The state of New Hampshire has recently been in the news for its collective bargaining agreement, or CBA, negotiations between the state government and its public sector unions. A CBA is a type of labor agreement that outlines the terms and conditions of employment for a particular group of workers, typically for a set period of time.
The current CBA in New Hampshire covers approximately 13,500 state employees and was set to expire in June 2019. Negotiations between the state and unions representing these employees began in early 2019, with issues such as pay raises, health insurance contributions, and retirement benefits on the table.
One major point of contention between the two sides was a proposal by the state to increase employee health insurance premiums. The unions argued that this would essentially amount to a pay cut and were reluctant to agree to any increases. Eventually, a compromise was reached that would increase employee contributions to health insurance premiums by 2%, with the state covering the remaining cost.
Another issue that caused tension in the negotiations was the state`s proposal to switch from a defined benefit pension plan to a defined contribution plan. Under the former, employees receive a set amount of retirement benefits based on their years of service and salary, whereas under the latter, employees contribute to their retirement accounts and the amount they receive in retirement is based on the performance of their investments. The unions opposed the switch, arguing that it would decrease retirement security for employees.
Ultimately, the negotiations resulted in a new CBA that was ratified in August 2019. The agreement includes pay raises of 4% over the course of two years, as well as an increase in the minimum wage for state employees to $15 per hour. Additionally, the CBA maintains the defined benefit pension plan, rather than switching to a defined contribution plan.
Overall, the negotiations and resulting CBA demonstrate the important role that collective bargaining plays in ensuring fair treatment for workers. Through negotiations, both sides were able to compromise on key issues and reach an agreement that benefits both the state government and its employees.
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