2006 New York Code - Emergency Suspension Of Salary And Wages.

 
    §  12-316  Emergency  suspension  of salary and wages. a. It is hereby
  found and declared that a fiscal emergency exists for the  city  of  New
  York  by reason of the following: As a result of the severe economic and
  social dislocations of recent years, there has been a great increase  in
  the  need  and  demand for public services at a time when financing such
  services has become increasingly difficult. Due to a general decline  in
  investor   acceptance   of   local   government  securities  and  almost
  unprecedented high interest rates, the city of  New  York,  despite  the
  financial  soundness  of  its  obligations, recently has faced increased
  difficulty in selling a sufficient amount of its securities to enable it
  to refund its outstanding obligations or to meet its cash  requirements.
  For  the  immediate future, this increased difficulty has caused concern
  that it may be unable to provide, without  interruption,  many  services
  essential  to  its  inhabitants  while  also  meeting obligations to the
  holders of its outstanding securities as they come due.  It  is  in  the
  public interest and it is the policy of the city of New York to provide,
  without  interruption,  services  essential  to  its  inhabitants  while
  meeting its obligations to the holders of  its  outstanding  securities.
  The  state of New York, in an attempt to assist the city of New York and
  other municipalities faced by a similar or analogous problem has enacted
  chapter one hundred sixty-eight and one hundred sixty-nine of  the  laws
  of  nineteen hundred seventy-five, which among other provisions create a
  municipal assistance corporation for the city of New York, empowering it
  to issue bonds and notes  and  to  use  the  proceeds  from  their  sale
  primarily  to  provide  the  city  of  New  York with amounts to pay the
  short-term obligations of the city as  they  mature.  Despite  statutory
  provisions  which,  in  effect, secure the bonds and notes issued by the
  municipal assistance corporation for the city of New York with  all  the
  proceeds  of  the  state  stock  transfer tax and of the state municipal
  assistance sales and compensating use taxes to  the  extent  needed  for
  that  purpose, despite the agreement of the city of New York to make and
  observe such changes in its record keeping,  accounting,  budgeting  and
  financial  management  practices as the municipal assistance corporation
  for the city of New York  requires  pursuant  to  such  legislation  and
  despite  numerous  economy  measures  taken  by  the  city  of New York,
  including a substantial reduction in the number of  its  employees,  the
  municipal  assistance  corporation  for  the  city  of New York has been
  experiencing difficulty in selling the  bonds  it  has  issued  and  has
  expressed  grave  concern with regard to its ability to sell bonds which
  it plans to issue in the near future. The city of New York, as a result,
  is faced by a fiscal emergency which could seriously impair its  ability
  to  carry  on  orderly  and  uninterrupted  operations  and functions of
  government. Imposing certain additional nuisance taxes which  the  state
  in  the  past  had  given  it power to impose is not a feasible solution
  since to do so may further impair the city's credit standing because the
  burden of present taxes has contributed  to  flight  from  the  city  of
  middleclass  taxpaying  residents  and of a number of business firms. In
  view of this situation, it is necessary for the  city  to  exercise  its
  sovereign  police  power  to  suspend  salary  increases  in  the manner
  provided in subdivision b of this section.
    b. The mayor shall have the power to direct by  executive  order  that
  all  or  any  part  of  increases in salary or wages of public employees
  which  have  taken  effect  since  June  thirtieth,   nineteen   hundred
  seventy-five  or  which  will  take  effect  after that date pursuant to
  collective bargaining agreements or other analogous contracts  requiring
  such salary increases as of July first, nineteen hundred seventy-five or
  as  of  any  date  thereafter  shall  be  suspended.  All or any part of
  increased  payments  for  holiday  and  vacation  differentials,   shift


  differentials,  salary  adjustments  according  to  plan and step-ups or
  increments which  have  taken  effect  since  June  thirtieth,  nineteen
  hundred  seventy-five or which will take effect after that date pursuant
  to   collective  bargaining  agreements  or  other  analogous  contracts
  requiring such increased payment, as of  July  first,  nineteen  hundred
  seventy-five  or  as  of any date thereafter may, in the same manner, be
  suspended. For the purposes of computing the pension base of  retirement
  allowances,  the  suspended  salary  or wage increases and the suspended
  other payment shall not be considered as part of compensation  or  final
  compensation  or  of  annual  salary earned or earnable. The suspensions
  provided herein shall be effective for the first pay period ending on or
  subsequent to September first, nineteen hundred seventy-five  and  shall
  continue until one year thereafter.
    c. This section shall not be applicable to public employees covered by
  a  collective bargaining agreement or a public employee not covered by a
  collective  bargaining  agreement  where   the   collective   bargaining
  representative  or  such  unrepresented  employee,  by  an instrument in
  writing, has agreed to a deferment of salary or wage increase which  has
  been  certified  by  the  mayor  as  being an acceptable and appropriate
  contribution toward alleviating the city's fiscal crisis. The mayor may,
  if he or she finds that the fiscal crisis has been alleviated or for any
  other appropriate reason, direct by executive order that the suspensions
  of salary or wage increases or suspension of  other  increased  payments
  shall, in whole or in part, be terminated.
    d.  Notwithstanding  the provisions of section 12-304 of this chapter,
  this section shall be applicable  to  all  public  employees,  including
  public employees of any public employer as defined in this chapter.