Pfizer's $47.5 million subsidy - news page

Click here for a summary of the penalties for layoffs under Pfizer's subsidy agreement with the New York City Industrial Development Agency.

Click here for a detailed profile of the subsidy deal on GJNY's online database.

4/5/05 -- Pfizer announces restructuring that may result in up to 10,000 layoffs company-wide. It is unclear how many of these will affect New York City.

8/14/03 -- According to Bloomberg News, Pfizer cut over 5,000 jobs following its April 2003 acquisition of Pharmacia. Up to 6,050 Pharmacia jobs are slated to be eliminated. Pfizer also reportedly fired 463 of its own workers.

6/10/03 -- The city's Industrial Development Agency (IDA) board voted to approve Pfizer's $46.1 million subsidy, despite concerns raised by two board members based on testimony from groups including GJNY. The deal is reported by IDA officials to contain strong clawback provisions if jobs are not created as promised.

6/9/03 -- Nine people testified against Pfizer's proposed $46.1 million subsidy at today's Industrial Development Agency public hearing, citing the drug giant's inflated prices, high profits, and efforts to defeat state laws that would reduce drug costs in Medicare and Medicaid programs. Read testimony from:
Good Jobs New York
New York Campaign for Access to Affordable Drugs
Gay Men's Health Crisis

5/5/03 -- The City has offered Pfizer $46.1 million if it creates 2,000 new jobs over the course of the 15 year deal. Pfizer can also apply for a grant of $1.4 million from New York State through the Empire State Development Corporation. Click here for joint State-City press release. Scroll down for a breakdown of the benefits offered.

Pfizer will transfer 1,000 jobs from New Jersey, Michigan, Missouri and Illinois, and promises to create an additional 1,000 jobs over the next five years.

Pfizer and its subsidiaries had previously received subsidies for locating jobs in New Jersey, Michigan, and Missouri. Read coverage of the impact of Pfizer's move on New York,  Illinois, and Michigan. Read a subsidy litigation report from Good Jobs First on Pfizer's attempt to eliminate a Maine program that reduces prescription drug prices for state residents.

The same day the move was announced, the AP reported a meeting between Pfizer CEO Hank McKinnell and New Jersey's governor Jim McGreevy in which Mr. McKinnell declared: "Pfizer remains firmly committed to New Jersey, and for that reason, we are planning to stay and make a major investment in the state."

Breakdown of benefits:

$14.3 million in retention benefits ($10 mil in sales tax and $4.3 million in real estate tax breaks) IF they RETAIN 5,537 jobs and bring the expected 1,000 to NYC by end of 04

$13.0 million in sales tax growth credits and $ 6.2 million in real estate tax benefits IF they GROW an additional 1,000 jobs for a total of 7,537 by the end of the fifteen year deal.

$6.5 million in Con Ed BIR energy benefits and $6.1 million in NYCPUS energy benefits

____________________________________________

$46.1 million total package

Plus possible $1.4 million from the Empire State Development Corporation for total of $47.5 million in possible benefits