A State That Works

A STATE THAT WORKS 32BJ’s Plan for Good Jobs and a Strong Economy

INTRODUCTION A STATE THAT WORKS

A STATE THAT WORKS Good Jobs, Strong Economy

Stagnating wages, an ever-growing gap between the very rich and everybody else, and a workforce struggling to meet basic family needs are holding our state’s economy back. And too often, efforts to stimulate our economy are focused on top-down strategies that just do not work. New York needs a new multi-faceted approach that replaces failing job creation efforts and an overreliance on Wall Street with a comprehensive plan to invest state resources strategically in New York’s people, businesses and communities. It must begin with job creation that puts financial resources into the hands of workers, stimulating the economy from the bottom up. New York State’s elected officials and policymakers must take this opportunity to advance a new set of priorities based on fostering the type of economic growth that meets the needs of New Yorkers statewide. This paper presents 32BJ’s policy agenda in the hopes of moving a new set of priorities—and a series of policies—forward thoughtfully and swiftly.

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1

CREATE AND SUPPORT GOOD JOBS

Leverage New York State’s spending power to promote economic development CHALLENGE The state’s current approach to economic development is haphazard, expensive and ineffective. Economic development programs have not sustained long-term growth across the state, nor have they been adequately targeted to support those employers and industries that can create jobs that lift workers out of poverty and into the middle class.

SOLUTION The state must reassess its economic development agenda and how it awards financial incentives to businesses. More immediately: UÊÊ/…iÊi}ˆÃ>ÌÕÀiÊŜՏ`Ê«>ÃÃÊ>˜`Ê̅iÊ}œÛiÀ˜œÀÊŜՏ`ÊÈ}˜Ê˜`ÕÃÌÀˆ>Ê Development Agency (IDA) reform. UÊÊ/…iÊÃÌ>ÌiÊŜՏ`Ê>ÌÌ>V…ʍœLÊÃÌ>˜`>À`ÃÊ̜ʫÀœ}À>“ÃÊv՘`i`ÊLÞÊ̅iÊ Empire State Development Corporation (ESDC) and to state-financed affordable housing. UÊÊ/…iÊÃÌ>ÌiÊŜՏ`ÊLiÊ>ʏi>`iÀʈ˜Ê̅iÊVÀi>̈œ˜ÊœvÊ}Àii˜ÊVœ>ÀʍœLÃÊLÞÊ investing in training for workers to improve energy efficient building operations and maintenance practices.

STATE SUBSIDIES MUST CREATE GOOD JOBS “I have traveled all over in order to work. Millwrights work in power plants and oil refineries and on big construction sites. When there’s union work, it pays well and I get health insurance, pension and other benefits. “When I heard that CVS was building a huge distribution center about 10 miles from here on I-86, I thought I’d get good work there, building the conveyors and racks, setting up the robotics. But it turned out that the contractor was nonunion from North Carolina, even though I know that CVS got tax breaks from New York State and IDA money. “When I worked on the site, they provided none of the necessary safety equipment. I had to supply my own helmet, safety harness, safety glasses, welding gloves and welding leather. And only a few of the 40-50 workers on the site were from nearby. The rest were brought in from out of state. “This is where I was born and raised myself. My wife is a nurse. She’s making the mortgage payments now, about $1,000 a month. But we’re expecting our first child in December—and there’s no work near here that will support my family. That doesn’t seem right.”

For a detailed description of 32BJ’s legislative and policy goals regarding economic development, see page 12.

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-Joseph Temple

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Joseph Temple apprenticed for five years to become a millwright, a highly skilled trade required in the construction of industrial machinery and precision mechanics. He and his wife are expecting their first child in December, but there’s no work near their home in Lockwood, N.Y.

2

USE GOVERNMENT RESOURCES TO RAISE STANDARDS

Ensure that procurement promotes responsible state contracting CHALLENGE New York State spends billions of dollars each year on contracted services without requiring vendors to meet basic standards. Many contractors, in fact, pay their employees poverty-level wages and provide neither health insurance nor other benefits. As a result, many contracted workers and their families are dependent on the state for health care, housing subsidies and other work-support programs. The procurement system lacks transparency, making it impossible for the state to hold irresponsible contractors accountable.

