February 02, 2009
Unions under the gun
Municipal unions in New York City and Nassau County are being threatened with massive layoffs if they don't make contract concessions.
However, complicating matters, the ink is barely dry on agreements granting substantial pay increases -- requiring no significant givebacks -- to the largest bargaining units in both the city and the county.
As many as 23,000 city jobs are at stake in New York City, under Mayor Michael Bloomberg's proposed budget (here). In Nassau County, hundreds of workers could face layoffs to close a $130 million budget gap for the fiscal year that began January 1 (here).
According to Newsday, Nassau County Executive Thomas Suozzi today will propose that unionized county workers take a 7 percent pay cut, eliminating the need for layoffs by saving $50 million.
However, that would require reopening union contracts. Savings also could come from restructuring employee benefits. County workers contribute nothing toward their health insurance.
A recent arbitration award complicates Suozzi's mission. The eight-year award (an extraordinary long period) grants Civil Service Employees Association members pay raises between 3.5 and 3.75 percent annually over a seven-year period (here).
Meanwhile, Bloomberg's call for trimming the workforce in the absence of union concessions is serious, he insists (here). "We're not bluffing about anything. We don't have the extra money," he said Sunday.
In his proposed budget released Friday (here), Bloomberg called for benefit reductions to forestall layoffs. Among his proposals: - Requiring city workers to pay 10 percent toward their health insurance. (This needs union agreement.)
- Changing the retirement system for future employees. (This requires approval of the state Legislature.)
Unless the city's pension and health benefits are reformed, Bloomberg said, "We'll fundamentally bankrupt big municipalities like us."
Bloomberg, who had agreed to 4 percent raises for many city unions, seems to have second thoughts.
"We certainly would not make the kinds of settlements we made in the past when things were growing," he said. "When things are growing, it's much more difficult to hold down those raises. The question here is not do they deserve more, but what can we afford?"
Bloomberg announced the first of the 4 percent raises in September 16, the day after Lehman Brothers collapsed. Coincidentally, Suozzi proposed his budget for the current fiscal year the day Lehman Brothers collapsed.
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