New York City, Unions and Inflation

[David Goldsmith]

Everyone knows inflation it currently red hot. The government currently has it pegged at around 8%, while in the real world it's probably more like double that. For NYC property owners there is an important union contract negotiation going on: Local 32BJ of the Service Employees International Union. The current four-year labor agreement between the two sides is set to expire on April 20.

Contract Talks Set to Begin With Unionized Building Staffers

Contract talks set to begin with unionized building staffers at a perilous time.

www.habitatmag.com

While the parties have a generally amicable relationship and there hasn't been a strike in close to 30 years, I think the negotiation over pay raises will probably get a bit intense due to current inflation figures. In many buildings with union staff labor accounts for up to 25% or more of annual operating expenses. Increases in pay will find their way into maintenance/common charge increases.

Perhaps more importantly because it effects a wider percentage of the population is municipal workers union contracts. This week Mayor Eric Adams raised the ire of city worker's unions:

Adams draws union fire over vaccine carveout for major league players, performers

The mayor cited the decision as one of economic necessity and denied he succumbed to public pressure.

gothamist.com

These are the same unions he will be having to negotiate new contracts with in the near future. Given he is irritating them and the inflation rate, will he have the ability to keep to his proposed budget which counts on holdings raises close to zero.

Broad cuts, and flat NYPD funding, meet new investments to fulfill campaign promises and promote equity.

Broad cuts, and flat NYPD funding, meet new investments to fulfill campaign promises and promote equity.

www.thecity.nyc

"NYPD Funding Flat
The mayor did not allocate any money for raises for city workers even though the contracts with municipal unions begin expiring this year, raising questions of where he will get the money for the increases workers are expected to demand, especially with inflation accelerating".

Note that if the city goes over budget it will almost certainly will result in Real Estate Tax increases because that's one of the few places the city can increase revenues without asking for State approval.

 

[David Goldsmith]

When I brought this up in March many people told me to stop being my gloom and doom usual self.

https://nypost.com/2022/04/05/rich-new-yorkers-may-have-to-deal-with-doormen-strike/

Rich New Yorkers may have to take out own trash as doormen strike looms​

Residents of New York City luxury buildings may have to take out their own trash as a strike by doormen and other staffers looms.Corbis via Getty Images
Residents of some of New York City’s most expensive luxury buildings may have to open doors themselves, retrieve their own packages, and take out the trash themselves as doormen, superintendents, porters, and other staffers threaten to strike.
The union representing 30,000 employees of buildings owned by real estate property managers Vornado Realty Trust and Related Cos. wants a new collective bargaining agreement in place by April 20, when the current contract expires.

The management companies want to slash vacation days, sick leave, and health care costs, prompting the union representing the workers, SEIU 32BJ, to balk, according to Bloomberg News.

Tenants and property managers have been told to prepare for the possibility of a work stoppage, which means residents would be responsible for common, everyday tasks like security, trash collection, cleaning, and other services.
A building managed by Hoyt & Horn in Brooklyn said that while the company will hire a security guard, residents will have to operate the intercom, screen guests, and accept packages.
The head of the union told Bloomberg that while there are several more bargaining sessions scheduled until April 20, “I’m not feeling a lot of confidence.”

The union representing 30,000 doormen, porters, superintendents, and other staffers are balking at management’s request to slash sick days and paid time off.Bloomberg via Getty Images
“This is not a time for moving backwards but a time for moving forward,” the union chief, Kyle Bragg, told Bloomberg.
But the representatives for the management team said that progress is being made.

“We will continue to work towards reaching a fair contract for both sides by April 20th,” Howard Rothschild, president of the Realty Advisory Board on Labor Relations, which is handling the negotiations, said.
The Post has reached out to Vornado and Related seeking comment.
According to the union, building workers earn on average $26.45, which translates to $55,000 per year.

Many of the city’s doormen — who earn on average $55,000 per year — say they are struggling to keep up with rapidly rising inflation.Getty Images
The annual pay has rise 3.3% per year under their current contract, which was signed in 2018.
But cost of living has risen at a pace that has exceeded the annual pay raises. According to the US Bureau of Labor Statistics, costs rose around 5.1% in February compared to the same month last year.

The record levels of inflation coupled with surging cost of rent in the city has staffers demanding an increase in pay to keep up.
What do you think? Post a comment.
“With inflation right now a lot of people live paycheck to paycheck,” said Crystal Ann Johnson, a 35-year-old who works as a concierge at the Silver Towers in Manhattan.
“We are going to get what we deserve.”

 

[David Goldsmith]

The last time there was a strike some buildings suspended Real Estate agents showing of units (especially where keys were left with front desk). Looks like we are headed for a work stoppage at this point.

Building Service Workers Union Gives Negotiators Power to Call a Strike

Building service workers union gives negotiators power to call a strike on April 20.

