By GREGORY N. HEIRES
Municipal unions won an agreement June 18 that links early retirement
incentives to job security.
The city agreed to implement a broad-based early retirement plan and
pledged there would be no layoffs during the plan's enrollment period.
The unions agreed to legislation to stretch out city payments to pension
systems for retirees' cost-of-living adjustments.
The funding "stretch out" will help close the city's $5
billion budget gap but will not delay COLA payments to retirees.
"These negotiations were very tough at times, but we made it
clear that we were not going to agree without getting some benefits
for our members," said DC 37 Executive Director Lillian Roberts.
"We're pleased that we got management to agree to no layoffs
during the early retirement window period - and that we convinced
the city to carry out a broad-based program, which will be available
to tens of thousands of members," Ms. Roberts said. "And
this agreement provides fiscal relief to the city without an adverse
impact on our membership."
Layoff protection extended
The Municipal Labor Committee, which includes unions that represent
300,000 city workers, struck the deal with the city the day before
the mayor and City Council agreed on a new budget. Ms. Roberts is
secretary of the MLC, which is chaired by United Federation of Teachers
President Randi Weingarten.
Under the agreement, the city will offer early retirement to as many
municipal workers as possible and guarantees that layoffs won't occur
during the open enrollment period. The pact is important for DC 37,
because it extends job security for the vast majority of members just
as the union's contract expires on June 30.
The extension of the COLA payments is a technical financial step that
will allow the city to save $275 million-$300 million in fiscal year
2003 with no effect on members or retirees. The agreement also includes
a voluntary severance program, which must be negotiated with the unions.
Cultural institutions are not covered by the pact, but DC 37 is pressing
the library systems to participate.
As members of the MLC steering committee, Veronica Montgomery-Costa,
president of DC 37 and Board of Education Employees Local 372, and
Health Services Employees Local 768 President Helen Greene were part
of the negotiating team with Ms. Roberts. Research and Negotiations
Director Dennis Sullivan provided key technical support together with
DC 37 General Counsel Joel Giller and Associate Director Evelyn Seinfeld
and Assistant Director Michael Musuraca of the DC 37 Research and
Negotiations Department.
The $275 million-$300 million "pension stretch" is part
of the $500 million in so-called labor contributions included in Mayor
Michael Bloomberg's budget balancing plan. The MLC agreed to discuss
additional savings, but Ms. Weingarten underscored that willingness
to meet on this issue doesn't suggest that the unions would agree
to givebacks.
Goal: avoid layoffs
The agreement establishes a "labor-management workforce committee"
to discuss issues related to the early retirement incentive and severance
programs. "The objective of the committee will be to avoid layoffs,"
the agreement states.
The June 18 agreement also contains the following important provisions
for DC 37 members: