By Eric Boehm | PA Independent
HARRISBURG — In a new contract proposal with Pennsylvania’s main government workers’ union, the Corbett Administration is proposing a 4 percent pay cut and changes to health benefits.
With the state facing an operating budget deficit of more than $4 billion next year, Gov. Tom Corbett asked Council 13 of the American Federation of State, County and Municipal Workers (AFSCME), which represents about 45,000 state employees, to roll back a 4 percent pay increase which took effect last October. The pay cut would be made up with a 2 percent increase in July 2012 and July 2013.
The Corbett Administration is in the process of negotiating new contracts with government workers as the current contracts expire on June 30.
Changes in health benefits proposed by Corbett would include changes to employee contributions to health plans and a new benefit structure for new employees.
In the proposal, the administration said the cutbacks were “consistent with the need to achieve significant cost-savings.”
The average AFSCME Council 13 employee makes a $39,000 salary with an additional $22,000 in annual benefits, according to the state Department of Administration. The 4 percent pay cut would amount to a $1,500 decrease in annual salary for the average worker.
AFSCME Council 13 employees received pay raises of 3 percent in 2008 and 2009, in addition to the 4 percent pay increase in October 2010.
Non-unionized government employees in Pennsylvania have been subject to a pay freeze since 2008.
The governor’s office did not return calls for comment on the proposal.
Dan Egan, spokesperson for the state Department of Administration, which handles employee operations and human resources for government workers, said the proposal was far from a final product.
“As far as the proposal or the negotiations themselves are progressing, we’re not commenting on those things publicly,” said Egan. “The proposal is just that, a proposal. We’re continuing to negotiate with them.”
Corbett’s office did not return requests for estimates on overall savings.
The next official meeting between union representatives and the administration is scheduled for April 22.
Egan he could not comment on the status of the negotiations but acknowledged that having future meetings planned was a good sign.
David Fillman, executive director of AFSCME Council 13, also expressed optimism about the upcoming negotiations, despite the changes proposed by the administration.
“This is an initial proposal, and we’d be more concerned about this being on the table on June 30,” said Fillman.
The proposal indicates the Corbett Administration wants to change the contribution structure of government employee health plans. Instead of being based on pay, the employee contributions would be based on a premium structure, the way many health plans in the private sector operate.
Government employees currently contribute 3 percent of their salary towards their health care, which is a self-insured fund managed by a board of nine union employees and nine managerial level employees.
The specific benefits afforded by the health care trust fund are not subject to collective bargaining and can only be changed by the trustees.
The administration also indicated it wants to establish different health benefit entitlements for employees hired after July 1 and create a new base medical plan which is less costly.
The proposed health care changes would place a limit on how long retired employees could receive health benefits, though the plan is not specific about what those limits would be or who they would apply to.
Currently, unionized state workers receive health benefits for life after retirement if they continue to pay into the system.
Fillman said there were not enough details on the proposed health plan changes to say whether the union would be supportive, though he warned the changes could make the 4 percent pay cut even more difficult for workers to deal with.
Teachers are taking pay freezes and losing their jobs. State workers are being asked to take a pay cut of 4%. According to the Pocono Record, Gov. Corbett gave his closest aides an 11% increase in pay.
That is the height of hypocrisy and arrogance.
Hey, Governor Corbett, be a real leader and take a major pay cut.
Hey, legislators and senators, take a pay cut.
Why do you think you are worth more than teachers and state workers? YOU are supposed to lead by example.
I am sure Marcellus shale drillers and other major contributors will more than make up for the money you give back to us.
Remember, YOU are a state worker paid for with state tax money. Every little bit helps. Join us-share the pain!!!!!!!!!!!!
Actually, it is not true that retirees get health benefits for life as long as they contribute. There are different classes of retirees depending on the date of retirement. Over 43,000 retirees contribute $0. About 10,500 contribute 1% of their last year’s base salary. Anoher 7,500 plus contribute 3% of there last year’s base salary. This last group gets hosed, since their pensions are far less than what they earned in their last year and as employee contribution rates go up, so does their contributions.
The post by Paul Gregory is right on. The legislature is getting away with murder. 2nd largest in the country next to New Hampshire (whose members get paid $100.00 per year). Our legislature is twice the size of California, whose population is 3X the size of PA. They have the second largest support staff in the country. They get more perks than anyone in the private sector. They can make their own rules. Excelerated retirement and the best health benefits our money can buy. WAMS. Kind of like royalty, eh.
Why is it always the little guy getting slammed and asked to give back and give up. Gov. Corbett gives out 11% raises to new appointees saying you got to pay to get quality people. What a slap in the face to teachers and unionized state workers, who I guess by the states offer are considered subpar employees. He gives the Marcellus Shale firms a free ride and in the future wants to lower corporate taxes 3%. Where is the shared pain in this budget, I’m looking really hard to discover it. Also he proposes cutting the legislatures budget by 1.6% and letting them keep 188 million in wam money.(Lots of waste could be cut here, but both houses are controlled by republicans, so he won’t mess around there).No give on one side should also produce no give on union side.
Corrupt.. I think we need to start the recall process..He wants to kill the working class..
Want to save money? State employees who are married to other state employees should not be able to both receive pensions. They should get the pension of the highest earner. If divorced or death of one should occur then the other pension kicks in. I’m a state employee and my spouse does not get a pension. We have to invest like the majority of americans.
If both spouses work, both get a pension, they earned it and they both worked to make a living wage before retirement. Mike WHO do YOU work for?