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Workplace Issues Today: NJ Gov. announces plans to cut workers’ benefits

New Jersey Governor Chris Christie announced plans to cut public workers’ wages, pension benefits and health care. The plan would take away a 9% wage increase from 2001, which would affect around 780,000 workers. The plan would also require workers to pay 30% of health care costs and higher co-pays; at the moment workers pay a percentage of their salary. The Governor said that his changes would save the pension system, and that the cuts needed to happen. Unions say that the cuts are illegal, and that they will sue if they go through the legislature. The Governor said that he welcomed lawsuits on the issue, though the Attorney General’s office has said in the past that such cuts may be overturned in court. The New Jersey State Senate president said that he would not allow the reforms to pass until the state pays into the pension system, something that is routinely skipped to focus on other items, helping increase the budget deficit.

See “Gov. Christie outlines cuts to N.J. workers’ pension, benefits,” by Lisa Fleisher, The Star-Ledger, Sep 15 2010 (SD)

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