For Immediate Release
UFT opposes Tier V
Jun 5, 2009 6:34 PM
On June 5 the governor and the two largest state unions, CSEA and PEF, announced an agreement to avert over 8,000 layoffs due to the tough economic situation. As part of that agreement CSEA and PEF have agreed to support legislation that would create a new Tier V pension for their newly hired members.
The municipal unions of New York City (the MLC), including the UFT, and our state union NYSUT, are firmly opposed to a Tier V for our members.
New York City’s municipal unions have already taken steps to address the city’s budgetary issues. Just this week, the MLC concluded an agreement with the mayor to save the City $200 million this year, $400 million over two years and an additional $150 million in the following years.
The MLC sent the following letter to the governor and legislative leaders to explain why the municipal unions of NYC oppose the inclusion of their members in any proposed legislation. We will strongly advocate our position as the legislative process unfolds.
Dear Governor and Legislative Leaders:
Just as the State is negotiating with its union employees in an effort to respond to the fiscal crisis and provide budgetary relief — which is what Tier V is supposedly all about — the Municipal Labor Committee (MLC) has arrived at an agreement with the City identifying over $200 million in savings for New York City in each of the next two years and forestalling layoffs for a period of time. That agreement, negotiated in lieu of Tier V, announced earlier this week and lauded in an editorial by the Daily News, provides substantially more savings than Tier V during this fiscal crisis.
We respect the right of the state and the state unions to consider a modification to the pension plan as a vehicle to avoid layoffs, which all agree are devastating to the workers and families involved, but the MLC is opposed to a Tier V and has chosen to address the same fiscal crisis in a different manner. We maintain that any agreement reached by the state and the state unions cannot, and should not, be imposed on the unions of the MLC.
Just this week, Mayor Bloomberg and the MLC stood together and announced our agreement, hammered out over several months of difficult negotiations, that will save the City $400 million over the next two years, some $150 million a year thereafter, and postpone layoffs for three months. Mayor Bloomberg said:
"I’m proud to say that working together with the labor unions that represent our City’s workforce, we have reached a tentative agreement that will help stabilize the City’s finances. Working together, we’ve confronted the City’s budgetary challenge head on and come up with a plan that will continue to serve the long-term interests of our hard-working municipal employees while containing the cost of health care benefits."
Virtually every major pension change since 1976 has been through negotiations between the City and unions who reached agreement to jointly support legislation that was then brought before the legislature and Governor. Indeed, each of the last three governors has insisted that there be employer/union agreement on such changes. The city unions have already resolved their issues with the city and should not be included in any plans for Tier V pensions for state employees. To have the threat of additional reductions hanging over our members before our agreement is even signed would make it difficult for the parties to continue to work together to solve our joint problems.
We are sure you understand our position against Tier V and trust that we have always, and will continue to act responsibly to the citizens of New York.
Very truly yours,
| Harry Nespoli | Randi Weingarten |
| Chair | Co-Chair |
