Tentative labor proposal could save $1.5 billion

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HARTFORD —  A proposed agreement between Democratic Gov. Dannel P. Malloy and state employee union leaders is being billed by the administration as "an historic agreement" that will save more than $1.5 billion over the next two years.

Those comments are included in a draft summary compiled by Malloy's office. The Associated Press obtained the document Monday.

The estimated savings match what Malloy has been seeking to help balance the new two-year state budget, which is projected to have a total $5 billion deficit. Malloy is trying to reach a budget agreement with state lawmakers.

But House Republican Leader Themis Klarides contends the proposal "falls short of where we need to be."

Union leaders still need to agree to offer the tentative framework for an agreement to rank-and-file members for their consideration.

The proposed agreement between the administration of Gov. Dannel P. Malloy and state employee union leaders offers a promise of no layoffs for at least four years in exchange for concessions including a two-year wage freeze and higher insurance premiums and pension contributions.

Union officials may decide Tuesday whether to present the draft proposal to rank-and-file members for consideration.

Malloy, a Democrat, has been seeking $700 million in labor savings in the new fiscal year beginning July 1 and an additional $870 million in the second year of the two-year budget.

The summary did not include savings estimates.