The Michigan Civil Service Commission has voted to impose higher health care costs on about 32,000 unionized Michigan government workers.
Roughly 70 percent of Michigan's 47,000 employees have union representation.
The commission voted 3-1 Wednesday at its meeting in Lansing to accept wage increases and health benefit terms that an impasse panel had recommended.
The impasse panel's recommendations came after unions and Gov. Rick Snyder's administration disagreed on wages and health benefits.
The contract includes a 2 percent wage increase and a 0.5 percent lump sum payment in 2014 and a 2 percent pay increase in 2015.
It also raises co-pays, deductibles and out-of-pocket maximums for health care.
Commissioners postponed the decision Dec. 18 after deadlocking 2-2 on an alternate proposal that excluded some health care cuts.