Deal reached with state unions after months of wrangling
Gov. David Paterson and unions representing 120,000 public employees announced an agreement today to reduce the state workforce by about 7,000 positions through buyouts and attrition, avoid layoffs and establish a less-generous pension tier for new workers.
Paterson had planned to lay off 8,700 state workers July 1 unless the unions agreed to certain concessions, such a giving back a 3 percent pay hike. Negotiations have been ongoing for months.
The agreement will save New York about $440 million over two years. It will:
– Provide a one-time, $20,000 retirement incentive to approximately 4,500 employees and permanently abolish 2,500 positions. Incentives will be provided only to individuals in positions that will be permanently abolished. The two actions will save $240 million over two years.
– Require unions to work with their members to get voluntary reductions in work schedules. Each union will receive a savings target proportional to the size of their portion of the workforce. The savings will be $156 million over two years.
In return, the governor wants a new, less-generous tier of pension benefits for new employees, which he said would save $25 million over two years. The Legislature, which is scheduled to be in session for two more weeks, would have to approve the measure.
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