NYC Building Workers Secure 3%+ Wage Increase & Avoid Strike with Tentative 2024 Contract

New York City’s commercial building workers can breathe a sigh of relief as they enter 2024 without the threat of a strike. In the early hours of Thursday, the Realty Advisory Board (RAB) and the 32BJ Service Employees International Union successfully reached a tentative contract, steering away from a potential labor dispute. This development comes after intense negotiations between the union and the owners of approximately 900 commercial buildings represented by RAB.

Union Gains Ground in Contract Negotiations:

The negotiations resulted in a contract that addresses the key concerns of the 32BJ union. The agreement ensures that employers continue to fully cover building workers’ health insurance, introduces wage increases, and implements improvements. Contrary to RAB’s initial stance of requiring concessions due to the challenging state of the city’s office market, the union secured a contract that allows for an early retirement incentive program and streamlines staffing adjustments in response to reduced office populations resulting from remote work.

A Win for Working New Yorkers:

Manny Pastreich, President of 32BJ, expressed satisfaction with the agreement, stating, “Today we found a common path forward with the RAB that rewards workers appropriately and meets the moment for the New York City commercial real estate industry.” The negotiated contract, set to be ratified by the union, is slated to take effect on January 1 and will remain in force until December 31, 2027.

Enhanced Benefits and Wage Increase:

Under the terms of the contract, commercial building workers will enjoy a 3.02 percent wage increase, equivalent to $149 per week, setting the typical annual salary at over $69,000. Additional perks include a $3,000 bonus in March, a 10 percent boost to pension benefits for future retirees, and an early retirement program for members aged 60 with at least 15 years of service. The early retirement program offers a $20,000 401K contribution, termination pay, a 5 percent pension improvement, and allows retirees to retain health benefits until the age of 65.

Long Road to Agreement:

The road to the contract agreement appeared uncertain earlier this month, with both parties at an impasse over changes to wages and health benefits for the city’s 20,000 commercial building employees. On December 20, 32BJ had authorized a strike, but the agreement reached in the final hours has averted any potential disruption, providing a resolution to the limited progress made since contract negotiations began in November.