Catherwood LibraryILR School

Looking for ways to achieve $600 million in annual labor cost savings to help close an enormous budget gap (see WIT for Feb. 6, 2003), the New York City mayor's office has proposed the merger of 104 separate funds used to finance benefits like pensions and health-care for unionized city workers. Members of NYC Mayor Michael Bloomberg's administration have supported the merger of the funds---which receive $769 million annually from the city---as a relatively painless way to realize between $50 million and $150 million a year through administrative savings and increased negotiating power with benefit providers. Labor's response has ranged from support by unions whose members would be able to negotiate lower prescription prices, to cautious consideration from officials eager to avoid a concessions-or-layoffs situation, to strong concerns about the potential loss of benefits unique to certain bargaining units.