New Jersey State Workers Win Tentative Settlement

Negotiating against a threat by state lawmakers to impose extreme concessions, CWA state workers in New Jersey reached a tentative contract settlement with Gov. Jon Corzine that "clearly demonstrates the value of the collective bargaining process," District 1 Vice President Chris Shelton stated.

The agreement, covering 40,000 workers and subject to member ratification, provides a 13 percent wage increase over four years — the first state worker pact in 15 years that doesn't call for a wage freeze.

Even after some increased benefit deductions, the settlement will deliver a compounded increase in real wages of 12 percent, Shelton noted. Recognizing massive shortfalls in state pension funding and rising health care costs, CWA also 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.

At the same time, the tentative settlement 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.

While the age for full retirement was raised from 55 to 60 for new employees, the penalty for early retirement was reduced from 3 percent to 1 percent per year for those five years. 

Reacting to a public clamor over high property taxes, state legislative leaders earlier proposed a bill that would have drastically increased benefit costs, removed future workers from the pension system entirely, and would have imposed many other concessions in hours worked, reduced leave time and other cutbacks. 

Gov. Corzine joined thousands of CWA and other union members who protested the legislative scheme last year, calling for letting the collective bargaining process work. Lawmakers grudgingly withdrew the bill, but kept a drumbeat of pressure on Corzine to press for concessions.

"After 18 months of finger-pointing and scapegoating, this contract represents a real victory for state workers," said Shelton. "We bargained in the most difficult environment we've faced since (Christie) Whitman was governor, at a time when private sector pensions and health care are virtually collapsing."