http://capitolweekly.net/article.php?_c=yx4fd72gvehwoh&xid=yx49k2nxiltt5w&done=.yx4fd72gvf6wohBy John Howard | 06/16/10 12:00 AM PST
Four state-employee bargaining units representing 23,000 workers have reached tentative agreements with the Schwarzenegger administration on new labor contracts. The pacts, which must be approved by the unions' rank-and-file members and the Legislature, reflect the state’s harsh economic environment.
The unions made it clear that they were not pleased with the agreements, but said the state's fiscal condition required workers to tighten their belts. Gov. Schwarzenegger said the agreements reflected an element of pension reform.
"I applaud the unions for stepping up and taking these first first steps in helping reform our state's out of balance pensions...," the governor said in a written statement. He added that pension rules enacted 11 years ago had driven up the costs of pensions to unsustainable levels.
The proposed agreements include increasing the retirement age for new hires, boosting the workers’ contribution to PERS and using three-year top-pay formula instead of one year to calculate pension levels. All the changes – and others – had been sought by Gov. Schwarzenegger as part of his pension-reform efforts to help balance the red-ink state budget.
They contain roughly a 5 percent pay cut and approximately a 5 percent increase in the worker’s contribution to the state pension program, said Terry McHale, a lobbyist who represents the firfefighters and the Highway Patrol officers.
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