The Militant - June 7, 2004 -- N.Y. hospital workers union tops reopen contract, give up wage raise

Vol. 68/No. 22 June 7, 2004

N.Y. hospital workers union tops
reopen contract, give up wage raise

BY MICHAEL ITALIE
NEW YORK—The union representing 71,500 hospital workers here has given back to the employers 1 percent of a wage raise due workers in the final year of their contract with the League of Voluntary Hospitals and Homes. Service Employees International Union Local 1199 took the initiative to open the contract a year ahead of its expiration and to sign a new one May 7. The union leadership offered cuts to the employers amounting to $200 million in exchange for promises of continued medical benefits and “job security” for those hired prior to Jan. 1, 2000.

The new four-year contract was the result of “our initiative to transfer one percent of this year’s annual raise to the National Benefits Fund,” union president Dennis Rivera and secretary-treasurer George Gresham wrote in a letter to the members. The union officials said they offered the concession to the bosses because of high unemployment, the “serious deficit” in the state government’s budget, and a White House that is “unfriendly to working families.”

The union has also provided a $260 million windfall to the hospital owners by letting them use a new formula for basing their contributions to the workers’ pension fund, according to the New York Times.

Leading up to the initiative by the 1199 officials, several hospitals had said they were losing money and they would close. Private hospitals in the city had also reportedly fallen $125 million behind on payments to pension and health funds for employees.

“I’ve never heard of any other employee group willing to reduce its salary like this to help out on health-care costs,” said Bruce McIver, president of the bosses association.

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