ST. PAUL (AP) -- Thousands of state employees in Minnesota would get a raise and a new paid holiday if labor contract agreements are finalized.

Minnesota's two biggest state employee unions on Thursday reached agreements with negotiators from Gov. Tim Walz's administration.

The contracts cover most of the state's workforce and are subject to ratification by union members and the Legislature.

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The unions say the proposed contracts include a 2.5 percent base wage increase in each of the next two years, add Juneteenth as a paid holiday and hold health care premiums for employees stable.