ARBITRATOR RULES ON AFSCME CONTRACT

Workers in Iowa's largest public sector union won't have to pay a contribution to their health insurance under a new two-year contract issued by an arbitrator.

Union president Danny Homan of Sioux City made the announcement of the award for the 20,000 members of Iowa's American Federation of State, County and Municipal Employees Thursday:



The contract includes no raises, except for step increases for workers who haven't reached top pay scale.

Homan says the union and Governor Terry Branstad agreed on wages during negotiations, but the process went to arbitration because the two sides couldn't resolve health care.



Branstad called for union members to start paying a portion of health care costs, while the union wanted to maintain current benefits.

Branstad spokesman Tim Albrecht says the Governor is disappointed that Iowa will remain one of six states where state employees pay little or nothing towards their health care costs:



Albrecht says the arbitrator disagreed and they'll live with that decision.

Radio Iowa and Associated Press contributed to this story.