SOLUTION The state can increase the number of good jobs in New York: UÊÊ/…iÊÃÌ>ÌiÊŜՏ`ÊiÃÌ>LˆÃ…ÊÀi뜘ÈLiÊVœ˜ÌÀ>V̈˜}ÊÃÌ>˜`>À`Ã°Ê UÊÊ/…iÊ}œÛiÀ˜œÀÊŜՏ`ʈÃÃÕiÊ>˜ÊiÝiVṎÛiʜÀ`iÀÊ̜ÊVœ`ˆvÞÊÀi뜘ÈLiÊ procurement practices. UÊÊ/…iÊÃÌ>ÌiʓÕÃÌÊ>ÃœÊÀivœÀ“ʺ«ÀiviÀÀi`ÊÜÕÀVi»ÊVœ˜ÌÀ>VÌÃÊ̜Êi˜ÃÕÀiÊ̅>ÌÊ employers obey all laws and respect disabled workers’ rights. UÊÊ
˜`ʏi}ˆÃ>̜ÀÃʘii`Ê̜ÊwÝÊ iÜÊ9œÀŽÊ-Ì>Ìi½ÃÊ-iV̈œ˜ÊÓÎäÊLՈ`ˆ˜}Ê service prevailing wage law to include additional work performed under contract, such as food service and work done at public utilities.

PUBLIC MONEY, POVERTY JOBS “It’s really hard to make ends meet on $8.50 an hour. I have two kids, 5 and 2, and my wife works too. But the math doesn’t always add up. Every month we have to decide what bills to pay. We can’t pay them all each month. We have to make hard choices about what to buy at the grocery store. I pay Con Ed part of my pay back for my electricity bill; it comes to about $80 a month. “My family needs public assistance to survive. My children and I have Medicaid. We also get food stamps, even though I work full-time. “We need better pay. That’s why we’re organizing with the union. In order to make progress, to win decent raises, we have handed out fliers, we’ve had marches and rallies, we’ve talked to politicians and gone to an annual investors’ meeting with a priest. We’ve been in the newspaper, The Daily News and El Diario. And nothing happened. It made no difference. “Now we need a new plan—a new law that would make Con Ed hire contractors that pay just salaries. Changing the law is our last recourse. “It’s hard to live in New York, but I want my kids to grow up here. There are chances for them to have a better life.”

For a detailed description of 32BJ’s legislative and policy goals regarding public procurement, see page 13.

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-Fernando Cruz

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Fernando Cruz is a contracted cleaner working at a Con Edison facility in Manhattan. Although he works full-time, his family qualifies for Medicaid, food stamps and Head Start.

3

FAIR TAXES, GOOD JOBS

Ensure an equitable tax system that supports the creation of affordable and market-rate housing CHALLENGE The state is in the midst of a financial crisis, with record-high projected deficits. During difficult budget times, keeping the same old tax policies on the books without reassessing their effectiveness is a missed opportunity to bring in much-needed revenue.

SOLUTION The state should determine whether tax policies, abatements and incentives are encouraging the growth of good jobs and housing. Proposals that change the levels of exemptions could generate needed revenue for New York State, especially in tough financial times when everyone should share the burden.

GOING GREEN BENEFITS ALL “The green courses at 32BJ’s labor-management training fund have enabled me to come up with new ideas to make my building more efficient, safer and more comfortable for tenants. Now I’m not just making repairs, I’m making improvements. “The work I do—operations and maintenance—is key to running an energy-efficient building. It’s the little things that add up and have the greatest effect. We’ve always been diligent about recycling. We’ve sealed air leaks around the windows and doors to cut down on heat loss, which saves oil. We have timers and sensors on the lights outside and we’re using compact fluorescent lights in the hallways. “Water saving is my pet project. It’s something I can control. I don’t need a special budget for it. We fixed leaks and installed water-saving toilets, aerators on the faucets and showerheads that use less water.

For a detailed description of 32BJ’s legislative and policy goals regarding tax policy, see page 13.

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“We’re moving toward further changes: green cleaning products, lighter heating oil and safer, less toxic paint. . “This is my career. It’s not just a job. The work is very rewarding. Tenants appreciate living in a building where we’re making every effort to save energy and precious resources.” -Loretta Zuk

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Loretta Zuk, the superintendent of a Columbia University apartment building, has earned certification in efficient building operations through the “1 Year: 1,000 Green Supers” program, run by the 32BJ labor-management training fund. “With greening, my building runs more efficiently,” says Zuk. “This program really shows our shared interest—supers, owners and the union.”

