Murphy admin announces tentative 4-year agreement with state workers

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The Murphy administration announced on Thursday a tentative $120 million labor contract agreement with the Communications Workers of America and the AFL-CIO.

The agreement spans the period of July 1, 2019 through June 30, 2023 and covers approximately 32,000 state workers, giving employees two percent raises each year under the new deal.

Gov. Phil Murphy also said the deal includes about $70 million in savings from changes to health benefits.

“From day one, I’ve promised that we’d build a stronger and fairer economy by negotiating in good faith with our workforce,” said Murphy. “Our tentative contract agreement provides fair wages, allows for CWA members to enter a new health care plan that generates significant savings for the State of New Jersey and taxpayers, and provides a fair premium share for members. Together, we’re turning the page from the failed approaches of the past toward a new chapter of mutual respect and dialogue with our workforce.”

The contract is subject to ratification by the CWA which will be completed this month.

The agreement also streamlines grievance and discipline arbitration processes to ensure adjudication of workplace disputes occurs in a cost-effective and timely fashion, benefitting both workers and management.

The total projected state costs of the contract are approximately $120 million incrementally over the term of the contract. The fiscal year 2020 state cost of $20 million is already accounted for in the governor’s fiscal year 2020 budget.