PEP, June 2010: Fix OTB now.

“It was really hard not knowing from day to day whether I’d still have a job. The news that OTB will remain open is wonderful. It brings me a sense of relief." — Zenobya Harris, Per Diem Worker

By DIANE S. WILLIAMS

Moving quickly after the New York City Off-Track Betting Corp. announced it would remain open for a year and preserve the jobs of 1,300 employees, more than 100 activists from Local 2021 bused to Albany April 20 to keep the pressure on for a permanent legislative solution to OTB’s fiscal problems.

Local 2021 President Lenny Allen and DC 37 Political Director Wanda Williams addressed the activists at the special lobby day, explaining the events behind the decision to keep OTB alive for another year that OTB Chairman Meyer “Sandy” Frucher and his Executive Committee made April 17 — the day before OTB was scheduled to close and lay off workers.

Williams had spent three weeks in Albany working out a legislative proposal that would have been fair to Local 2021 members, but when the package was revised at the 11th hour to favor the private sector New York Racing Association with a multi-million dollar payout, the union rejected the deal.

“We lobbied past midnight April 13 for a permanent fix,” Allen said, “but when we found out there was a switch that included a payout for NYRA that would be damaging to our members, we called everyone involved and said ‘No Deal.’ ”

“I’d rather die a soldier than take the garbage they offered us in that last-minute deal,” he said. The union’s high-risk gamble paid off. Lawmakers listened to DC 37 and killed the bill.

“It was a gutsy move,” said Sen. Diane Savino who chairs the Civil Service Committee. “The governor’s solution was so bad that DC 37 leaders said they’d rather let it fail because it would hurt members.”

OTB management stepped up with the April 17 preservation plan that honors the January Memorandum of Understanding with the union and gives lawmakers a year to devise a permanent answer to save the jobs and protect the modest, hard-earned pensions of the OTB workers and retirees.

“You’ve been lied to by the powers that be. They want to blame you for the system’s flaws, but you make it work every day,” said Gary Pretlow, chair of the Assembly Racing and Wagering Committee.

New plan needed

As PEP went to press, union leaders were urging lawmakers to pass legislation needed to go forward under Chapter 9 bankruptcy reorganization with a plan to revise the OTB distribution formula to give New York City a fairer share of the profits and provide an early retirement incentive for the workers. While a new plan would probably close branches to reduce the workforce and eliminate double time on Sundays, it would also offer severance buyouts and the retirement incentive.

Had OTB shuttered operations, the racing industry would have lost hundreds of millions of dollars in bets on the “Triple Crown” races — the Belmont Stakes, the Preakness and the Kentucky Derby.

“We have to take an honest look at the formula and do what makes sense for OTB and its workers and the New York racing industry,” Savino said.

“You didn’t create this mess, you don’t decide the formula to disburse profits, so why should you bear the brunt of their ineptitude?” asked Sen. Frank Padavan.

DC 37 Associate Director Oliver Gray dispelled false reports that OTB had three sets of books. He said, “You are public workers and your jobs are legitimate. The formula is robbing you, so why support it? The union is fighting for a fairer distribution formula and fighting the ugly negative comments the mayor and the media have made.”

Gerald W. McEntee, president of AFSCME, DC 37’s 1.6-million-member national union, called Albany leaders and advised them to “do what DC 37 tells you to do to preserve these jobs.” Politicians and labor leaders including U.S. Sens. Charles Schumer and Kirsten Gillibrand, Public Advocate Bill de Blasio, Comptroller John Liu, Assembly Speaker Sheldon Silver, Sen. Martin Golden, Assembly
members Richard Brodsky and Peter Rivera, Teamsters Local 858 President Barry Yomtov, Local 1359 President Dennis Ifill and others supported Local 2021’s position.

Not alone

“You worked and sacrificed and contributed to OTB’s success. Now that it’s on the verge of collapse, it’s time for the industry to be there for you like you were there for them,” said Senate Racing and Wagering Committee Chair Eric Adams.

“We are in a fight for our lives. We are under assault by the media and the mayor, but we are not giving up on OTB, our families or our future,” Allen said. “This fight is not just about active workers but includes retirees, who would lose their health benefits if OTB dies. We are not in this alone and we are grateful to those who stand with us.”