While most veteran unionized employees are forfeiting their longevity pay as part of the labor concession deal, thousands of non-union workers, including several top officials in Gov. Dannel P. Malloy's administration, will share millions of dollars in seniority bonuses next month.
The Department of Administrative Services declined Thursday to release a preliminary list of staff slated to receive longevity payments next month. Department spokesman Jeffrey Beckham said it still was being adjusted to reflect resignations, retirements and layoffs over the past six months. But longevity pay is issued twice yearly and 3,599 non-union staff received such bonuses, worth about $7 million in April.
Malloy's budget chief argued that a new longevity cap imposed on non-union employees earlier this year will save more money over the next 30 years. But he conceded that the administration executives and managers with the most years of service will sacrifice nothing.
Non-union workers would have shared in the longevity pay cutbacks had union workers approved the first labor concession deal. After that deal was rejected in June, however, legislation cutting bonuses for non-union workers was repealed, and it wasn't reinstated when the deal passed in a second vote.
Key lawmakers from both parties were surprised to learn that the cuts in longevity pay for non-union workers had been revoked.
"This is not apples and apples," said House Minority Leader Lawrence F. Cafero, R-Norwalk, one of Malloy's most vocal critics. Cafero noted that while Malloy imposed an across-the-board longevity bonus cap on his top executives in January, many of those same executives will collect thousands of dollars in bonuses in a few weeks. "What looked like a grand fiscal gesture in January has turned out to be a windfall in October for Malloy's senior staff," he said. "Where is the shared sacrifice?"
"Oh my God," said Sen. Edith G. Prague, D-Columbia, co-chairwoman of the Labor and Public Employees Committee. "It's outrageous."
The longevity pay system, first created by statute in 1967 and subsequently guaranteed in most union contracts since then, rewards most workers with biannual bonuses after they have achieved 10 years of service. The statutes also call for higher bonuses after workers hit their 15-, 20 and 25-year anniversaries, after which longevity pay is capped.
The bonuses, paid to most eligible workers in April and October, have been an increasing source of controversy at the Capitol amid the fiscal crises of recent years.
Prague, who chastised state employee unions for initially rejecting a concession deal in June before ratifying on a second vote in August, added Thursday that non-union workers should have to make some immediate salary sacrifice.
That appeared to be the plan on June 7 when the legislature enacted a budget policy statute that the administration "shall implement changes to longevity payments for such (non-union) officers and employees comparable to the longevity payment provisions of the agreement" with the State Employees Bargaining Agent Coalition. Malloy signed that into law on June 21.
But on June 30, that language was repealed in another budget policy bill adopted in special session and also signed by Malloy. Instead the administration was directed to apply the longevity pay cap it had imposed on to executives to all non-union staff.
The executive cap was ordered by Malloy on Jan. 21, and applied to about 50 top officials. It said the officials could not earn higher payments in future years, even if they had fewer than 25 years of service.
The order also stipulated that those who hadn't received a longevity payment in October 2010--such as legislators who left that branch in January to join his administration--would not be eligible for bonuses in the future.
By expanding these ground rules to all non-union workers, the June 30 legislation did two things:
By comparison, the concession deal means about 39,800 unionized employees will forfeit their entire longevity payment this year. Another 5,200 union members, primarily involving higher education faculty and Judicial branch professionals, will forfeit 25 percent of their October payment.
About $13.2 million in longevity payments went out to more than 28,640 unionized employees in April.
"The current system has been unfairly skewed towards management--but we have always said that on the merits longevity bonuses make good fiscal sense," State Employees Bargaining Agent Coalition spokesman Matt O'Connor said. "They encourage the workforce to continue their public service careers. And we believe that longevity bonuses also justly reward workers for decades of service to their employer. Plus they save millions in retraining costs and improves the quality of services that we all count on.
But Malloy's budget director, Office of Policy and Management Secretary Benjamin Barnes, noted that while these groups will lose money now, they and any other unionized employees hired before June 30 this year remain in the longevity pay system and will be able to qualify for increasing bonuses down the road.
By comparison, all non-union workers shy of 10 years of experience never can qualify for longevity pay under the new system, and those that are eligible to receive them next month won't see those bonuses increase in the future.
"We believe that the savings we are imposing here is significantly greater over the long-term," he said.
But 38 out of the 41 salary groups for unionized workers call for longevity bonuses ranging from $75 to $998, and the last allow workers to earn between $1,000 and $1,100 after they reach 25 years of service. Bonuses in the middle three salary groups range from $114 to $568.
By comparison, 18 of the 20 bonus levels Malloy executives can qualify for top $1,000, ranging as high as $5,600.
