Negotiators for Gov. Dannel P. Malloy and state employees talked into the early hours Tuesday without reaching a deal to lower the state's labor and retirement costs, leading the administration to begin to issuing layoff notices. But both sides said they remain optimistic about reaching a deal.
Spokesmen for Malloy and the unions told reporters that the talks will continue, despite the drama of the first of 4,742 layoff notices going out by the administration. It appears the notices will go out in a trickle, giving negotiators time to conclude their talks well before it is known who is targeted for a layoff.
"We're going to keep talking as long as we can," said Larry Dorman, a spokesman for the unions.
Roy Occhiogrosso, the senior adviser to Malloy, said the administration has the same posture.
In their earlier statements, both sides signaled disappointment in the failure to conclude the talks overnight.
"After more than two months of talks, I'm afraid that my administration and the state employee unions have not reached agreement," Malloy said in a statement issued at 8 a.m. "Our talks have been respectful and forthright so far, and I remain willing to continue the discussions if the unions are willing to do so. However, we must all be willing to work toward a settlement that Connecticut taxpayers can afford in the long run."
The State Employees Bargaining Agent Coalition posted a statement on its website saying they also will attempt one final day of negotiations: "The discussions have been extraordinarily complex and demand our continued efforts to find mutual resolution."
"SEBAC is disappointed the administration has decided to begin issuing layoff notices. We have said time and again that laying off workers, whether in the public or private sector, and slashing vital public services will prove disastrous to our shared goal of creating jobs and rebuilding the middle class - especially at a time when our 9.1% unemployment rate is already higher than the national average," the union said.
Malloy, whose full statement is available on his web site, said he has no choice but to begin the layoff notices if he is to have the flexibility to reduce the workforce soon after the new fiscal year begins July 1. Without the labor concessions and savings, the budget approved last week by the legislature has a $1 billion shortfall.
"We need to cut an additional $1 billion in spending in order to balance the budget in each year of the biennium, because I refuse to raise taxes beyond what has already been agreed to. We held off on any layoff notifications while we tried to complete a deal over the weekend and on Monday night. Unfortunately, absent an agreement and in order to comply with contractual notice requirements and the provisions of the budget agreement signed last week, we need to begin those notifications today," Malloy said.
Malloy said notices will go out to 4,742 employees, the number he shared with legislative leaders last week. The administration says the layoffs will save $455 million, with another $545 million coming in other spending cuts.
"I want to be clear that this is not the road I wanted to go down. I didn't want to lay people off, and I didn't want to make additional spending cuts beyond the $780 million in spending we've already cut," Malloy said. "But I have no choice. I promised the people of Connecticut that I would change the way we do business in Hartford. I promised to deliver a budget that is balanced with no gimmicks, and I will."
Neither Malloy nor labor has specified the sticking points in their talks, but sources say retirement age remained an issue. Malloy in his statement said he is seeking immediate and long-term savings.
"The savings we are seeking to achieve with our state workforce are predicated on two principles: We need to achieve the short-term savings necessary to balance this budget, and we need long-term, structural savings in order to make state government sustainable," Malloy said. "To do so, I am attempting to bring the benefits enjoyed by state employees -- wages, healthcare, and pension benefits -- more in line with those enjoyed by their counterparts in the private sector and in the federal workforce.
"The state employee representatives have thus far not offered enough."
On Monday, allies of labor at the Capitol said their sense was that talks were going well.
Union negotiators returned to the Office of Policy and Management at 10 p.m. Monday after hours of consultation with representatives of the 15 unions in State Employees Bargaining Agent Coalition about the administration's latest offer. Mark Ojakian, the deputy secretary of OPM, is Malloy's lead negotiator.
"It's going to be a long night," Matt O'Connor, a spokesman for the coalition of state employee unions, had said Monday night.
Both sides have imposed a news blackout, but O'Connor said the talks resumed after a lengthy briefing by the unions' lead negotiator, Dan Livingston. The union leaders intended to remain available in Hartford should the negotiators emerge with a potential agreement.
