The state is liable for paying tens of millions of dollars in leave time to state employees if a government shutdown occurs next month. Two unions have negotiated for members to retain their leave if that happens. But the largest union of state employees is holding out.
The Alaska State Employees Association has about 8,000 members. Amanda Thomas is one of them. She works for the Department of Administration and knew the layoffs were coming. Her family put away money as buffer.
“Truthfully, I was probably doing OK with it, up until the point that I came to the realization that the leave was going to be cashed out,” Thomas says.
She says some state employees have an entire year saved up. But Thomas has almost two months of leave, roughly a $10,000 payout.
“It’s unexpected income that we don’t need at this point. ‘Cause as I said, we’ve already saved,” she says.
To the feds, that’s income. That would force Thomas’ family into a higher tax bracket than if she took a long vacation.
This didn’t sit well with her. Two smaller unions, Confidential Employees Association and Alaska Public Employees Association, already signed a letter of agreement with the state, allowing employees to retain their leave if layoffs occur. So she called her union to see it would sign one, too.
“Basically I was told that it would happen in the best interest of the membership, and I don’t know that I agree with that,” she says.
Jim Duncan, the executive director of ASEA, says the union isn’t currently considering signing a letter. Duncan was an Alaska legislator for 24 years. He says ASEA is working day and night to get a fully funded budget, including the 2.5 percent cost of living pay increase promised to its members.
“So the bottom line, in the final analysis, our members’ interest are going to be protected when all the decision making is through,” Duncan says.
As of Wednesday evening, if the legislature doesn’t pass a budget in time, the state will have to pay out tens of millions of dollars in leave to ASEA and other union members. Duncan says it’s not a bargaining chip.
“I’m not bargaining with members’ future,” he says. “I’m just working with the legislature to do what they should be doing and to, one: get a budget passed and secondly: honor the commitments to our union members as well as other union members.”
The state will cash out comp time but not flex hours. After 10 years of employment, Amanda Thomas could come back to zero leave. No sick days, no vacation time–nothing.
“In my conversations with my coworkers most of us are pretty disturbed by the fact that, when we come back to work, when that does occur, we will be starting over at square one,” she says.
To avoid being taxed for her leave payout, Thomas says she’s considering putting the money into her retirement. Her upcoming family trip to Australia may have to wait.
