Elsewhere online
February 23, 2015

Major N.Y. Charity’s Collapse Leaves Employees in Limbo

Hundreds of workers at Federation Employment and Guidance Service face uncertain futures as one of New York City’s biggest social-service nonprofits closes up shop in the coming months, The New York Times writes. The 80-year-old charity, also known as FEGS Health and Human Services, announced in late January that it would dissolve after running up a $19.4-million deficit, the circumstances of which are under investigation by the Manhattan district attorney’s office.

Lorraine Guest, a nurse who heads a union representing about 1,400 of FEGS’ 3,600 employees, said workers were told earlier this month there would be no job guarantees as new agencies take over the charity’s many city-financed programs for the poor and disabled. Hundreds of workers have received emails warning that layoffs could come as soon as April. Ms. Guest said some members of her local—more than half of whom earn less than $30,000 a year—have been offered jobs with the new providers but at lower pay.