Governor Rick Snyder's administration has reached a deal with unions representing 35,000 state employees on a two-year contract beginning next year. Last week, both sides declared their negotiations deadlocked.
The agreement averts arbitration hearings that were to begin Monday. Details on compensation and benefits are not being made public pending union ratification votes. But the tentative agreement does include some employee concessions, while the Snyder administration has agreed to examine manager-to-staff ratios and the cost of outside service contracts for possible ways to save money.
If it is approved by the members and the state Civil Service Commission, this contract will take effect in October of 2012.
The state unilaterally resolved a deadlock to come up with $265 million dollars in savings in the current fiscal year by imposing four unpaid furlough days, and not filling 367 vacancies. About 2,000 corrections employees will also lose their jobs as the state closes a prison in Detroit.
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