The state and leaders of its largest employee union announced Monday they have reached a deal that would save hundreds of jobs threatened by spending cuts by having the 20,000 union workers take five unpaid furlough days each.

Union leaders also agreed to the suspension of a deferred compensation program.

Culver's office and Council 61 of the American Federation of State, County and Municipal Employees announced the deal Monday. The two actions would save the state $26.4 million and allow officials to keep 479 jobs that were threatened.

The agreement still must be approved by union members.

When Culver announced the budget cuts last month, officials said it could cost up to 1,300 jobs. Negotiations with AFSCME leaders have been held since then to avoid some job losses. Talks continue with two smaller unions.

Workers who are not covered by the collective bargaining agreements could still face layoffs. Culver aides said a final number of job cuts wouldn't be known for several days.

Council 61 president Danny Homan announced the agreement during a news conference at the union's headquarters.

"I'm frustrated by the fact that 500 people's jobs are on the line," said Homan. "I'm frustrated and I'm concerned."

While AFSCME represents about 20,000 workers, the union has 9,000 dues-paying members who will decide whether to OK the agreement in voting that begins Nov. 19 and ends Nov. 25.

"If the membership rejects the understanding, layoffs will be ordered," Homan said. "It is now in the hands of the membership of this union."

Culver spokesman Troy Price said officials are still determining the precise number of workers who will lose their jobs but said there's no way to avoid job cuts.

State officials said the furloughs would save about $22.7 million and the suspension of state contributions to the deferred compensation program would save $3.7 million. Employees still will be allowed to contribute to the program. Continued...