NYC cancels $900M deferred compensation payout to academics

The de Blasio administration has canceled a long-scheduled $900 million deferred compensation payout to present and former academics, citing the coronavirus-induced financial crisis.

The payout due this month — the final within the collection of 5 stemming from union negotiations between 2009 and 2011 — was known as off as the town makes an attempt to restrict the variety of administration-wide layoffs, First Deputy Mayor Dean Fuleihan wrote to the instructor’s union Thursday.

“It’s the metropolis’s want to keep away from the need for layoffs, and to make a retroactive cost presently would subsequently be fiscally irresponsible,” Fuleihan wrote in a letter to Michael Mulgrew, the president of the United Federation of Academics.

“The Metropolis regrets having to take this essential motion, notably in gentle of the help and cooperation of the union and its members in opening colleges over the previous a number of weeks,” he added.

The canceled cost comes, as Fuleihan referenced, whereas academics put their lives in danger returning to school rooms for blended studying this college 12 months because the pandemic rages on.

First Deputy Mayor Dean Fuleihan
Gregory P. Mango

Mulgrew mentioned the union will go on to arbitration to combat for the wages and that an arbitration listening to was scheduled for Friday.

“I’ll go into arbitration tomorrow. We’ll current that case, which may be very merely: we would like the cash that you simply owe us now,” Mulgrew mentioned in a video message to union members.

“All of us perceive that we’re in a pandemic; that our economic system has principally been wrecked–each right here within the metropolis, on the state and nationally — however this cash is cash that we’ve already earned…from over 10 years in the past,” he added, “and the town must make good on their obligation.”

Metropolis Corridor spokesman Invoice Neidhardt acknowledged the work of academics throughout a chaotic college 12 months however mentioned the choice was essential to protect jobs.

“This motion is important to keep away from painful layoffs,” he mentioned in a press release, “however make no mistake, New York Metropolis acknowledges our academics go above and past for our college students and colleges day by day.”

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