The union leaders' decision to remain nearby seemed to point to optimism that a tentative agreement could be reached over night, but O'Connor declined to describe the mindset of the union negotiators or leaders, other to say they are aware of the clock.
"Folks are very mindful of deadlines and the possibility of layoff notices going out tomorrow," O'Connor said.
At midday Monday, Malloy had declined to cite a precise deadline.
"They know the deadline. I know the deadline," Malloy said of the unions."There's not a lot of time before we have to start to do things."
Those things include layoff notices, originally planned for last week, that would allow the administration to cut the workforce soon after the start of the fiscal year on July 1 if the concession talks fail to yield a significant portion of the $1 billion in savings demanded by Malloy.
The close consultation of the unions' leaders by their negotiators are the latest sign that the talks are focusing on a shrinking number of contested issues. Sources who have talked to individuals briefed on the negotiations say, not surprisingly, that retirement age remains a sticking point.
Who is going to process all the new changes the governor has proposed if he lays off the workers? In times of trouble government expands to process unemployment, welfare and family services. Is the public prepared for what they are asking? Can you wait another 6 weeks to get your check? There are plenty of ways to cut government spending that does not entail cutting staff, but no one wants to do the hard work to truly cut spending. Employees make a good public enemy and it is the cowards way out. Someone needs to do their
Read MoreI didn't understand my Mother when I was a child and she explain to me that "Unions eat their young". When she told me how her father, a fierce union supporter in the 1920's and 30's, was soured by the "new union" which he encountered when the 2nd world war compelled skilled tradesmen like him into factories to help with the war effort no bell went off in my young head. Now I understand. Unions actually do eat their young. Rather than concede some part of their solid gold pension or benefit package, or a small portion of their inflated
Read MoreThere should be more than 4,742 layoffs. We have so many state workers, they are stacked up like cord wood. There is one state worker for every 61 people in Connecticut. There is one manager of a state worker for every 6 employees. State spending has increased by 250% across the last 20 years and job growth has not moved an inch. We have the highest per capita debt in the nation; nearly the highest gas tax; the highest utility costs; our sales tax is now higher and we are going to tax more things than anybody in the NE
Read MoreNo other Gov has asked for such a ludicrous amount from state workers, not even Republican Gov's.
Why doesn't ctmirror have a story on how unrealistic the request is proportionately compared to any other state? It was doomed to fail and either he knew that or in his arrogance (as shown during the debates), didn’t listen to any of his advisors who must have.
Keep piling up folks on the unemployment line vs. having the large corporations and the SUPER rich pay their FAIR share....
Pretty soon they'll be NO middle class to pay the taxes, then what'll we do???
In response to MTD1 above: perhaps Jon Pelto's blog (Wait, what?) will be helpful.
http://jonpelto.wordpress.com/2011/05/09/embarrassment-mixed-with-a-heav...
All you naysayers; Have you read the first comment? Are you sure that reducing the employee count before reducing the amount of work required by Dannel's new tax recommendations is a good idea? This is a way for Dannel to say he tried to reduce costs without putting the effort into a viable way to reduce costs. Now he has someone to blame when it comes out he has no clue how to form a state budget. The state continues to create new programs, new taxes, new oversite and we wonder why the cost of government
Read MoreTo all of you who want to see the layoffs, I would like to hear from you. Can you tell me why that after 17 years of employment you all seem to think that I am a wealthy man with an inflated salary? Not all of us are Jim Calhoun, and after 17 years, I am just about pushing 50k on a single salary. I will bet that at least some of you are earning more than that.
He will not get reelected, and he will not deserve to get reelected. If Malloy lays off 4700 people it will only prove that he is a liar, because if you go to the you tube website and just type in Dan Malloy/unions you will see all the speechses that candidate malloy gave in front of the unions. The truth is, is that he worked very very hard to get theie support, and the unions worked very hard, and went door to door for him during the election, and even helped to transport people to the polls/If he lays off
Read MoreWouldn't we all like to know the details of the negotiations and why the talks broke down. This silly "blackout" needs to be lifted and the facts need to surface. Then...and only then...can we all see if state employees are be greedy or if Malloy is asking for a sh%tload of money and a kidney to boot.
