Port Authority Electricians Charge Inconsistent Approach to Prevailing Wage
Two-state legislation may be next step for Local 3
June 13th, 2008
Newly appointed Port Authority Executive Director Chris Ward is starting his tenure in the middle of a labor dispute.
The fact-finding stage of negotiations between the Port Authority and its division of Local 3 International Brotherhood of Electrical Workers is under way. The bi-state agency and union leaders are trying to resolve a stalemate over using prevailing wages, or a pre-determined pay rate, in their upcoming labor contract.
During the last contract negotiations with Local 3, the Port Authority agreed to pay 85 percent of prevailing wages—the pay rate for a particular craft established by the state comptroller—with incremental increases.
Since that contract expired in June 2006, Richard Gonzalo, chair of the union's division, said the agency reneged on that deal because 85 percent of prevailing wage was too generous and could give leverage to other unions during contract negotiations.
“We're the only division of Local 3 that doesn't get prevailing rates,” Gonzalo said. “We're very frustrated.”
The current dispute came as a surprise to Local 3, as the Port Authority stringently follows prevailing wage laws for all businesses that have contracts with the bi-state agency. Port Authority goes as far as setting up workshops on properly paying prevailing wages.
“They pay it to everyone in the world except their own employees,” Gonzalo said.
The breakdown of negotiations last December prompted the start of the fact-finding, in which each side has been given an opportunity to present its argument about what the final contract should contain.
The effort is being overseen by Mattye Gandel, who was appointed by the Port Authority Employment Relations Panel. Port Authority’s Board of Commissioners will vote on Gandel’s non-binding decision based on information gathered.
The Port Authority, however, has repeatedly postponed its own presentation to Gandel.
Though law in New York and New Jersey requires payment of prevailing wages, the Port Authority is exempt because the agency is self-governing: The governor of New York appoints the executive director, the governor of New Jersey appoints the chairman of the Board of Commissioners, and each of them appoints six board members.
The arrangement means that the New York State Labor Department has no jurisdiction over the Port Authority. The agency has used this as a defense for not following prevailing wage laws for its employees.
“We're trying to get them to realize that they’re slipping through a loophole,” Gonzalo said.
Joseph Bechtold, Local 3's business representative for Port Authority interests, said the union is fighting pattern bargaining.
“There is no equity in pattern bargaining,” Bechtold said. “It's the same all across the board, regardless of your knowledge, expertise or danger of your job.”
The union, he added, will accept the Board of Commissioners' vote as a binding decision. Bechtold is confident that Gandel's opinion will be favorable.
“I believe that she believes we presented a compelling case, and the Port Authority has yet to present their case,” Bechtold said.
Steve Coleman, assistant director of the Media Relations Department for the Port Authority, said the agency will present its case in hopes to have a resolution by the end of the summer.
The next presentation will be July 14.
Gonzalo and Bechtold said that if the union is not satisfied with the resolution reached at the end of the fact-finding, Local 3 will likely opt for a remedy through legislation instead of a lawsuit.
But that would take time. And there is no guarantee of success in that, either.
Coexisting bills must pass in New York and New Jersey to affect Port Authority operations. This is no easy task, according to Assembly Member Richard Brodsky (D-Westchester), chair of the Corporations, Authorities and Commissions Committee.
“New Jersey has been absolutely resistant to any reform at Port Authority,” Brodsky said. “We've tried, but New Jersey has turned its back on the people who are subject to the powers of the Port Authority.”
Gonzalo, however, is more optimistic.
“Both governors are labor-friendly,” Gonzalo said. “We hope we can get things done politically.”
The fact-finding stage of negotiations between the Port Authority and its division of Local 3 International Brotherhood of Electrical Workers is under way. The bi-state agency and union leaders are trying to resolve a stalemate over using prevailing wages, or a pre-determined pay rate, in their upcoming labor contract.
During the last contract negotiations with Local 3, the Port Authority agreed to pay 85 percent of prevailing wages—the pay rate for a particular craft established by the state comptroller—with incremental increases.
Since that contract expired in June 2006, Richard Gonzalo, chair of the union's division, said the agency reneged on that deal because 85 percent of prevailing wage was too generous and could give leverage to other unions during contract negotiations.
“We're the only division of Local 3 that doesn't get prevailing rates,” Gonzalo said. “We're very frustrated.”
The current dispute came as a surprise to Local 3, as the Port Authority stringently follows prevailing wage laws for all businesses that have contracts with the bi-state agency. Port Authority goes as far as setting up workshops on properly paying prevailing wages.
“They pay it to everyone in the world except their own employees,” Gonzalo said.
The breakdown of negotiations last December prompted the start of the fact-finding, in which each side has been given an opportunity to present its argument about what the final contract should contain.
The effort is being overseen by Mattye Gandel, who was appointed by the Port Authority Employment Relations Panel. Port Authority’s Board of Commissioners will vote on Gandel’s non-binding decision based on information gathered.
The Port Authority, however, has repeatedly postponed its own presentation to Gandel.
Though law in New York and New Jersey requires payment of prevailing wages, the Port Authority is exempt because the agency is self-governing: The governor of New York appoints the executive director, the governor of New Jersey appoints the chairman of the Board of Commissioners, and each of them appoints six board members.
The arrangement means that the New York State Labor Department has no jurisdiction over the Port Authority. The agency has used this as a defense for not following prevailing wage laws for its employees.
“We're trying to get them to realize that they’re slipping through a loophole,” Gonzalo said.
Joseph Bechtold, Local 3's business representative for Port Authority interests, said the union is fighting pattern bargaining.
“There is no equity in pattern bargaining,” Bechtold said. “It's the same all across the board, regardless of your knowledge, expertise or danger of your job.”
The union, he added, will accept the Board of Commissioners' vote as a binding decision. Bechtold is confident that Gandel's opinion will be favorable.
“I believe that she believes we presented a compelling case, and the Port Authority has yet to present their case,” Bechtold said.
Steve Coleman, assistant director of the Media Relations Department for the Port Authority, said the agency will present its case in hopes to have a resolution by the end of the summer.
The next presentation will be July 14.
Gonzalo and Bechtold said that if the union is not satisfied with the resolution reached at the end of the fact-finding, Local 3 will likely opt for a remedy through legislation instead of a lawsuit.
But that would take time. And there is no guarantee of success in that, either.
Coexisting bills must pass in New York and New Jersey to affect Port Authority operations. This is no easy task, according to Assembly Member Richard Brodsky (D-Westchester), chair of the Corporations, Authorities and Commissions Committee.
“New Jersey has been absolutely resistant to any reform at Port Authority,” Brodsky said. “We've tried, but New Jersey has turned its back on the people who are subject to the powers of the Port Authority.”
Gonzalo, however, is more optimistic.
“Both governors are labor-friendly,” Gonzalo said. “We hope we can get things done politically.”
