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20080228 Alliance bargaining 2003 c 570.

Renegotiated State Worker Agreement Passes

Addresses Furloughs, Layoffs, Health Insurance, Restructuring of State Worker Contract

Members of SEIU Local 509 voted on December 17 to ratify an agreement with the Commonwealth to save jobs, protect services, and avoid health insurance increases.  The agreement modifies a contract ratified earlier this year.

With our new agreement, each cost-of-living increase in the union contract will be delayed one year, so that the wage increases will be 1% on 12/31/09, 3% on 12/31/2010 and 3% on 12/31/2011. The administration agrees that it will not seek nor support any further increase in the employee share of health insurance premiums through June 30, 2011, and employees covered by this agreement would be reimbursed for the recently announced increases in co-pays and deductibles through June 30, 2011. Most important, cost savings from delaying the cost-of-living increases, furloughs, and a payment holiday to the Health and Welfare Fund will be used to prevent layoffs this fiscal year.

If, and ONLY IF, the legislature votes to fund the new contract, a mandatory furlough program of one to three days, depending upon base salary, would be implemented. The number of furlough days is lower then previously reported because we achieved other savings by canceling five weeks of payments to the Health and Welfare Fund.

  See entire Memo of Agreement
  See cover letter to President Grunko further explaining the agreement
 

Impact on Retirement Benefits of Furloughs

SEIU Local 509 has received a letter written by State Board of Retirement Executive Director Nick Favorito explaining that furloughs do not impact members when they retire, as furloughs do not affect the accrual of creditable service or the 36-month salary average. 

Read the letter from Nick Favorito