NECA Contractor Instrumental In Attaining Landmark NYC Agreement For Economic Recovery
Not content to wait out the economic recession, New York City’s construction trade unions and their management counterparts inked an historic project labor agreement (PLA) on Friday which has the potential to stimulate more than $2 billion in construction activity within the city and create or save 10,000 jobs or more. By Monday, its effects were already apparent as work had resumed at the dozen previously delayed or stalled development projects covered under this pact.
“The Economic Recovery Project Labor Agreement” between the Building and Construction Trades Council of Greater New York (BCTC) and the Building Trades Employers’ Association (BTEA), results from months of labor-management negotiations.The head of a NECA-member firm performed a significant role in securing this landmark agreement.
The PLA is moving NYC construction forward by reducing building costs by an average of 16 to 21 percent at the 12 major sites it presently encompasses. Actual cost savings within that range are expected to vary on a project-to-project and trade-by-trade basis. The savings come from the city’s 15 building and construction trade unions agreeing to changes in work rules and the construction contractors accepting reduced profit margins and other concessions.
The BCTD unions have agreed to the following terms:
- No strikes or work stoppages;
- Standard 8-hour workday and 40-hour work week;
- Overtime at time and one-half;
- Eight common holidays;
- Flexible starting times and lunch breaks;
- Maximum utilization of apprentices at training wages; and
- Strict adherence to safety rules and a standard of excellence for performance (which means any worker not being productive for eight hours a day or living up to their responsibilities in the collective bargaining agreement may be disciplined or terminated).
In addition to these productivity improvements, several trade unions have agreed to one-year wage freezes and benefit reductions. These cost reductions are not factored into the 16-21% estimate.
The BTEA and unionized construction contractors have agreed to the following terms:
- No lock-outs;
- Reduced and frozen wages for management personnel;
- Fringe benefits and bonus reductions;
- Reduced profit margins;
- Reduced material and supply costs (to be passed onto owners); and
- Improved project management and efficiency.
According to a BusinessWire article on the PLA, “The agreement will be made available to private projects at risk from May 29, 2009-June 30, 2010. Any project approved during this period can be built under these terms and conditions for the full schedule of the project, even if work continues after June 30, 2010. The BCTC and BTEA will determine if the PLA will be extended and made available to projects starting after June 30, 2010, based on economic performance in the coming year.”
Two dozen additional projects have applied for coverage under this agreement, which could provide an even greater boost for construction spending and job creation.
Of the 12 development sites addressed in the agreement signed on May 29, the most prominent is the Beekman Tower, designed by award-winning architect Frank Gehry. As reported by The New York Times, work on the proposed 76-story skyscraper came to an abrupt stop at the 37th floor two months ago when the developer determined that economic constraints would preclude retaining Gehry’s distinctive wavy-wall design and reaching the tower’s full proposed height.
But, work resumed immediately as soon as the Economic Recovery Project Labor Agreement was signed. Now, the project is back on its way to becoming the famed architect’s first skyscraper — and the tallest residential building in New York City. The luxury tower, which will stand 867 feet high, will house a public school on the first four floors, an ambulatory care center for New York Downtown Hospital, and 900 apartments.
Here’s the NECA Connection: Zwicker Electric is the electrical contractor on the Beekman project. The company’s president, David B. Pinter, who serves on the boards of the Building Trades Employers Association and the New York Building Congress, was one of the four negotiators on behalf of management who secured the PLA with all the union building trades in the city.
Recognized nationally and internationally, this past president and governor of NECA’s New York City Chapter is a strong advocate of mutually respectful and cooperative labor-management relations. As documented in a number of publications archived on Zwicker’s website, his achievements include his service as the chapter’s Chief Labor Contract Negotiator in the 2007 negotiations with IBEW Local 3 which led to an historic agreement with significant changes to work rules and creative new opportunities to address marketplace issues.
