Schumer Convinces Bank Of America CEO Moynihan to Explore Ways to Save Ulster County's Tech City Jobs

Press Release

Following a personal meeting, U.S. Senator Charles E. Schumer announced today that he has secured a commitment from Bank of America CEO Brian Moynihan to explore ways in which Bank of America can preserve jobs at Tech City in Ulster County. The meeting came after reports that Bank of America is unlikely to renew its contract with New York State to process paper state income tax returns after 2012. On March 3rd, Senator Schumer wrote to Mr. Moynihan urging him to explore ways to save these jobs, as the decision not to renew the contract would put approximately 1,600 seasonal and permanent jobs at risk. In the meeting, Moynihan agreed to look into the situation and examine ways to keep these jobs in Ulster county.

"I am grateful that Bank of America will explore ways to keep these good-paying jobs in Ulster County," said Schumer. "This is a step in the right direction, and I will do everything I possibly can to help Bank of America maintain their presence in Tech City. I will keep pushing Bank of America to find a place for these talented workers whether it is back office operations, customer service, or another part of Bank of America's expansive business."

Local newspaper reports recently indicated that Bank of America is unlikely to renew its contract with New York State to process paper tax returns, which is currently set to expire at the end of this year, with a 1-year transition period through 2012. Demand for this service has decreased as more and more individuals are filing their returns electronically online. Schumer is urging Bank of America to move other operations to the 300,000 square foot Tech City facility, which would help keep 1,600 Hudson Valley employees in their job. Bank of America has a lease on the building through 2015, and tax returns have been processed at the facility for 15 years, including by Bank of America since 2004. The 1,600 seasonal and permanent employees at Tech City make Bank of America the largest single employer in Ulster County.

A copy of Senator Schumer's March 3rd letter is below:

Dear Mr. Moynihan,

I write to you to urge Bank of America to work with local officials an economic development leaders to identify new operations that can retain its current workforce level at the facility in Kingston, Ulster County, New York. This Bank of America facility, which, among other things, carries out the functions of your contract with New York State for tax return processing, is a significant economic engine in the county and one of the largest employers in one of the fastest growing counties and fastest growing regions in New York State. It is my understanding that Bank of America is unlikely to renew its contract with the State, in which case it would stop processing tax returns at the Kingston facility beginning in 2012. I further understand that Bank of America is in the process of deciding the future of this facility and the employees who work in this unit. As these deliberations continue, I respectfully urge you to leave no stone unturned in finding ways to keep this facility operational and continue to be a leading employer in Ulster County.

I understand that a constantly changing economic environment coupled with rapid increases in technology makes it necessary to continually review existing operations and evolve the way you do business. However, as old technologies and business models change, new technologies arise that will require an educated and competent workforce. The current employees at Bank of America's Kingston facility provide this type of quality workforce that can help both Bank of America and New York State continue its emergence as a twenty-first century economy. The Kingston facility is in a desirable geographical location in one of the fastest growing regions of the Country, and is less than 60 miles from Albany and 90 miles from New York City. Its close proximity to several Universities and Community Colleges gives Bank of America an opportunity to tap into a highly educated and adaptive workforce for a wide variety of financial services.

I have tremendous confidence in the Hudson Valley workforce and I know they will serve you well. I also know the business leaders, economic development and elected officials are eager to work with you to find a desirable solution to make sure Bank of America continues to be leading institution in Ulster Country and the entire Hudson Valley. If you have any questions please do not hesitate to contact me directly. I look forward to working with you to find a solution that works for Bank of America and the Hudson Valley.

Sincerely,

Charles E. Schumer
United States Senator

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