingly ratified the agreement, which also was approved by members of the Service Employees International Union (SEIU) and United Food and Commercial Workers (UFCW).

At Council 13’s Convention in April, AFSCME International Pres. Gerald W. McEntee observed, “You’ve got such clout that it’s no surprise you reached an agreement with the state to avoid rolling furloughs, even in the midst of this devastating budget crisis. Given the times we’re in, you should be very proud of what you achieved.”

Read more about the agreement in this issue of Council 13’s Public Employee Press.