Shared-work program aims to preserve work force and money

CNY Business Journal (1996+), Dec 21, 2001 by Kropf, Annemarie

SYRACUSE - Early last summer, the Kilian Manufacturing Corporation in Syracuse noticed a slowdown in its machinery department.

"Any mindful business looks at their numbers," says Keith Flynn, director of human resources at Kilian. "It was coming to pass that we do something."

Employees at Kilian have years of experience at the ball-bearing manufacturing company, and Flynn says the company wanted to keep them as long as possible. If asked how long they have worked there, an average answer would range from 15 to 20 years, he says. One worker has even been there 53 years.

"When you have a work force with that many years of experience, you want to keep them," he says. "We certainly don't want to be in the business of laying off people."

The company turned to the Shared Work Program in August. The program offers employers a way to reduce layoffs and cut costs at the same time. A partnership with the New York State Department of Unemployment, the program allows the entire business, or just some departments, to operate under a four-day work week. On the fifth day, affected employees collect one-half day's pay from the state's Department of Labor Division of Employment Services.

"Employees are literally just losing half a day's pay," Flynn reiterates.

The state Department of Labor Web site, www.labor.state.ny.us, explains how the program works. An employer should submit an application for approval to the Unemployment Insurance Division in Albany at least two weeks before the proposed effective date.

"They're looking for the ability to keep the business locally, and to keep jobs," Flynn says. "You're agreeing to not lay off employees and they are helping you do that."

An employer must have five or more full-time employees in order to qualify, states the Web site. A number of other requirements are listed, including: employees' fringe benefits cannot be reduced or eliminated, the employees must have a reduction in hours and corresponding reduction in wages of no less than 20 percent and no more than 60 percent, and the plan cannot exceed 53 weeks. The plan does not cover temporary workers.

Once a company's application is approved, the program begins on the date the employer specified or the first Monday that follows approval, whichever date is later, the Web site states.

Being in the program doesn't mean that employees work four-day weeks the entire year. "It works week to week," Flynn says. The plan is flexible and gives employers the power to decide whether or not their employees are needed all week. If so, they work five days and do not collect unemployment. If not, employees work four days and apply for unemployment on the fifth day.

Though the program expires after 53 weeks, companies can re-apply for it if necessary. Flynn says Kilian has been on and off the program since the summer, and hopes that the company won't need it much longer.

While employees keep their jobs, the business also benefits, Flynn says. If employees were laid off, the company would have to pay them full unemployment. If the business hired someone new down the road, it would cost full employment and money to train the person.

"A business gets to keep their employees, and keep their experience," Flynn says. "In the long run, it saves money."