4

BRING WORKING NEW YORKERS OUT OF POVERTY

Set higher standards for low-wage industries and strengthen worker supports CHALLENGE The most recent economic recession has taken a toll not only on the state’s bottom line, but also on the millions of working families that struggle to pay their bills and send their children to school each day.

SOLUTION The state can help low-income workers by getting greater numbers of New Yorkers back to work in jobs that enable them to support their families and by providing critical supports to those still out of work: UÊÊ/…iÊ}œÛiÀ˜œÀÊ>˜`ʏi}ˆÃ>̜ÀÃÊŜՏ`ÊÃiÌʅˆ}…iÀÊÃÌ>˜`>À`Ãʈ˜ÊœÜ‡Ü>}iÊ industries, such as security. UÊÊ/œÊLÀˆ˜}ʅi>Ì…ÊV>ÀiÊ̜Ê̅œÃiÊ܅œÊÀi“>ˆ˜Ê՘ˆ˜ÃÕÀi`]Ê̅iÊÃÌ>ÌiÊŜՏ`Ê leverage employer-based coverage. UÊÊ/…iÊÃÌ>ÌiÊ>ÃœÊŜՏ`ʓœÛiʵՈVŽÞÊ̜ÊÀivœÀ“Ê̅iÊ՘i“«œÞ“i˜ÌÊ insurance system by increasing payments to workers and ensuring that the program is fully funded. UÊÊ/…iÊÃÌ>ÌiÊŜՏ`ÊÃÕ««œÀÌÊ«>ˆ`Êv>“ˆÞʏi>Ûiʏi}ˆÃ>̈œ˜ÊÜÊ̅>ÌÊܜÀŽiÀÃÊ can care for loved ones without the risk of losing their jobs.

TRAINING MATTERS “I am stationed on the platform of different stations in the PATH system—the World Trade Center, Christopher Street, Hoboken. I’m looking out for the safety of everyone and the property. There are so many people in the system that I have to have a great sense of alertness and awareness about me all the time. It can be tense at times. º½ÛiÊLii˜ÊܜÀŽˆ˜}ʈ˜ÊÃiVÕÀˆÌÞÊȘViÊ£™n{°Ê>ÃÌÊÞi>À]Ê܅i˜ÊÊÃÌ>ÀÌi`Ê>ÌÊ̅ˆÃʍœL]ÊÊ went to a five-day training course at the union building. It included what we would experience on the platform. We were trained about how to conduct ourselves. “In mass transit, people see us as their eyes. If something goes wrong, they look to us. We have to know how to respond, and respond quickly. I look at everything. It’s like driving a car—you have to be alert and aware, scanning the environment all the time. If I am suspicious about something, I watch it. You never know when something is going to happen. “I feel my responsibility very deeply because so many people are counting on me to keep them safe.” -Terrence Kelsor

For a detailed description of 32BJ’s legislative and policy goals regarding worker protections, see page 14.

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Terrence Kelsor is a contracted security officer protecting the PATH, the train system run by the Port Authority of New York and New Jersey. In February 2009, as a train was roaring into the Christopher St. station, Kelsor rescued a man who had fallen onto the tracks. “I had 10 seconds,” he recalls. “There was no time to call for help.”

32BJ’s NEW YORK STATE LEGISLATIVE AND ADMINISTRATIVE AGENDA

1

LEVERAGE NEW YORK STATE’S SPENDING POWER TO PROMOTE ECONOMIC DEVELOPMENT

Pass Industrial Development Agency reform. This legislation will provide needed transparency, accountability and wage standards to New York’s Industrial Development Agencies. In 2008, for example, Industrial Development Agencies spent over half a billion taxpayer dollars on businesses that either failed to create new jobs or actually cut jobs. Assess the state’s current economic development programs. The governor and i}ˆÃ>ÌÕÀiÊŜՏ`Ê՘`iÀÌ>ŽiÊ>ÊVœ“«Ài…i˜ÃˆÛiÊiÛ>Õ>̈œ˜ÊœvÊ>ÊœvÊ iÜÊ9œÀŽÊ-Ì>Ìi½ÃÊ economic subsidy programs to assess their effectiveness. Once completed, they should issue recommendations on how to ensure that these programs further the goals of supporting good jobs and revitalizing regional economies. The state has taken a good first step in re-envisioning Empire Zones. Comprehensive reforms must come next. Require the Empire State Development Corporation (ESDC) and its subsidiaries to provide benefits only to projects where all building service workers, including security officers, working on the premises are paid prevailing wages and benefits. The primary purpose of the ESDC must be to promote economic development that creates good jobs—those that pay at least a living wage, provide affordable, quality benefits and respect workers’ rights. To this end, the governor should direct the ESDC to adopt rules requiring those receiving financial benefits from the ESDC and/or its subsidiaries to pay building service workers the prevailing industry wage. Condition Housing Finance Agency assistance on an agreement to pay all building service workers prevailing wages and benefits. Analogous to the policy enacted through the 421-a program, the state should require recipients of HFA financial assistance to pay building service workers the prevailing wage. Require all buildings to be benchmarked for energy use and audited, with a requirement that existing building staff be trained in energy efficient building operations and maintenance.

