Twenty thousand members of the Service Employees International Union (32BJ SEIU) in New York City have voted to authorize a strike if their demands are not met by landlords before their current contract ends on December 31. The union is asking for a wage boost and additional healthcare benefits, but building owners, represented by the Realty Advisory Board, are resisting. In fact, in response to the tough leasing conditions for many buildings, property industry leaders are actually asking for help from unions to avoid foreclosures and even bankruptcy. The local Union President, Manny Pastreich, said that “they [building owners] feel like they need relief, and that’s an argument they haven’t made before.”

Howard Rothschild, President of the Realty Advisory Board on Labor Relations, also pushed back on some of the rules proposed, citing other agreements made outside of NYC. “The current labor agreements contain healthcare provisions and unsustainable work rules that do not exist in any other major city in the country nor in other 32BJ contracts outside New York City,” Rothschild said. Currently, building workers make from $22 to $44 per hour, but for many, that is still not enough to keep up with the cost of living.

If they do strike, it won't be the first time. Back in 1996, the union also went on strike for about a month. The result was a moderate wage increase with the concession that new workers would only get 80 percent of the contract wage for their first 30 months.

The Realty Advisory Board is offering a similar solution this time around, but the union opposes a “two-tiered” payment system. This system is one of the reasons that auto worker unions have gone on strike this year, as they say that it created unhealthy working conditions.

Some local politicians have taken up the union’s cause. Senator Chuck Schumer said in a speech, “You are our soldiers. You are our heroes. Our nation owes you a huge debt for when you fought COVID on the front lines. I want to say one thing to the big bosses: show us the money.”

Despite enjoying considerable political backing, unions are engaged in a tough struggle with property owners who are dealing with higher interest rates, escalating costs, and reduced rental earnings. If the services union manages to win the concessions they are aiming for, this victory might impact future contract talks in other cities. However, if this pursuit results in prolonged disputes or a strike, it might encourage other unions to postpone aggressive actions in contract negotiations until more favorable conditions arise.

 🏠 Home depoted: The recently insolvent modular construction company Veev has been purchased by homebuilder Lennar. There is no official price that has been reported, but some sources estimate that it was “several dozens” of millions of dollars.

💵 Defaulted developer: Another Chinese developer, this one named Aoyuan, has filed for bankruptcy to help it restructure around $6 billion dollars of debt. Like its failed predecessor Evergrande, Aoyuan is choosing to file for bankruptcy in the U.S. as an expedited way to restructure foreign debt.