NEW YORK — Just weeks after the anti-union position taken by Citigroup in their opposition to the Employee Free Choice Act, the company announced plans to lay off over one-third of their custodial workforce responsible for maintaining six properties, according to the Huffington Post.
In response to the 107 proposed layoffs, the Service Employees International Union (SEIU) Local 32BJ, the representative body for the custodians, proposed that Citigroup decrease the number of positions cut and provide severance packages and Consolidated Omnibus Budget Reconciliation Act (COBRA) health insurance to those impacted by the decision, the story stated.
According to Cushman & Wakefield, the property management company contracted by Citigroup, "We are engaged in good faith negotiations with SEIU Local 32BJ and are working on a solution that will be responsive to market conditions and the issues raised by the union. We have and continue to comply with both the spirit and letter of the current bargaining agreement and hope to resolve the matter to everyone''s satisfaction."
Citigroup hopes to save an estimated $6.5 million by laying off the custodians, the story noted.
Many are wondering why the layoffs are necessary, as Citigroup was the recipient of a recent $50 billion taxpayer bailout that was intended to save jobs, the story added.
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