For the record...as a STATEE...I have no idea as to what these negotiations entailed.
Give the union members the facts and the results may be different.
One of the many problems with the Governor's plan is that he is proposing over 4,700 layoffs with no substantial change in the structure of state government and services which it provides. That's stupid and won't work. If the state wants to reduce its budget and the number of state employees -- both of which are needed -- it needs to reduce its programs and the services which it provides and asks those employees to deliver
He asks for shared concessions which I have no problem with but why is it that Bank of America pays no taxes to the state of Ct.If you want us all to give a little than it should be ALL of us.The amount of money these big corporations are not giving the state would probably solve alot of the states problems.Open your eyes!!!!
"An advocate for.." Thanks for the link, an excellent article.
A couple quotes from an article he wrote in April really struck me:
"the Malloy Administration has never admitted that the number they are demanding from Connecticut’s state employees is “almost double what New York Gov. Andrew Cuomo obtained from his much larger work force.” "
and:
"Although rank and file state employees seem almost unanimously committed to doing their fair share to balance Connecticut’s budget, few – if any – understand the extent to which they have been set up to fail.
This is a dark time for
Read MoreI find it incredible that no one seems to remember that the state employees everyone loves to demonize are STILL paying for the last $1billion union concession package that was agreed to by the unions from 2+ years ago.
Due to that agreement, I currently make $5000 less than my contract agreement from the wage freezes, and the furlough days and other givebacks have cost another $6000. What that amounts to personally is a paycut of almost 20% that I am ALREADY paying for, in addition to all the tax increases and other costs that come with living in CT.
Read MoreMalloy can now, as a last resort, execute Plan B, which is to reduce the state payroll by 10,000 workers (out of a total of 50,000 +) by offering them early retirement incentives, and thereby totally and ruthlessly bypass the unions, in meeting the budget deficit. This move will also deliver Malloy from self-inflicted bondage to the unions. Plan B will also help the young workers, who need their jobs most, to continue in their jobs and be productive, but get rid of the dead wood that are making the highest wages. When you retire the oldest workers, unions especially
Read MoreI would have preferred a 10% pay cut but a 10% layoff works. THe union members don't even get to look at this. THe greedy union bosses only look out for themselves.
In my longest technology job of 27 years, I was laid off because the company moved most of their ops out of state. The state did nothing to keep them. In fact after 5 years I'm not sure the state knows they are gone. The pensions went a year after I did. Most tech people worked 50-60 hour in a normal week. One year I worked an additional
Univ Prof- 20% cut is a start. Now pay more for medical benefits, lose the pension, longevity bonuses, and the tenure, work 60 hour weeks and you may be approaching the life of a private workers. Join the club there are plenty of us in it.
Union negotiators make way more than the average member and some more than the governor.
http://www.raisinghale.com/2011/05/09/two-union-negotiators-earn-as-much...
Malloy makes less than 1,126 state employees, but he also makes a little bit less than two of the union leaders he may find across the negotiating table.
Salvatore Luciano, executive director of AFSCME Council 4, made $151,003 in 2010, while Sharon Palmer, president of AFT Connecticut, made $150,165.
Malloy’s chief negotiator, Mark Ojakian, deputy secretary of the Office of Policy and Management, makes $170,000.
AFSCME Council 4 represents 33,200 state and municipal workers who pay $21.80 per month in dues. In all, the
Read MoreWell I have worked in both public and private industry and I have worked extremely hard in both. There id deadwood in both so please do not give anyone the feling that private industry has all stars. I have seen workaholics in both and have received huge bonuses in the 80's and 90's in private industry. These are difficult financial times for the State of CT and the idea that stste workers are the reason for the state financial woes is stupid and incorrect. I agree that state agencies needs a complete organizational restructuring but this is not the way
Read Morejschmidt27: Given what you relate about your experiences, I can completely understand why you would be upset.
