New York City Mayor Bloomberg announced yesterday that city unions must agree to health care concessions or face layoffs. More specifically, the Mayor is asking unions to give back about $500 million (about 10% of health care costs per employee). Up until now, public employees have not contributed to their basic health care costs, though many upgraded plans cost extra. Meanwhile, the city council is planning to raise taxes on the wealthiest New Yorkers ? a measure Bloomberg is against. Both initiatives, however, are steps to combat a widening city budget gap. A day-long furlough for city employees is another option being considered as well.
See "Bloomberg puts city unions on notice: Ante up for health care or face layoffs", Erin Einhorn, Frank Lombardi, and Adam Lisberg, New York Daily News, February 11, 2009