Building Contractors Agreement (BCA) Facts About the BCA Contract Proposal
The proposed 3 year agreement presented to the District Council from the Building Contractors Association (BCA) contains Market Recovery Provisions that need to be explained. These provisions are currently not part of any collective bargaining agreement with the District Council, but are in Project Labor Agreements (PLA’s). Attached are documents that indicate the future hotel work coming to the city, the majority of them being developed non-union. Also attached, is a document explaining the Co-Star Realty system for the classification of commercial office buildings in New York City. “C-Class” buildings are referred to in the proposal. Union contractors do virtually no work in “C-Class” buildings currently. If we are to break into that market, these rates would be a tool to accomplish that.
The Outer borough rates for new buildings are designed to recapture a market we have lost.
The B-12A Residential and Hospitality Market Recovery Rates cover buildings that are not currently being built union except where a PLA has been utilized with success to capture that work. The B-12A rate is 8.9% below the CBA rate, currently a deduction of $7.54 an hour.
Talks with the BCA have been ongoing since early last year. At the beginning of the summer the BCA stated that in order for the General Contractors (GC’s) to continue to have a collective bargaining agreement with the District Council, they would need something to make them more competitive with non-union GC’s that are increasingly gaining market share in what has always been a stronghold for union contractors. By virtue of having the General Contractors signed, the Union benefits from the subcontracting clause, which locks in that the work is subbed to a Union Signatory. The BCA introduced a proposal for Market Recovery Rates.
Originally the BCA proposed market recovery rates that would reduce wages and fringes in what is classified as Class A buildings by 20% for interior alteration and fit outs 150,000 sq. ft. and under. The outer borough rates would be a 20% reduction for new residential and hospitality buildings.
The Union refused to consider the reduction in Class A interior work, as it is an area we consider ourselves to be strong in. The Organizing Department introduced the Co-Star system (see accompanying attachment) as a way to delineate between building classes.
The District Council Negotiating Committee is comprised of the Executive Delegates from each local along with the Executive Secretary-Treasurer, President and Vice President of the District Council. The committee in its entirety recognized the need to address residential and hospitality buildings not only in the outer boroughs, but also in Manhattan where buildings under 20 stories were largely non-union except where PLA’s were utilized. The fact of the matter is that 50-story buildings are being built non-union and it is a reality that needs to be dealt with. The committee as a whole held their ground on the Class A interior rates from the beginning, but participated in the process that led to the provisions in the current proposal posted along with this letter. It is this list of proposed changes to the CBA that are provided for your review. This will potentially be put to a ratification vote at the first delegate meeting that will be held in March.
over 1100 square feet
over 35000 square feet
20000 to 35000 square feet
12000 to 20000 square feet
over 8000 square feet
over 12500 square feet