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New York state threatens 9,000 layoffs

Posted on: Wednesday, 25 March 2009, 12:02 CDT

New York state's $16 billion budget shortfall may force 9,000 layoffs in the wake of failed negotiations with union workers, the governor said.

New York Gov. David Paterson said Tuesday that layoffs would begin in July but the announcement may have been a signal to the unions that it was time to respond to the state's call for negotiations, The New York Times reported Wednesday.

In concessions that apply to all state employees, except those working for the university system, the governor has asked workers to skip raises for a year and defer a week's pay until a later date -- when they retire or when the fiscal crisis ends. He has also called for increased contributions to insurance benefits for future retirees, the Times said.

Throughout the year, the governor was asking for labor concessions, saying he did not want to do wholesale layoffs, said state Budget Director Laura Anglin.

President of the Public Employees Federation Ken Brynien said public employees had offered counterproposals.

Most of those proposals, however, didn't include concessions, the Times said. One was to hire more workers to reduce overtime and a second proposal involved raising taxes, the Times said.

Source: United Press International

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