NEWS
New York OTB considering next step with unions
Posted: Wednesday, September 01, 2010 5:46 PM
by Paul Post
New York City Off Track Betting Corp.’s unions have rejected an early retirement incentive plan, leaving OTB with two options: attempt to sever union contracts in bankruptcy court, or close the business for good.
OTB’s fate is now in the hands of its creditors committee, which would have to approve any plan to terminate union contracts.
Under a so-called “Plan A,” OTB President Greg Rayburn wanted to close 11 betting shops, slash about 400 jobs, and have New York Racing Association and harness tracks take over OTB’s phone and Internet account wagering systems. The tracks would have also sacrificed $32-million in “give backs” to OTB, which has debts totaling $95-million and owes NYRA more than $20-million alone.
OTB was under a hard deadline to opt into the state’s retirement program on Tuesday, but unions rejected key points such as eliminating Sunday double time pay and demanding that a set number of jobs be kept regardless of handle and revenue.
“No such agreement was reached with either of the two unions by the deadline yesterday,” Rayburn said Wednesday. “As a result, there will be no early retirement incentives available to New York City OTB employees. Management will continue to work with its unsecured creditors committee to determine the path forward.”
New York City OTB is the nation’s largest wagering entity, but losses have continued to mount despite handle of more than $750 million annually. Under a proposed “Plan B,” OTB would keep and automate its account wagering platforms, rather than transferring them to the racetracks, eliminating numerous jobs.
After severing union contracts, all payroll and benefits would be significantly reduced. OTB would also seek reduced distributions from racetracks.
Paul Post is a New York correspondent of Thoroughbred Times
READER COMMENTS
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Posted by: greg, montauk, NY on September 12, 2010 at 09:19 AM
OTB is a cancer on the industry remove it
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Posted by: Stu, Osprey , FL on September 03, 2010 at 05:25 AM
I think it is wrong the way OTB is treating its employees after the hard work they put in over the years Thank You A retired OTB Branch Manager
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Posted by: rishy, albany, NY on September 02, 2010 at 02:03 PM
This group needs to fail and go out of business .
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