Still, do you really want the public sector to mirror the private sector? While this might reduce costs at some levels, it would see costs explode at other levels. Do you want to pay the governor what a CEO makes? Or the director of OPM what a COO makes? Do you want to pay state lawyers what lawyers in private firms make? Do you want to pay that professor what professors in the private sector make? If you added it all up, moving
Read MoreSET- I fail to see where the Republicans come into this. THe Dems control the legislature and the governor slot. THe Dems have controlled the legislature for years. THey control the COngressional delegation. AN you blame the Republicans. It is beyond me. The COngressional delegation hasn;t done its job as it gets us back only 69% of every dollar we send to DC. Even an earmark that Dodd put in the healthcare bill for 100 million for a hospital went instead to Ohio, a swing state. Since CT religiously votes Democrat, why waste an earmark on CT when you can
Read MoreI hear you, jschmidt: some of the administrative/managerial positions are redundant and overcompensated - you'll get no argument from me on that point.
My point is that the "average" state employee voluntarily supported the previous givebacks in good faith to the tune of 15-20%. Do you really think that is fair, compared to the salaries of CEOs of private sector corporations, banks that pay no income taxes, and the like?
The 4700 jobs cut will be those newer hires who have 401k or similar plans and not pensions like most of the hires from the last 10 years, no
Read MoreUniv Prof- Everyone on the union side seems to focus on the hedge funds. You want confiscate more of their money, there is a good chance they'll leave taking their money with them. So how much can you push business/hedge funds before they'll leave? Well they already live in a state ranked 47 for business friendly and that was before the budget. NY, NJ are cutting their budgets so it is likely CT may drop to last. So well see how many business leave. Already lost 2, one to NY and one to RI. Hey but the hedge funds make
Read MoreCall Donovan. Call Williams. Call your legislators. They empowered Malloy to do this. Let them know that you are going to hold them accountable for the mess that he is creating.
I'm happy that you are happy about the way your company treated you. But companies nor the state should treat employees on the corporate agenda. I'll assume you have no clue what that is. Theircagenda is to keep all American workers at the lowest pay with the fewest benefits, so that those who invest in their company can make money. They also want to pay the lowest taxes, and to protect their investors from paying taxes. That job of paying taxes is for the middle class. I don't like it. Maybe you do.
Read MoreMoving to the private sector model increases productivity. The executive salaries like in the private sector would be decided by the Board of Directors and stockholders, in this case the voters. Imagine if the voters decided on salary increase of governor and legislature. THey wouldn;t be getting raises that's for sure. What you don't seem to understand is the private sector will refuse to support a bloated public sector. They will move businesses to lower taxed areas. THere is a reason the auto industry from foreign manufacturers a building in the south. There non union plants are more competitive, more
Read MoreSInce the unions refuse to bargain, aid to towns will most likely be cut. Malloy said in his campaign he wants the towns to tax themselves. Since he only needs the cities to win re-election, he can dump the towns to make up the differance. Would have been nice if the unions did their part but obviously they don't mind losing the 10% newest employees.
I am state employee with 12 + years of service. I was laid off by Rowland in 2003 and called back later that same year, I agreed to concessions under the Rell administration and now our disingenuous governor seems to spend every spare moment blaming state employees via the radio, TV & newpapers. Union members have not been approached , at all, to see what they would consider for concessions. Mr. Malloy set the mark high intentionally so he could blame the employees for his mistreatment of them. Prior to my state employment I worked in the private sector
Read MoreIt's probably too late now but Malloy should have made a reasonable request for concessions like all other state Gov's have done. And like all other Gov's, request that part of the 'shared sacrifice' concessions include the 150,000 municipal/town employees rather than just ask this from the 45,000 state employees.
A baffling strategy that unfortunately will result in none of the real abuses being corrected (longevity, OT abuses to increase retirement etc.).
realkook, are you still on the retirement incentive kick? Trying to make it sound like it's a blow to the unions to do a retirement incentive without the approval of the unions? Leave now and lock in what you already have (if you can).
