Public Employee Press

Battling to save OTB jobs

By DIANE S. WILLIAMS

At a special meeting on Aug. 18, Local 2021 President Lenny Allen updated members on the desperate efforts of the New York City Off-Track Betting Corp. to remedy its insolvency. "This union is doing everything possible to protect OTB jobs," he told them.

With DC 37 White Collar Division Assistant Director Chris Wilgenkamp, Rep Wendell Reid, Vice President Paulette Sher and board members, Allen cautioned OTB workers not to believe the newspapers or "jeopardize sensitive negotiations" by talking with the media.

Details of a plan to save OTB were to be finalized Aug. 31, but Allen laid out the basics:

• Gov. David Paterson replaced OTB Chair Sandy Frucher with his advisor Lawrence Schwartz, and OTB hired Chief Executive Officer Greg Rayburn, a consultant who specializes in restructuring bankrupt firms. Rayburn quickly sold off OTB's fleet of cars and sacked nonunion managerial staff.
• The Memorandum of Understanding negotiated with Frucher is void and the union no longer has a binding agreement with OTB. Options such as severance and early-retirement incentives are being reexamined, but health benefits are protected.
• DC 37 and Local 2021 are pressing OTB to opt into the state early-retirement incentive plan.
• The union is pressing for overdue pay increases, but it is unclear if members will remain under the city contract or shift to the state agreement. OTB is studying all jobs for cost savings.

As OTB closes branches and reassigns workers, they stand to lose Sunday double-time pay and travel time.

Hours of pay are guaranteed for full- and part-time workers - 35 hours for full-timers and 20 for part-timers. Per diems lack the same protections.

"The bottom line here is profits not people," said Allen. OTB will shrink staff and use betting machines "because the machines don't get sick or take lunch," he added, "and possible Racing Association takeover "does not guarantee they will take us."

"We have reached this point because of management's mishandling of OTB - not because of anything you or I have done. You have stood tall in these difficult times," said Allen, who remained "cautiously optimistic."