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Illinois terminates AFSCME contract

Published: Wednesday, Nov. 21, 2012 1:15 a.m. CST

CHICAGO (AP) – After nearly a year of negotiations, Gov. Pat Quinn’s administration on Tuesday terminated the contract between the state of Illinois and its largest public employee union.

Assistant Budget Director Abdon Pallasch said state officials informed leaders of the American Federation of State, County and Municipal Employees there will be no additional extensions of a contract covering 40,000 workers that expired in June.

Pallasch said AFSCME leadership hasn’t offered meaningful concessions even as the state has agreed to withdraw a proposed pay cut for current employees and replace it with a proposal for a pay freeze.

Illinois’ public pension system is underfunded by at least $85 billion, and there state has a more than $8 billion backlog in overdue bills.

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