Saturday, June 21, 2008

Fanwood issues layoff notices to all municipal workers


Mayor cites likely drop in state aid for pink slip action
Friday, June 13, 2008
BY MARIAM JUKAKU
Star-Ledger Staff

Every municipal employee in Fanwood received layoff notices from the borough Wednesday in anticipation of major decreases in state aid.

As cities and towns in New Jersey, especially those with fewer than 10,000 residents, brace themselves for drastic cuts in state aid under Gov. Jon Corzine's proposed budget, Fanwood has taken an unusual step in notifying all its employees of potential layoffs.

No decision has been made on how many of the 70 employees in the Union County town will lose their job, but by putting every employee on notice, town officials said they gain the flexibility to quickly cut as many or as few as they need.

Timothy McDonough, vice president of the New Jersey State League of Municipalities, said Fanwood's decision to put every employee on notice of layoff may be unprecedented. He commends Mayor Colleen Mahr for tackling a problem other mayors will soon need to confront.

"I've spoken with dozens of mayors, all of them are proposing layoffs," said McDonough, who served as the mayor of Hope Township in Warren County for 17 years.

McDonough said the prospect of layoffs should make residents outraged -- not at the mayor or town council -- but at the governor for cutting aid to small towns.

"She's not grandstanding, she's not overreacting," McDonough said. "She's doing exactly what other towns will have to be doing (soon)."

The final decision about the Fanwood layoffs will be made in July, once the state legislature passes the budget, but until then employees can only guess whether they'll have a job after Aug. 1, when the cuts are expected.

"It's a little hard to motivate people with that hanging over their head," said police Capt. Edward White, who hasn't seen a single layoff since he joined the 21-member police force 23 years ago. "The men are all amazed that every single employee could get a layoff notice."

But Mahr staunchly defended the notices, saying yesterday they served as a means to communicate to borough employees the "serious fiscal issues" facing the town. "We're not decimating the Borough of Fanwood," she said. "Before we pull the trigger that affects people's lives (we want to give them notice)."

Residents of Fanwood said yesterday they were shocked to hear of the possibility of layoffs.

"It's ludicrous," said Maureen McCabe, who's lived in Fanwood for 17 years. "I'm getting taxed heavily and they're still going to do this ... I'm just in shock."

Though Fanwood is not regulated by civil-service regulations, Mahr said, the 45-day notices to all employees was recommended by the borough lawyer to satisfy union regulations, under which police and public works personnel operate.

Ephraim Sudit, a professor of business ethics at Rutgers University, said he didn't see the move as unethical as long as it was taken as a warning that layoffs are imminent.

"If some people have other opportunities (to look for another job), an advance notice may be an advantage," Sudit said. "The disadvantage is many are having sleepless nights, and some for naught because they're not going to be laid off."

But one resident complained the layoff notices were intended to scare residents into accepting tax increases.

"They know darn well they're not going to lay some of those people off," said Kathie Mersereau, 63. "They're covering their own tracks."

Mahr admitted the possibility of layoffs is difficult for everyone.

"We're a small town, we know the faces here," she said. "We want to try and fight to get what we believe is rightly ours in the form of money coming back out of Trenton. But we have to make plans as if we get nothing."

Mariam Jukaku may be reached at mjukaku@starledger.com or (908) 302-1500.

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