Published: June 23, 2010

The Riverbay Corporation and the union representing more than 500 workers, reached a tentative compromise settlement of differences that led to a recent work stoppage earlier this month and threatened to trigger a second work stoppage in Co-op City.

Failure to reach a settlement on May 31 had triggered an eight-day work stoppage that ended when management officials were, in effect, forced to take the workers back without a new contract.
A federal mediator, who was appointed last week, helped to arrange the compromise that ultimately proved to be acceptable to the two parties.

Under the compromise agreement, workers will get wage increases of 1.25 percent per year for each of the next four years, starting on June 9.

That is a concession to management, which had been willing to pay wage increases of 2.3 percent per year, starting on June 1.

As a concession to Co-op City members of Local 32BJ of the Services Employees International Union (SEIU), management agreed to maintain the workers' current health-insurance coverage.
In initial talks with the union, management had insisted on changing the workers' health-care provider to save Co-op City an estimated $2 million per year.

Herbert Freedman, Co-op City management's principal spokesman said, “As in virtually all labor settlements, there was a lot of give and take. Any time that you can reach a settlement that is acceptable to both parties, it is a good thing. It's always desirable to have labor peace.”

The two sides are expected to approve the compromise settlement within a week. Union members were expected to vote on the settlement on Friday; the Riverbay board was expected to vote on it next Wednesday night.