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Minnesota lawmakers appeared unlikely to reach a compromise and ratify contracts for thousands of state workers on Sunday — the last day bills could be approved before their regular lawmaking session ends Monday.

At stake is nearly 5 percent worth of pay increases over two years for 11 different labor unions that settled contract negotiations with Gov. Tim Walz’s administration in 2019. The DFL-led House has approved the contracts, but the Republican-led Senate passed a modified version of the agreement late Saturday.

Under the GOP proposal, state workers will maintain the 2.25 percent pay increase they’ve been getting since last summer, but an additional 2.5 percent raise set to take affect in July will be delayed or canceled. State workers would only get the second pay increase they negotiated if the state was not facing a budget deficit next summer.

The COVID-19 outbreak has severely impacted tax collections and Minnesota’s coffers went from a surplus of more than $1.5 billion to a $2.4 billion projected deficit.

“The whole state of Minnesota is hurting right now,” said Sen. Mark Koran, R-North Branch, who is chief sponsor of the bill to change the contracts. “There are 650,000 people unemployed across the state, businesses are closing for good, and people are losing their livelihoods every day. The bill today is fair to every Minnesotan, both state employees and the taxpayers.”

Julie Bleyhl, executive director of the American Federation of State, County and Municipal Employees Council 5, noted that the raises and other provisions in the contracts were included in the $48 billion, two-year state budget approved last year. She questioned the legality of the Senate trying to modify the deals.

“We condemn this action,” Bleyhl said. “The Senate GOP’s actions showed total disrespect of nearly 50,000 public employees, their families and their collective bargaining rights. They grossly overstepped their authority in amending the contract.”

House leaders have called on the Senate to approve the negotiated contracts without strings attached. They say the Walz administration has no plans to go back to the bargaining table.

“We need to resolve these state worker contracts and not throw the whole state workforce into chaos, especially in the middle of a pandemic when these people are actually working and performing essential services on our behalf,” said House Majority Leader Ryan Winkler, DFL-Golden Valley.

If the contracts are not approved, state workers risk not only losing a coming pay increase but also having to give up the one they already got under the deal. The Legislature is expected to reconvene for a special session next month because of the coronavirus and likely could take action on the agreements then.

This report includes information from Forum News Service.