IOWA INSIDER

DES MOINES – Gov. Chet Culver and the union representing the largest group of Iowa’s state employees announced an agreement to save nearly 500 state jobs by imposing furloughs and benefit reductions.

The deal with the American Federation of State County and Municipal Employees Iowa Council 61 must still be approved by the union’s membership. Voting is expected to begin no later than Nov. 19.

The agreement includes five mandatory unpaid furlough days between now and June 30, which is expected to save about $22.7 million.

The state’s contribution to employees’ deferred compensation also will be temporarily suspended until June 30, for a savings of $3.7 million.

The total savings of $26.4 million is expected to save 479 AFSCME jobs. Culver sought concessions from the union in order to avoid the layoffs of state workers, especially state troopers and correctional officers working in state prisons.

Under the terms of the agreement, no member of the union who is an executive branch employee can be laid off until June 30, the end of the current fiscal year. Employees outside the bargaining units who are laid off will not be allowed to displace AFSCME employees.

“I want to thank the leadership at AFSCME for joining with us to save these essential public service jobs,” Culver said in a statement. “This understanding will help preserve vital services for Iowans while meeting our obligation to balance the state budget. This is a positive step forward and I encourage the membership to vote yes on this measure.”
Iowa Council 61 President Danny Homan said the union worked with Culver to save as many jobs as possible.

“We thank the governor for giving us the opportunity to sit down with him and have input on this issue,” Homan said in a statement. Homan has scheduled a news conference this afternoon to discuss the agreement.