Mayor Bill de Blasio announced that the City has reached an agreement with District Council 37 that will result in $164 million in savings in fiscal year 2021. This agreement follows an agreement with the United Federation of Teachers that will save approximately $450 million in fiscal year 2021 and an agreement with the Uniformed Fire Officers Association that will save approximately $19 million in fiscal year 2021. The Adopted Budget announced in June included $1 billion in labor savings for FY21. The City still needs a minimum of $5 billion in federal or state relief in order to avoid drastic action such as layoffs for FY22.
“Our public servants have gone above and beyond in this crisis and are continuing to make sacrifices to help us recover,” said Mayor Bill de Blasio. “I thank Henry Garrido and our partners in labor for coming to the table to help avoid devastating layoffs, but we need our state and federal partners to also step up and provide our city with aid to ensure we can come back stronger than ever.”
The agreement includes:
Change of payments to union funds: From October 2020 through April 2021, there will be no payments made for employees and retirees to certain DC 37 union funds. Payments will instead be made in two payments in fiscal year 2022.
Commitment on layoffs: No layoffs of DC 37 members through June 30, 2021. If the City receives State and Federal assistance of $5 billion or more, the no-layoff pledge is extended to June 30, 2022.