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NY — Gov. David Paterson and two unions reached an agreement to avoid major layoffs of state workers while adding extra payments for those who elect to retire and a lower pension tier for new hires.
Paterson said Friday the deal should save $440 million over two years, roughly the amount that would have come from up to 8,900 planned layoffs he announced in March.
"This agreement means a smaller state work force, savings for taxpayers, and a new pension tier that provides long-term fiscal stability for the state," Paterson said. He added that the agreement accomplishes his overriding goal of long-term cost reductions in a way that is both responsible and compassionate.
According to the governor's office, the $20,000 retirement incentive will be offered to about 4,500 employees. Another 2,500 jobs that are funded but vacant will be permanently abolished.
The agreements with the Civil Service Employees Association and Public Employees Federation also set goals for voluntary work schedule cuts.
The unions said they will accept Paterson's proposed legislation to establish a new pension tier, saying it will not infringe on the retirement rights of current workers. They said the administration is pledging it will not pursue layoffs over the next two years.
"CSEA recognizes these are extraordinary times with unprecedented challenges, and we have tried to find ways to help without reopening contracts," President Danny Donohue said.
Public Employees Federation President Ken Brynien said, "Considering the deteriorating condition of the state's finances, this represents a reasonable accommodation, which preserves the integrity of our contract and provides cost savings to the state in lieu of layoffs." He said the organization will continue to push Paterson and lawmakers to reduce the use of outside consultants for state work.
Lawmakers would have to approve the new pension tier.
Senate Democratic Majority Leader Malcolm Smith praised Paterson and the unions for finding a compromise that cuts government and protects state workers.
