Proposed state worker contract includes 11.5% in raises over four years

Jun. 14--Members of the largest state employee union would receive 11.5 percent pay increases over the next four years if members approve a proposed new contract with the state.

In addition, members of the American Federation of State, County and Municipal Employees will receive a one-time stipend of up to $2,500 that will go into effect when the contract is ratified, according to a copy of the proposal obtained by The State Journal-Register.

As part of the tentative agreement, AFSCME members will pay more for health insurance, but they are being told the increases are substantially lower than the increases that were being sought by former Gov. Bruce Rauner.

The union also said the agreement strengthens restrictions on mandatory overtime and maintains current provisions about subcontracting. Rauner wanted to increase the use of outsourcing of state work.

State negotiators and AFSCME reached a tentative agreement on a new contract in late May. The union hasn't had a contract with the state since June 30, 2015. The tentative agreement would be in effect until June 30, 2023.

The deal does not provide an immediate pay raise. Instead, union members will get a stipend of $2,500 if the contract is ratified. The stipend is prorated by 25 percent from the time the last contract expired. An employee who worked all four years would get the full $2,500. One who only worked for three of the last four years would get 75 percent of that amount and so on.

The first general raise of 1.5 percent would go into effect Jan. 1, 2020. Another 2.1 percent would go into effect July 1, 2020.

On July 1, 2021 another 3.95 percent raise will take effect. A final increase of 3.95 percent happens July 1, 2022. Compounded, the raises amount to 11.98 percent over the life of the contract.

Workers will pay more for health insurance costs, both for premiums and co-payments. The state offers multiple health insurance plans and under the AFSCME contract workers with higher incomes pay more for insurance than those with lower incomes.

In materials distributed to employees, the union said premiums will increase by a composite of $13 a month for employee coverage and $18 a month for dependent coverage starting on Jan. 1, 2020. They will increase each year by the same amount for the life of the contract.

It is the first increase in premiums or out of pocket health costs in four years. Insurance costs were not increased during the contract standoff with Rauner. AFSCME said Rauner was seeking premium increases of 120 percent and other changes that would have put Illinois state health insurance benefits near the bottom of those in any state.

AFSCME declined to comment about the contract details. The Pritzker administration stuck by a statement it issued when the tentative agreement was reached that the proposed contract "will be accommodated in the budget" and that "it is consistent with my long-term plans to stabilize Illinois' finances."

AFSCME's 40,000 members are being told of the contract's details in a series of meetings being held around the state. The final ratification votes will be held by June 21.

Contact Doug Finke: doug.finke@sj-r.com, 788-1527, twitter.com/dougfinkesjr.

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