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Workplace Issues Today: California unions reach deal with governor

Four California unions, the California Association of Highway Patrolmen, California Department of Forestry Firefighters, California Association of Psychiatric Technicians and American Federation of State, County and Municipal Employees have reached an agreement with Governor Arnold Schwarzenegger over pension reforms. The unions represent about 23,000 of the 170,000 state work force. The changes to the unions’ contracts would up the number of years new employees would have to work to receive full benefits to force, and would raise the age at which workers are eligible for full retirement benefits by five years. Employees would also pay 5% more to their retirement benefits. The Governor praised the unions for making sacrifices. A union representative said that they were not happy with the changes, but understood why they needed to be made. The Governor’s office estimates that the changes will save $72 million next year, and if other unions reached similar agreements, saving could be around $2.2 million.

SeeCalif. gov wins pension reform from some unions,” by Cathy Bussewitz, Business Week, Jun 17 2010 (SD)

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