Facing a $5 billion budget deficit over the next two years, Connecticut looks to labor for cost savings. The SEIU is not happy.
The State of Connecticut is facing a $5 billion budget deficit over the next two years—$2.3 billion in the next fiscal year and $2.7 billion in the second fiscal year, according to US News, and is looking to the unions representing state workers to save $1.5 billion.
The budget-deficit problem has been further exacerbated by dramatically less tax revenues as fewer people invest in Connecticut.
As one of the two unions representing state workers, with over 7,000 members, the SEIU 1199NE does not want its members to pay for the deficit, however.
Instead, the SEIU wants the Democratic governor and lawmakers to consider alternatives such as higher taxes on the wealthy.
In a new television ad airing this week, the SEIU uses kids to make the union’s point.
Under a proposed deal, the state is offering the SEIU job security in exchange for cost savings:
State employees could receive four years of job security if they agree to concessions such as a two-year hard wage freeze and higher insurance premiums and pension contributions that add up to an estimated $1.5 billion in savings over two years, according to summaries of a draft framework for a labor concession agreement being considered by labor leaders.
SEIU officials will decide whether to present the state’s proposal to rank-and-file members for consideration, according to US News.