He only deferred the raises, and he promised other benefits, including reduced work week and increased benefits in return. Despite the deferral, prison spending is up.
In early July, the Schwarzenegger administration reached a deal with the CCPOA that would delay the scheduled union pay raise by several years. While not a reversal of the contract, the compromise is expected to save $108 million in 2004-2005. Instead of receiving the original 10.9 percent raise, the guards received 5 percent on July 1st and are scheduled for another 5.9 percent on Jan. 1, 2005 . The 2005 and 2006 pay raises would also pay out every six months. In return for agreeing to the deferral, the CCPOA won guarantees against layoffs for two years, additional healthcare for guards at rural prisons, more control for supervisors and shorter weeks for local union officers.On July 21st, U.S. District judge Judge Thelton Henderson, publicly condemned the deal that Gov. Arnold Schwarzenegger struck with the state's prison guards union, saying it gives the union too much power. In a letter he sent to the Schwarzenegger administration, Henderson said that he was considering appointing a receiver to run the state Corrections Department and demanded a meeting with the governor.
The raise was deferred, but also reduced to 15%.