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Schwarzenegger administration reaches deal with service employees
| Sunday, Jun 18 2006 5:15 AM
Last Updated: Sunday, Jun 18 2006 5:15 AM
Gov. Arnold Schwarzenegger's administration has made a tentative deal with the union that represents 87,000 state employees, averting a possible strike.
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The three-year agreement reached Saturday with the Service Employees International Union Local 1000 - which includes workers in the Department of Motor Vehicles and the Department of Insurance - offers a 3.5 percent pay raise on July 1 that includes a cost of living increase one year later, and a one-time bonus of $1000.
The contract must still be ratified by union members, who have not had a raise in three years.
Union leaders had been authorized to call a strike if no agreement was reached, though the union's previous contract contained a no-strike clause.
The state had previously offered a one-year contract with a 3 percent raise, but increased the offer in exchange for a three-year deal, a state official told the Los Angeles Times.
"I think this is a good deal for not only our members but also for the people of California," said Yvonne Walker, the local union's vice president for bargaining.
The union also agreed to changes in pensions and health benefits for employees hired after 2006.
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