Mangano & CSEA Strike Historic Agreement To Save Taxpayers $70 Million
Efforts protect taxpayers with structural contract reforms
beginning in 2011
County Executive Edward P. Mangano today announced that the Civil Service Employees Association (CSEA), Nassau’s largest union, signed an historic agreement to save taxpayers $70 million through 2017. The agreement achieves a minimum net savings of $70 million for taxpayers over the life of the contract while restructuring salary scales, eliminating blood days and ensuring $60 million in savings before any increases in compensation as a result of this agreement. CSEA is the County’s largest union, representing 5,600 full-time employees and close to 7,000 when including part-time and seasonal employees.
“Nassau homeowners and employers have demanded we reduce costs to protect residents from property tax hikes,” said County Executive Mangano. “Taking that demand seriously, CSEA and I worked tirelessly to achieve true savings and real reform.”
This agreement comes at a time when concessions can only be achieved through voluntarily negotiations. The Nassau County Interim Finance Authority (NIFA) cannot achieve these long-term savings and can only freeze wages for 2011 – which amount to $1.8 million for CSEA. Under the agreement signed today, over $2 million in savings will be achieved in 2011 to further mitigate any rumored risk associated with the balanced budget adopted by the Legislature.
“When you consider that the CSEA union contract does not expire until 2016, the fact that they agreed to help achieve labor savings speaks volumes to their commitment to the County and its residents,” said Mangano. “On behalf of every taxpayer, I sincerely thank our CSEA workforce and President Jerry Laricchiuta.”
Under NIFA’s watch, the former County Executive entered into labor contracts that would clearly require property tax hikes at a time when residents can least afford to pay. The Memorandum of Understanding (MOU) signed today, which will be presented for union ratification in early 2011, achieves real structural contract savings even though the CSEA had guaranteed contracts until 2016. Although contracts will be extended by two years, this agreement produces savings each year over the next 5 years.
The $70 million in net labor savings agreed to by County Executive Mangano and CSEA President Laricchiuta includes:
- $61 million in net savings for taxpayers achieved through the restructuring of salary scales. This restructuring reduces the average compensation by 11.4% in the first seven years of employment. This conservative savings estimate is based on an annual attrition rate of 250 employees despite a 10 year average of 330 employee attritions; and
- $8.8 million in net savings for taxpayers achieved through the elimination of paid days off for donating blood. CSEA employees can currently earn up to three days off annually by donating blood. This conservative savings estimate is based on savings of only one blood day annually, representing 120,000 hours of service returned to taxpayers.
“The men and women of CSEA have worked tirelessly for the benefit of Nassau County,” said CSEA President Jerry Laricchiuta. “We know the sacrifices families are making at home, and for that reason we will rise to the occasion once again by joining the County Executive in achieving millions in labor savings over the next seven years.”
Today’s labor savings come three months after the passage of a 2011 balanced County budget that includes an additional $55 million in savings associated with the elimination of 400 county employee positions and the implementation of a nonessential employee hiring freeze that leaves another 210 positions unfilled.
“At a time when families and seniors are struggling to make ends meet, government must do all it can to cut spending and hold the line on taxes,” said Mangano. “The budget not only removes a large tax burden from the backs of homeowners and employers, it also reduces the number of employees to the lowest level since the 1950s.”
