Calif. SEIU Workers OK Pay, Pension Cuts

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(AP Photo/Alan Diaz)

(AP Photo/Alan Diaz)

SACRAMENTO (AP) — Members of the largest state employee union have approved a contract that cuts pay by nearly 5 percent for 95,000 government workers and rolls back pension benefits.

Service Employees International Union Local 1000 announced Tuesday that 76 percent of its voting members had ratified the contract.

The terms go into effect immediately because the Legislature and Gov. Arnold Schwarzenegger approved the agreement in October as part of the state budget.

Pension formulas for new employees will be scaled back to pre-1999 levels. Pension contributions will be increased by 3 percent for current employees.

The contract also requires employees to take one day of unpaid leave per month as opposed to three furlough days ordered by Schwarzenegger for other state workers.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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