Wednesday, March 09, 2011

Union deals to cost Iowa Taxpayers $415 million

Union contracts negotiated in recent months will mean additional wages and benefits for all state employees would cost $415 million over the next two years, state budget officials said Tuesday.

"That's huge," said David Roederer, budget chief for Gov. Terry Branstad, a Republican.

One labor union contract for a 6 percent wage increase over two years, approved by former Gov. Chet Culver, a Democrat, without a counteroffer, set in motion identical increases for the state's four other union contracts, state officials said.