State workers, Douglas Administration begin negotiations

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(Host) The Douglas Administration and the State Employee’s Union have started their negotiations over a plan to reduce labor costs in the current fiscal year by almost $7.5 million.

But as VPR’s Bob Kinzel reports, if past history is an indication, the negotiations won’t be easy.

(Kinzel) This isn’t the first time that the Douglas Administration and the VSEA have tried to negotiate a deal to reduce labor costs as a way to offset declining state revenues.

Last winter and spring the two sides failed to reach an agreement and the Administration ended up laying off roughly 120 employees.  Each side blamed the other for the job cuts.

Now the two groups hope to find ways to cut costs by $7.4 million without implementing any additional layoffs.

Administration Secretary Neale Lunderville wants a deal in the next few weeks. He says there are a limited number of options on the table, including pay cuts, furlough days and asking state employees to contribute more for their health insurance.

If there’s no deal, as many as 250 state employees could lose their jobs:         

(Lunderville) "The longer we wait the more difficult it becomes to achieve those savings in the current fiscal year so we want to act quickly and hopefully get an agreement to avoid those layoffs."

(Kinzel) Governor Jim Douglas says he hopes this time around, the VSEA fully realizes the serious economic challenges facing the state:

(Douglas) "…We still may be looking at a difficult fiscal and economic environment and that this might not be the end. So, just as some legislators now seem to understand how serious it is, perhaps folks at the union understand it as well."

(Kinzel) VSEA spokesperson Jes Kraus feels his union did make a serious offer last spring – an offer that included pay freezes for several years and 4 furlough days. 

He thinks the Administration is more focused on reducing the size of the state’s workforce:

(Kraus) "It’s like giving somebody a twenty dollar bill and they say ‘no, I don’t want your twenty, I want a ten, a five and five ones’.  You know, we’ve offered already – twice – during the past year to make all kinds of concessions to help solve the problem. We’re told by the Administration now ‘it’s our way or the highway – we don’t want your money.’ So, it’s unfortunate that it’s been the Administration’s stance. We certainly hope that their stance will change so that we can work together to solve this."

(Kinzel) This issue could end up in court. That’s because the new state budget requires legislative approval if the Administration wants to layoff more than 1% of the state’s workforce – or roughly 80 employees.

But the Governor says this provision is unconstitutional and a judge may have to resolve this disagreement if the two sides can’t reach a compromise on cutting costs.

For VPR News, I’m Bob Kinzel in Montpelier.

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