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01/28/2010 10:17 PM

Unions At Odds Over Bloomberg Budget

By: Bobby Cuza

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Thursday's budget address by Mayor Bloomberg set an aggressive tone with unions that some say will play a larger than normal role at the bargaining table. NY1's Bobby Cuza filed the following report.

The outlook for city unions is grim -- hundreds of layoffs, teacher raises cut in half and for other municipal workers, no money for raises going forward.

"When you say there's no money for raises, there isn’t money to continue to employ the people we have. Forget about raises," Bloomberg said.

Indeed, Bloomberg said Thursday any future raises will come only in exchange for givebacks. For starters, the city wants less generous pensions for new workers, pointing out the city’s pension contributions are up $6 billion a year in the last decade. Bloomberg is also seeking health care concessions.

Specifically, the city is aiming for a 10 percent employee contribution toward the cost of health care. And while it’s not counting on that money in its budget, it says that would generate about $350 million in savings every year.

That kind of concession is unlikely, but longtime union observer Richie Steier said Thursday that it's simply a negotiating stance.

"He is aiming I would think much too high. But he may figure that if you don’t start out high, then you’re not going to get to what your real target is," Steier said.

City unions have generally fared well in previous contracts with the Bloomberg administration, but those days may be over.

"Many unions feel that this is a period of confrontation and contention. Many unions feel that they have very little slack that they can give," said City Councilman and Civil Service and Labor Committee Chair James Sanders.

In a statement, the head of the Municipal Labor Committee said, "High quality service levels will not be maintained if you are asking for greater dedication and more work, while also seeking a reduction in benefits."

Some budget watchdogs say it's only fair unions tighten their belts.

"Everyone else in the economy has been sacrificing. And I think it's going to be very hard for taxpayers to understand why they are receiving less services if public employees continue to get raises," said Carol Kellermann of the Citizens Budget Commission.

If Mayor Bloomberg has his way, budget watchdogs also say raises may soon be a thing of the past.