Governor Predicts Raise for State Workers in a Month

Gov. Gray Davis predicted Friday that within 30 days the largest union of California state workers will sign a new contract that will give about 80,000 Civil Service employees their first raise in five years.

Such an agreement would end a sometimes tense standoff between Davis and the unions that strongly supported his campaign last year.

The governor did not offer details on the raise, but he said the expected agreement will probably cover only the current year. He said further negotiations with the California State Employees Assn. will take place after a revised state budget is drawn up in mid-May.

“I believe we can come to terms of a agreement for the current year, and postpone discussions for [next year] until we have the benefit of revised financial figures, which we will have in mid-May,” Davis said during a visit to the annual winter meeting of the AFL-CIO executive council.

“I think that will accommodate their desires to have a raise forthwith and be recognized for the hard work they have rendered for the state of California for many, many years.”

Davis, who is scheduled to arrive in Washington today for the winter meeting of the National Governors Assn., made his remarks at a news conference after a closed-door meeting with the executive council at the Fontainebleau Hilton Hotel.

Among the labor leaders Davis met with were Andrew L. Stern, president of the Service Employees International Union, with 1.1 million members, including those in California, and United Farm Workers of America President Arturo S. Rodriguez.

In Sacramento, labor representatives welcomed the governor’s optimism, but they added that it does not reflect the negotiations.

Jim Hard, director of the Civil Service division of the state employees association, said the latest offer from the governor’s office was a 4% raise effective May 1. The union has asked for 6% retroactive to July and another 6% effective as of last month.

“He certainly could negotiate a contract with us in a flash,” Hard said. “But if he thinks that state workers are going to take 4% on May 1, 1999--which is all that he’s offered thus far--he’s not in the ballpark.

“I think it’s a matter of priority,” he said. “They do have the money and I think they could wrap this up very quickly.”

Most state employee unions have gone without a raise since January 1995 because they were unable to reach an agreement with former Gov. Pete Wilson, who demanded Civil Service reforms in return.

The unions became frustrated with Davis in January when he proposed a state budget that indicated only a 1% raise in the current fiscal year that ends June 30. Davis said he was reacting to forecasts of a $2 billion revenue shortfall this year.

In response, state employees staged protests and threatened a strike, posing an ominous hurdle for Davis’ first months in office.

Asked Friday if the labor contract dispute was a test of his young administration, Davis said: “I’m sure it is a test. I seem to get one an hour.”

Clary reported from Miami Beach and Lesher from Sacramento.