Pittsburgh, PA – Council President Doug Shieldstoday introduced a bill that would create jobs that provide good wages, health care and other benefits to workers employed at new, city-subsidized developments and to workers contracted to work for the City of Pittsburgh. Council Members Bill Peduto, Jim Motznik, Bruce Kraus,Theresa Kail-Smith, Tonya Payne and Darlene Harris also sponsored the bill which would require developers and contractors to pay the private-sector going rate, or prevailing rates, to building service, food service, hotel and grocery workers. Pittsburgh United, a coalition of faith, labor, environmental and community organizations including 32BJ Service Employees International Union, United Food and Commercial Workers and Workers United, is advocating for this bill as part of broader economic development reform.
“Too many Pittsburghers are working hard but struggling to get by,” said Council President Doug Shields. “City Council must ensure that tax dollars don’t undercut the going rate for service jobs.”
Over the past few years, Pittsburgh has subsidized developments that have changed the landscape of the city – from the North Shore to the Waterfront. Despite the investment of city tax dollars and requirements for prevailing rates for the workers who build the developments, many of permanent jobs created at the sites are paying below the going rate.
“Government shouldn’t be part of the process to undermine the going rate for service jobs,” said Gabe Morgan, 32BJ Western Pennsylvania Director. “Our local economy suffers when developers and contractors are encouraged to race to the bottom.”
The bill would also ensure city-contracted workers receive good wages and health care. Currently, some workers contracted to provide services to the city are earning just above the minimum wage and do not have access to affordable health care. At the City-County building, for example, security officers are paid as little as $8.30 an hour by Am-Gard.
“When you’re only earning $8.30 an hour, one job’s not enough,” said Ed Millender, a security officer at the City-County building. “I’m too old to be working so many hours, but I can’t get by on just my day job.”
According to the National Employment Law Project (NELP), more than 140 cities have set wage standards for their contracting programs over the past fifteen years. NELP reports these cities have seen little, if any, impact on costs for services.
“When governments adopt prevailing wage requirements for their contracting and development work, they help enforce the rates established in the private-sector,” said Paul Sonn, NELP Legal Co-Director. “By upholding the going rate, government helps create good jobs without undermining market standards.”
With more than 110,000 members, including 5,000 in Western Pennsylvania, 32BJ is the largest property services union in the country.
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updated 11/17/09
