Governor Hassan's Statement on SEA Bargaining Senate's Recommendation to Approve New State Contract

Press Release

Following tonight's vote by the State Employees' Association (SEA) Collective Bargaining Senate to recommend approval of a new state contract, Governor Maggie Hassan issued the following statement:

"Our hard-working state employees and the critical services that they provide make a positive impact on the lives of New Hampshire's citizens each and every day. Despite a smaller workforce with fewer positions and a higher vacancy rate since 2008, they continue to serve our citizens well and do more with less in the face of ever-tightening budgets.

"This is a fair agreement for both employees and taxpayers that will provide modest cost-of-living raises for employees that will be included as part of our upcoming biennial budget. In addition, we have maintained the coordination of health care that strengthens the well-being of state employees and helps generate significant savings for the state, while protecting both parties should a potential "Cadillac tax' on health insurance benefits cause undue financial impact.

"This agreement is another important step toward maintaining fiscal responsibility while supporting our hard-working state employees, and I thank the SEA leadership team and state negotiators for their good-faith efforts to find common ground and reach a deal that is fair to all parties."

The contract will provide a modest cost-of-living pay increase of two percent in January of each year of the biennium and continues health care changes from the last contract that established a deductible for first time and created a site of service plan, which is reducing the state's projected growth in healthcare costs. Prior to the previous agreement in 2013, state employees had not received cost-of-living pay increases in five years.

Under the agreement, both parties can also re-open the negotiations should a potential "Cadillac tax' on health insurance benefits that is part of the Affordable Care Act exceed certain parameters. In order to re-open the negotiations, the moving party must notify the other party in writing of such a request on or before April 1, 2016, and the parties agree to convene within 14 calendar days of having received such notice.

In addition, the agreement also excludes unscheduled sick leave from overtime calculations and includes language to allow for furloughs in lieu of layoffs only in the event of a federal government shutdown.

The agreement is subject to ratification by a vote of SEA membership, and the changes will be incorporated in the Governor's upcoming budget proposal.

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