The layoffs notices continue to be handed out to state employees as union leaders met Wednesday with Gov. Dannel P. Malloy’s chief labor negotiator.

As of 10 a.m. this morning 1,851 layoff notices have gone out to union and non-union employees.

Meanwhile, labor negotiators were back at the table working on clarifying the concession package which included four years of job security, a two year wage freeze followed by three years of 3 percent increases, and changes to healthcare and pension benefits.

The first wrinkle the two sides need to work out is the 2.5 percent salary increase more than 40,000 state employees will see in their July 29 paycheck as a result of the 2009 State Employees Bargaining Agent Coalition agreement with former Gov. M. Jodi Rell.

The pay raises which went into effect on July 1 will begin showing up in state employee bank accounts at the end of the month and according to Office of Policy and Management Secretary Ben Barnes it amounts to about $5 million per pay period. Barnes warned Tuesday that the cost of the first pay period may be a higher payout since some of the contracts will include step increases.

Roy Occhiogrosso, Malloy’s senior communications adviser, declined to comment publicly on any negotiations regarding the pay increases.

“That is one of the things being talked about,” Occhiogrosso said Wednesday. “It’s not an insignificant amount of money.”

It’s possible the pay increases could be given and then subtracted from future paychecks if an agreement is reached.

“If we had an agreement in place in early August then you’re probably talking about having to claw back one or two pay periods, that’s all,” Malloy said Tuesday after visiting a Southbury bed and breakfast.

And regardless of whether there is an agreement, some of the cost-saving measures outlined in the plan will move forward.

Bergin Correctional Institute and Enfield Correctional Institute will still be closed and the employees who lost their jobs due to the consolidations will still be unemployed.

“There are savings not related to service reductions or the number of employees that have been identified and some of them will go forward,” Occhiogrosso said.

He said the layoffs due solely to the failure of the agreement will be rolled back.

At the moment very few people have actually been separated from their jobs, but every day layoff notices go out facilities will start to close and people will be separated from their jobs, he said.

He said he thinks both sides feel an urgency to get this done and because of the limited number of issues at play “it’s either going to happen or it’s not going to happen.”