Labor Chief Resigns in Dispute With Dinkins and Budget Head
New York City's Labor Relations Commissioner resigned yesterday, charging that the city's Budget Director had misled municipal unions and Wall Street. But Mayor David N. Dinkins rejected the charge and said his administration had misled no one. The Labor Commissioner, Eric J. Schmertz, said that the Budget Director, Philip R. Michael, had "misconstrued" and "miscast" Mr. Schmertz's description of negotiations of wage deferrals for city employees, in a memo Mr. Michael sent to a major bond-rating agency last month.