Governor, union ordered to mediate contract dispute

PROVIDENCE -- Gov. Don Carcieri and the state's largest public employees union have been ordered to settle their ongoing contract dispute through a court-appointed mediator.

Supreme Court Chief Justice Frank Williams ordered the mediation on Thursday after meeting with lawyers for both sides.

The move comes two days after a Superior Court judge blocked an executive order from the governor that would have forced about 4,000 members of Council 94 to pay more for their health insurance.

Carcieri appealed the judge's ruling to the state Supreme Court. His executive order will be on hold during the arbitration process, which Williams said should take 90 days, at most.

"While I am hopeful this expedited process will result in a ratified agreement, I continue to have an obligation to balance the budget. The longer we are without an agreement with Council 94 and the other unions, the only options I have to recoup the cost savings are more severe and impactful to employees than the co-share changes," Carcieri said in a statement.

Carcieri signed the executive order after union members rejected a contract that would have helped the state balance its budget by raising workers' health care costs.