State Layoffs Loom As Negotiations Continue

As part of the budget compromise last week, lawmakers instructed Governor Lynch to find $25 million dollars in personnel savings to help offset an estimated half a billion dollar deficit.

The state employee’s contract expires midnight tonight, and the Legislature believed Lynch could realize those savings as part of a new pact.

But if the two sides don’t come together by midnight tonight, the most recent agreement remains in place.

And that would make it tougher for Lynch to avoid relying on the proverbial meat cleaver.

TAPE: I am hopeful we can do it in a way that minimizes the layoffs because that is my least preferred option.

The threat of layoffs is a powerful motivator to strike some sort of deal.

But to get there, the sides have to tackle several contentious issues first.

The union has offered to freeze wages for the first year of a two-year contract, which labor negotiators say would save nearly $6 million dollars.

The governor’s negotiating team wants to suspend wages over the next two years.

Then there’s the perennial debate over health care.

As costs continue to climb, the state wants employees to pay more and have higher co-pays.

Workers want a more flexible plan that they say wouldn’t cost the state more money.

But those matters take a backseat to how to structure furloughs.

Different proposals have been floated, everything from taking 14 days off without pay to employees almost donating little chunks of time that they can afford.

Lead state negotiator Tom Manning says whatever the final compromise; he’s got to make sure savings are locked in.

TAPE: we now have a hard target of savings given to us by the Legislature. And our fear is, my fear is, the longer we proceed from here on in with methods that can’t absolutely be quantified the greater risk we run...and having to do more damage to employees.

Employees are concerned that language like ‘methods that can’t absolutely be quantified’ and variations of that sentiment amount to mandatory furloughs.

Union negotiator Diana Lacey says she represents some workers who just can’t take a few weeks off without pay.

TAPE: we have a commitment to make sure that we maintain a safety net for two groups in our membership. We’ve got those people who can’t afford to lose money....and then we have people who are soon to retire...so if they take pay cuts right now, they will have to take pay cuts throughout their pension throughout the rest of their lives.

It’s not clear how many jobs are potentially on the chopping block.

Governor Lynch says he believes there will be a minimum of 200 layoffs.

Union officials estimate that if no new contract is reached and the governor relies exclusively on layoffs, 750 people will be out of work.

As of right now, the governor’s negotiating team declined to offer a number, but said it would mean substantial reductions.

While negotiators and politicians talk about deadlines and throw numbers around, state employees like Roxanne Sullivan are waiting- maybe- for the next shoe to drop.

TAPE: I’ve been walking where I can to save the gas, and just cutting back on extras at the grocery store that you don’t really need. You know that one extra snack for the week, ‘ah, we don’t need that, we’ll survive without it kind of thing.’

Sullivan is claims processor II for the Department of Health and Human Services, she spends much of her days screening medical and childcare reimbursement claims before they are processed.

She is a 28 year old single mother of 6 and 10 year old.

She says in the past few weeks she’s tried to make those small changes to help save up for a little nest egg in case she loses her job.

At this point, Sullivan has nearly eight years in as a state employee, another two and she’ll be guaranteed a pension.

TAPE: if I get pink slipped or laid off in the next couple days, weeks, months, whatever it turns into being. It’s going to be like the sacrifices I’ve made over the last 8-8 ½ years will mean nothing.

Sullivan says since she became a state employee she’s turned down several more lucrative jobs in lieu of the safety she believed that came with working for the government.

Sullivan says right now she and her two boys live paycheck to paycheck.

I ask her how she feels about a furlough plan where she would take about a 5% pay cut.

TAPE: it’s better than not having anything. It’s better than having to rely on somebody else for your income and your food and your clothing. I would make do...I would definitely rather give up one day rather than be scared and have nothing.

Sullivan says she’s given some thought to just quitting.

She says she shudders at the thought of trying to compete for a job with the other few hundred state employees who just got laid off.

For NHPR News, I’m DG.