An independent arbitrator today overturned New York City’s attempt to avoid paying deferred wages to thousands of city teachers, ordering the city to pay half the amount owed now and half in the next fiscal year.  

The arbitration decision also mandates that the city make a no-layoff pledge to UFT members for the rest of the current school year; and safeguards educators' 3% wage increase on May 14, 2021.

UFT President Michael Mulgrew, who testified on behalf of his members at this morning’s hearing, said: “This is far from a perfect solution for thousands of our members who are still owed deferred wages that can go back as far as ten years.  The decision recognizes the city’s difficult financial circumstances because of the coronavirus pandemic, but makes it clear that the city must find a way to meet its financial obligations to its educators.”

Mr. Mulgrew added:  “In addition, with teachers facing layoffs around New York State and the rest of the nation because of the pandemic’s damage to the economy, we were able to convince the arbitrator to add a no-layoff pledge and a guarantee that the teachers’ next contractual raise – a 3 percent increase set for May – will not be challenged by the city.”

The deferred wages are the result of a decision made by former Mayor Bloomberg in a previous fiscal downturn in 2009 and 2010 to withhold from educators a wage increase that had been granted to other municipal workers. 

After Mayor de Blasio took office, an agreement was reached to pay the deferred amounts in a series of lump sums over six years.  The final lump-sum payment – worth an estimated total of $900 million -- had been scheduled for this month. Under the arbitrator’s decision, half the total amount will be paid to an estimated 90,000 active and retired UFT members before the end of October.  The balance will be paid in July 2021.

In addition to the no-layoff pledge for the remainder of this school year, the arbitrator’s decision orders the city to extend that pledge to the following school year, subject to certain provisions of a federal stimulus package.  The decision from Arbitrator Martin Scheinman came after a four-hour hearing involving the UFT and city officials.

Read the arbitration decision and view a video message from UFT President Michael Mulgrew to union members about the arbitration decision.