Worst-Case Scenario: Planning Ahead in Case of a Service-Workers Union Strike
April 10, 2014 — With an April 20 deadline looming in contract talks between the service-workers union and representatives for New York City building owners, savvy boards and property managers have been preparing for a worst-case scenario.
"You really do have to start preparing early," says Joan Konow, a principal in the management firm Key Real Estate Associates. "You can't wait till the last minute — even though that's what both sides do in the contract talks." Dan Wurtzel, president of the property-management firm FirstService Residential, agrees. "In order to be properly prepared, you have to assume there will be a strike," he says. So what exactly should condo and co-op boards do?
Konow began her preparatory efforts in January, three months before the contract with local 32BJ of the Service Employees International Union (SEIU) expires. One of her first moves was to prepare a handbook of emergency contacts; two to three weeks before a strike, she gives this to all board members and front desks in the buildings she manages. This document also includes instructions on how to run the intercom and other building systems in the event outside workers are brought in to replace striking employees. Memos are sent to all residents one month before, notifying them that the current contract is set to expire on April 20. Updates are sent regularly as the contract talks proceed.
"Then we estimate a likely increase in the cost of paying for the building's staff under a new contract," Konow says. "Some boards will increase our estimate when making up a budget; others will decrease it."
The 12 Days of Walkout
The second order of business is making contingency plans for staffing the building in case the workers go out on strike — which last happened in 1991, when the walkout lasted 12 days.
"We engage a security company to provide enough personnel to cover for the doormen," says Konow. "We also print resident cards and mail them to each apartment, so the residents can identify themselves to these stand-in security guards."
We print resident cards
so the residents can
identify themselves to
stand-in security guards.
Alayne Berenson, Key's vice president, urges boards to budget enough to cover the cost of hiring replacement staff for one week. "We end up putting up about $5,000 to $7,500 to cover security guards [to serve as doormen]," she says. "We need to have people available, and the security companies have to hire extra people because all of a sudden there might be a mad rush."
Most security companies require a non-refundable set-up fee of several thousand dollars per building, and they also require buildings to pay for at least one 8- or 12-hour doorman shift. This latter requirement can be canceled if notice is given more than four hours before the strike deadline. In years past, though, negotiations have tended to go down to the wire.
"We engage non-union, third-party companies to provide the necessary coverage at our buildings such as front door security and janitorial services," adds Wurtzel. "In many buildings committees are formed to organize resident volunteers who handle essential building services such as package acceptance and trash removal."
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