Building Services Workers in New York City Negotiate Industry-Leading Contract (Dec. 10, 2001)
Created by: Administrator,Last modification on 15 May 2007 [12:43 UTC]
By Genevieve Melford
The events of September 11 struck fear not only in the hearts of New York residents, anxious for their safety, but also New York workers, fearful for their livelihoods. As pundits and politicians immediately began to predict an impending fiscal crisis, New York City unions began to wonder what to expect from their next contracts. In fact, many unions decided to postpone contract negotiations for fear of losing ground.
But one union--Service Employees International Union (SEIU) Local 32BJ--has proven that even in a time of crisis unions can negotiate a deal that is fair to workers. (See "Unions and the Emerging Bargaining Climate" by LRA Executive Director Greg Tarpinian.)
With a contract covering nearly 30,000 commercial building workers set to expire on Dec. 31, 2001, SEIU Local 32BJ was faced with the challenge of negotiating in an environment that had radically changed. Usually, the union would continue bargaining down to the wire. But the events of Sept. 11 prompted New York City's commercial building owners to settle the contract quickly and without rancor. They did so primarily because they did not want to alienate already skittish commercial tenants.
With both sides committed to striking a fair deal, the union and building owners quickly reached a tentative agreement on Nov. 13.
Under the proposed contract, commercial building workers will receive a 9.8% wage increase over three years, lifting the wages of porters, cleaners and elevator operators to more than $18.50 per hour and maintenance staff and foremen to more than $20 per hour by 2004. The new contract, which was structured to give workers in the different job classes weekly wage increases each year for the life of the three-year contract, is an industry-leading contract that will make 32 BJ members the best paid in the nation.
Workers will also see improvement in the weekly contributions to their benefit funds. By 2004 employer contributions to the members' health fund will increase in unadjusted terms by 22.7%, the pension fund by 12.3%, the annuity fund by 30%, and the legal fund by 23%. And in a provision directly prompted by the terrorist attacks, the contract also provides an additional $5 million for the union's training fund to support a new education program on building security.
While the 32BJ contract terms were slightly below the 4% annual agreements reached last year with NYC municipal unions, they were better than many observers expected, and could serve as a benchmark for future large negotiations, like the 1199 SEIU contract with the League of Voluntary Hospitals.
Genevieve Melford is a research analyst for LRA Consulting.
The events of September 11 struck fear not only in the hearts of New York residents, anxious for their safety, but also New York workers, fearful for their livelihoods. As pundits and politicians immediately began to predict an impending fiscal crisis, New York City unions began to wonder what to expect from their next contracts. In fact, many unions decided to postpone contract negotiations for fear of losing ground.
But one union--Service Employees International Union (SEIU) Local 32BJ--has proven that even in a time of crisis unions can negotiate a deal that is fair to workers. (See "Unions and the Emerging Bargaining Climate" by LRA Executive Director Greg Tarpinian.)
With a contract covering nearly 30,000 commercial building workers set to expire on Dec. 31, 2001, SEIU Local 32BJ was faced with the challenge of negotiating in an environment that had radically changed. Usually, the union would continue bargaining down to the wire. But the events of Sept. 11 prompted New York City's commercial building owners to settle the contract quickly and without rancor. They did so primarily because they did not want to alienate already skittish commercial tenants.
With both sides committed to striking a fair deal, the union and building owners quickly reached a tentative agreement on Nov. 13.
Under the proposed contract, commercial building workers will receive a 9.8% wage increase over three years, lifting the wages of porters, cleaners and elevator operators to more than $18.50 per hour and maintenance staff and foremen to more than $20 per hour by 2004. The new contract, which was structured to give workers in the different job classes weekly wage increases each year for the life of the three-year contract, is an industry-leading contract that will make 32 BJ members the best paid in the nation.
Workers will also see improvement in the weekly contributions to their benefit funds. By 2004 employer contributions to the members' health fund will increase in unadjusted terms by 22.7%, the pension fund by 12.3%, the annuity fund by 30%, and the legal fund by 23%. And in a provision directly prompted by the terrorist attacks, the contract also provides an additional $5 million for the union's training fund to support a new education program on building security.
While the 32BJ contract terms were slightly below the 4% annual agreements reached last year with NYC municipal unions, they were better than many observers expected, and could serve as a benchmark for future large negotiations, like the 1199 SEIU contract with the League of Voluntary Hospitals.
Genevieve Melford is a research analyst for LRA Consulting.
©2001 Labor Research Association
