Just about everything we need to know about the city's budget is in the Independent Budget Office Analysis of the Mayor's 2019 Budget. For those who want to skip to the part about raises for municipal employees, go to pages 17-18. The city's bargaining strategy is right there for all to see.
Most city agency budgets have little or no growth in the plan period because their budgets do not include funding for the potential cost of future labor settlements. Instead, the city centrally budgets for these costs, setting aside money in a labor reserve to cover the planned costs of upcoming labor settlements. The current financial plan includes $586 million in 2018, $1.5 billion in 2019, $1.8 billion in 2020, $2.3 billion in 2021 and $1.7 billion in 2022 in the labor reserve, enough to fund increases of 1 percent each year in future settlements.(bold added by ICEBLOG)
IBO estimates that currently nearly 104,000 of the city’s 307,772 full-time employees, just over one third of the workforce, are working under the terms of expired collective bargaining agreements. Absent any agreements between the city and its labor unions, by the end of 2018 nearly 43 percent of all full-time city employees will be working without a contract. If labor contracts are not agreed to by the end of 2019, nearly the entire city workforce will be working under the terms of expired contracts.
The city typically sets wages through “pattern bargaining,” where the first major union to reach a labor settlement sets the pattern for wage increases for the city’s other unions. When contract terms are reached, pay increases are usually applied retroactively to the date of the prior contract’s expiration.
One uncertainty is the possibility that unions may attempt to negotiate for paid parental leave, which has currently only been implemented for most of the city’s managerial level workers. The United Federation of Teachers, which represents the city’s single largest collective bargaining unit, has publicly expressed interest in the benefit; a spokesperson for the City’s Office of Labor Relations estimated the cost to provide paid parental leave to teachers at $250 million a year.
1% increases is what the city is setting aside for salary increases. We have to pay for paid parental leave or anything else we want.
Michael Mulgrew should soon be saying the city is broke.
What was the city's surplus at the end of the 2017 fiscal year?
Glad you asked:
IBO reports that "the city ended 2017 with a surplus of nearly $4.2 billion." (page 18) But, UFT members still have to wait until 2020 to receive in full money we earned from 2009-11.
If we want more than 1%, either we pay for it with concessions somewhere else (think more health givebacks) or, perish the thought, we fight for it like a union.
For those who want to leave the union after the Supreme Court more than likely lets you stop paying dues in May or June: I very much doubt the city ups its offer to the unions if there are mass defections. We have to fight collectively if we want real raises and better working conditions.