Gov. plans to lay off 8,900 NY workers
Gov. David Paterson plans to lay off 8,900 state employees, according to the governor's budget division.
Matt Anderson, a spokesman for the state's Division of the Budget, said the unions, CSEA and Public Employees Federation, rejected concessions proposed by the governor, including delaying a 3 percent pay increase and deferring pay for five days to a later date.
"We made many attempts to modify those proposals," Anderson told The Business Review. "They rejected all proposed concessions."
In fact, this week the United University Professions, which represents SUNY workers, sent a letter to members noting its rejection to the proposals.
“UUP said ‘no’ as did other unions, including CSEA and PEF,” wrote Phillip Smith, president of UUP. “UUP’s contract with [the state] was negotiated in ‘good faith’ and if the governor broke it UUP could not be assured that future negotiations with [the state] would be conducted in the appropriate atmosphere of mutual respect and trust. The governor’s planned savings from those demands would garner only $301 million from all unions combined.”
UUP says it opposed the governor's request as it was "made at a time when we knew that federal stimulus dollars would be forthcoming," Smith wrote.
Anderson, the spokesman for the budget division, said the unions were told that layoffs were possible if no counter proposals were made. They were notified of the governor's decision Monday.
"They did not accept any concessions nor come to us with counter proposals," he said. Anderson said the job cuts would save the state about $481 million over the next two years, the same amount of money that the state would have saved if the 3 percent pay raises had been canceled and the five-day pay lag had been put in place.
"The govenor told the unions that this step was going to be implemented," Anderson said. "This is not the outcome the governor wanted to have happen. He has sought to avoid layoffs. That was no longer possible when the union indicated they were not willing to accept concessions online payday advance."
Attempts to reach the unions were unsuccessful. On the CSEA Web site, a comment by President Danny Donohue was posted.
"We've been trying to give him the benefit of the doubt, but if Gov. Paterson really believes putting nearly 9,000 New Yorkers out of work is a good idea, he really is out of touch with life on Main Street," he said.
The union is urging its members to contact state lawmakers to urge them to oppose Paterson’s plan.
PEF President Ken Brynien issued a statement saying: "PEF's position is clear and unchanged. We will not agree to any changes in our contract that reduce compensation."
"We also take exception to [Budget] Director [Laura] Anglin's assertion that the public employees have offered no counter proposals to address the state's budget crisis. We have been offering alternatives to raising revenue and cutting costs for months," he said."
Those alternatives include:
* Use the federal stimulus funds to limit cuts in state services and jobs.
* Increase the income tax on wealthier New Yorkers.
* Reduce the state's use of consultants "who are being overpaid to do the jobs state workers can do at a much lower cost."
* Reduce overtime costs. PEF said the state spent $485.7 million on overtime costs in fiscal year 2007-08.
Anderson said the layoffs would not take place until some time in July. He said Paterson is open to speaking with the unions.
"They have not put forward any indication they're willing to reconsider their positions," Anderson said. "If they reconsider their positions, we're, of course, ready to listen."
News of the layoffs comes the same day Paterson said the state’s record-high budget deficit increased by $2.2 billion in just the past four weeks. It now tops $16 billion.
Filed under: finance by Fred