'No cause for alarm' RAB tells worried building owners.

As the clock ticks on the threat of a service workers strike, both sides in the dispute remained split on the key issues as REW went to press.

The residential service workers contract ends at mightnight tonight (Wednesday) and. according to Local 32BJ spokesman, Matthew Nerzig, a strike is not out of the question.

"These are tough negotiations and, to date, we have not seen the progress we need to see in order to reach an agreement," said Nerzig before negotiations resumed Tuesday. "Unlike previous contract campaigns, we feel this one is a different negotiation."

The Realty Advisory Board on Labor Relations (RAB) and Local 32BJ have been locked in talks for several weeks.

The two key issues on which they are unable to make a compromise are wages and health care coverage.

The RAB has proposed a wage freeze for workers, while the Local 32BJ maintains that service workers actually require a wage increase with their new contract, as living in New York City becomes more and more expensive. The RAB also wants the service workers to pay for part of their health insurance. With the cost of health insurance outpacing wages three to one, the Local 32BJ insists their service workers are unable to afford this on their modest salaries.

"Wage freezes, healthcare and premiums are issues where we draw the line and unless they're resolved, we're on the path towards the strike," said Nerzig. "Our members who make $37,000 a year are not in a position to accept a wage freeze. They need a cost of living in crease to pay their bills and get by."

Jim Berg, president of the RAB, said the gulf between the two groups at this stage in negotiations isn't necessarily a cause for alarm.

"We're apart on many issues at the moment, but that's not at all unusual for a negotiation of this type," he said. He believes that as long as negotiations continue, there's a good possibility a solution will be found.