PEP, February 2010: OTB workers bet on pact

By DIANE S. WILLIAMS

Members of Off-Track Betting Employees Local 2021 voted overwhelmingly Jan. 6 to ratify an agreement between the union and New York City OTB that saves pensions, benefits and jobs as the corporation reorganizes under Chapter 9 of the federal bankruptcy law.

“Ratification of this agreement is one of the first steps in OTB’s reorganization,” said Local 2021 President Lenny Allen. “Our union is the only major stakeholder to have an agreement of this kind with OTB.”

Using a PowerPoint presentation, Allen and DC 37 Research and Negotiations Director Dennis Sullivan explained the memorandum of agreement between the union and the cash-strapped NYC OTB. The special meeting at union headquarters also included a question-and-answer session with members in attendance.

The agreement includes payment of the two 4 percent wage hikes DC 37 had negotiated in its last economic contract, retroactive to March 2008 and March 2009. The ratified pact includes a retirement incentive, which will require legislation from Albany, and a voluntary severance program for employees that will allow participants to collect lump sum amounts based on seniority, receive unemployment insurance and obtain health coverage through COBRA.

The contract maintains a staff of 412 Local 2021 members during the term of the agreement, even as OTB plans to reduce the number of branches it operates while reorganizing. The agreement runs from Dec. 2, 2009 to two years after OTB completes the bond sale portion of its reorganization plan.

“The union took painstaking measures to preserve all health, pension and welfare fund benefits, and employment for the members,” said Sullivan. “Layoffs will be the last option as we go forward.”

Day-to-day operations at OTB will continue uninterrupted. The plan includes workforce reductions across the board — including management — based on seniority.

The agreement consolidates the titles of Betting Clerk, Restaurant Hotel Betting Clerk, and Telephone Betting Clerk into Wagering Representatives, and broadbands OTB clerical titles as Clerical Associates levels 1 thru 4. While the contract eliminates premium time for work on Sundays, it provides a pensionable salary differential for OTB employees required to work on Sundays.

“We reached the best deal possible. This is a sound agreement that may not make everyone happy, but protects our members under the current difficult circumstances,” Sullivan said.

In September, Gov. Paterson issued an executive order permitting NYC OTB, a state agency, to file for bankruptcy protection under Chapter 9 to stave off creditors while it reorganizes. NYC OTB currently operates 62 betting parlors and restaurants in the five boroughs, but carries a deficit of $225 million.

As part of the process, OTB will present the ratified union agreement for a judge’s approval. OTB’s reorganization plan is also contingent on the sale of $250 million in NYC OTB bonds and new state legislation to recalibrate the racing handle distribution formula and other considerations involving the New York State Racing Association, upstate horse breeders and leased property owners.

Union is major stakeholder

“To protect the interests of Local 2021 members and to ensure that they have a voice at the table, the union is seeking a seat on the Creditors Committee,” said DC 37 General Counsel Mary O’Connell.

Allen led the meeting with Sullivan, Associate Research and Negotiations Director Evelyn Seinfeld and Sr. Analyst David Moog, O’Connell and Senior Assistant General Counsel Steven Sykes, White Collar Division Director Mike Riggio, Assistant Director Chris Wilgenkamp and Council Rep Wendell Reid, Local 2021 Vice President Paulette Sher and executive board members. Political Director Wanda Williams is working with lawmakers on legislation to protect OTB employees.

“We worked for two months and reached this agreement just two hours before OTB went to bankruptcy court,” said Allen. “Without this agreement, our members stood to lose everything. Now that it’s ratified, we can move forward and continue to fight for what’s best for the members.”