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PEP Jul/Aug 2006
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Public Employee Press

Latest bargaining session:

City proposes pension changes for new hires

Union leaders expressed their frustration that on June 6 the city failed to build upon its wage offer.

By GREGORY N. HEIRES


The city proposed pension modifications for future employees at the latest bargaining session.

On June 6, the city also presented draft language for a salary review committee to determine whether pay adjustments beyond the overall economic pattern are warranted for workers in specific titles.

“It is disturbing that the city would present such a significant and technically complex proposal when it seemed like we were progressing toward a settlement,” DC 37 Executive Director Lillian Roberts said. “In previous sessions, the union modified its demands in a clear signal of our commitment to wrapping this up as soon as possible. But the city didn’t reciprocate.”

The city proposed that both parties work together to secure legislation that would create a modified pension plan for new workers covered by the New York City Employees Retirement System and the Board of Education Employees Retirement System.

Joint legislation
Technically, pensions are a prohibited subject in bargaining.

But historically, the city and municipal unions have used contract negotiations as a springboard to bring pension matters before the State Legislature through jointly submitted legislation. The Legislature must approve pension modifications.

The city plan would:

  • increase the retirement age from 57 to 62
  • require 10-years of service (instead of five) to qualify for vesting
  • require members to contribute 3 percent of their salary for their entire career (instead of the current 10 years)
  • use the average of employees’ pay for their last five years (instead of the current three) to calculate their pension payments, and
  • change the pension formula for later years of service.

City Labor Commissioner James F. Hanley said an accord on the new plan could be combined with the city’s agreement to reopen the Chapter 96 plan as sought by the union.

The union and the city have agreed to refer the pension proposal to a bargaining subcommittee that deals with pension issues.

DC 37 Research and Negotiations
Director Dennis Sullivan reminded Hanley that the union had earlier expressed its doubt about the effectiveness of subcommittees. Meaningful discussions of the city proposals will be difficult unless the city gives the subcommittees more discretion, Sullivan said.

Under the city’s salary review proposal, pay adjustments would be considered for workers in jobs that have required significant skill upgrading, produce revenue, used to be contracted out, or present recruitment and retention problems.

Union leaders expressed their frustration that on June 6 the city failed to build upon its wage offer from earlier sessions.

The city has proposed a three-year contract with a wage increase for each year.

Roberts and Sullivan have repeatedly stressed at the bargaining table that in light of the city’s projected $5 billion surplus, the union expects significant pay increases that would address the rising cost of living.

The economic agreement affects nearly 100,000 members.

The terms of the old contract, which expired June 30, 2005, remain in effect while negotiations proceed.

 

 

 

 

 

 
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