The State Worker

Chronicling civil-service life for California state workers

August 30, 2013
Operating engineers' new deal costs state up to $54.9 million

130620-capitol-mall.JPGThe tentative agreement between Gov. Jerry Brown and the union representing roughly 11,000 heavy equipment operators will add up to $54.9 million to the state's payroll costs, according to the Legislative Analyst's Office.

The two-year deal, like most Brown has negotiated with other unions over the last two months, relies on a fiscal trigger to determine whether the money will be split over two years or deferred to the last year.

One scenario for state workers in Bargaining Unit 12, who are represented by the International Union of Operating Engineers, provides a $1,200 bonus on July 1, 2014 (which equals 2.5 percent of the average wage for employees covered by the contract) and a 3 percent raise on July 1, 2015.

That, along with higher employer contributions to health insurance premiums and a few other minor non-wage increases, would cost the state $54.9 million, according to the LAO.

But if Brown says revenues in fiscal 2014-15 aren't sufficient to cover the bonus, union members will have to wait one year to get a 3.25 percent raise with no bonus. That plan would reduce the contract's three-year cost to $42.3 million.

That hits the high points of the IUOE deal, but if you want to get more deeply into the numbers and terms, here's the analyst's report:

Memorandum of Understanding - IUOE (Bargaining Unit 12)

PHOTO: Capitol Mall in Sacramento. The Sacramento Bee/Paul Kitagaki Jr.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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