State contract talks hit a hurdle on early-retirement issue Saturday, February 17, 2007 • BY JOE DONOHUE • Star-Ledger Staff After two weeks of intense negotiations, contract talks between the Corzine administration and state worker unions halted early yesterday morning. While the impasse may be temporary, those familiar with the talks say it was aggravated by a dispute over the minimum age for early retirement, which is now 55. Two sources familiar with the talks say state worker unions are upset because they believe the Corzine administration has reached a secret deal with the New Jersey Education Association teachers union to require new employees to reach age 60 and have 25 years of service before retiring. Under that scenario, teachers insured through the state's health plan would not be forced to contribute to their health insurance. Leaders of three state worker unions now in salary talks with the administration found out about it Thursday night, which added tension to their negotiations, the sources said. Corzine is seeking concessions from state workers on both the retirement age and contributions to the health plans. The early retirement age flap, and a lack of progress on other fronts, led to the talks ending around 2 a.m. yesterday morning, the sources said. Lynn Maher, the NJEA's spokeswoman, would not comment when asked if her union had talked with the Corzine administration. While the NJEA does not conduct collective bargaining for local units, it has historically lobbied on legislation that affects teacher benefits statewide. The state oversees the teachers' pension fund, and it manages a health insurance fund that insures about half the teachers. Brendan Gilfillan, Corzine's spokesman, declined to comment on the status of state worker negotiations. "This is a day-to-day process, and the administration will continue to work diligently towards an equitable solution." Robert Master, political director for the Communications Workers of America, the largest state worker union, also refused to comment on negotiations, and would not discuss any dispute with the teachers union. "I can't talk for NJEA," he said. While no new talks were scheduled for the weekend, Master said he views the hiatus as more of a breather than a breakdown. "I think both sides are making a good faith effort to figure out if there's a deal there that protects the interest of our members and meets the needs of the public," he said. "That continues to be the tone of the negotiations." Corzine has expressed hope that he can wrap up salary talks, which began in September, before he gives his budget speech on Thursday. In December, he asked legislative leaders to withdraw proposed legislation to trim public employee health and pension benefits as one way to cut property taxes. Those proposals included legislation to raise the early retirement age. The governor insisted it was better for him to seek concessions in the context of the ongoing negotiations. Corzine's opening position included a two-year wage freeze and givebacks of holidays as well as asking employees to pay more of their health benefits, according to an administration official with knowledge of the talks. The current contract, which was negotiated in 2003 when the state faced an even bigger deficit, froze wages for one year, then provided a total increase of 11.5 percent over the final three years. In Pennsylvania last month, Gov. Edward Rendell agreed to a contract with state workers that provided a $1,250 first-year bonus, followed by wage increases totaling 10 percent in the final three years. © 2006 The Star-Ledger. Used by NJ.com with permission.