CWA Tentatively Agrees to Wage Freeze and Furloughs

 

On June 3, 2009, the State of New Jersey’s largest public employee union indicated it would accept a wage freeze and unpaid furlough days to help reduce spending under a tentative deal according to Governor Jon Corzine.

Corzine called the agreement with the Communication Workers of America “very important for our budget to make sure that we get something that is a very substantial giveback.” According to Corzine, negotiations are continuing with other unions along with CWA.

Corzine stated, “There is a tentative agreement on wage givebacks and furloughs that has yet more details to be ironed out, and that has to be appropriately negotiated with other unions. I expect there will be an agreement on the terms that are negotiated at the collective bargaining table, not just with CWA but with all of the various parties that are involved.”

Although details of the deal were not provided, senior Democratic officials told the Star Ledger the pact would include ten (10) furlough days in the budget year starting July 1, along with a wage freeze and some “bankable” paid personal days that workers could take in the future.

Senate Budget and Appropriations Committee char Barbara Buono said the tentative agreement, if approved by other unions, would lead to at least $300 million in savings for the $28.6 billion budget proposed for the new fiscal year. 

Corzine imposed two furlough days before the current budget year ends June 30 and was seeking 12 more days in the new budget. Union members have protested the furloughs and criticized the Governor

Oral Argument on Furlough Rule Conducted

Yesterday, April 16, 2009, the Appellate Division conducted oral argument on the Emergency Temporary Layoff Rule. Specifically, the Appellate Division heard argument on the four appeals from the Civil Service Commission’s emergency rule authorizing temporary layoffs, also known as mandatory furloughs. The argument was conducted in the Morris County Courthouse in Morristown, New Jersey, with dozens of union members packing the courtroom. 

Lawyers arguing for the public employee unions said the State did not prove it was in “imminent peril,” a requirement to pass the emergency rule that authorizes the furloughs. Moreover, it was asserted that the furloughs are a clear breach of contract in violating numerous collective bargaining agreements.

The Assistant Attorney General, who represented the State, said the Civil Service Commission followed all the rules when it authorized furloughs. He further contended that public employees were risking layoffs by protesting furloughs.

The Appellate Division did not make a ruling on the case, but said to expect one soon. Therefore, please continue to check this blog periodically for updates as further information becomes available.  

 

Oral Argument to be Conducted on Emergency Temporary Layoff Rule

On April 8, 2009, the Administrative Office of the Courts issued a press release announcing that the Appellate Division will be conducting oral argument on the Emergency Temporary Layoff Rule. Specifically, the Appellate Division, Part H will hear oral argument on the four appeals from the Civil Service Commission’s emergency rule authorizing temporary layoffs, also known as mandatory furloughs. 

These lawsuits were the subject of a recent entry on this blog. The appeals were filed by the New Jersey State PBA; the Communication Workers of America, AFL-CIO, Council 73 of the American Federation of State, County and Municipal Employees, AFL-CIO, and Camden County Council 10; the Probation Association of New Jersey; and the New Jersey State Firemen’s Benevolent Association.

The argument will be heard by Appellate Division Judges Edwin H. Stern, Ariel A. Rodriguez and Edith K. Payne on Thursday, April 16, 2009 at 11:00 a.m. in Courtroom 12, third floor, Morris County Courthouse, Washington and Court Streets in Morristown, New Jersey.  

Please continue to check this blog periodically for updates regarding this appeal. As you are aware, the outcome of these actions will have a significant impact upon all State employees, to include public safety officers. Should the emergency rule be upheld, temporary layoffs will be instituted beginning in May 2009.