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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 didnt 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 citys 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 citys 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
citys 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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