And Barnes conceded that those executives who already topped out under the old system because they had more than 25 years of experience -- such as deputy OPM Secretary Mark Ojakian, who negotiated the concession deal -- aren't penalized at all under the new system, which simply reinforces an existing cap.
Ojakian, who received a $4,800 payment in April, will not lose his in October and his payments weren't slated to increase under either the old system or the new one. A former deputy state comptroller before moving in January to the Malloy administration, Ojakian declined to comment Thursday.
And even those executives who have fewer than 25 years of state service might need to work two to four more years, Cafero noted, before the capping system would cost them enough to equal what they otherwise would lose if they had to forfeit their October payment instead.
"This is the problem," Prague said. "Executives and managers already make good salaries. There's not a balance here."
For example, three top scientists at the state's agricultural experimental station qualified in April for bonuses above $4,100.
Over 18 non-union staffers in the state auditors' office earned bonuses in excess of $4,000 last time.
"Of course there are examples where management salaries -- and as a result, their bonuses -- are out of whack," O'Connor added. "The solution is to do the hard work of transforming state government so that resources are redirected to the people who need services and the workers who deliver them."
"And that's our focus right now -- holding the Malloy Administration to their obligation to work with us to make state government work better and be a better place to work," he added.
Barnes added that even though the administration signed legislation in early June that would have required non-union longevity pay to be adjusted comparable to any unionized concessions, it believes such a move might be challenged in court as an illegal taking of salary.
In a 2007 decision, the Connecticut Supreme Court ruled that final, pro-rated longevity payments earned by two retiring assistant attorneys general had to be included in their pension calculations.
It never seems to end in this state. Hardly a day goes by that we don't read another example of financial problems in this state. It is slightly off the subject but why doesn't the paper or CT Mirror publish the latest status of our pension situation for state workers and teachers( done every two years-last one June 30th 2010) and also the status of the retiree health fund. On the subject of the health fund, the last report over a year ago indicated we had an obligation of $29 billion and a reserve to cover this of only $10
Read MoreShouldn't be a surprise to anyone. This went out via state email system at end of August, I'm only posting section that applies, full memo should be on Ms. Yelmini's site:
August 29, 2011
General Notice 2011-20
TO: Labor Relations Designees
SUBJECT: Longevity for individuals who retire May 1, 2011 – October 1, 2011
(skipped the retiree portion)
"Longevity Payments for individuals who continue to be employed
Individuals who are members of bargaining units that ratified the individual bargaining unit agreements regarding wage concessions which are part of the SEBAC Agreement [all, except State Police (NP-1) and Correctional Supervisors (NP-8)] will not
Read MoreDAS sent out a memo recently to notify those in the MP and MD pay plans of the following:
1. If you ARE NOT eligible for longevity as of September 1, 2011, you will NEVER be eligible, regardless of how long you continue to work for the state.
2. If you ARE eligible as of September 1, 2011, your longevity payment is FROZEN as of that date. The payment will not increase, regardless of your continued service.
3. There was no mention of anyone in the Executive (EX) plans.
This DAS ruling contradicts the language in SEBAC
Read More"Oh my God," said Sen. Edith G. Prague, D-Columbia, co-chairwoman of the Labor and Public Employees Committee. "It's outrageous."
ANd she obviously doesn't know what is going on. And she CHAIRS the COmmittee.
Maybe she should just resign and take the rest of the worthless Dems with her. Malloy's budget is a bust and lie.
jschmidt,
Rob Simmons wasn't all that wrong. A bit blunt maybe, and politically incorrect, but not wrong. She's an institution that other than 'name value' has gone beyond her usefulness, kinda like Babe Ruth with the Boston Braves...
This are the High Paid workers that everyone hates. Yes they also got raises along with thier longevity. Most are TEIR 1's...again TEIR 1's get the huge 2% a year pension. And the poor sap that comes in everyday to do his job gets screwed yet again........ Legislature is to blame as well.
To Edith and all the other luddites in the legislature. I know you don't care about managers in the State of Connecticut. However, please be aware of the following:
1. Managers have not received a raise during the last three years. This 'shared sacrifice' started under Jodi Rell and will obviously continue under Danny Malloy.
2. In an increasing number of cases, union employees are earning more than the managers who supervise them.
3. A number of managers I have spoken to are frustrated by this situation and have started exploring the option (if such a thing exists) of returning
Read MoreFor your information, excluded employees--at least in the Judicial Branch--have not received raises of any kind since 2007 while union members continued to get raises. Longevity helps to equalize this somewhat. Most reports during all this budget talk never mentioned that state excluded employees' salaries have been held flat for four years and will continue to be held flat for at least another two years. Yes, we are lucky to have jobs, but we all have choices on whether we want to work in the private or public sectors.
