Gov. Arnold Schwarzenegger signed legislation Wednesday implementing a contract with California's largest state employee union that includes an average pay raise between 7.8 percent and 9.8 percent over two years. The Republican governor also signed a bill installing a union contract with a similar wage increase for 12,000 highway maintenance workers, heavy-equipment operators and state employees in other related fields. Under the deal struck in June between state negotiators and the Service Employees International Union Local 1000, the 87,000-member labor group retained its current health care package for most members, in addition to the two-year raise and a $1,000 one-time...