www.habitatmag.com

Building Service Workers Union Gives Negotiators Power to Call a Strike
With the clock ticking toward an April 20 strike deadline, 10,000 members and supporters of Local 32BJ of the Service Employees International Union — including Gov. Kathy Hochul and U.S. Sen. Chuck Schumer — gathered on Park Avenue on Wednesday in a show of solidarity. At the rally, union members gave their bargaining committee the power to call a strike if a new four-year contract is not hammered out by next Wednesday.
Gov. Hochul announced that she’ll support the city’s 32,000 building service employees if they walk off the job. Manny Pastreich, secretary-treasurer of Local 32BJ, added that the two sides remain “very far apart.”
Two major sticking points appear to be wages at a time of high inflation and the demand that union members pay a portion of their family healthcare costs, which are now borne entirely by building owners, including co-op and condo boards.
Kyle Bragg, president of 32BJ, addressed the latter issue at the rally: “Healthcare is a cornerstone of 32BJ. It’s a strike issue. The building owners want us to take money out of our paycheck to pay for healthcare every month, whether we use it or not. We will not stand for premium sharing and we will not stand for anything that disrespects the time and work our members have given over the past two years. We’ve had to fight for every single thing we have in our union contract: paid days off, health care, workplace protection, a pension. This is no exception.”
Howard Rothschild, president of the Realty Advisory Board on Labor Relations (RAB), which is negotiating on behalf of building owners, pointed out that the strike-authorization vote does mean that a strike is inevitable. “It simply allows 32BJ the option to strike, should we be unable to reach an agreement,” Rothschild said. “The RAB has proposed fair and reasonable wage increases, as well as the sharing of healthcare costs through employee contributions to the premiums, of which employees currently pay zero. Our relationship with the union has resulted in more than 30 years of uninterrupted labor peace, and we continue to work toward that same goal this year.”
The last strike was in 1991. Today, more than 3,000 New York City buildings are staffed by 32BJ doormen, porters, handymen and other workers.

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While the rhetoric gets hotter and louder, co-op and condo boards and their property managers are quietly making preparations for a possible strike.
“We’ve had an uptick in calls from management companies that handle large buildings,” says James Park, president of Spark Super, a third-party staffing company. “They’re trying to get quotes on the price of replacement workers. The consensus is to have a backup plan in case things go south, and boards are looking at alternatives. During a strike, for instance, they might forgo an overnight porter, or they might get residents to pitch in to take out the garbage and man the front door. Security is probably the hottest topic.”
Peter von Simson, the chief executive at New Bedford Management, says the company’s strike preparations are complete. “It’s pretty standard,” he says. “First and foremost is security, which includes creating some sort of ID card or proof of identity for residents. It’s going to be up to volunteers to pick up the slack on things like garbage removal, cleaning, checking in on seniors. One of the big keys is to set expectations and make people aware that this is not going to be business as usual.”
The Council of New York Cooperatives & Condominiums has produced a 16-page manual to help boards prepare for a possible strike.
For the first time in three decades, that looks like a distinct possibility. Emboldened by its sacrifices during the pandemic and by recent union victories at Amazon, Starbucks, the Brooklyn Museum and elsewhere, Local 32BJ has taken an aggressive stance during this year’s negotiations. Pastreich, the local’s secretary-treasurer, tells Crain’s: “I'm a strong believer that you get what you have the power to take.”

 

[David Goldsmith]

Strike Is Averted as Doormen’s Union Reaches Contract Agreement (Published 2022)

The contract with Local 32BJ of the Service Employees International Union, which represents workers at more than 3,000 apartment buildings in New York City, had been set to expire on Wednesday.

www.nytimes.com

Strike Is Averted as Doormen’s Union Reaches Contract Agreement​

The contract with Local 32BJ of the Service Employees International Union, which represents workers at more than 3,000 apartment buildings in New York City, had been set to expire on Wednesday.

A contract agreement between the union and the Realty Advisory Board on Labor Relations was announced on Tuesday afternoon.Credit...Spencer Platt/Getty Images

The union representing doormen and other workers in more than 3,000 apartment buildings in New York City reached a new contract agreement on Tuesday, averting a strike that could have left thousands of tenants standing guard in lobbies and hauling trash to the curb.
The agreement between Local 32BJ of the Service Employees International Union and the Realty Advisory Board on Labor Relations was announced on Tuesday afternoon. It headed off what would have been the first strike by the city’s unionized doormen in more than 30 years.
The Realty Advisory Board, which represents companies that employ more than 30,000 doormen, porters and building superintendents across the city, had been seeking concessions on health care premiums and other benefits, including sick pay and vacation time. The board argued that its employees were among just 5 percent of workers who do not contribute to their health insurance.
But Kyle Bragg, president of 32BJ, said those givebacks were deal-breakers and his members voted last week to authorize a strike if no contract deal was reached by Wednesday night, when the current contract expires. The union held a rally on Park Avenue last week that was attended by Gov. Kathy Hochul, Senator Chuck Schumer and other elected officials.

Despite the tough initial stance the board took, the union said that it wound up with historically large wage increases, without giving up any benefits.
Annual wage increases averaging 3 percent over four years will bring the pay for a typical doorman (most of the doormen are male) to approximately $62,000 by the end of the contract, the two sides announced. The agreement also includes a one-time $3,000 bonus this year, they said.

“We have a deal!” Mr. Bragg said in a statement. “We got a deal done that protects health care, with no premium sharing. We got a deal done that protects paid time off. We got a deal done that provides the economic security our members need in a time of rising inflation.”
Mr. Bragg said the contract honored the “indispensable” contributions and sacrifices made by 32BJ’s members during the pandemic. “They were there, keeping our buildings running and our communities safe, when the city needed them most,” he said.
Howard Rothschild, president of the Realty Advisory Board, said the agreement was fair and would continue to create and support middle class jobs for more than 30,000 workers over the next four years.

“The agreement builds on the important work R.A.B. and 32BJ accomplished together throughout the pandemic — protecting jobs and maintaining solid health benefits — and further shows the industry’s respect and appreciation for our essential workers with a substantial bonus,” Mr. Rothschild said.
“We would like to thank all residential building service workers for their tireless dedication and commitment during a tremendously challenging period,” he added.