Building owners, union at negotiating table for new contract.

Formal negotiations got underway March 11, for a new contract governing the terms and conditions of employment for service employees in apartment buildings in New York City The current agreement will expire at midnight on April 20, which is Easter Sunday and falls in the middle of Passover.

The owners and operators of approximately 3,000 residential buildings -- mostly in Manhattan, Brooklyn and Queens are represented by the Realty Advisory Board on Labor Relations, Inc. (RAB). Local 32B-32J of the Service Employees International Union, AFL-CIO, represents the employees of these buildings. (Bronx buildings operate under a separate agreement.)

There has not been a strike in the residential sector since 1991. That strike lasted 12 days. In 1994, 1997 and 2000, 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, a strike always remains a possibility," said James F. Berg, president of the RAB. "That is the nature of labor relations."

The RAB was formed over 60 years ago as an organization through 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 chaired by D. Kenneth Patton, of D.K Patton & Associates, and includes Rita Chu (East 67 Tenants Corporation), Arnold Goldstein (Samson Management Co.), Andrew Hoffman (Clarendon Management), 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 also be responsible for preparing owners for the possibility of a strike.

Local 32B-32J is a union that represents building service workers in both residential and commercial buildings in New York City Nassau and Suffolk Counties, Connecticut and Northern New Jersey. It has approximately 70,000 members and is operated by a group of officers who are elected periodically by the membership. Service employees represented by Local 32B-32J, both residential and commercial, are among the best paid in the country and enjoy substantial benefits such as liberal sickness and vacation allowances, and many other fringe benefits.

In February 1999, the union's long-time president, Gus Bevona, resigned and the union was placed into trusteeship by its parent, Service Employees International Union (SEIU). Mike Fishman, an SEIU official, was appointed trustee, and in September 2000, he was elected president of Local 32B-32J, a post he currently holds.

"Under Mike Fishman's leadership, the RAB has had a cordial and constructive relationship with Local 32B-32J," Berg said. "At this point, however, we do not know exactly what the issues will be during this round of negotiations."

Standard topics such as wage and benefit increases are sure to be discussed. It remains to be seen, he said, whether there will be any particularly controversial proposals or flash points that might precipitate a strike if the parties are unable to agree.

The RAB advises apartment building owners and managers to undertake these preparations 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.

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

* 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 32B-32J 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 with cleaning contractors who will operate during a strike.

"Another essential component of strike preparation is communication with resident owners and tenants," said Paul Salvatore, general counsel to the RAB and a partner in the law firm Proskauer Rose LLP.

"Effective communication through bulletins can temper some of the common feelings of isolation and hostility that residents and tenants may experience during a strike," according to Salvatore.

Good communication should take place in stages, he said, coinciding 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 f any modifications regarding cleaning deliveries, and safety. Finally, should a strike be called, apprise tenants of the situation, but reassure them that bargaining sessions are being held with efforts to reach a fair and equitable agreement.