SEBAC Leaders Delay Official Rejection of Malloy’s Union Concessions: What Next?

The rejection of Gov. Dannel Malloy’s $1.6 billion concessions package by the State Employees Bargaining Agent Coalition (SEBAC) last week remained status quo as of Monday evening, with union leaders passing a motion to merely buy more time – 30 days – to make their rejection official. 

“We’re hopeful that we can reach a quick resolution,” Matthew O’Connor of SEBAC told Patch.

But there’s not much SEBAC can do before the legislature convenes a special session this Thursday to ensure that the budget for the upcoming fiscal year – which goes into effect July 1st – is balanced. Toward that end, Malloy’s stance to layoff 7,500 out of a total of 45,000 state employees could be more than just a bluff.

Had SEBAC ratified the tentative agreement last Friday, it would have helped protect state workers’ jobs for four years in addition to a raise of three percent in wages over the next three consecutive years. The deal consists of freezing wages for two years as well as controversial changes in healthcare benefits.

Although 57 percent (26 out of 54 bargaining units) of participating members voted in favor of the deal, a whopping 80 percent approval is needed. That means 14 out of 15 unions are required to ratify the agreement per its current by-laws. Currently, 11 unions voted in favor of the tentative agreement.

The high threshold makes it almost impossible to attain the majority vote required.

“That’s a very high standard for any group. It would be hard to move anything with that kind of requirement,” said State Sen. Anthony Guglielmo, R-Stafford, who also represents Ellington, Tolland and Vernon.

“Many union employees I spoke to felt the rules governing the approval of concessions were antiquated and absurd,” Rep. David Baram, D-Bloomfield, said. “I hope the rules are made more realistic and the unions consider a re-vote. A handful of people I spoke to who voted against the deal are willing to vote in favor if given another chance.”

O’Connor said if individual union members asked their leaders to hold another vote, it will be examined under their own rules.

Members on Monday raised concerns over whether SEBAC’s complicated voting rules best served their interest. A resolution was adopted to examine the by-laws as well as to address misinformation provided to many members about the tentative agreement and the consequences of accepting or rejecting it.

“Members feel some union field officers do not seem to be well-versed in conveying information such as benefits and the like. That may have been a problem,” said Baram, who also represents Windsor.

Malloy too is seen as being responsible for problems arising from asymmetric information.

“The amount of information available to everybody, including the unions, was limited from the beginning. The state asked people to vote despite a lack of information. That’s almost like saying vote for this because we say it’s good and you should trust us,” Windsor Councilman Ronald Eleveld said.   

Finger pointing aside, Fred Carstensen, professor of economics at the University of Connecticut, said the unions must scramble quickly to prevent layoffs.

Key state employees are located in north central Connecticut organizations. These include higher educational institutions, correctional facilities, public schools, police and fire stations, and town administrative offices.  

“The massive layoffs, if they occur, will inflict more damage on this region than any other. All of those laid off will minimize their spending, stop paying income taxes, and soon lose their healthcare coverage,” said Carstensen.

“Even those who retain their jobs will, in most cases, be very worried about their own future. So they too will cut back on discretionary spending, saving whatever they can against the future risk of losing their job as well,” he added.

Carstensen pointed out that as spending by public sector workers contracts, there will be significant job losses in the private sector as demand for goods and services weakens.

“For every job lost in the public sector, four-tenths to six-tenths of a job will be lost in the private sector. And, again, those will be concentrated in the Hartford county region,” he said.

The urgent concern however is to manage the looming $700 million deficit in the coming fiscal year, which begins this coming Friday. But beyond that, structural changes are required over the long run.

“The state government should consider making changes in the job classification of state employees and change the benefit structure in line with the private sector. The bottom-line is we have to change the structure and cost of state government,” said Joe Brennan, senior vice president of public policy at the Connecticut Business & Industry Association, Inc. Several CBIA member companies are located in north central Connecticut.