I was laid off from DCF at the end of the August. Before leaving I wrote a email to the commisioner expressing my feelings about the situation and how I felt she handled the situation poorly. It took over 2 weeks to get a response and when I did it wasn't even from her. In the email it said that the state was in FINANCIAL DISTRESS and that was one of the reason's 37 of us social workers were being laid off. Now I read this article and it makes me want to vomit in my
Read More"Of course there are examples where management salaries -- and as a result, their bonuses -- are out of whack," O'Connor added. "The solution is to do the hard work of transforming state government so that resources are redirected to the people who need services and the workers who deliver them."
"And that's our focus right now -- holding the Malloy Administration to their obligation to work with us to make state government work better and be a better place to work,"
Gee, isn't this what dues paying union MEMBERS were telling you and Sal and Dan et al all
Read MoreApologize in advance for length of post, but I kind of got on a rant roll... this is just one reason that, after READING the TA I voted 'NO' twice...
Most bargaining units have comparable longevity rates, with 15 year, non supervisory level steps getting between $200 and $250
"Ojakian, who received a $4,800 payment in April, will not lose his in October"
OK, so that covers about what 20 15 year employees (at $250, high end)gave up....
"For example, three top scientists at the state's agricultural experimental station qualified in April for bonuses above $4,100."
3 @ $4100 equals
" Department spokesman Jeffrey Beckham said it still was being adjusted to reflect resignations, retirements and layoffs over the past six months."
Let's work this one backwards-
- How many layoffs have there been in the groups getting the longevity? Only bargaining units were State Police and Correction Supervisors, and none of Troopers qualify, so just the DOC LTs and Capts.And none of that group is gonna be in the $4digit range.
- Retirements? Not hidden is the fact that at retirement a prorated longevity is calculated into final salary for pension. With union folks this will be true for
Read MoreKeith - Keep up the great work! The workers have known for the longest time that Management is catered too and they do little to earn it! Want some dirt on the daily events of these people who earn so much and do so little? Reach out to the employees and give us a voice!
How would the tax payers feel about knowing there are policies put in place by these management types, in spite of objections by rational staff, requiring dozens of employees be dedicated to tracking inventory worth only $125,000 at one agency alone?
Read More@Lets Get Someth... - How about telling all the good people here what you did all day, everyday, for the last three months! Post your calendar, CORE timesheet, security badge swipe report, phone call report, and provide names of people you met with who can confirm what you claim. We also want to see all notes from meetings, paper and electronic documents, emails you touched. PUT OUR MONEY WHERE YOUR MOUTH IS!
If your claim about lack of raises was true you would have left! Managers get PARS, MIPS, PIPS, and longevity that provide paths for
Read MoreSo let me get this straight, the state of CT is an economic crisis, 37 DCF workers and 56 state police have lost their jobs to collect unemployment so managers can continue earning inflated salaries and reaping the benefits of twice early bonuses? Where exactly is the shared sacrafice Malloy? So while managers can now afford to take a hell of nice vacation our streets are less safe and needy, impoverished families suffer? Ojakian's $4800 can keep a social worker in the field helping Connecticut's families and children for an entire month. Those millions of dollars in longevity payment can re-employ
Read Morei don't know what some are talking about, but here are the facts:
1) longevity is not a bonus - it's a word the media has been using to stir controversy. it is a payment that was designed originally to keep experienced workers because the constraints of the job specification system prevented simple raises or bonuses to good employees - unlike the private sector that can just give out cash and raises to keep good workers.
2) it's true, the non-union pay scale has not advanced in more than 3 years - only way to get more $$ was to
Read MoreQuestion Are managers getting their longevity payments in October?
Dan Livingston's Response:
"Let me try to clarify this. As you know, in the discussions with the Coalition, we were promised that managers (as a group) would make the same or more significant economic sacrifices as union members did. On the specific issue of longevity, the administration proposed to us that longevity would be frozen forever -- that is that union members would get whatever longevity they currently get with no increases no matter how much their service increased. So a current member with 9 years would
Longevity is part of wages (Longley decision). Managers did not agree to give up October's longevity, as did union members.
Lets Get Someth...
I think you are forgetting the Courant article that referenced a ratio of 6 managers to every 1 state employee. National average is 12 to 1. Really have a hard time digesting longevity pay considering CT has twice the amount of managers in the state than the national average. Let's bring the ratio down to 6 to 1 and then management can earn/have their longevity. Otherwise they can leave state employment and go back to the private sector if they see fit. Good luck finding a job.
Simple solution- have the Managers return the money. Ask them for it back- maybe some will have the "shared sacrafice" mentality- then we would know who the "good" managers are and keep them on