New Jersey State Workers Overwhelmingly Ratify New Contract

CWA state workers in New Jersey overwhelmingly ratified a new four-year agreement that provides for a 13 percent wage increase over the contract term and safeguards workers' health care and retirement security.

"This settlement was negotiated against a backdrop of state lawmakers trying to impose extreme concessions and legislate pension and health care cuts, newspapers editorializing against public worker bargaining and media coverage that pretty much ignored the real issues our members care about," said Chris Shelton, CWA District 1 vice president.

The agreement was ratified by a nearly two-to-one margin in each of the four voting units, with a record voter turnout. It covers 40,000 New Jersey state workers in seven CWA locals. The mail ballots were counted by the American Arbitration Association.

"We had to fight to preserve our bargaining rights. But in the end, our bargaining committee was able to negotiate a settlement that addresses our members' critical concerns – health care, pensions and fairness." Shelton stated.

The contract improves the health care system by providing for an expanded PPO network, eliminating restrictions on use of specialists and guaranteeing no changes in benefits over the contract term. It also was the first state worker contract in 15 years that didn't call for a wage freeze, instead providing a 13 percent increase over the contract term.

Recognizing massive shortfalls in state pension funding and rising health care costs, CWA agreed to a .5 percent increase in the workers' pre-tax pension contribution and a 1.5 percent pre-tax contribution to health care costs. While the age for full retirement for new hires was raised from 55 to 60, the penalty for early retirement was reduced from 3 percent to 1 percent per year. 

The bargaining team successfully fought back against the recommendations of a joint legislative committee that wanted to impose concessions in as many as 41 different contract provisions, including hours worked, reduced leave time and others. 

Thousands of union members rallied throughout the state, calling on legislators to let the collective bargaining process work and keeping up the call for a fair contract.

"This contract represents a real victory for state workers," said Shelton.