Diocese of Buffalo to reduce number of Catholic Center employees & overall costs in fulfillment of Chapter 11 restructuring

Catholic Diocese of Buffalo Press Release

Consistent with what has been required of parishes throughout the Catholic Diocese of Buffalo in order to fulfill the proposed settlement with the Creditors Committee in the diocese’s five-year Chapter 11 restructuring process, Diocesan officials today announced reductions of Catholic Center operations, which entail reducing the number of staff and overall costs of its central administration.

“Echoing what Bishop Fisher has asserted consistently, we have no higher priority than to fulfill our obligations to the Creditors Committee, aimed at supporting the healing of victim-survivors of sexual abuse,” said Rick Suchan, chief operating officer. “The very difficult actions we have announced today at the Catholic Center mirror the sacrifices we have required of all parishes of the diocese. We cannot adequately express our gratitude to the members of the Catholic Center staff who have worked tirelessly to deal with the difficult challenges of recent years, while continuing to support the ministries vital to serving so many needs across Western New York. We are committed to doing everything possible to ease the departure of those staff members affected by these cost reductions, which in no way reflect their performance or lasting contributions.”

The actions announced today will entail nearly 22% reduction in personnel of the Catholic Center, which currently numbers 75. Affected staff members will be paid through Aug. 31, with health benefits continuing through Sept. 30, and they then will be eligible for COBRA for their health care coverage. Staff members unaffected by the reductions will transition to a four-day work week beginning Sept. 1. The number of paid holidays will also be reduced and, for part-time employees working under 25 hours per week, eliminated altogether. The plan is for all Catholic Center personnel to be relocated from current Catholic Center offices at 795 Main St. – given the property is currently for sale – to office space at 801 Main St., during the coming months.

As a result of these actions, annual cost savings are estimated to be in excess of $1.5 million.

The diocese is currently in the process of working with parishes in gathering the pool of available unrestricted assets to fulfill the $150 million settlement amount that has been accepted in principle by the Creditors Committee in the bankruptcy proceeding. Separately, mediation continues with insurers to identify prevailing coverage amounts that will be added to the total settlement.