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HGEA agrees to 5% pay cut over next two years

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Hawaii’s largest public employee labor union and Gov. Neil Abercrombie have agreed on a new contract that cuts worker pay by 5 percent without furlough days or layoffs.

Abercrombie said yesterday the labor deal with the Hawaii Government Employees Association will save the state about $65 million in the 2011-12 fiscal year and $59 million the following year.

The agreement also evenly splits contributions for public worker health premiums for the next two years, a rollback after Abercrombie had agreed to the state paying 60 percent until the end of the current fiscal year June 30.

The contract is the first agreed on this year between an employee union and state and county governments.

Abercrombie said the union did its part in making a shared sacrifice for the state.

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