City, Teachers Union Reach Deal On $900M Backpay Dispute

NEW YORK CITY — An arbitrator walked city and teachers union officials back from the brink of a major dispute over $900 million in backpay owed to educators.

Mayor Bill de Blasio and United Federation of Teachers leaders announced the agreement last week following an escalating battle over the payout.

Hizzoner tried to postpone the payment — which was guaranteed in a 2014 contract — amid the city’s looming $9 billion coronavirus-related budget hole. But union officials quickly fought back and received an agreement that secured the pay, as well as a no-layoffs pledge until the end of June 2021.

“This agreement allows us to avoid laying off the teachers who’ve done so much for New York City’s schools and students,” de Blasio said in a statement.

“While recognizing the city's dire financial straits because of the pandemic, the arbitrator's award makes clear that the city must meet its financial obligations to UFT members,” the teachers union tweeted. “We will must continue to stand united against the growing threats to our city and our profession.”

A Mayor’s Office release touted the agreement as providing the city with “$450 million in savings in fiscal year 2021.”

City officials have been scrambling to close the budget hole and claim a minimum of $5 billion in aid, whether through federal stimulus or long-term borrowing, is needed to stave off 22,000 potential layoffs across the city.

De Blasio repeatedly warned the layoffs could begin as soon as this month. But they appear temporarily on hold as union leaders press legislators for relief and de Blasio enacted furloughs to stanch the losses.

The no-layoff pledge for teachers will be extended to June 30, 2022, if the city receives state or federal help, according to a release.