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Will the Gifts Continue for State Unions at the Expense of Taxpayers?


Lamont Waited to Add Fourth 4.5% Wage Hike in Order to Hide the Full Cost of SEBAC 2022

Holiday lights have dimmed and the festivities are over; in Connecticut, however, the season of giving is endless, particularly when it comes to the state’s union contracts.  

But all too often, government unions get all the presents, and taxpayers find themselves left with the fiscal equivalent of a mountain of torn and discarded wrapping paper: escalating labor costs, directly impacting their wallets through higher taxes and reduced affordability—courtesy of the state’s opaque union negotiations. It’s time for some common sense reform. 

Last fiscal year, Governor Ned Lamont inked a deal with the State Employees Bargaining Agent Coalition (SEBAC) for a 4.5% wage increase (including annual “step” increases, aka “annual increments,” that average 2%) for this fiscal year (FY2025).

The new deal was not originally part of the 2022 contract (SEBAC 2022), despite that it falls in the fourth year of SEBAC 2022.  Rather, it was a result of a strategic maneuver known as a “wage reopener” — a term that stipulates that wages can be renegotiated in the final year of a labor contract. 

Although a 4.5% wage increase sounds modest in these inflation-plagued times, Connecticut ranks second only to California for the highest paid state workers— with an average wage above $83,000. Worse, a wage reopener is a one-sided, pernicious negotiation tactic that any competent management negotiator would not permit without significant and tangible concessions from the other side. 

This most recent wage reopener wasn’t a benign oversight; it’s a deliberate tactic that either exposes the governor’s negotiators as outmatched or, worse, complicit in sacrificing fiscal responsibility for political support. The questions that linger are stark: Are negotiators incompetent, or are they allowing political support to trump state solvency? 

Connecticut’s residents are right to ask pointed questions about training, transparency, and the sheer scale of fiscal irresponsibility, particularly at a time when they are already grappling with high taxes, soaring energy costs, and overall unaffordability here in the Constitution State.  

The “wage reopener” isn’t about offering another chance at negotiation; it’s a calculated strategy to manipulate both the timing and public perception of labor costs. By renegotiating wages for the last year of a contract, the state and unions are able to present an initial contract that looks manageable on paper but balloons later, when attention has waned.

The dollar amounts involved are enormous and illustrate that this is not just fiscal sleight of hand. Without any wage increase originally in the fourth year of the initial contract, the Office of Fiscal Analysis estimated the wage cost of SEBAC 2022 in the fourth year at $505 million when legislators voted on the contract in 2022. That’s just $10 million more than the $495 million cost estimate for the prior year, the third year. The increase in cost from the second to the third year is a proxy for cost increase in the fourth year under the delayed “reopener”: an additional $120 million. That bumps the wage cost increase this fiscal year (FY2025) up from the original $505 million to $625 million – a big bump!

This is a betrayal of public trust, obscuring true labor costs until it’s too late. 

Although this strategy doesn’t make sense for the taxpayers, it certainly does for both parties engaging in it. First, it paints Governor Lamont in a favorable light, offering him a “win” just in time for an election cycle. By deferring wage hikes, the initial contract seems less expensive, blunting immediate criticism while still shackling taxpayers with the eventual bill. Second, it cements a symbiotic relationship between unions and cooperative politicians. Unions are rewarded with political influence in exchange for campaign groundwork like canvassing and voter mobilization. The whole enterprise is a transparent but discreet transaction in public funds for political power. 

For unions, this reopener isn’t merely about securing better wages; it’s a master class in maintaining political leverage. By aligning wage increases with election years, unions ensure their members are politically motivated, pushing politicians to favor union-friendly policies. This cycle of mutual benefit leaves taxpayers out in the cold, with the real economic impact only crystalizing after commitments have been cemented. 

The focus on wages alone during negotiations sparked by the wage reopener is a strategic deception, allowing both state officials and unions to appear reasonable while sidestepping broader, potentially explosive issues like benefits or pension reform. This selective focus cloaks the full fiscal implications of union demands until they’re well past beyond the point of significant public intervention or debate. 

The trend of extending existing union contracts without any serious renegotiation is yet another tactic that favors the unions at the expense of Connecticut’s taxpayers. It avoids the hard conversations about fiscal responsibility, perpetuating a system where union leaders and politicians like profit at the taxpayers’ expense. Such extensions do nothing to address critical issues like reducing state debt — but plenty to maintain the mutually rewarding alliances between politicians and their union supporters that are conveniently shielded from public scrutiny. 

Our state urgently needs a renegotiation process that reflects the interests of all stakeholders — not just the politically connected and powerful. Including taxpayer representatives in these discussions could inject much-needed transparency and balance, ensuring that state contracts work in the broader public interest, not just to the advantage of a select few negotiating in secrecy. 

Connecticut must pivot from this practice of secret, backroom deals to becoming a model of open, accountable governance. The current system, where contracts are extended without public input or scrutiny, is not just poor policy; it’s a profound disservice to those who fund these agreements—the taxpayers. 

Our state’s taxpayers deserve a reformed negotiation process where transparency isn’t an afterthought but the very foundation. Only then can we ensure that the “gifts” of union contracts are distributed fairly — not only for the unions and their political allies, but balanced with consideration of Connecticut’s fiscal health and the legitimate needs of all state residents.  

As we begin this New Year, let’s commit to accountability, transparency, and fair representation at the bargaining table. Those are gifts that everyone should welcome. 

The public should demand no contract extensions or wage reopeners in the upcoming state union contract negotiations.  

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