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Lynsey Kryzwick: 212-388-3696
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Albany, NY—Senate Labor and Codes Committees voted this week for a bill that would guarantee good wages for cleaners and security officers at public utility companies. On Monday, the Senate Labor Committee voted for the bill 13 to 2, and on Tuesday, the Senate Codes Committee passed the bill by a vote of 9 to 7. The bill is expected to come to a vote in both the House and Senate in the coming weeks
“As rate-payers and tax-payers, New Yorkers are financing multi-million dollar pay-checks for public utility executives,” said State Senator Eric Schneiderman, prime sponsor of the bill. “Meanwhile, the public utilities are keeping working families in poverty.”
New York’s public utility companies are bringing in billions of dollars in operating revenue from consumers and rate payers. Con Ed, for example, reported $13 billion in operating revenues for 2009, Rochester Gas reported $1.01 billion in operating revenue, New York State Electric & Gas Corporation reported $1.65 billion in operating revenues, CH Energy Group, Inc. reported $931 million in operating revenue and National Grid’s reported operating revenues were $22.4 billion.
Meanwhile, many of the cleaners contracted to work at the utility plants are earning poverty wages with no health insurance. When companies such as Con Ed use such low-end, low wage contractors, New Yorkers end up footing the bill for public programs for food, health care and other supports on which low-wage workers are forced to depend.
“New Yorkers do not want to subsidize poverty-wage jobs that keep their families and neighbors struggling,” said Hector Figueroa, 32BJ Secretary Treasurer. “Public utilities that benefit from a state-regulated monopoly should be creating jobs that benefit New York. We look forward to the bill’s passage and the opportunities it will bring to the working people in the state.
The bill would eliminate the current exemption for public utility companies in the state prevailing wage law, which guarantees publicly-contracted service workers the wages and benefits that prevail in the private sector. Since this law was passed in 1971, thousands of workers contracted to clean and secure public buildings and facilities have been able to support their families with good wages and health care. The contractors at Con Ed and other public utilities have been outliers – paying their employees far less than the rates prevailing at private and public facilities in the same area.
“New Yorkers are paying billions of hard-earned dollars to public utility companies,” said Jerry Dennis, SEIU Local 200 President. SEIU Local 200 represents 13,000 workers in 52 Upstate counties. “We cannot stand-by and watch them continue to turn a profit on the backs of the workers who keep their facilities safe and clean.”
Despite making $868 million in profits in 2009, Con-Edison contracted cleaners earn as little as $8.50 an hour. Contract cleaners for National Grid, which brought in $1.87 billion in profits in fiscal year 08-09, earn as little as $9.50 an hour.
SEIU Local 200, which represents 13,000 workers in 52 Upstate counties, is making this bill a top priority for 2010. 32BJ is advocating for this bill as part of the “State that Works,” the union’s policy agenda for creating good jobs and an affordable state through economic development, contracting and tax abatement programs.
With more than 120,000 members, including 70,000 in New York City, 32BJ is the largest property services union in the country.
updated 5/19/2010
