ALBANY -- Approximately 3,500 members of New York's second-largest state worker union are facing layoffs after Public Employees Federation members rejected Gov. Andrew Cuomo's five-year contract offer.

The governor's office said the first wave of layoff notices will go out immediately.

As of Tuesday evening, no additional negotiations have been announced.

"The members have decided through their vote that they do not want to ratify this agreement," PEF President Ken Brynien said Tuesday after independent ballot counters finished tallying the vote in New York City. The vote was 19,629 against and 16,906 in favor of the offer; PEF's total membership is 56,000.

Brynien added the vote, which took place through mailed ballots during the month of September, sparked one of the highest turnouts he has seen.

Cuomo said in a statement Tuesday that PEF's members "have made their decision on a contract that would have protected them against the state needing to lay off their workers in order to achieve the required workforce savings passed as part of this year's budget."

"I urge them to reconsider," he added.

And while state officials said the layoff notices were going out to workers, Cuomo's State Operations Director Howard Glaser -- the point man on contract talks -- appeared to leave a door open for another try, suggesting Brynien should work harder to convince his members to approve the deal.

"Today's vote represents a failure by PEF's leadership to effectively communicate the benefits of the contract to its members as CSEA's leadership did," Glaser said in a statement, referring to the 66,000-member Civil Service Employees Association, which approved a similar deal last month. The action shielded CSEA members from job cuts.

"Layoffs could still be avoided if PEF clearly articulates to its members the benefits of the contract as well as the consequences of rejection and schedules a revote," Glaser added.

The contract's defeat marks one of the few rebukes that Cuomo has received since he took office in January. Negotiators spent months on the failed plan, which would have run beyond the governor's four-year term.

Brynien traveled the state meeting with PEF members to try to sell the deal.

With layoffs starting, PEF workers who are generally lowest on the seniority ladder will start getting their three-week notices.

The layoffs will likely take place across the state, but should hit some areas -- including the Capital Region -- particularly hard, because some 17,000 PEF members are in the area. There also are about 5,000 in New York City and 4,200 on Long Island.

While based on reverse seniority, the layoffs won't necessarily be limited to the youngest or newest employees. That's because they are also carried out according to job titles.

Because CSEA is protected from the cuts, the layoffs will have to be done in a way that won't cause displacement of CSEA members. That's always a possibility thanks to "bumping," in which more experienced workers can displace or knock out less-senior employees in similar job titles.

Adding complexity is the fact some PEF members have been promoted from CSEA titles into PEF slots.

Generally, CSEA represents blue-collar workers while PEF is for professional and technical employees. But with training and experience as well as additional schooling, state workers can move up the ranks.

"I can't pay all my bills on unemployment," said Nadine Kozer, a PEF member and legal assistant for the Secretary of State's office.

A state employee since 1989, Kozer received a layoff notice back in July, but it was rescinded pending the ratification vote. As the only person in her office in her particular title, the 49-year-old's ability to "bump" or displace a less-senior person is nonexistent.

Kozer said she has always gotten good reviews, and she's plenty busy presenting hearings for people seeking licenses in a variety of professions ranging from cosmetologists to real estate brokers and security guards.

A single mother, Kozer said she hoped she won't be on the updated layoff lists, and hopes they weren't configured to simply lay off people who don't have to bump CSEA members.

"All I can hope is that my agency reworked their strategy," she said.

The proposed contract offered some tough terms: It called for three years without raises and higher health care costs for employees as well as furloughs, including one which would result in a week's lost pay.

There was a $1,000 signing bonus in the third year, along with 2 percent raises in each of the last two years.

Critics said PEF members would have faced a net loss when considering the health care costs. But supporters said the layoff protections, especially in such a bad economy, were worth the price.

Glaser had earlier noted the percentage or share that state employees pay toward their health care hadn't increased in years, and it was far below what those in the private sector pay. The state, he said, is simply unable to sustain the sharply rising costs.

While PEF members now pay 10 percent and 25 percent toward single and family coverage, respectively, most would have paid 16 and 31 percent under the proposed contract. There would also be a new buyout option for those with other insurance options.

The entire PEF deal would have saved $80 million this year and $160 million in following years.

Reach Karlin at 454-5758 or rkarlin@timesunion.com.