By Kevin Zapf Hanes and G.L. Tyler · Tags: Priorities Workers' Rights Share:

When news broke in March of the bankruptcy of New York City’s largest nonprofit, the Federation of Employment and Guidance Services (FEGS), the future of 1,400 employees represented by AFSCME Local 215 (DC 1707) was at the mercy of the bankruptcy court.

NEW YORK – When news broke in March of the bankruptcy of New York City’s largest nonprofit, the Federation of Employment and Guidance Services (FEGS), the future of 1,400 employees represented by AFSCME Local 215 (DC 1707) was at the mercy of the bankruptcy court. And despite assurances from FEGS to the court that it would pay employees $2.5 million in accrued vacation pay quickly, it took concerted action by AFSCME members to make it happen.

“Dozens of workers wrote directly to the U.S. Bankruptcy Court for the Eastern District of New York informing the judge that they had not received their checks,” said Lorraine Guest, Local 215 and also DC 1707 president. “Their complaints were heard and the $2.5 million in accrued vacation is in the mail. We are still working to find new jobs for these dedicated women and men who provide vital services to New York City’s neediest.”

Victoria Mitchell, DC 1707 executive director and also an AFSCME International vice president, vowed the fight is not over. “The employer still owes an additional $2.5 million in severance pay,” she said. “We will not rest until our members receive every dime the employer is contractually obligated to pay.”

Not only were the 1,400 employees affected by the closure of FEGS, but city and state agencies also had to scramble to find agencies to provide the important services the agency once provided. FEGS was an 80-year old social service agency with state and city contracts annually serving more than 100,000 disadvantaged New Yorkers. It had an annual budget in excess of $250 million.

Investigations of FEGS were launched by various law enforcement and government agencies of its financial affairs seeking to understand the reason it went under.