New York
REBNY says its 421a proposal is a final offer
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Construction unions call on lawmakers to jump into 421a fray
Building trades rejected REBNY’s average wage proposal
From left: Building and Construction Trades Council of Greater New York president Gary LaBarbera and REBNY’s Jim Whelan (Getty, REBNY)
The construction unions are ready for lawmakers to intervene in the critical negotiations dictating the fate of a vital property tax incentive.
Eight of the trade groups involved in the Building and Construction Trades Council of Greater New York’s executive board are urging politicians to get involved in talks over a new 421a program, City & State reported. The groups, which include New York City District Council of Carpenters and Steamfitters Local 638, also stood behind council president Gary LaBarbera.
The prevailing issue is a dispute between the unions and the real estate industry revolves around wage requirements.
The council last week rejected the Real Estate Board of New York’s proposal to increase average wages and benefits paid to construction workers on projects receiving a new version 421a benefits. REBNY presented the deal as a final offer.
The industry group proposed increasing average construction wages and benefits for projects south of Manhattan’s 96th Street to $72.45 per hour, a standard that would kick in for projects with upwards of 150 units. The average hourly wage and benefits would climb to $76.88 by 2028.
Average wage standards would also be applied to several other zip codes and wage requirements would exist in additional neighborhoods that are rezoned to increase residential density by 40 percent.
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REBNY says its 421a proposal is a final offer
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The New York City District Council of Carpenters called the proposal a “non-starter,” saying it failed to meaningfully ramp up wage standard enforcement. Construction unions have criticized average wage standards, claiming they prompt developers to balance out higher wages by hiring laborers and other workers at lower rates.
The clock is ticking as the April 1 budget deadline fast approaches. Gov. Kathy Hochul’s executive budget included a framework for a 421a replacement, but only if REBNY and the BCTC worked out wage requirements.
Lawmakers have largely avoided intervening in the negotiations, though some have called for prevailing wage standards.