Stevens & Lee

M E M O

TO: MEMBERS OF BOLR

FROM: Bob Martin | Paul Lewis

RE: SUMMARY OF NEW COLLECTIVE BARGAINING AGREEMENT

          As you no doubt know by now, your negotiating team successfully concluded a new four-year contract with SEIU Local 32BJ, which we understand was ratified by the Union membership last week. 
           For your reference, we are enclosing a summary of the most significant economic changes that resulted from the negotiations.  As you will see, we were able to keep the overall cost to an annual average increase to 2.86% based upon the compensation package for Class 2 Cleaners, which is approximately the weighted average package for all classifications taken together (2.61% the first year; 3.07% the second year; 2.90% the third year; and 2.85% the fourth year).  The wage increases for all classifications are $.45 per hour for the first and second years, and $.40 per hour for the third and fourth years: annual average of 2.34%. 
           
The Welfare Fund contribution rate will increase by 5.5% each year, but the effective rate each year will be lower as a result of a one month contribution holiday, which, pending necessary action by the Welfare Fund Trustees, will be spread over four years.  This will result in an average reduction over the term of the contract of about $27 per month in Welfare Fund contributions.  In addition, while there is no increase in the pension contribution rate during the term of the new contract, the Welfare Fund contribution for January 2016 will be made to the Pension Fund instead in order to buttress its assets and reduce unfunded liabilities.  Finally, the contribution rate to the Legal Fund will increase by $.01 in the first and third years of the agreement, reaching a total of $.07 per hour. 
           Most importantly, we preserved the use of Supplemental employees without significant additional restrictions or costs, despite a determined attempt by the union to place very strict limitations on their use and to add unsustainable costs for each such employee.  We also were successful in removing from the contract the storm or road closure clause that has caused so many headaches to buildings and contractors.  Now, when employees do not report for work during storms or any other situation that makes travel difficult (or impossible), they will be paid for the day only if they use a personal day or a vacation day. We will be sending shortly a summary of the notable language changes.
            
All in all, this settlement is a good one and should keep costs under control for the next four years.  Our thanks are due to the BOLR bargaining team members, who worked diligently and devoted many hours to achieve this successful result.  Please take the opportunity to thank them personally when you have the chance.  They are Dan Brogan, Ty Chilcote, Peter Criville, Tony Della Bovie, Steve Faralli, Missy Quinn and Jim Strite. 
           We expect to have the new contract document signed and booklets printed and ready for distribution within the next few weeks.  The BOMA office will mail them to all members as soon as they are available.  If you have any questions about the settlement, you may call Bob Martin at 215-587-0207 or Paul Lewis at 610-205-6047.

BOLR 2015 Settlement - Summary of Economic Terms
Memorandum of Agreement