The Public Employees Federation of New York (an SEIU affiliate) and the Civil Service Employees Association reached an agreement with the state's governor this week. Gov. David Paterson will shelve his earlier plan to lay off nearly 9,000 workers and drop a proposal that would require existing workers to give up their 3 percent annual pay raise this year.

The agreement will save the state billions of dollars, the cost savings of which will come through early retirement buyouts, changes to pension benefits, and employee-initiated reduced work weeks. Administration officials say the amount of savings this year under this new agreement are about $60 million more than would have been saved under the layoff plan. "The governor moved significantly from his original demands for major contract concessions from the state's work force," said PEF President Ken Brynien. [...] "We will continue to push the governor and legislature to reduce the reliance on costly consultants as a way for the state to address future financial crises."