CONCORD - With the State Employees Association bargaining team backing away from the tentative agreement reached in July, state officials say they will continue to negotiate, but have also resumed planning for layoffs to meet the $25 million in personnel-related savings mandated by the legislature in the 2010-2011 state budget.

Last week, the Gov. John Lynch told SEA leaders that layoff planning would resume if contract language wasn’t finalized by Friday. Gov. Lynch is directing state agencies to present a specific plan for layoffs by next Friday. Gov. Lynch is also directing that agencies prepare to send layoff notices by Oct. 8, and plan to complete layoffs by the end of October.

“We are obligated to achieve these savings under state law. My preference has been, and remains, to save jobs by instituting a well-structured furlough program. State employee jobs are in jeopardy because union leadership will not allow the state employees to vote on the tentative agreement,” Gov. Lynch said. “State employees deserve a chance to vote on an agreement that will save jobs.”

The state has made major concessions and will continue to bargain in good faith.

“At this point, the State Employees Association is putting forward new demands, as well as backing away from provisions agreed to in the tentative agreement in July. Unfortunately, given the situation, we have resumed our plans to implement layoffs,” Gov. Lynch said.

State agencies began planning for layoffs but put those plans on hold in July once a tentative agreement was reached with the SEA.

The state and the SEA reached the July tentative agreement with major concessions from the state - including a provision guaranteeing no additional general fund layoffs outside those contemplated in the budget.

Since the tentative agreement was reached, the state negotiating team and the SEA have worked to finalize the precise contract language to be submitted to employees. But in the last several weeks, rather than work to finalize contract language, the SEA has proposed major changes to the tentative agreement, including:

• A pay raise for Corrections employees. As part of the budget, the state cut overtime costs across state agencies, including scheduled overtime hours for Corrections employees. It is fundamentally unfair to give one group of employees a pay raise, while asking all other employees to forego compensation through furloughs. Also, there is no funding in the state budget to meet this new demand.
• Dropping the agreed-upon health care savings. The minor changes that are included in the tentative agreement will save about $900,000 - eliminating the need for one furlough day - and will benefit employees by placing a greater focus on wellness and prevention.
• Instituting retroactive ‘bumping.’ Allowing employees who were laid off three months ago to return and “bump” other employees out of their jobs will cause serious disruption to both state employees and their agencies.

“Our state employees are a tremendous asset and my goal has been to preserve as many jobs as possible,” Gov. Lynch said. “But we must move forward. Every day that passes without a contract or without implementing layoffs, increases the number of layoffs that will be needed to achieve the savings that are required by law.

“The tentative agreement reached in July provided a sound framework to avoid layoffs by implementing furloughs. It is my sincere wish that union leadership allow the state employees to vote on the tentative agreement and, hopefully, avoid the need for layoffs,” Gov. Lynch said.