Culver says votes by state employee unions will save jobs, preserve services

DES MOINES – Gov. Chet Culver on Monday praised the decision of two unions representing state workers, which voted to take five unpaid days off to avoid the layoff of nearly 600 workers this year.

The state reached agreements with the State Police Officers Council and the American Federation of State, County and Municipal Employees Iowa Council 61 that will shield their members from layoffs through June 30.

The result of AFSCME members' vote approving the plan was formally announced Monday.

The state's contribution to employees' deferred compensation also will be temporarily suspended through the rest of the fiscal year as part of the agreement.

“I don't think we can underestimate the importance of what was done in a very collaborative way between labor and management in this state,” Culver said at news conference.

Culver said the agreements will save jobs while providing essential public services to Iowans, especially in the area of public safety. He also stressed the economic impact.

“There would be a real domino effect, if you will, if we would have lost permanently those 600 state jobs,” Culver said.

Approximately 109 state workers still will lose their jobs as a result of state budget cuts. They include employees not covered by collective bargaining agreements or members of the Iowa United Professionals, which did not approve a furlough plan.

Culver sought concessions from unions as state revenues dipped, forcing him to impose a 10 percent across-the-board cut to balance the budget.

John Baldwin, director of the Iowa Department of Corrections, said the vote by AFSCME has allowed the department to keep correctional officers.

“We obviously operate 24 hours a day, seven days a week, and it's crucial that we have enough staff to respond at any one time to any particular circumstance,” Baldwin said.

Public Safety Commissioner Gene Meyer said the impact on the agency would have been severe without the unions agreeing to unpaid days off to save money.

“It would have meant longer response times for motorist assists in serious accidents and the ability of our troopers to take care of each other, as well as Iowans, on our roadways,” Meyer said.

Danny Homan, president of AFSCME Iowa Council 61, reiterated the union's sentiment that it has no intention of reopening talks on these issues for the remainder of the current contract, which expires June 30, 2011.

“State workers have exhausted their options for what they can do to balance the state's budget for the people of Iowa,” Homan said.

A total of 59 percent of the AFSCME membership voted for the agreement, and 41 percent voted no, with 66 percent casting a ballot. Homan refused to say how many people voted or what the final vote totals were, but said he believed it was the largest turnout for any vote of the membership that Iowa Council 61 has held.

Homan pointed to other ways the state could save money rather than asking his union for concessions – such as tax increases, an early retirement plan for workers and eliminating middle-management positions in state government.

“We have too many supervisors. We should get rid of some of them,” Homan said.

Culver said state officials hope to avoid further layoffs, but said it is not appropriate to raise taxes in a recession as Homan proposed.

The state is looking at cost-saving plans that include an early retirement program and a possible reorganization of state government. Culver said state officials will study the number of managers supervising state workers as well.

But he said no one can predict what the future might hold.

“We're at a very tenuous time, and Iowa's not alone in this. Every state is being faced with some very tough economic conditions,” Culver said.

House Minority Leader Kraig Paulsen, R-Hiawatha, is against the idea of raising taxes but is open to other ideas the union president is promoting.

He said middle- and upper-management positions in state government should be reviewed and is open to the idea of an early retirement program if it truly saves money.

“It has to make sense for the taxpayer. I mean, ultimately, that's the bottom line here,” Paulsen said.