Mangano: Open labor contracts to cut costs

Declaring a countywide fiscal crisis, Nassau County Executive Edward Mangano has proposed legislation to permit him to open existing labor contracts to cut wages and benefits of government workers.

The Fiscal Crisis Reform Act would test a controversial legal strategy: that Nassau can unilaterally set aside county labor contracts.

Union officials said Tuesday that the measure violates the U.S. Constitution and the state Taylor Law, which governs public union contracts.

But county officials say there is legal justification for the measure, citing successful efforts to alter collective bargaining agreements in New Jersey and Wisconsin.

"It's time for everybody to come to the table and make the necessary decisions to protect the existence of the county as we know it," said County Attorney John Ciampoli.

Unions say they will seek an injunction to block the law if the Republican-controlled county legislature passes it. "This is completely unconstitutional," said Nassau Police Benevolent Association president James Carver.

Civil Service Employees Association president Jerry Laricchiuta said Nassau would become a "junior Wisconsin." After round-the-clock union protests, Wisconsin stripped collective-bargaining rights from state workers, though existing contracts were not reopened. "Mangano has a national agenda here," Laricchiuta said.

Mangano introduced his fiscal 2012 budget last week against the backdrop of a projected $310 million budget gap. The proposal calls for 700 layoffs, employee health insurance contributions of 25 percent and an end to precinct-by-precinct minimum-manning rules. Mangano needs union approval for all but the layoffs.

In the absence of voluntary concessions, the Reform Act would allow Mangano to modify contracts, freeze wages, furlough employees and reduce employer benefit contributions. However, he could not claw back wages or benefits already paid to workers.

Presiding Officer Peter Schmitt (R-Massapequa) hasn't reviewed the bill yet, a spokeswoman said. Minority Leader Diane Yatauro (D-Glen Cove) said Mangano was "overreaching in his search for a balanced budget."

Last year, Mangano proposed a similar measure to open union contracts. Facing stiff union opposition, Schmitt pulled the Taxpayer Relief Act before it came up for a vote. Nassau will face at least two major legal roadblocks if the legislature passes the bill, union officials said.

The U.S. Constitution prohibits states from enacting laws that retroactively weaken contract rights. Ciampoli said recent court rulings have shown the clause to be "flexible" when there is a fiscal crisis. However, a state court blocked an effort by former Gov. David A. Paterson to impose furloughs and cut benefits on state CSEA workers.

The county could overcome the Taylor Law, Ciampoli said, because the Nassau Interim Finance Authority, a state monitoring board, declared a fiscal crisis when it took over Nassau's finances in January. NIFA chairman Ron Stack did not respond to a request for comment Tuesday. The Taylor Law grants public employees the right to organize, requires governments to negotiate and enter into agreements with public employee unions regarding terms and conditions of employment, and prohibits public employees from striking.

Mangano has called on the state to pass legislation corresponding to the Fiscal Crisis Reform Act. Ciampoli said a state bill would help but is not necessary to modify contracts. Gov. Andrew M. Cuomo's office did not respond to a request for comment.

With Celeste Hadrick