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Connecticut Department of Labor to Lay Off Staff, Close Job Centers

Ryan Caron King
/
WNPR
Gov. Dannel Malloy spoke at a press event in Hartford on Wednesday. "This is a natural progression. We're trying to handle it as well as we can."
Some of the affected staff may have the seniority to claim other positions in state government.

Ninety-five people will lose their jobs at the state Department of Labor as Connecticut officials attempt to save $16 million a year in costs.

Governor Dannel Malloy’s budget chief, Ben Barnes, said the layoffs had been triggered by a reduction in federal funding for the department. That’s going down because of the drop in the state’s unemployment rate from a high of nine percent in 2011 to 5.7 percent.

"The federal dollars go away because the unemployment rate has shrunk," Malloy said at a press event in Hartford on Wednesday. "This is a natural progression. We're trying to handle it as well as we can."

As part of the cost savings, the department will reduce the number of job centers in the state from 12 to six. It will centralize functions, including adjudications, field audits, and appeals to fewer centers.

The job centers that will close are in Norwich, Enfield, New Britain, Meriden, Willimantic, and Torrington.

"We'll be providing information to the public as to how they would access services," said Labor Commissioner Sharon Palmer. "We look very carefully at the numbers that are going into those centers, the geographic location, transportation opportunities, so that we don't cut people off in a sense, so that they can't get to one of the job centers."

Office of Policy and Management Secretary Ben Barnes
Credit Chion Wolf / WNPR
/
Connecticut Public Radio
Ben Barnes in a WNPR file photo.
"We are all fully committed to helping these valuable employees find new positions in state government or elsewhere, as soon as possible."
Ben Barnes

The layoffs will take effect October 1. Barnes said some of the affected staff may have the seniority to claim other positions in state government, meaning that additional layoff notices may have to be issued in coming weeks.

In his statement, Barnes said, “It is extraordinarily difficult to have to reduce staff, especially given the enormous contributions of these Department of Labor employees in getting Connecticut residents back to work during our long struggle to bring down unemployment in the state.”

Malloy expressed support for those who may lose their jobs, but said layoffs are a byproduct of a positive trend. "I'm kind of happy that unemployment is half of what it was," he said.

The Department of Labor currently employs around 800 people. Barnes said 700 of those jobs are dependent on federal funds.

Credit Ryan Caron King / WNPR
/
WNPR
Gov. Malloy, at a farmer's market at Hartford's North End Senior Center on Wednesday, expressed support for the state employees losing their jobs.

Palmer described it as a sad day for her department. "We have people who have been here for a very long time, some up to 25 years, who work very hard to help the citizens of Connecticut," she told WNPR. "We hate to see them leaving. They're very good employees."

Read Barnes's full statement below.

Announcement Concerning Reduction In Federal Funding Affecting Jobs at State Department of Labor

Today the Department of Labor, working in concert with the Office of Labor Relations and the Office of Policy and Management, is providing notice to employees of layoffs as a result of reduced federal funding. The layoffs will result in recurring savings to the Department of over $16 million.

The loss of funds is due to the federal formula which reduces funding when overall and state-by-state unemployment goes down.  Connecticut’s unemployment rate today is 5.7%, down from over 9% in 2010 and 2011.  At least 6 other states, including nearby Rhode Island, have laid off staff as a result of drops in federal funding.  The Connecticut Department of Labor employs approximately 800 employees, with 700 paid for with federal funds.

In total, 95 positions will be eliminated in the Department, as part of a cost saving and consolidation effort in response to the drop in federal funding.  This plan includes reducing the number of American Job Centers from 11 to 6 (Danielson, Bridgeport, Hamden, Harford, New London and Waterbury); consolidating adjudications into three locations (Bridgeport, Middletown and Central Office); consolidating field audits into six locations (Bridgeport, Danielson, Hartford, Middletown, New London, Waterbury and Central Office); reducing locations for appeals to two (Waterbury and Middletown); and merging 2 call centers, which will be consolidated into Middletown.

Under the collective bargaining agreements that cover these employees, the state must provide at least 6 weeks’ notice of layoffs, which will be effective October 1.  In addition, many employees whose positions have been eliminated may have “bumping” rights, either within the Department of Labor or, in some cases, across state government.  As a result, additional layoff notices may be provided in the coming weeks.

The state’s Placement and Training Committee, consisting of labor and management representatives, will work to identify appropriate employment for laid off employees within state government where possible.  Those employees who are not able to be placed in state employment right away will have re-employment rights to certain state vacancies in the future.  In addition, the Department of Labor is making significant transition assistance available to its impacted employees.

“It is extraordinarily difficult to have to reduce staff, especially given the enormous contributions of these Department of Labor employees in getting Connecticut residents back to work during our long struggle to bring down unemployment in the state,” said Ben Barnes, OPM Secretary.  “We are all fully committed to helping these valuable employees find new positions in state government or elsewhere, as soon as possible.”

Heather Brandon and Nicole Wetsman contributed to this report.

Harriet Jones is Managing Editor for Connecticut Public Radio, overseeing the coverage of daily stories from our busy newsroom.

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