News Release
For Release: January 4th, 2011
Contact: Frank Baraff 914-469-3775

Mayor Hawkins: “Union leaders are not seriously negotiating to prevent layoffs.”

Statement by Mayor Eldridge Hawkins, Jr.

“Our unions still have the opportunity to avert layoffs by agreeing to salary and benefit reductions and work rule changes to make up for Governor Christie’s $3 million cut in state aid. But, time is running out. The layoffs are scheduled to take place this Friday, January 7th.

At a time when private sector employees are being required to pay more for health benefits and many have no benefits at all, requiring municipal employees to pay 5% of the cost of their health benefits is not an unreasonable way to avoid layoffs or a huge tax increase.  My administration has proposed this and other changes that could prevent layoffs by bringing the salaries, benefits and work rules of our public employees more in line with those offered by the private sector. The ball is now in the court of the union leaders to negotiate seriously.

In negotiations, the union leaders are proposing changes so minor that it would still be necessary to raise taxes by 20% without the State-approved layoffs. This is not acceptable, and I have made it clear that I will not introduce a budget with that kind of a tax increase. The unions seem to believe that they can prevent layoffs or significant concessions by frightening the people of Orange into accepting a huge tax increase. I believe they are wrong. If union leaders think they can prevent layoffs by going to court, the experience with layoffs in Newark and other New Jersey cities shows they are mistaken.

Before July 2010, we invited the unions to meet with us to discuss salary, benefit and work rule changes needed to cope with the Christie aid cuts. None responded in a way that would enable us to avoid layoffs. The lack of response forced us to file a layoff request to the State. Only after layoffs were approved in November, did the union leaders agree to meet.  They were told and the public was told that we needed a twenty-percent reduction in base salaries or equivalent savings through changes in benefits and work rules to make up for the Christie cuts. The unions were asked to make proposals to meet that goal. We made suggestions of our own that would have required only a small reduction in base pay.

The union leaders have still not seriously considered our proposals and have offered no meaningful counter proposals of their own. Their refusal to seriously negotiate to avoid layoffs shows no concern for the people of Orange who will suffer from reduced services.

Here is where we stand in negotiations with the police unions:
The last proposal from the Superior Officers Association (SOA) and Policemans Benevolent Association (PBA) was that the City provide comp time for overtime from 1/1/11 thru 12/31/11 and lay off the Special Officers who are not PBA or SOA members. Comp time is simply overtime to be paid at a later date, so this proposal provides no savings to taxpayers. The SOA and PBA are not receptive to the City proposals of a base pay cut of 3.5%; an increase in the medical premium co-pay from 1.5% to 5% and for all overtime for Fiscal Year 2011 to be earned at straight time and converted to comp time which can be used during the next two years when it does not cause cash payment for overtime. These proposals will save taxpayers $1.4 million and avert layoffs.

Here is where we stand in negotiations with the fire unions:
The Firemen's Mutual Benevolent Association (FMBA) and Fire Officers Association (FOA) have proposed only promotions and deferring their raise for six months. This would save only approximately $36,000.00 in acting pay in the last six months of FY11. The City has offered the same “comp time for overtime” proposal for FY11 that was offered to the police. This would save $539,000.00 in overtime. The City has also offered the same increase in medical premium co-pay offered to the police, which would save another $250,000.00. The City has offered deferring raises for six months while instituting five pay steps in the Captain and Deputy Chief salary (to save acting pay and minimize the impact of the promotions in future budget years). Finally, the city has proposed that each employee giving back 48 hours to the City. These proposals to the fire unions would save taxpayers approximately $875,000.00

Here is where we stand with O.M.E.B.A.

The union representing the balance of our union employees has refused all invitations to talk with us and has not provided any proposals to prevent the layoffs of their members.”