Hawaii's largest public employee union and the governor, Neil Abercrombie, have agreed on a new contract that cuts workers' pay by five percent and avoids furlough days or layoffs.
Mr Abercrombie has told the Star Advertiser the deal with the Hawaii Government Employees Association will save the state about 65 million US dollars for the next financial 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 Mr Abercrombie had agreed the state would pay 60 percent until the end of the current fiscal year on June the 30th.
The governor says the union has done its part in making a shared sacrifice for the state.
