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October 3, 2001
DPA has constructed a chart displaying the monthly impact on the average rank-and-file employee's paycheck for employees in the units that have reached agreement to date. These are bargaining units 5, 7, 8, 10, 12, 13, 16, 18, and 19. Individual charts for each of these units are also available.
There is also a chart showing the impact of the new pay package on excluded employees. All excluded employees are covered by the package, including the retirement deduction relief, pay raise, and increased State contributions toward health premiums.
As displayed on the charts, employees covered by the new pay package will receive additional income over the next two years, beginning with the September paychecks that were just issued. The additional income results from employee retirement contribution reductions, pay increases, and increases in State health payments. The charts do not reflect all the economic benefits in these contracts such as special differentials, allowances, and increased travel-related payments.
Overall, the current agreements and proposals will cost more than 8% of payroll over two years.
Both the Firefighters and the CAHP have agreed to five-year contracts, including improved overtime pay for Firefighters and parity provisions for CHP. However, they will get the same increases as the other units for the first two years, except that members of the California Highway Patrol do not contribute to PERS so the reduced contribution does not apply to them.
We recognize that these increases are modest, especially when compared to the first contract negotiated by this Administration. In 1999, all employees received at least 13.5% over two years and another 1.5% on other raises and allowances. Pension benefits were enhanced at a cost estimated to be worth 2.5% of pay but now proving to be more costly than that. In addition, State contributions to health premiums were increased. In all, the 1999 contracts were worth almost 20% of pay to State employees.
Unfortunately, the current economic climate is far different from 1999. As reported in today's Los Angeles Times, "Just three months into the new fiscal year - and even before the full effects of the Sept. 11 attacks have begun to be felt - state government revenues are running nearly $1 billion below expectations, sobering evidence of the state's deepening financial troubles." ("State Revenue $1 Billion Short in 1st Quarter," LATimes.com, October 3, 2001)
The State will continue to bargain in good faith with those units where agreement has not yet been reached in the hope that by time the Legislature returns in January, we will have reached agreement with every union.
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