Monday, July 27, 2015

Behind a union victory for North Jersey office workers



A year after he lost his job, and two weeks after a judge ruled that he should be allowed to return to work, Julio Mercedes of Passaic is still waiting.


He's eager to get back to 1 Meadowlands Plaza, the East Rutherford office building where he cleaned the cafeteria, hallways and first-floor lobby for 15 years, until a new owner awarded the cleaning contract to a non-union company that replaced Mercedes and his union-member colleagues.

But although an administrative law judge on July 13 ordered the new contractor, Eastern Essential Services Inc. of Fairfield, to reinstate Mercedes and 17 other union workers who cleaned the building to their former or similar jobs, that may not happen soon. The contractor has indicated it will appeal, which could take years, unless the National Labor Relations Board backs the union's effort for immediate reinstatement, which includes back pay and benefits.

The case offers a window into the contentious and lengthy disputes between unions, which seek to secure their members' rights under federal labor laws, and employers, who try to resist what they see as the inefficiency and higher costs that unionization brings.

The central issue was whether Eastern Essential Services violated the law by refusing to negotiate with the union and refusing to hire the union workers. Other disputes around North Jersey that have been fought over workers rights under federal law center on union efforts to organize non-union companies, and employers' refusals to renegotiate union contracts when they expire.

Union-employer skirmishes have taken on importance in the struggling New Jersey economy as companies have sought to reduce costs, and a growing media and political focus on economic inequality and wage stagnation has put the spotlight on pay rates at the bottom end of the scale.

The dispute touches a "very, very important" topic for building owners, said Michael Allen Seeve, president of Mountain Development Corp. of Woodland Park and former president of the commercial real estate group NAIOP.

"Most commercial property owners do not want to see their buildings go union, because it means that the costs go up and some of their control goes down," he said. Yet owners also want stability and a low turnover among the cleaning staff, he said.

"It's important because they have to be competitive or they can't keep their buildings occupied," he said. "And they have to have a good relationship with the cleaning people because the cleaning people are one of the most important connections with the actual end users," the office occupants, he said.

Aug. 10 deadline

Attorneys for Eastern Essential Services did not respond to requests for comment. On July 17, the company filed a request with the National Labor Relations Board for an extension of the Aug. 10 deadline by which it can file an appeal.

For the union, the judge's ruling provided a hard-fought victory in an era of declining private sector union membership.

Kevin Brown, New Jersey state director for Service Employees International Union Local 32BJ, which has 10,000 New Jersey members and is growing, said the impact of the judge's ruling would likely be felt across the industry, especially as the union begins negotiations in October for a 2016 contract, which covers 7,000 office cleaners in 500 buildings in the state. The union represents the cleaners in 85 percent of all office buildings bigger than 100,000 square feet in New Jersey, he said.

"The industry should be clear — good jobs are here to stay," Brown said of the case.

He said that although the union wages similar battles regularly, the case involving 1 Meadowlands Plaza and two other buildings was unique for the commitment of the workers and the relatively high number, 33 in total, involved. Few unions pursue such cases, because the chances of success are slim and they can take years, he said.

"Often workers will walk away, and say to hell with it," he said.

The dispute erupted in June and July 2014, when the cleaning contracts for the three buildings — the others were 300 Lighting Way in Secaucus and 120 Mountainview Boulevard in Bernards Township — were switched to Eastern Essential Services, away from two companies that employed workers in Local 32BJ of the SEIU.

Several times in the weeks after the change, some of the 33 employees that formerly cleaned the three buildings tried to get jobs with the incoming contactor, and the union sought to secure recognition from the company as the employees' representative — to no avail, according to the court ruling.

In one incident, for example, a cleaner at the East Rutherford building reported for work to find that the contract had changed hands, and she was told by an operations manager for Eastern Essential Services that "the reason we are not accepting you is because you are with the union," according to the opinion by Judge Stephen Davis, who heard the case in Newark.

Federal law doesn't require a company that takes over a contract to hire the employees of its predecessor, and requires it to recognize the union that represented former workers only in certain circumstances, Davis wrote. But by law, Eastern Essential Services couldn't refuse to hire the workers just because they were tied to the union, he said in his ruling, which concluded that was exactly what happened.

The judge said that if the contractor had hired the former workers, it would also have had to recognize the union, because the law requires a successor contractor to do so if a substantial number of the formerly unionized employees are part of the new workforce.

Instead, Eastern Essential Services hired its own employees, and "implemented its own terms and conditions for its employees in the three buildings," Davis wrote. Jobs that previously paid $12.35 an hour with benefits and sick and vacation time paid from $8.50 to $12 an hour, without benefits, under Eastern Essential Services, he said.

Year of hard times


For Mercedes, 42, the job loss started a year of hardship.

"It was a big headache," said Mercedes, who works between 30 and 37 hours a week in a laundry but relied on the income from the cleaning jobs, which he worked from 6 to 10 p.m. five days a week.

"With my work I could cover many expenses for my family," he said, and send medicine and other assistance to his mother in his home country, the Dominican Republican. "Now, I have to leave some things aside. Now I can't buy as much food as I could before, because I don't have enough money."

"I looked [for a job] a lot," he said. "But I would always go, and [they'd say] at the moment we don't have anything. I'd look, and I'd look, filling in forms in many places, but there was nothing."

Teresa Hernandez, 62, of Union City, who cleaned the Lighting Way building for 17 years, also said she has been unable to find something to replace her job vacuuming floors, taking out trash and cleaning the kitchen on the fifth floor of 300 Lighting Way.

She said her second job, working 28 hours a week in a Burger King kitchen, didn't pay enough to support herself, her two granddaughters, aged 10 and 8, and her daughter, who goes to college.

"It was very difficult," Hernandez said. She said that after learning about the change in cleaning contractor at her old job, she decided to accept a pay cut from $12.80 to $8.50 and tried to put in an application to work for Eastern Essential Services — but she got nowhere.

Thursday gatherings

She said she has gotten by in the past year by borrowing money from her sister to pay the bills. But she never gave up. She gathered with a handful of other workers outside the Lighting Way building from 5 to 6 p.m. every Thursday to hand out leaflets and talk to people who worked in the offices the ousted workers once cleaned.

"We did it to say to the public, and the people who work there, to speak for us, and say that we need this work," Hernandez said in Spanish. "I always had faith in God, and asked, in his heart, to help us get back to work."

The effort was part of a wide-ranging campaign to pressure Eastern Essential Services to take the workers back, in part by targeting the owners of the buildings, Brown said. It included a newsletter about the case distributed to the tenants of all the properties owned by one of the owners, Rugby Realty, and numerous protests outside the buildings that were sometimes attended by elected officials.

On Thursday evening, six workers, along with several of their children and grandchildren, were once again outside the Lighting Way building. This time, they held signs that said "We won," and they handed out leaflets to office workers walking out of the building or emerging from the parking lot that told of the judge's ruling. Some congratulated the cleaning workers and hugged them, or honked their horns or gave a thumbs up as they learned the news.

A woman who described herself as in marketing said she had worked at the building for 12 years with the workers, and missed their comforting presence.

"It's just the trust there," said the woman, who declined to give her name. "At times, I have left my laptop on my desk [without worrying]. You feel secure."

Source: NorthJersey.com

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