Labor Relations Advisor, July 2014
July 31, 2014

Largest Public Union in NYC Recommends Ratification of New Agreement  

On July 2, 2014 District Council (DC) 37, New York City’s largest public employee union with 121,000 members, announced it reached a tentative agreement with the city.  A week later, DC 37 delegates voted to recommend ratification of the contract.

The contract would provide 10.41 percent in compounded wage hikes as well as a $1,000 ratification bonus. The wage hikes include a 4.58 percent compounded increase in base wages in September 2014 as well as a 2.5 percent increase in 2015 and a 3 percent increase in 2016. 

The contract would be retroactive to March 3, 2010 and would expire July 2, 2017. DC 37 Executive Director Lillian Roberts said in a statement, “It is a fair deal in a tough economic climate. I urge our members to vote ‘Yes’ and to return their ballots as soon as possible.” Ballots will be mailed in by Tuesday, August 5. 

The agreement has a cost of $1.75 billion in fiscal years 2014 through 2018 according to Mayor Bill de Blasio (D). However, about $795 million will be offset by expected savings in health care costs.  The multiunion Municipal Labor Committee will work with the City to determine the details of the health savings, but are committed to the $795 million target.

Regarding the health care savings goal, De Blasio said, “We’re coming up with a list of ways to get to it. We have to get to the numbers, but we want to give flexibility and respect to each union to find the pathway.”

The tentative agreement would also create a gain-sharing process where labor and management work together to identify cost-effective changes to improve productivity and service.

“Our members will be able to identify ways to do the job better and cheaper and to share in the savings,” said Roberts. “We see this as empowering our members and creating a more collaborative and productive relationship with the city. It’s a win-win for all parties.”

Johns Hopkins SEIU Members Ratify Agreement

Ninety-three percent of caregivers at Johns Hopkins Hospital voted in favor of ratifying a 4.5 year agreement on July 11, 2014 according to an 1199 SEIU announcement.

The agreement covers about 2,000 technical, maintenance and service workers. The agreement institutes a $15 per hour minimum wage for workers with 20 years of service and by 2018, current workers will be making at least $13 per hour.

Across-the-board annual wage hikes are a minimum of 2 percent per year. In addition, workers will receive a 0.5 percent bonus in the first year of the contract. For some long-time, low paid workers these changes will mean as much as a 38 percent increase over the life of the contract.

Prior to reaching the agreement, the Hopkins’ workers planned a four-day strike in late June. On the eve of the strike, Maryland Governor Martin O’Malley stepped in and asked both parties to agree to a one-week cooling off period.  After the cooling off period, the parties met under the supervision of a mediator with the Federal Mediation and Conciliation Service. They reached an agreement on July 7, 2014.

John Reid, Executive Vice President of 1199 SEIU’s Maryland/DC region, said in a statement, “This is an important victory for patients and workers all across Baltimore. Johns Hopkins Hospital sets the standard for health care in our city and that standard has just been raised.”

Eight years ago, 1199 SEIU and Johns Hopkins agreed to a contract with a $10 minimum wage. This is the first agreement reached by the parties since then.

Three IAM-Represented Work Groups Ratify Agreements with US Airways

The International Association of Machinists (IAM) and US Airways announced the ratification of three agreements covering fleet service, mechanic and related and maintenance training specialists on July 19, 2014. The agreements were ratified by 96, 86, and 67 percent of the voting groups, respectively. In total, the agreements cover about 11,000 employees.

According to the announcement, the agreements provide for “significant wage hikes and industry-best job security while retaining affordable health insurance and preserving defined-benefit pension plans at the carrier.” Specific wage information is at the end of this article.

The agreements are each amendable in three years.  During that time the IAM and Transport Workers Union (TWU) will work to negotiate joint collective bargaining agreements with American. The TWU represents around 19,000 employees in similar crafts/classes at the legacy, American Airlines. The IAM and TWU formed an alliance in early 2013 (around the time of merger talks between US Airways and American) to jointly represent the “new” American’s mechanic and related, fleet service, and stock clerk groups.

According to Richard Delany,  President of District Lodge 141, “The new agreement provides immediate wage increases that place our members on an even footing with American Airlines Fleet Service employees and also provides necessary job protection and benefit improvements, especially pension increases, for US Airways Fleet employees.” He added, “The next step will be to get representatives of both unions together to prepare for talks with American.”

Fleet Service. The approximately 6,500 fleet service employees will receive signing bonuses ($1,500 for full-time and $750 for part-time workers). The top of scale rate will be increased 9.53 percent upon the date of signing (DOS). Rates below the top of scale will receive a 3 percent increase on DOS.  All steps will receive a 2.1 percent increase in September, another 2.1 percent increase (or Industry Pay Rate Adjustment, whichever is greater) in September 2015 and a 2.1 percent increase in September 2016 if the joint agreements have not been reached.

Mechanic and Related.  The approximately 4,500 mechanic and related employees will receive two 3 percent raises in 2014, another 3 percent raise in 2015 and, if joint agreements have not been reached, they will receive additional increases of 1.5 percent in 2016 and again in 2017.

Maintenance Training Specialists. The approximately 30 maintenance training specialists will receive a $1,500 signing bonus and a 3 percent increase on the DOS. Like the mechanic group, maintenance training specialists will receive an additional 3 percent increase in 2015 and, if joint agreements have not been reached, they will receive additional 1.5 percent increases in 2016 and 2017.

Fast Food Workers Ramp Up Campaign for $15 Minimum Wage

On July 26, 2014, during a first-ever fast food workers convention in Chicago, the 1,300 gathered workers passed a resolution to engage in strikes and utilize civil disobedience to deliver messages to fast food corporations.

This past May the workers engaged in two separate acts of civil disobedience. On May 15, workers coordinated a 150-city one-day walk out. On May 21, a protest outside the McDonald’s corporate headquarters resulted in the arrest of 100 employees and Mary Kay Henry, the president of the Service Employees International Union (SEIU).

Henry was the keynote speaker at the convention and attacked fast food executives as “a selfish few at the top” who are “using their power to hold down wages.”

The SEIU has been providing support to fast food workers and the national campaign for a $15 minimum wage. At the convention, Glenn Spencer, the executive director for the U.S. Chamber of Commerce’s Workforce Freedom Initiative claimed the SEIU was contributing some $15 million into the fast-food campaign.

According the New York Times, the fast-food workers, supported by the SEIU, asked the National Labor Relations Board to declare McDonald’s a joint employer of its franchise restaurants. This would possibly allow the SEIU to attempt to unionize workers at dozens of restaurants at one time instead of slowly moving from franchise to franchise.

In addition to a number of speeches, the convention also provided time for the fast food workers to debate and discuss how to best utilize civil disobedience and what could be done to put pressure on the fast food companies.

Let us Help You
From labor negotiations support to strategic consultation, we are always ready to help.