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Be prepared: RAB gears up for union negotiations.


Negotiations for a new contract with service employees in apartment buildings throughout most of New York City will begin next week, as their current agreement with owners and operators of residential buildings expires at midnight on April 20.

The Realty Advisory Board on Labor Relations, Inc. (RAB RAB - Postal Tax Semipostal (Scott Catalogue prefix; philately)
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RAB - Radio Access Bearer
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) represents owners and managers, and Local 32BJ of the Service Employees International Union represents the doormen, handymen porters and some of the superintendents in nearly 3,000 rental and co-op apartment buildings.

Most of the buildings are in Manhattan, Brooklyn and Queens, with some in Staten Island, Nassau and Suffolk. Bronx buildings are not involved in this round of talks.

"We don't know yet exactly what the issues will be during this round of negotiations," said James Berg, president of the RAB.

"Residential workers' health benefits were determined by the contract reached two years ago with the commercial building workers, and have already resulted in an increased contribution rate and a one-time payment for residential building owners."

Berg added that, traditionally, the Commercial Agreement has set a "pattern" for the next residential agreement, but it remains to be seen whether there will be any particularly controversial proposals or flash points that might precipitate a strike if the Berg noted that a significant number of RAB member-buildings are middle-income co-operatives whose residents have already been hit with large increases for fuel and other operating expenses.

There has not been a strike in the residential sector since 1991. That strike lasted 12 days. In 1994, 1997, 2000 and 2003, contract negotiations led to successful settlements without a strike.

"Although the RAB will, of course, be working hard to secure a mutually satisfactory agreement before the April 20 deadline, another strike remains a possibility." Berg said. "That is the nature of labor relations--as the recent transit strike unfortunately reminded us"

"The RAB has generally had a cordial and constructive relationship with Local 32BJ under the leadership of its president, Mike Fishman, and the New York City building industry service workers have thrived," according to Paul Salvatore, of Proskauer Rose, who is general counsel to the RAB.

"New York building service employees represented by Local 32BJ and employed by RAB members are among the best paid in the country and enjoy substantial benefits, such as liberal sickness and vacation allowances, employer-paid comprehensive family health benefits, and many other fringe benefits," Salvatore noted.

Through preparation and unity in the real estate industry--and some help from a particularly severe winter--the commercial building owners were successful in weathering the most recent strike, in 1996.

More modest wage increases than those sought by the Union were achieved, and a start rate for new employees at 80% of the minimum wage rate for current employees for a period of 30 months was instituted, as well as a vacation relief rate of 60% of the minimum wage for regular employees.

The RAB was formed over 70 years ago as an organization though which employers in the building service industry could bargain with the Union.

It is a membership corporation, operated by a Board of Directors which is sub-divided into a residential division and a commercial division. There are at present over 4,000 members of the RAB.

The Residential Negotiating Committee this year is co-chaired by Eric Rudin of Rudin Management Co., Inc., and Andrew Hoffman of Clarendon Management, and includes Rita Chu (East 67 Tenants Corporation), Arnold Goldstein (Samson Management Co.), James V. O'Connor (Insignia Management Services), Jack Levy (Rose Associates, Inc.), Mary Ann Rothman (Council of New York Cooperatives), and Seymour Zuckerman (Zuckerman & Waldorf, Inc.). This committee will be responsible for negotiating a new collective bargaining agreement and preparing owners for the possibility of a strike.

Local 32BJ represents building service workers in both residential and commercial buildings in New York City, Nassau and Suffolk Counties, New Jersey, Connecticut, Philadelphia, Maryland, Virginia and Washington D.C.. It has over 80,000 members and is operated by a group of officers who are elected periodically by the membership. Fishman, has been the president of Local 32BJ for approximately 6 years.

The following is a checklist of some of the more important advance preparations that the RAB recommends that residential buildings take to minimize the burden on operations in the event of a strike.

* Because contractors and repair workers may not cross Union picket lines, conduct a comprehensive check of building systems now. Inspect oil burners, elevators, water pumps, roof tanks, HVAC systems and make all necessary repairs well before April 20, 2006.

* Rubbish haulers may also honor picket lines. Make arrangements with your hauler immediately for alternatives, including a supply of additional containers if possible.

* Limit any move-ins and move-outs on April 21 and during any potential strike.

* Security is of paramount importance during a strike. Therefore, test all security and fire alarm and communication systems and make necessary repairs. Review the fire evacuation plan with management personnel.

* Review insurance policies to determine what coverage is available during a strike. You may want to obtain additional insurance coverage against vandalism or malicious mischief.

* Secure all building machinery and equipment rooms at least 24 hours before the strike deadline to prevent unauthorized persons from entering those areas.

* If Local 32BJ members are operating critical building equipment, including manual and freight elevators, suitable replacements must be found in the event of a strike. Make arrangements for hiring and training a qualified person before the strike deadline. Candidates can be found through managing agents, service vendors, and/or trade organizations.

* It is critical to make arrangements now for as many security guards as you will need if there is a strike, to guarantee the safety of your building and its tenants and to manage possible strike violence. Owners of buildings with lobby attendants should replace them with security guards.

* Because picketing workers may prevent the delivery of fuel, keep fuel in good supply by arranging for delivery just prior to the strike deadline.

Discuss with your fuel company potential delivery problems during a strike and the possibility of delivering fuel during off-hours.

* Make arrangements now for alternate means of providing cleaning and rubbish removal and be sure to have an adequate supply of garbage bags on hand.

Communication with Tenants

Another essential component of strike preparation is communication with resident owners and tenants. Effective correspondence can temper some of the common feelings of isolation and hostility that residents and tenants may experience during a strike.

Good communication should take place in stages corresponding with where the RAB and Union are in their negotiations.

For example, before the contract expires, residents and tenants should be notified of the possibility of a strike.

Then, as the expiration date approaches, RAB members should send a letter updating the tenants of the situation, assuring them that essential services will be provided, and advising them of any modifications regarding cleaning, deliveries, and safety.

Finally, upon expiration of the agreement and commencement of a strike, appraise tenants of the situation but reassure them that bargaining sessions are being held with efforts to reach a fair and equitable agreement.
COPYRIGHT 2006 Hagedorn Publication
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Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Realty Advisory Board on Labor Relations Inc.
Publication:Real Estate Weekly
Geographic Code:1USA
Date:Mar 8, 2006
Words:1177
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