Act NowAdvisory: Local 32BJ Commercial Building Contract Nears Expiration

The collective bargaining agreement between Local 32BJ of the Service Employees International Union and the Realty Advisory Board on Labor Relations, Inc. ("RAB"), covering many landlords, building cleaning and contractors, managing agents, and the like will expire at midnight on December 31, 2011. This contract includes most Class A commercial buildings in the five boroughs of New York City, as well as many other commercial properties in the Metropolitan area. Also expiring at that time are contracts for buildings in the Hudson Valley (including Westchester County), parts of New Jersey (such as the Jersey City Gold Coast), and Fairfield County, Connecticut (including Stamford and Greenwich).

Although bargaining continues between the RAB and Local 32BJ, the union has taken strike votes and said it will strike if there is no agreement by December 31, 2011. Such a strike would affect not only building services, such as cleaning and building maintenance, but also many other building operations personnel, such as security desk employees, elevator operators, and other classifications. A strike may also disrupt deliveries to tenants, as well as construction and maintenance work, if employees of delivery companies, building contractors, and electrical, telecommunications, and other personnel refuse to cross picket lines. In some cases, operations could be directly affected if an employer's employees refuse to cross the picket lines. Building tenants that do not have contracts with Local 32BJ or have union-represented workforces would also be affected if the building service workers were to strike.

Many landlords and managing agents have already contacted tenants to advise them of the steps that they may take to continue operations in the event of a strike. If you have not heard from your building's landlord or management company, we strongly urge you to contact it and inquire as to whether your location is involved and what its plans are should a strike occur.

What Employers Should Do Now

Each affected employer should ascertain the following information from its landlord(s):

Each employer should ascertain the following with regard to its own operations:

One important concern should be the building's plans to provide for access to the building without the need to cross a picket line. This can be accomplished in many circumstances by the landlord or its managing agent establishing a reserved gate. By establishing and maintaining a reserved gate, buildings may be able to limit picketing to a particular entrance and allow tenants' employees, guests, and deliveries to pass through other entrances without having to cross picket lines. In some circumstances, a particular entrance can be designated for use by specific parties at limited times. If your landlord establishes a reserved gate, it is important to advise all your employees, expected guests, and delivery persons to follow the posted instructions to help insure that the "reserved gate" remains in effect.

If your building management won't disclose its plans, or balks at setting up a reserved gate, you should review your lease for a "labor peace" clause or similar provision requiring the landlord to avoid labor disputes that disrupt tenant's operations, and seek to enforce this provision.

If any part of your workforce is represented by a union, you should review the no-strike provisions of your collective bargaining agreement and ascertain whether they are sufficiently broad to prohibit sympathy strikes.

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We will be pleased to answer questions that you may have or to assist with planning for these contingencies. Please contact:

Resources

48352_Act-Now-Advisory_Local-32BJ-Contract-Expiring.pdf