Subscribe for Daily Updates!
Who determines the number of employees that each co-op must employ? Where can I find the rules defining the controls the unions have over co-ops and their employees? How hard is it to opt out of the union? What can a board do when they can no longer keep up with their payroll expense and need to reduce staff?
A difficult financial period - especially an extended one - is precisely the WRONG time for a corporation of any size to cut services, and I'm talking cleaning, maintenance, painting, repairs, and upgrades - all of which are labor-intensive. If you think about it, keeping your property value UP, as compared with other buildings in the area, is always a good investment... for the corporation and for its shareholders.
Before cutting staff, I suggest your board brainstorm things the co-op could do to raise money. Ours, for example, has twice-yearly building-wide tag sales, a quarter of the profits kept by the co-op. And ways you could cut operating costs. Are all your lights energy-efficient?, heating pipes wrapped, windows and doors sealed from drafts? Is your insurance policy worth what you're paying, or could you negotiate a new contract at a lower cost? Are other service contracts worth what they're charging? Do you scour resources such as freecycle.org, Build It Green, and craigslist for things the building needs?
May I also suggest that your board discuss ways in which to expand services to shareholders without a large cash or credit outlay by the corporation? For example: a borrowing closet, to which all residents can donate, and which all could use, with tall and short ladders, hammers, wrenches, screwdrivers, painting tools, leftover paints (EVERYONE has at least one can that's still good), all available when signed out by one of your volunteer residents. Or a workshop in the basement that residents can use, with supervision, to refinish a door or other messy work. Neither would cost you much, if anything - and could provide out-of-work residents with an environment to keep them busy with something constructive.
Or start a bridge club or host speakers from local businesses specializing in employment issues. Contact broadband carriers for package deals for residents, which could save them money each month. Take a look at your sublease policy to see if you can expand it to include vacation rentals during July and August so residents going on vacation will be able to save money by renting it (obviously, with legal stipulations....) Find out if your labor contracts can include furloughs.
If your board and your residents and your staff can all work together to make capital improvements - planting a garden, or painting a fence - you'll find it will pay off in higher share values once this financial downturn trends up. And your corporation won't be one of those laying people off, too.
Have a happy holiday season, everyone. Keep a positive attitude.
You can find the 32BJ contracts here:
http://www.seiu32bj.org/cd/list.asp
I am going to throw out a somewhat controversial answer... this is based on experience and not opinion.
You have a contract with 32BJ/670 or whomever to employ union workers and abide by the union rules of play with regard to this contract. So long as the contract is in force, so are its terms and conditions.
Not all contracts are not the same. Go through the contract and find your out. During the time of your Collective Bargaining and Labor Contract Negotiations is the time to ensure that no adverse terms survive the term of the contract and that Arbitration obligation expire after expiration of the union contract, etc...
Typically the contract will spell out rules for this and it will also address economic hardship layoffs...
(here’s a good article: http://www.allbusiness.com/legal/laws-government-regulations-employment/280842-1.html )
Also, if there are other reasons during contract times to lay the employee off, do so... insubordination, etc...
Always consult your attorney, or an attorney experienced in Labor Law before following any labor related advice, signing and/or negotiating any labor contract or laying someone off
After successfully ridding 2 of my buildings from the union in entirety, I can say that their tactics are extremely rude, pressing and borderline intimidating, but as long as you have the case, the b#!$, the cause and justification, you will win! Especially now as many unions are having issues.
Best
~AR
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
These are very good questions that we are now asking,,, if anyone has experience/answers please chime in... We have about 90 apartments, and approx 10 people have lost their jobs, or are now on reduced incomes... and are looking for ways to reduce our cost.
VP
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.