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ALBANY — The state’s largest public-employee union gave a thumbs-up last night to a five-year contract that freezes wages for three years, requires workers to fork over more for health-care coverage — and avoids thousands of layoffs.
The vote was 60 percent in favor, according to officials of the nearly 66,000-member Civil Service Employees Association.
It’s a victory for Gov. Cuomo, who had threatened thousands of layoffs if the CSEA rank-and-file rejected the contract he had negotiated with union leaders.
Cuomo cut state workforce costs $450 million to balance the current budget without raising taxes. He gave unions a choice to reach the goal: givebacks or layoffs — up to 9,800 across the state without concessions.
“This is a big, big win — a win for the union and a win for the people of the state,” Cuomo said late last night.
CSEA President Danny Donohue said, “These are not ordinary times, and CSEA worked hard to reach an agreement.”
The contract takes effect immediately because the state Legislature approved it earlier this year contingent upon ratification. The state’s second-largest state employee union, the 56,000-member Public Employees Federation, has yet to vote on a similar contract proposal.
CSEA members work in direct care, administrative and support services at state hospitals, psychiatric centers and group homes. About 40 percent work in the New York metropolitan area.
The new contract freezes base wages for three years, with raises of 2 percent each in 2014-15 and 2015-16, and requires employees to take nine unpaid furlough days this fiscal year and next.
The deal requires lower-paid members to kick in 2 percent more and higher-paid workers 6 percent more for their health insurance.
Even though wages are frozen, some employees will get raises for “longevity” and performance.
The state will also repay the value of the four 2012-13 furlough days in equal installments starting at the end of the contract term, and will give current employees who remain active through 2013 “retention payments” of $775 in 2013 and $225 in 2014 — the year Cuomo faces re-election.
The governor has said the new contract will save $1.63 billion over five years if adopted by all bargaining units. He has also noted that the increased employee health-care contribution is the first in 30 years, despite a doubling of state health-care costs over the last decade.
CSEA employees will get broad layoff protection through 2012-13, but the deal does not protect jobs cut because of the closure or restructuring of state facilities.