The Illinois Labor Relations Board unanimously ruled Tuesday that an impasse exists in contract talks between the state and Council 31 of the American Federation of State, County and Municipal Employees.

The ruling opens the door to Gov. Bruce Rauner’s administration imposing its contract terms on the union that represents about 38,000 state workers. AFSCME has said those terms include a four-year wage freeze and a 100 percent increase in employee health insurance costs. The administration also wants to implement a merit pay plan and pay overtime after 40 hours rather than 37.5.

AFSCME said it will appeal the decision in court.

The five-member board, meeting in Chicago, ruled that because an impasse exists between the Rauner administration and the union over the outsourcing of state services, then an impasse exists on all contract issues.

The ruling rejects recommendations by an administrative law judge in September who said an impasse existed on some contract issues – including privatization – but not on the issues of a pay increase or health insurance benefits. She recommended the two sides return to the bargaining table on those. She found the administration did not provide information to the union, such as savings from changes to health care, that the union needed for bargaining.

“If the state were able to implement its entire last, best and final offer, the implications and impact would be so enormous that, when applied to this case, it would be destructive of the collective bargaining process and not serve the statutory mission of the board,” Sarah Kerley wrote in her recommendation to the labor board.

The administration broke off negotiations with the union in January, saying that the two sides had reached an impasse. Under terms of a previous agreement with AFSCME, it was up to the labor board to determine if an impasse existed.

“Today’s decision is fair for taxpayers and state employees,” Rauner spokeswoman Catherine Kelly said in a statement. “As a result of this agreed-to process, the state can now implement its contract, saving the taxpayers more than $3 billion over four years.”

AFSCME has disputed the administration’s price tag for the contract.

AFSCME said Tuesday’s ruling allows Rauner to implement his contract terms, but does not require him to. It said the administration should return to the bargaining table.

“We have consistently made clear that we are prepared to continue negotiating, while the Rauner administration’s extreme demands, unfair labor practices and refusal to meet have sabotaged the collective bargaining process,” said Council 31 executive director Roberta Lynch in a statement. “The governor is trying to force state workers to accept his unfair terms or go out on strike. The governor should negotiate, not dictate.”

However, Kelly said the administration hopes AFSCME “will partner with us as we consider how best to implement the contract.”

AFSCME has never gone on strike against the state in more than 30 years of negotiating contracts. No previous negotiation has reached impasse.

The union said the administration cannot implement terms of the contract until Tuesday’s ILRB ruling is put into writing. It is not clear how quickly that will happen. AFSCME said once the final written ruling is issued, it will appeal the decision in court.

In the meantime, AFSCME is planning statewide picketing at state job sites Thursday to draw attention to the contract dispute.

“It’s under the theme, Governor Rauner don’t dictate, negotiate,” said AFSCME spokesman Anders Lindall. “They’ll be speaking out about the importance of the public services they provide and urging the governor to come back to the bargaining table.”

Springfield-area lawmakers said the contract should be resolved at the bargaining table.

“I maintain my earlier calls for both sides of the negotiation, which includes the administration and the union, to go back to the table and negotiate a fair contract,” said Rep. Sara Wojcicki Jimenez, R-Leland Grove.

“I think both sides should sit at the table and negotiate,” said Rep. Tim Butler, R-Springfield. “Obviously that was not going to happen once it got appealed to the labor board, but now that we’ve got a ruling from the labor board and the union knows very squarely now that the governor can implement the last, best and final offer that they put down there, I would urge both sides to get back to the table and negotiate a contract that’s fair to all sides.”

The Labor Relations Board is appointed by the governor. Rauner appointed two members and reappointed two others who were initially appointed by then-Gov. Pat Quinn. The fifth member is also a Quinn appointee.

-- Political writer Bernard Schoenburg contributed to this report. Contact Doug Finke: doug.finke@sj-r.com, 788-1527, twitter.com/dougfinkesjr.