Rendell-Unions Reach Deal

Governor Rendell and labor leaders have struck a deal that would avoid furloughs for state workers. Under the plan, the commonwealth would temporarily reduce contributions to workers' health care benefit plans by twenty percent. Rendell says that will save the state $200 million. David Fillman is executive director of the American Federation of State, County and Municipal Employees' Pennsylvania outlet. He says he's confident union members will approve the deal. “The alternative would be two rolling furlough days a month for possibly up to fifteen months, which would have a significant impact on employees' wages. So we're thinking the alternative is worse than what we have.” Says Fillman. The agreement runs through June 30, 2010. Fillman says he's happy with the compromise, though Kathy Jellison, the president of Pennsylvania's Service Employees International Union branch, says she wouldn't go that far. Jellison calls the deal a temporary fix, and says she's primarily relieved furloughs were avoided. Union members must still ratify the tentative agreement.