California prison union strikes $600 million contract with Gov. Newsom that includes furloughs

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The union representing 25,000 California prison guards struck a deal for a new contract that gives Gov. Gavin Newsom some financial relief in the short term but includes a mix of bonuses and raises that would kick in over the next three years.

Newsom in May signaled that he’d be asking state worker unions to delay raises when he announced a budget proposal to close a $12 billion deficit. He was seeking $767 million in savings from public employee unions.

The California Correctional Peace Officers Association, commonly known as CCPOA, was the first union to reach an agreement after Newsom’s budget announcement. Other unions are bargaining now over return-to-work policies in addition to negotiating over pay and benefits.

All together, the deal for correctional officers is expected to cost the state $600 million over the next three years, according to a summary released by the California Department of Human Resources. It includes two raises of 3% each with one taking effect next month and the second one in July 2027.

That first raise would be offset by a personal leave program of unpaid time off that is expected to reduce guards’ pay by 3% in the coming year. That’s worth about $132 million.

The net savings to the state would amount to about $3.9 million.

The contract saves more money by deferring the state’s contribution toward the health care coverage correctional officers will use in retirement. That’s expected to trim state spending by about $100 million in each of the next two budget years.

The raises will be reflected in guards’ overtime and in the state’s contributions toward their pensions.

Newsom last imposed furloughs on state workers during the early months of the Covid-19 pandemic, when the economy tanked and the governor braced for a recession. The economy and state tax revenue recovered quickly and the prison union’s last contract was flush with bonuses, a new kind of savings account and raises.

The union has made Newsom’s pet initiatives a focus of its political spending. The union under former President Glen Stailey gave $1.75 million to Newsom’s anti-recall campaign in 2021 – the largest single contribution to that effort – and another $1 million in 2024 to support Proposition 1, Newsom’s treatment and housing plan for people experiencing serious mental illness.

The new prison guard contract has perks that are meant to fill the ranks at specific prisons, including a $10,000 retention incentive for correctional officers at Salinas Valley State Prison, California State Prison-Sacramento and Richard Donovan Correctional Facility in San Diego.

New cadets who agree to work at nine other prisons would receive a $5,000 incentive.

The prison guard union did not immediately return a message seeking comment. Its members must approve the deal for it to take effect.

Though the contract also would still need the approval of the Legislature, the Democratic-dominated deliberative body is unlikely to reverse Newsom’s negotiations.