Service employees' contract nears deadline

Real Estate Weekly, Dec 20, 1995 by Lois Weiss

In January 1992, a strike was averted with a 5:30 a.m. agreement, reached 90 minutes before a strike deadline. These employees have not struck in about 45 years.

The last contract added $32 to the porter wages over three years and included additional benefit contributions of $38. The percentage increases for the past three years were 3.98 percent, 3.02 percent and 3.58 percent respectively.

According to information provided by the Realty Advisory Board (RAB), the cost of living for this area rose 2.01 percent in 1993; 2.17 percent in 1994 and is currently running at 2.7 percent.

The total cost of a full-time porter and other service personnel in Class A buildings is $44,977.96. Handypersons, starters and forepersons cost more.

The current porter wage is higher than the median household income in New York City and higher than municipal workers in the same category. The wages of the commercial building employees are in the top one third of all wage earners in New York City and are among the highest for building service employees in the United States.

Porter wages are the subject of many lease escalation clauses, with tenants paying "penny for penny" or "wage plus fringe" or other variations as increases in rent.

A key provision negotiated last time around provided for a reduction of ten percent of a property's workforce at the discretion of the owner, i.e. a 10 percent productivity increase. Another item on the table at that time included the ability to make reductions in cleaning personnel where spaces were vacant.

While no one's talking specific items yet, it can be expected that owners will be looking for the ability to make additional staffing reductions and work rule changes.

Jim Grossman, a spokesperson for the Realty Advisory Board that negotiates on behalf of the owners, said they are presently in communication with the union and probably will start meeting more intensely at the end of this week.

"It's the view of the members that the commercial real estate industry is still not healthy and members of the RAB are seeking substantial changes in the contract that we would expect the union to vigorously oppose," said Grossman. "We expect this will be a difficult negotiation."

Once those contracts are negotiated, the same terms will cover the superintendents, whose contracts expire January 31, and security guards, whose contract is not up until February 29. Guards and superintendents would have to remain on duty if the and fall injuries.

"We start as soon as the snow starts," said Charles J. Hirsch, the company's vice president, who oversees maintenance issues. "If it's a heavy snow, we at least make a path wide enough for two people to walk, so if anyone is coming the other way they don't have to step into the snow," he explained. Once the snow subsides, they completely clear the walks.

Last year, concerned about a repeat of the winter before, they pre-ordered salt and purchased snowblowers for the buildings with larger sidewalk areas. "So far I haven't had to buy any salt this year," laughed Hirsch, remarking on last winter's freak lack of snow.

The slip and falls are running neck and neck with lead liability cases, noted Joseph Strasburg, president of the Rent Stabilization Association, a residential group that represents 25,000 owners. "Owners are at least able to get insurance, whereas with lead, you won't get any," he noted. "I have a feeling we will have a good share of snow. We've already gotten some. You want to make sure you have your shovels, your salt and the snowblower."

Roger Kahn, senior managing director of Edward S. Gordon Company, said "We've made sure the snowblowers are operational and tuned up and we have fuel for them. You have to be prudent, with proactive planning and preventative maintenance."

Areas with plazas such as those around the Sixth Avenue buildings in the 50's are sometimes roped off with stanchions to keep pedestrians from slipping and falling where there are huge expanses, level variations and materials that become slick in wet weather.

"If your buildings have areas like that you have to have the appropriate barricade," said Kahn. "We like to avoid the yellow tape."

Concern for the sidewalks is one reason to use materials such as calcium chloride that do not cause deterioration, the way salt does. But it can be four times as expensive, said Hirsch. He will use salt on areas with older sidewalks and balance that with the calcium chloride where the walkways have been replaced. And if the sidewalks become rough, it can add to the possibility of slip and fall injuries during dry weather. "It's a vicious cycle to protect the sidewalk," Hirsch said. "We go though many ice picks and snow shovels."

Commercial owners with Class A buildings are very concerned about the walk areas that are often of higher grade or constructed of more costly materials. Kahn said, "You want to make sure you buy a type of de-icer that will not contribute to the deterioration of the sidewalks."

Winoker said some of the worst problems for owners are with retail shopping and commercial centers and places where there are parking lots and people walking in the street areas.