April 3rd, 2009

Turns out Gov. Rendell will not be using rolling furloughs to save on the state’s unions budget this year.  The state’s 3 biggest unions and Rendell have agreed on a deal that would lower state contributions to the union’s health plans, in turn for a promise not to use furloughs for the next 15 months. 

 Unions must still vote on and ratify this tentative compromise, although executive director of AFSCME Council 13 David Fillman said that considering the economy this was a good deal for workers.

The Pittsburgh Post-Gazette reports:

Mr. Rendell said the state would save $200 million over the next 15 months by reducing the [health] contributions, which he said won’t affect employees’ health care benefits. He said the fund now has $248 million in reserves and will remain “fiscally sound” even with the proposed 20 percent reduction in state contributions.

The state will repay the fund in monthly installments, as early as September 2010, when officials hope the economy is better and more state tax revenue is rolling in.

The three affected unions are the American Federation of State, County and Municipal Employees, which represents 45,000 workers, at the Department of Transportation, Public Welfare and other agencies; the Service Employees International Union, which has 9,000 workers; and the United Food Commercial Workers, with 1,500 workers.

Also read about this deal in the Philadelphia Inquirer or the Patriot-News.