Public Employee Press

State Senate Republicans kill OTB and 1,000 jobs




By DIANE S. WILLIAMS

The New York State Senate Republicans killed 1,000 union jobs Dec. 7 when they failed to pass legislation to reorganize the bankrupt New York City Off-Track Betting Corp., forcing the operation to shutter its 60 parlors and restaurants.

"I want to call their names: Senators Marty Golden, Andrew Lanza, and Republican Leader Dean Skelos. They promised us their support but did the unthinkable and stabbed us in the back," said DC 37 Executive Director Lillian Roberts. "We did not ask for a bailout. They could have saved over 1,000 jobs here and safeguarded up to 40,000 racing-related jobs statewide. It cost them nothing and cost us everything. We will never forget it."

In the days leading to the decisive vote, Gov. Paterson called the senators back for a special session to decide on a bill the Assembly had passed. DC 37 lobbied for bipartisan support and the 32 votes needed to save NYC OTB were promised. Activists in OTB Employees Local 2021 and Teamsters Local 858 bussed to Albany, but the betrayal by the three job-killers let the Senate bill fail with a 29 to 21 vote.

For more than a decade, DC 37 and Local 2021 have fended off government threats to privatize or shut down the operation. Mayors Rudolph Giuliani and Michael R. Bloomberg vowed to close OTB and the Legislature failed to enact a more equitable distribution formula for years until Gov. David Paterson authorized a state takeover in 2008.

"Our Pearl Harbor Day"

But financial woes persisted, and in 2009 Paterson let NYC OTB file for bankruptcy. An agreement with the union to save jobs was tossed out after OTB head Sandy Frucher resigned, and in August OTB hired consultant Greg Rayburn for $125,000 a month to restructure the bankrupt corporation.

Local 2021 ratified a deal with Rayburn to provide severance money and early retirement, protect 500 jobs and pensions and allow OTB to pay its creditors. But the ratified agreement required the approval of the bankruptcy judge and new legislation.

Pressing for the legislation, DC 37 had held a news conference Dec. 3 at City Hall, where OTB employees and Roberts were joined by City Council members James Sanders and Robert Jackson, Assembly member José Peralta, Sen. Diane Savino, Majority Leader John Sampson and state AFL-CIO President Denis Hughes.

"We lost the battle yesterday, but we are still fighting the war," Local 2021 Vice President Paulette Sher said Dec. 8 at a news conference. Incensed at the Republican betrayal, union activists demonstrated for more than a week after the Dec. 7 vote at the offices of Golden, Lanza and Skelos.

State Sen. Eric Adams, who chairs the Senate Racing, Gaming and Wagering Committee, addressed hundreds of OTB employees gathered at DC 37. "How dare they use 1,000 individuals' jobs as a political bargaining chip! We have to take it to the streets and send a loud message that you will not be disrespected," Adams said. "They lit a stick of dynamite that is going to blow up the racing industry across the state." Only a week after NYC OTB closed, tracks were hurting statewide and the industry was bracing for losses in New Jersey, Indiana, Kentucky and other states.

For 1,000 dedicated OTB workers, some with decades on the job, their lives are changed forever. They worry about losing medical benefits, paying mortgages and tuitions and feeding their families. The union will hold future meetings to discuss which benefits and services remain for members.

"Losing this job will kill my family," said Betting Clerk Matthew Korefal, whose mother also lost her OTB job.He and his schoolteacher wife support an extended family that includes his sister and brother-in-law, both unemployed, and their two children. "With rent so high, we may be forced to leave New York City," Korefal said. "This state will never heal with nobody working."

"Giving up Sunday double time took $10,000 from our pockets, but we agreed, hoping it would save our jobs," said Steve Simmons, an OTB Security Guard. "Now, a month later, my wife and I are both unemployed. This is horrible. There will be no Christmas for our five children."

As PEP went to press, DC 37 still battled to save OTB, the members' jobs and the millions in revenue that the state stands to lose. "And we are doing everything to ensure that retirees get the health insurance they are entitled to," said Roberts. DC 37 filed a lawsuit to protect retirees' health benefits and will bus members to Albany Jan. 5 for a rally.