Despite an April 20 contract deadline approaching, negotiations between 32BJ SEIU, the union representing more than 34,000 NYC residential workers, and the Realty Advisory Board on Labor Relations (RAB), which speaks for residential building owners, have grown tense.
The current contract for doorpersons, porters, superintendents, handypersons, and resident managers was approved in 2022 during the COVID-19 pandemic. It guarantees fully employer-paid family health care, pension benefits, paid leave, and job training.
The board’s proposals for the new contract include fair wage increases, but the board wants employees to help pay the cost of healthcare premiums. “32BJ members are part of only 5% of U.S. employees that do not contribute anything for family healthcare premiums,” RAB argued in a recent statement. “In contrast, the average U.S. employee pays over $6,850 in healthcare premiums for family coverage.”
32BJ SEIU wants to keep its employer-paid health care, plus get wage increases that keep pace with inflation, strengthen its pension benefits, and improve working conditions.
The board also wants to establish a “Tier II” workforce for new hires, who would most likely have different pay and benefits. The board has said it’s concerned about current expenses building owners are incurring, stating that doorpersons and porters earn approximately $62,000 annually, with total employer costs exceeding $112,000, while handypersons cost more than $119,000. Their employees receive comprehensive packages that offer full family health insurance — covering medical, dental, optical, and prescription drugs — without any employee premium. The board is warning that its members are facing existential threats, such as increased operational costs — for insurance, utilities, maintenance — and the possibility of a 0% rent increase on 1 million rent-stabilized NYC apartments, which could keep it from being able to afford any wage increases.
Howard Rothschild, board president on labor relations, said in a statement, “To keep the industry strong going forward, we must continue to work together to negotiate a fair contract that ensures its long-term sustainability.”
Union leaders argue that the board’s contract proposals won’t help workers keep up with the city’s cost of living.
“Listen, what we have in front of us is that we’re coming off four of the highest years of inflation,” said 32BJ SEIU President Manny Pastreich, who told the Amsterdam News that wages, health insurance, and retirement are the union’s central issues. “Our members are struggling to pay rent to live in the city, to pay for the groceries –– we see the cost of transportation going up every single day.
“The people who moved out of New York City are working people who just are struggling to get by. That’s been the experience of our members, so there are some issues on the table that are strike issues. Premium-sharing for us is a strike issue. The two-tier wage system is a strike issue. Then there’s going to be a fight over the money — you know, how much.”
Negotiations began on March 5, with each side submitting initial proposals. The union’s priorities were presented first, followed by management’s response during the second session on March 24. Although the early meetings were reportedly friendly, union leaders criticized RAB’s counterproposals as “insulting” and argued they could weaken the essential protections secured in the existing contract.
32BJ SEIU has already mobilized some 1,400 strike captains just in case these contract negotiations fail. A formal strike vote and union rally on Park Ave is set for April 15, just days before the contract expires.
“I think every union member is hesitant about the possibility of a strike,” Pastreich added. “It’s a serious thing. We just saw what the nurses went through for well over 30 days. That is a hard burden for people, especially living in the city today. We take this very seriously, but we know we are defending the contract we have, and we’re working hard. We have to move forward because without action, folks might not be able to live in the city. A strike is a last resort, but we have to be ready for it.”