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2

ENSURE THAT PROCUREMENT PROMOTES RESPONSIBLE STATE CONTRACTING

Issue an executive order to codify responsible procurement practices. Only responsible contractors should be doing business with New York State. Administrative changes should include: XU An improved method for determining “best value” that includes calculating the hidden costs to the state of low-wage employment. XU Development of consistent standards and procurement practices so that all state agencies follow the same procurement rules. Pass legislation to reform “preferred source contracts.” The state must carefully monitor contractors employing workers to ensure that they obey all laws and respect workers’ rights. The state also should expand the preference under procurement law to include responsible private sector contractors that employ disabled workers and respect their rights as employees. Fix New York State’s Section 230 building service prevailing wage law to include additional work performed under contract, such as food service and work done at public utilities.

3

ENSURE AN EQUITABLE TAX SYSTEM THAT SUPPORTS THE CREATION OF AFFORDABLE AND MARKET-RATE HOUSING

Determine whether taxes and abatements such as the mortgage recording tax, the real property transfer tax, the private activity bond allocation act and the co-op and condo real property tax abatement are encouraging the growth of good paying jobs and market rate/affordable housing in New York. If reforms to tax programs are made, earmark proceeds to generate needed revenue for New York State.

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4

SET HIGHER STANDARDS FOR LOW-WAGE INDUSTRIES AND STRENGTHEN WORKER SUPPORTS

Pass legislation to support the private security industry. Contracted security officers provide the essential service of protecting the buildings where millions of people work, live and visit each year. Yet because of poor industry standards, turnover rates are high, pay and benefits are poor, training is inadequate, and there is no career path to keep security officers in the industry. To end this «>ÌÌiÀ˜]Ê̅iÊ}œÛiÀ˜œÀÊ>˜`Êi}ˆÃ>ÌÕÀiÊŜՏ`Êi˜>VÌʏi}ˆÃ>̈œ˜Ê̅>ÌÊ܈\ XU Increase penalties on “bad actors”: Increase the penalties for security companies that ignore licensing and training requirements and discipline non-compliant companies more expeditiously. XU Responsibly contract security services: Mandate 40 hours of training for security officers for all security contractors receiving state contracts and require companies that have contracts of $500,000 or more to participate in a security training program. XU Pass home-rule legislation that would expand New York City’s authority over the licensing of security officers working in the city. Implement health care initiatives that leverage employer-based coverage to cover the uninsured, such as funding programs that use employer and public dollars to stretch coverage to those who remain uninsured. “Bridge financing” models, like those proposed in New Jersey, can cover more people and bring employer dollars into the health care system. Reform unemployment insurance by (a) ensuring that the unemployment insurance system is fully funded, (b) increasing the payments to workers and (c) revising the law that requires a seven-week waiting period for unemployment benefits if a worker is unemployed due to a strike, lockout or “other industrial controversy.” Protect New York City’s school cleaners by opposing cuts to education in the state budget. Pass paid family leave legislation so workers can care for their loved ones and take time off to care for a newborn or newly adopted child without risking their jobs or their financial stability.

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A STATE THAT WORKS Good Jobs, Strong Economy

32BJ represents 120,000 workers in eight states and Washington, D.C.—including 70,000 New Yorkers— working in the property services industry. We are committed to building a strong economy that supports working families with good jobs and to strengthening our communities to make New York a viable place to live, work and raise a family. To find out more about 32BJ’s policy agenda, call 212-388-3954.

NEW YORK A STATE THAT WORKS

32BJ SEIU 101 Avenue of the Americas New York, NY 10013 www.seiu32bj.org