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Reports: Union Voting on CT Labor Deal Nears End, $1.5 Billion in the Balance

July 17, 2017 By Staff
Reports: Union Voting on CT Labor Deal Nears End, $1.5 Billion in the Balance

A deal Dan Malloy says is key to closing the state's two-year deficit – but also extends union wages and benefits for five years – will be voted on this week.

The Associated Press reported on Sunday that Connecticut public employee unions will finish voting on Dan Malloy’s $1.5 billion concessions package on Monday, with results coming Tuesday.

The AP noted that the concessions are key to meeting a two-year budget deficit that, as of now, is expected to be north of $5 billion:

The concessions deal is considered crucial to balancing the state’s budget, which is roughly $40 billion over two years and approximately $5 billion in deficit. State lawmakers and Democratic Gov. Dannel P. Malloy were unable to agree upon a new plan before the fiscal year ended June 30. Malloy is currently running state government using his limited executive authority.

NBC Connecticut‘s Max Reiss echoed this sentiment on Monday:

At the time he signed the deal, Malloy bragged of the two-year savings he achieved, saying “[t]his framework will surely create more affordable and more sustainable labor costs.”

Groups like the Yankee Institute, though, pointed out that Malloy also extended the unions’ contract through 2027, another five years. The deal was signed in 1997:

The extension of the contract could be a sticking point in the legislature because it will prevent future governors from renegotiating the terms of the 1997 agreement. Those terms include pensions and health benefits, two of the major factors driving the deficits.

For more on how unions will vote on the wages and benefits concessions in this deal, check out this helpful video from The CT Mirror.