R.I. employees union rejects contract

Savings needed to balance budget

PROVIDENCE - Rhode Island's largest public employees union overwhelmingly rejected a contract yesterday that would have made concessions state lawmakers needed to balance the $6.9 billion state budget, throwing the state's fiscal picture into disarray.

Under the contract, which was rejected by Council 94 by a vote of 2,870 to 196, members would have had to pay more for healthcare and forgo a pay raise this year. They would have received a 2.5 percent raise next year, followed by 3 percent increases the following two years.

The state budget relied on $61 million in savings that Governor Donald L. Carcieri said would come from deals with 13 unions, including Council 94. Those savings were among many spending cuts needed to close a massive $422 million budget deficit.

Council 94 workers had been voting over the past several days, and the ballots were officially counted yesterday. The union represents more than 4,000 state workers, making it one of the most powerful voices for organized labor at the State House.

"There were simply not enough positive aspects of the proposed settlement to outweigh the harsh economic hits which were spread out over four years," Michael Downey, Council 94 president, said in a written statement. He opposed the deal and had urged workers to reject it.

"The proposed settlement was especially harmful to some of our lowest-paid members," Downey said.

Leaders for Council 94 will return to the bargaining table with the state, but no one was certain yesterday what to expect next. The millions of dollars in savings outlined in the contract were not expected to take effect until Aug. 8, giving both sides a window to negotiate.

Union members statewide had urged their workers to approve the deal, saying it was the best they could do in a tanking economy. Of the 13 unions covered by the contract, six have approved it, while three, including Council 94, have rejected it, said Amy Kempe, a spokeswoman for Carcieri.

Carcieri said he would meet with his staff to decide how to proceed. Earlier he had threatened to fire hundreds of state workers and force those who remained to take six days off without pay. Carcieri agreed to stop the layoffs and settled for single day without pay as part of the deal that union members rejected.

"The state's economy is showing signs of worsening, adding even greater pressure to the budget," Carcieri said in a written statement, "and I have an obligation to take whatever steps necessary to balance the budget."

Spokesmen for House Speaker William Murphy and Senate President Joseph Montalbano, both Democrats, did not return calls seeking comment.

Carcieri had acknowledged the tentative agreement with the unions would fall short of his $61 million goal.

He has said he would make up the difference by not replacing retiring state workers.