I hope the legislature puts plan b into effect. It is far from perfect but it is the best deal that they can get. It is disappointing that the legislature did not do anything about the unfunded pensions and medical liabilities.
I am not surprised the union pushed 4,700 of their members in front of the bus. The key words for them is ME and GREED. It will be very interesting to see what happens when the pension fund runs out of money. I hope I am out of this state when it happens.
JSchmid, I am not blaming the Republicans for all of the financial woes of the State but Gov Rowland did not veto the 20 years benefit package, did he? At least Gov Rell could be overridden so I will give her a break. Rowland gets on WTIC and says that his actions have nothing to do with the negotiation impasse, he really thinks the people of CT are stupid. All I am saying is unless Malloy gets this reorganization correct, Dems like me have no place to go politically so we will stay home. I voted for Ronald Reagan
Read MoreI'd love to see the private sector be as productive. And be as inexpensive as state employees. Some years ago my department released four state employees who cost $139,000 from cleaning our building. The first two years the contract cleaning was cheaper... Now? We pay almost $300,000 to clean the building, they don't change light bulbs, we buy all their supplies, and one of the staff spends 20% of their week looking after them. Private sector productivity is another part of the corporate agenda. The media, and the blind, non-critical thinking general public
Read MoreMore stupidity I see. Why do you want LESS of the American dream? Why should everyone except the rich and corporation top notch earners work 40 hour weeks. Join a Union and get a piece of it. Don't drag us into the toilet with you. WE are NOT the problem. You are!
>>I find it incredible that no one seems to remember that the state employees everyone loves to demonize are STILL paying for the last $1billion union concession package that was agreed to by the unions from 2+ years ago.>>
STOP IT, Mr. Professor!
You know darn well the unions 'gave back' about $300M, less than 1/3 the $1B they like to imagine.
Also, the professor doesn't know the difference between a cut to a potential or hypothetical pay increase and a true decrease in pay.
Far too many in the private sector know what it's like to be 'cut' or
Read MoreIf everyone joined a union, there would be no businesses in the US they would not be competitive in a global economy. So this country would then become irrelavant. Look to Greece, France where the unions are all powerful to see the effect on a nation. Greece is almost bankrupt.
Actually, it sounds like the professor clearly understands that the state employees have already been subject to a "true decrease in pay" in ADDITION to the salary and benefit cuts that the unions agreed to a few years ago... and that the actual figure of those union concessions of 2009 is ~700million but you probably know that darn well too.
To joinaunion What good did it do to be in a union for the 4,700 members you threw in front of the bus today. Look at all the states, cities,airline,auto makers etc. The one thing they have in common is unions that bankrupted them. Will the 4,700 get their union dues back? Looks like they paid for nothing. Keep paying your dues so your leaders can make $150k per year.
Vote "NO" to the concessions. To state employees, the state is still accumulating the savings from the concessions of '92, '97, '03, '09, and the huge savings from the new Tier II pension of '84. Now we have the concessions of '11, stepping on the toes of the concessions of '09. Since Weicker, we will have easily given up 20% of our pay between concessions and furlough days. We've seen 4 waves of Tier I employees retire from the ages of 55 to 60, with enhancements to an already generous retirement plan. Since Tier II pays out about 40%
Read MoreOutsource? Part time labor? Oh wait - the union won't allow that...
The unions provided concessions in 2009? OK...but why is their pay still so out of whack with the private sector? Why are their benefits so out of whack with the private sector? Why is the parking lot empty at 5PM? Because you have to pay them overtime!!!
Let's stop calling all of this concessions and call it what it really is. Honest pay for a set amount of work. Isn't that what the unions used to say?
It seems to me that the Republican/Tea Party agenda of union bashing is alive and well on these postings. I am not and was never a member of a union.There would be no need for unions if employees were treated fairly by employers. It so happens that wherever there are not unions, employees get cheated and discriminated against. Let me get into the stupid argument about private versus public and who is paying for whom. Private employees provide goods and services for public consumption and public employees provide services for public needs. The key is that employees of
Read More