TO: All CWA Local 1081 Members
FROM: David H. Weiner, President
Greg Payton, Executive Vice President
Hemesh Shah, Financial Secretary
DATE: November 15, 2008
SUBJECT: 11/14/08 Labor Roundtable Meeting
On Friday, November 14, 2008, a meeting was held of the Essex County Labor Roundtable which included Essex County Executive Joseph DiVincenzo and key members of his Administration and representatives of the Unions representing the employees of the County. The following information was provided the Unions by the Administration regarding the dire financial condition of the County of Essex:
1. The County’s budget deficient for year 2009 is projected to be $105 million.
2. There will be layoffs across-the-board.
3. All county offices were asked to submit their budgets before October 10, 2008.
After reviewing the proposed budget, County is now aware that:
* The County utilized its $35 Millions surplus in 2008.
* The Real Estate Transfer Tax lost $ 4 Million in 2007.
* The Real Estate Transfer Tax lost $ 4 Million in 2008.
* The County has lost $2.5 million of interest on its investments.
* The County’s unfunded pension fund liability is $6.5 million for retirees.
* The County’s health care costs have increased $5 million.
* The County’s utility costs have increased $5 million.
The above are merely some examples of increased expenses and lost revenue. In short, $50 million in revenue has been lost and fixed costs have increased $20 million.
The County’s Pre-Layoff Action plan:
1. Notice to all Union that layoffs are nearing.
2. The County is looking for suggestions from the Unions to avoid layoffs, with a submission due date of November 20, 2008.
The County’s Three-Tier Layoff Plan:
1. The County will submit its plan on December 3, 2008, to the State, for a mandatory 30-day review.
2. On December 14, 2008, the General Notice of Layoff for all employees will be given to all County employees along with specific layoff notices to be given to those employees to be actually laid off.
3. The layoffs will be effective January 31st 2009. Bumping right will be explained.
As CWA Local 1081 has successfully done many times in the past, our Union will yet once again make every possible effort to ensure that none of our members are laid off. Our Union will need the full support of all of its members to be successful, yet once more, in this most important regard.