(Host) The Douglas Administration and the Vermont State Employees Association are no closer to an agreement over how to reduce labor costs in the current fiscal year by $7.4 million.
The Administration originally proposed that a 5% pay cut be part of the plan.
The Union has proposed meeting the target by implementing furlough days and unpaid holidays.
The Administration says it’s now willing to accept the Union’s furlough proposal, but there’s a catch: The VSEA must agree to further reduce labor costs in 2011 by $16 million and in 2012 by $22 million:
The VSEA is rejecting that approach, saying that any future budget savings must be part of the collective bargaining agreement over a new, two year contract.
The Douglas Administration says it will have to resort to as many as 250 additional layoffs if the VSEA doesn’t agree to some long term systemic reforms by the end of this week.