By ADAM SICHKO
Albany Business Review

Two state employee unions vowed to sue Gov. David Paterson for violating labor laws as he advances his plans to lay off 8,700 state workers by this summer.

That announcement, made Wednesday, heightens the political battle that unions and Paterson are waging. Paterson says the cuts are necessary to help balance the state's finances, while union leaders say Paterson has refused to accept any of their suggested alternatives to layoffs.

The 8,700 layoffs are scheduled to occur by July 1, saving the state $481 million over two years. The scheduled layoffs affect roughly 4 percent of the state's total workforce.

For months, unions have rejected requests from Paterson to reopen their contracts and waive a salary increase for this fiscal year, which began April 1.

"We think he (Paterson) needs a good psychiatrist, or he at least needs to share what drugs he's on, because he's not making any sense to our members," said Danny Donohue, president of the 300,000-member Civil Service Employees Association.

"If this governor doesn't need mental-health services, I don't know who does," Donohue added, referring to job cuts planned for a state agency.

Donohue joined Ken Brynien, president of the Public Employees Federation, at a press conference. The two met with Paterson and his staff last week, and said they intend to continue discussions this week.

The union leaders suggested alternatives to layoffs that they've offered to Paterson before, such as getting rid of the private contractors that work for the state. They also said the layoffs would threaten the safety of the state's citizens and result in noticeable declines in service.

"I'm here to say that we haven't changed our position," Brynien said. "There's no real reason for this to happen."

Paterson, in a letter to union members Tuesday, said that the unions forced him to lay off workers. He encouraged state workers to voice their opinions to their union representatives.

"I asked our state's public employee unions to make modest concessions. I did not make this request lightly," Paterson wrote. "Regrettably, however, our state's public employee unions refused to consider any concessions at all.

"This decision is one of the most difficult I have ever had to make," he added. "I do not want to see anyone lose their job, particularly in this economic climate."

Donohue said that letter violates labor laws governing the proper process of negotiating contracts.

"He tried to negotiate with our members directly. He decided to go around us," Donohue said. "That letter, in our opinion, is a violation of labor standards."

A spokeswoman for Paterson had no immediate comment.

Any state layoffs would likely hit the local economy. The state has more than 200,000 workers, and about one-fourth of those jobs - 52,200 in al l- are located in the Albany-Schenectady-Troy area.

"We will fight like hell for every member we have," Donohue said. "We won't roll over and play dead for the governor, but we understand the fiscal crisis we're in."

Reporters noted that workers in the private sector have been subject to pay cuts, furloughs or layoffs during the ongoing recession, and asked why public employees should be immune from those pressures.

"We are not exempt from what's happening to people in the private sector. We all pay taxes, and we're all the middle class," Brynien said. "But we shouldn't have an extra burden just because the state can't manage its money."

"We're ready to keep what we've earned," Donohue added. "We've earned it."

The leaders of state agencies have been given a deadline of April 21 to submit lists of employees who will be laid off. Paterson's budget director, Laura Anglin, has instructed state agencies to achieve the maximum amount of workforce reductions possible through "normal attrition" before turning to layoffs to meet Paterson's job-cut targets.

These 10 state offices, agencies or departments have been targeted for the largest workforce reductions:

• Correctional Services: 2,021 workers

• Mental retardation: 1,434

• Mental health: 1,054

• Transportation: 624

• State police: 386

• Health: 366

• Taxation and finance: 317

• Children and family services: 245

• Environmental conservation: 225

• Labor: 210