New York’s Shared Work program, which allows companies to cut hours rather than lay off workers, saved 10,500 jobs in the first eight months of 2009, according to Gov. David Paterson.
Under the state Department of Labor program, workers keep their jobs, work fewer hours, keep their benefits and receive partial unemployment compensation to offset the lower paycheck. Employers benefit by keeping the workforce intact and saving costs associated with employee turnover.
Learn more about the Shared Work program at www.labor.state.ny.us/ui/dande/sharedwork1.shtm.
While the plan undoubtedly benefits employers and employees, politicians are left with the headache of paying for it.
The state’s unemployment fund, bankrupt since January 2009, has financed benefits payments by borrowing approximately $2 billion from the federal government.