For 45 years, Harry Rice labored on the Saratoga Race Course, Aqueduct Racetrack and Belmont Park saddling horses and getting ready them to race.
Then, immediately, the job he liked for therefore a few years vanished.
Quickly after the pandemic first got here into drive in March 2020, Rice was amongst 469 staff furloughed and laid off by the tracks’ operator, the New York Racing Affiliation, in keeping with information supplied by NYRA. About half of NYRA’s full-time employees was out of labor.
“It was a monetary hardship and other people don’t perceive that the racetrack, not solely is it your livelihood, it’s additionally your life. We missed it,” stated Rice. “It was a troublesome wrestle for everyone.”
Rice and lots of different NYRA staff have since been employed again by NYRA, which says its head rely has returned to pre-pandemic ranges.
However some staff contend that regardless that they’ve their jobs again, they are not being supplied with sufficient shifts to work to make ends meet as a result of racing is being held far much less continuously than it was earlier than the pandemic. Some staff endured lengthy stretches of unemployment in the course of the pandemic and being laid off a number of instances.
Officers at one labor union say they’re planning to launch a public marketing campaign quickly referred to as “Cease Poverty at NYRA,” that can name on NYRA to present staff a “dwelling wage” by offering them 40 hours every week of labor or equal pay.
In a press release, NYRA referred to as the layoffs — which have by no means been reported beforehand — “painful” and stated employees in customer-facing roles had been most affected, because of the absence of in-person crowds. NYRA’s operations have been hampered by unprecedented lockdowns and the cancellation of in-person racing, within the early days of the pandemic, in addition to many months of no in-person attendance at its tracks.
NYRA was capable of slowly add staff again thanks partly to a $10 million Paycheck Safety Program (PPP) mortgage, a forgivable federal mortgage supposed to maintain staff employed and small companies afloat. The federal loans could possibly be forgiven in entire or partly primarily based on whether or not corporations met sure standards to keep up their payroll. NYRA stated its mortgage was totally forgiven.
“The organizational choices made needed by the COVID-19 pandemic allowed NYRA to maintain its enterprise, re-prioritize the significance of dwell tv and its cellular wagering product NYRA Bets, and emerge from the disaster in a powerful place for continued success sooner or later,” stated NYRA Senior Communications Director Patrick McKenna.
On March 1, 2020, earlier than coronavirus swept the U.S., NYRA employed 821 full-time staff at its tracks, the corporate stated.
The PPP program was created on March 27, 2020, when Congress handed its first federal pandemic aid invoice.
NYRA was accepted for a PPP mortgage by the Small Enterprise Administration on April 12, 2020, and reported to the SBA that it employed 453 individuals at the moment, in accordance the Pandemic Accountability Oversight Committee, a bunch of presidency inspectors basic. This system was solely open to corporations with 500 or fewer staff.
At NYRA, “Non permanent furloughs and layoffs befell on the top of the disaster starting on March 16, 2020 and persevering with by way of April 27,” McKenna stated. Meaning some layoffs and furloughs occurred after NYRA’s mortgage approval.
McKenna stated that is as a result of with out spectators, work for some customer-facing staff didn’t exist they usually have been topic to non permanent furlough. At numerous instances in the course of the pandemic, some staff have been returned to work and others have been briefly let go, he stated. NYRA continued to supply all well being advantages for workers on furlough.
On Could 1, NYRA’s full-time worker head rely was 442, numbers shared by NYRA present. Then over time, as NYRA started to carry dwell racing once more and finally introduced followers again to the stands, the corporate started to carry staff again.
By December 2020, NYRA had returned 191 extra full-time staff to work. As of two weeks in the past, a complete of 792 full-time staff have been on employees, McKenna stated.
As well as, non permanent furloughs and layoffs impacted part-time and seasonal staff, McKenna stated.
NYRA’s CEO and NYRA’s administration group additionally took wage reductions in the course of the pandemic, McKenna stated. Higher administration members with the very best salaries took the most important pay cuts for the longest time period. The very best pay minimize was 25 p.c, he stated.
McKenna declined to supply the CEO’s wage.
Jason Ide, president of Teamsters Native 814, which represents about 40 NYRA staff, stated parking attendants who work for NYRA have been furloughed in the course of the Belmont and Aqueduct meets within the spring and fall of 2020, and the majority of the unit was solely recalled for 40 days of racing at Saratoga.
“There are lots of parking staff who’re nonetheless laid off,” Ide stated this week. “We actually are making use of for meals stamps.”
Ide stated his members haven’t had a union contract in months because of disputes with NYRA over shift reductions in the course of the pandemic. His members love working in horse racing, he stated, however “it’s by no means been worse.”
McKenna stated NYRA is conscious of Native 814’s “Cease Poverty at NYRA” marketing campaign and is “pleased with its lengthy and productive relationship with the quite a few unions that symbolize NYRA staff and intends to barter with Native 814, because it at all times has, in good religion.”
