Published: March 17, 2010

"This unaccountable monopoly charges its customers higher rates each year, hands out millions of dollars in bonuses to its executives, and yet the contracted workers toil under the poverty line with little or no benefits. This abuse must be put to an end," Gianaris declared. “This unaccountable monopoly charges its customers higher rates each year, hands out millions of dollars in bonuses to its executives, and yet the contracted workers toil under the poverty line with little or no benefits. This abuse must be put to an end,” Gianaris declared. Assemblymember Michael Gianaris has introduced legislation that would guarantee good wages, health care and other benefits to cleaners and security officers at public utility companies who currently “toil under the poverty line with little or no benefits”.

The same bill has also been introduced by state senate Democrats and is backed by several major labor unions.

The bill would eliminate the current exemption which public utilities enjoy under the state’s prevailing wage law, which guarantees contracted service workers the private sector market rate at public sites and facilities, Gianaris said.

Since the law was passed in 1971 he added, thousands of workers who are under contract to clean and secure public buildings and facilities have been supporting their families with good wages and health care.

“Con Edison must be held accountable to the workers who put in the elbow grease while its executives make millions sitting at their desks,” Gianaris (D– Astoria) declared, lashing out at one of the utilities he has frequently targeted for reform and greater transparency and accountability.

“This unaccountable monopoly charges its customers higher rates each year, hands out millions of dollars in bonuses to its executives, and yet the contracted workers toil under the poverty line with little or no benefits. This abuse must be put to an end,” Gianaris declared.

Gianaris said New York’s public utility companies take in “billions of dollars from consumers and ratepayers”, including $23.8 billion from New York City.

The lawmaker cited Con Ed as an example, saying it reported $13 billion in revenues for 2009, and National Grid, the successor to Brooklyn Union Gas, had reported revenues of $23.3 billion.

Meanwhile, he added, many of the cleaners contracted to work at the utility plants are earning poverty wages and are forced to depend on public programs for food, health care and other support.

Responding to Gianaris’ charge, Con Ed Vice President for Government Relations John Banks issued the following statement:

“This is an issue between a union and contractor. It is surprising, however, that in these hard economic times, an elected official would push legislation that would only serve to increase customer bills to appease special interests.”

Among those supporting the bill are state Senator Joseph Addabbo (D– Howard Beach) and Assemblymember Jose Peralta (D–Corona).

According to labor unions backing the bill, Con Edison contracted cleaners earn as little as $8.50 an hour and contract workers for National Grid earn as little as $9.50 an hour.

Hector Figueroa, secretary–treasurer of SEIU Local 32 BJ, the largest private sector union in the state, complained: “Con Ed executives are reaping millions while some New Yorkers are pinching pennies to pay their bills.”

Local 32 BJ is advocating for the bill as part of the “State that Works”, the union’s policy agenda for creating good jobs and making New York an affordable state through economic development, contracting and tax abatement programs. Local 32 BJ has 120,000 members, including 70,000 in New York City.