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Insurance industry

State Employee Layoffs Underway in Connecticut

Strategic Insights

— 1 min read

Gov. Dannel P. Malloy announced at a press conference on the Bloomfield campus of CIGNA that large-scale state employee layoffs are underway. The governor stated that larger numbers of employees will start to receive their layoff notices, which will continue throughout the week. According to Malloy, his office will release a department-by-department list of the layoffs on Wednesday, with finalized details of his $700 million budget-cutting plan for the new fiscal year to follow on Thursday. This comes as a result of the failed ratification of a concessions agreement with the 15 state employee unions, which could lead to as many as 6,500 layoffs.

Key Takeaways:

  • The state of Connecticut is undergoing large-scale layoffs of up to 6,500 state employees due to the failed ratification of a concessions agreement with the 15 state employee unions.
  • The concessions agreement received 57 percent of the rank-and-file vote last month but needed 80 percent to pass.
  • Governor Dannel P. Malloy has warned that further discussions with union leaders would be pointless until the unions loosen their strict bylaws governing contract changes.
  • The governor's administration has stated that the layoffs will continue throughout the week, with numbers of layoffs increasing as the week progresses.
  • The governor's office will release a department-by-department list of the layoffs on Wednesday, with finalized details of his $700 million budget-cutting plan for the new fiscal year to follow on Thursday.
  • The failed concessions agreement affects approximately 45,000 state employees.
  • The layoffs are a result of the governor's efforts to address the state's budget deficit.

Statistics:

  • Up to 6,500 state employees may be laid off due to the failed concessions agreement.
  • The concessions agreement received 57 percent of the rank-and-file vote last month.
  • The governor's $700 million budget-cutting plan aims to address the state's budget deficit.
  • The unions representing the 45,000 state employees have strict bylaws governing contract changes.
  • The layoffs will continue throughout the week, with numbers of layoffs increasing as the week progresses.

Sources:

  • "HARTFORD -- Gov. Dannel P. Malloy said today that large-scale state employee layoffs are underway and that notices will continue to go out through the week." - The Day (July 12, 2011)
  • http://www.theday.com
  • The Day, New London, Conn. Copyright (c) 2011.
  • Distributed by McClatchy-Tribune Information Services.

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