A number of different unions that symbolize NYRA staff didn’t reply to inquiries from the Instances Union. Teamsters Native 807, which represents safety staff at NYRA, stated their unit didn’t expertise layoffs in the course of the pandemic.
In the course of the pandemic, NYRA needed to cancel 43 days of dwell horse racing, maintain racing with out in-person attendance for 10 months and cut back the variety of days it hosted races by 60 in 2020.
“Brick and mortar working income declined one hundred pc in the course of the time period with out spectators on-track,” McKenna stated.
In Could 2021, NYRA was permitted to host a restricted variety of spectators at Belmont Park.
Saratoga Race Course held its summer time meet beginning in July, open at close to full capability with over 1 million followers. The Saratoga monitor is by far probably the most well-attended in New York. Operations at Saratoga have been supported by roughly 2,000 full-time, part-time and seasonal staff employed by NYRA, McKenna stated.
Aqueduct will host followers in-person to look at racing for the primary time beginning on Nov. 11, after the ability was used as a mass vaccination website. NYRA plans to carry extra staff again for racing there, McKenna stated.
NYRA’s $10 million PPP mortgage was forgiven by the SBA in August 2021, McKenna stated. The corporate spent all of the funds on payroll and worker advantages, McKenna stated. NYRA’s PPP mortgage matched the utmost that employers have been typically eligible for below this system.
“This PPP mortgage allowed NYRA to proceed coaching and stabling operations at Belmont Park, which was critically necessary to a whole lot of small companies and 1000’s of hourly staff whose earnings relies on the purses awarded at NYRA tracks,” McKenna stated.
Rice stated he had no concept his employer, NYRA, obtained a PPP mortgage till just lately.
“It was very powerful financially to be laid off, and I want they might understand they’ve some devoted staff,” stated Rice, who spent about two months on unemployment earlier than NYRA employed him again. “It was years in the past, all of us labored collectively and all of us appeared out for one another. It doesn’t actually look like that an excessive amount of anymore, however hopefully it’s going to change.”
Economists consider the PPP program helped preserve hundreds of thousands of staff of their jobs – no less than within the first six months after it launched.
Economists on the U.S. Treasury estimated in December that this system saved 18 million jobs. Utilizing different methodology, a Massachusetts Institute of Know-how economist and his companions found the Paycheck Safety Program saved 1.4 million to three.2 million jobs. Different economists have reached related conclusions.
However the $800 billion program couldn’t forestall layoffs and furloughs amongst its mortgage recipients fully.
Conservatively, greater than 190,000 American staff have been laid off throughout 1,900 corporations that obtained PPP loans in 2020, in keeping with an analysis by Good Jobs First, a nonprofit that research company subsidies.
The Small Enterprise Administration issued greater than 11 million PPP loans and collectively the small companies that obtained loans reported using roughly 90 million individuals on the time loans have been issued.
A small business survey by the Federal Reserve discovered 82 p.c of employer companies utilized for PPP loans and 77 p.c obtained all of the funding they sought. Forty-six p.c of corporations that obtained all of the PPP funds they wished nonetheless diminished the variety of staff on their payroll. By comparability, 71 p.c of companies that obtained not one of the PPP cash they wished minimize their payroll, the Federal Reserve discovered.
It’s laborious to measure how efficient PPP loans have been at holding staff on the payroll, both within the six months after most corporations obtained their loans, or subsequently because the pandemic recession has dragged on, stated Eric Zwick, professor of finance on the College of Chicago Sales space Faculty of Enterprise.
Corporations didn’t should exhibit income losses to use for a first-round mortgage, so it’s doubtless that a lot of the staff supported by this system wouldn’t have misplaced their jobs even when their firm didn’t obtain a mortgage, Zwick stated. However over the long-term, this system might have extra of a optimistic employment impact by shoring up companies to assist them keep away from closures and different setbacks because the pandemic continues.
“An enormous chunk of the cash ended up benefiting agency homeowners greater than staff,” stated Zwick.
As a way to obtain full mortgage forgiveness, this system required corporations to keep up their common worker head rely over the eight to 12 week interval following their mortgage disbursement and preserve that head rely on the identical or larger ranges than one in all two specified durations in 2019 or 2020, SBA spokesman Matt Coleman stated. The SBA supplied corporations some restricted exceptions if it proved it couldn’t rehire staff. Companies additionally needed to keep no less than 75 p.c of the wage of every worker, besides these making over $100,000 a 12 months.
The SBA guidelines permit corporations a good quantity of flexibility and embrace some restricted protected harbor protections and exemptions. Coleman stated lenders and the SBA evaluate employer payroll data when companies apply for forgiveness to make sure corporations meet the rules.
However Zwick and Good Jobs First stated it’s not clear that the small authorities company with little expertise operating a program this measurement has the capability to mount a strong enforcement effort.
“The foundations are sadly fairly free,” stated Katie Furtado, analysis analyst at Good Jobs First.