The 20,000 members of New York City’s Service Employees International Union (32BJ SEIU) have voted to authorize a strike if their landlord does not meet their demands before the current contract ends on December 31st. . The union is demanding higher wages and additional pay. But building owners represented by the Real Estate Advisory Committee are resisting. In fact, real estate industry leaders are turning to labor unions for help in avoiding foreclosure and even bankruptcy, given the tight rental conditions in many buildings. Local union president Manny Pastreich said: [building owners] They feel they need relief, and it’s a claim they’ve never made before. ”
Howard Rothschild, president of the Real Estate Advisory Council on Labor Relations, also rejected some of the proposed rules, citing other agreements signed outside New York City. “The current collective bargaining agreement contains medical provisions and unsustainable labor rules that do not exist in any other major city in the country or in any other 32BJ contract outside of New York City,” Rothschild said. Currently, construction workers earn between $22 and $44 an hour, but for many, that’s still not enough to cover living expenses.
If they go on strike, it won’t be the first time. Back in 1996, the union also went on strike for about a month. The result was gradual wage increases, with the concession that new employees would only receive 80% of their contracted wages for the first 30 months.
The Real Estate Advisory Committee is proposing a similar solution this time around, but the union opposes a “two-tier” payment system. The system is one of the reasons autoworkers’ unions went on strike this year, saying it creates unhealthy working conditions.
Some local politicians have taken up the union’s cause. Senator Chuck Schumer said in a speech: you are our heroes. Our country owes you a huge debt as you fought the coronavirus on the front lines. One thing I would like to say to the great people is to show them the money. ”
Despite receiving significant political support, unions are fighting an uphill battle with property owners grappling with rising interest rates, soaring costs and declining rental income. If the service unions can win the concessions they seek, the victory could influence future contract negotiations in other cities. However, if this pursuit leads to protracted disputes or strikes, it may encourage other unions to postpone active action in contract negotiations until more favorable terms are in place.
Insider insights
🏠 Home Depot: Recently bankrupt modular construction company Veev has been acquired by homebuilder Lennar. There is no official price reported, but some sources estimate it was “in the tens” of millions of dollars.
💵 default developer: Another Chinese development company, a development company named Aoyuan, has filed for bankruptcy to restructure approximately $6 billion in debt. Like its bankrupt predecessor Evergrande, Aoyuan is choosing to file for bankruptcy in the United States as a quick means to restructure its external debt.