State, union wade into negotiations

In a prebargaining pep rally, three dozen state workers exited Pipefitters Hall in Lacey to the cheers of co-workers.

Then the other side, Gov. Chris Gregoire's bargaining team, emerged from the building to shouted welcomes.

"You'll find what state employees want is what every American wants: decent, living wages, health care for their families," Washington Federation of State Employees president Carol Dotlitch told them.

Shortly after those opening ceremonies, negotiations for a new two-year contract started. Other unions will start the process in the coming weeks, the third round of bargaining for about 60,000 unionized state workers.

The Personnel Reform Act allowed them to bargain for pay for the first time in 2004. They've won pay raises every year since, after four years with none. Those successes have been extended to nonunion state employees, but with a two-month delay.

The state's budget picture soured since the last round of talks, however. Workers say they may face stiffer resistance from the governor's team, but they still need to keep up with costs.

"That's the point of collective bargaining. You've got tough times, but you want to be treated by your employer fairly," said Susan Hendricksen, a union bargaining team member from the Department of Social and Health Services.

State workers face the same factors wearing on the national economy, added Joe Nilsson of the Department of Labor and Industries. "I drive a pickup, and granted it's larger than some, but it cost about $100 last time to fill it up."

Pay raises have been the last, toughest issues for negotiators in the past. The early talks going on now generally focus where there is agreement.

It helps to have contracts refined through the two previous rounds of talks, said Vince Oliveri, a representative with the International Federation of Professional and Technical Engineers Local 17.

"It certainly has changed a whole lot since 2004, when we started a whole new canvass. Since then we've been streamlining the original document," Oliveri said.

"I think both parties have gotten used to the new system, how it works, what the parameters are. The first couple rounds it was all brand new. I think we're through that and starting to hit our stride now."

The first round of contracts generally included a 3.2 percent raise for workers in 2005, and 1.6 percent the following year. But they also began mandatory union fees, which sparked a wave of unrest in agencies.

The last round was less controversial and a bigger boost for workers: the raises of 3.2 percent in 2007 and 2 percent this year were less important for many employees than a new pay step for longtime employees and moves to put most occupations within 25 percent of private sector pay.

Unions held the employees' average share of health care costs to 12 percent of their premiums in the past two contracts.

The deals come at a price to the state. The most recent two-year contract cost $600 million for unionized workers, $100 million to nonunion employees and $340 million for state college employees.

Gregoire's top negotiator, Diane Leigh, was unavailable for comment. Neither side has offered specifics for raises, at least publicly.

All indications are that there is less money to go around. Expected revenues dropped by $423 million through June 2009 in the last economic forecast.

And Gregoire faces Republican Dino Rossi in a rematch of their 2004 gubernatorial race. Rossi is hammering on a projected budget deficit of $2.4 billion next year, saying Gregoire has overspent.

Whatever the political pressures, unions say they aren't going to take lowered expectations to the negotiation table.

Teamsters Local 117, which represents prisons and corrections workers, has won higher pay raises than most unions. It also has been willing to push talks close to the Oct. 1 deadline to reach agreement with the governor.

"We know we'll be treated fairly," Teamsters organizer Leonard Smith said. "Do they have any choice? In the end these are their employees, and they want to be treated fairly."