PRico slashes more than 2,400 jobs in struggle to pare $3.2 billion deficit, avoid shutdown

By Danica Coto, AP
Friday, January 8, 2010

PRico fires 2,400 workers in new round of layoffs

SAN JUAN, Puerto Rico — The government laid off more than 2,400 government workers Friday — and was expected to target other jobs for elimination — to try and pare down a $3.2 billion deficit and avoid a government shutdown.

The majority of workers fired were janitors and office administrators with the Department of Education, according to union leaders in the U.S. Caribbean territory, whose 15.9 percent unemployment rate is higher than that of any U.S. state. Union leaders also anticipate several thousand more layoffs in March.

Ana Maria Gregorio, spokeswoman for the national board that oversees layoffs, confirmed that the board sent letters to 27,600 workers last week notifying them of their years of service — a possible precursor to layoffs 60 days later. She did not say how many of those would be laid off.

The Puerto Rican law regulating dismissals stipulates that only those who have worked 13½ years or less can be laid off after receiving such letters. Teachers, police officers and firefighters are among those exempt.

On Thursday, the United Public Servants of Puerto Rico union filed a lawsuit against several government agencies, alleging the law is unconstitutional.

Gregorio also announced Friday that another 150 workers will be dismissed at the end of the month.

Some union leaders accused the government of firing small groups of workers over the span of several weeks so as not to draw attention to the economic crisis.

“They think this way they will split up the strength of our fight, but they are wrong,” said Federico Torres Montalvo, spokesman of the Coalition of All Puerto Rico for Puerto Rico, a community watchdog group. “We will not allow the working class of Puerto Rico to be abused.”

Union leaders will file complaints alleging the government did not follow proper procedure in issuing dismissal letters, said Luis Pedraza Leduc, spokesman of the Union Coordinator, which represents 18 of Puerto Rico’s largest unions.

In November, the government halted the layoffs of thousands of workers as a judge reviewed dozens of similar complaints.

Puerto Rico, an island of 4 million people, has entered its fourth year in recession. Bankruptcies have increased by 30 percent and more than 10,000 people are on a waiting list for public housing.

The layoffs only aggravate the crisis, Leduc said.

“It is not a smart way to improve the economy,” he said.

The federal and local governments are the largest employers, providing jobs to nearly 30 percent of the work force.

More than 200,000 people worked for the government as of last May, when more than 7,800 workers were dismissed in the first round of layoffs.

Last March, Gov. Luis Fortuno declared a fiscal emergency and said more than 20,000 layoffs were needed to reduce the deficit and avoid a government shutdown.

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