COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON LABOR AND CIVIL SERVICE - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, April 25, 2007 1:00 p.m. - - - PRESENT: COUNCILMAN JUAN RAMOS, CHAIR COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM GREENLEE COUNCILMAN JACK KELLY COUNCILMAN JAMES F. KENNEY BILL 070259 - An ordinance amending Section 15 17-107 of The Philadelphia Code, entitled "Contractors: Labor-Management Relationships," to require that building service employees, performing labor under certain building service contract, receive the prevailing wage and prevailing working conditions, all under certain terms and conditions. - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good afternoon, everyone. Please excuse us for the delay, but there was another hearing that was very important to the people of Philadelphia as well and it went a little longer than we anticipated. So please accept our apologies. But now we'll proceed with this hearing of the Committee on Labor and Civil Service. I am Councilman Juan Ramos, Chairman of the Committee. Please note also in attendance are Councilman W. Wilson Goode, Vice-Chair of the Committee, along with Councilman Kelly and Councilman Kenney, and Councilman Greenlee is also present. We have a quorum, so we can start. I would ask the Clerk to please read the title of Bill No. 070259.
Bill 070259, an ordinance amending Section 17-107 of The Philadelphia Code, entitled "Contractors: Labor-Management Relationships," to require that building service employees, 3 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 performing labor under certain building service contract, receive the prevailing wage and prevailing working conditions, all under certain terms and conditions.
Thank you. I just want to state very briefly how important I believe personally the significance of this bill, the positive impact that it would have on working people. In one era in my public life I was Secretary of Labor, Director of Labor Standards. My principal job was to enforce prevailing wage laws in the City of Philadelphia. So this is an area where I have a little bit of knowledge and expertise, and I think that this is well overdue. I want to congratulate and at this time call on the principal sponsor of this bill, Councilman Kenney, for remarks.
Thank you, Mr. Chairman. I'm also equally proud that the enforcement that you are doing 4 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 at the Department of Labor in Philadelphia enforcing prevailing wage legislation was a result of a bill that I introduced back in, I think, '92 or '93, which provided prevailing wage for construction work for the building trades, and we're taking this another step further to protect people who need to be protected. I'm proud of this legislation before this Committee today co-sponsored by all of the at-large members of City Council. We have taken a large step forward to ensuring that residential and commercial development benefits the City as a whole. A business receiving financial assistance from the City must do their part by paying their workers a living wage. Supporting Philadelphia's workforce will benefit our residents, our neighborhoods and our economy. It is a necessary step, which will make our City and its workers even greater. 5 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 In Philadelphia, there are over 5,000 men and women who work in connection with the care and maintenance of commercial and residential buildings. By requiring fair wages to be paid, we are ensuring a sustained and improved quality of life for those workers, their families and their communities. I anticipate the testimony that will be given here today, but I think this is something minimally we need to do to ensure that people who get up every day and go out to work sometimes before the sun comes up, that they're getting a wage that is a prevailing rate within this region so that they can raise their families and continue to support the City of Philadelphia and its economy. So I thank you all for being here. I thank you for your waiting and your patience, and I look forward to the testimony. Thank you, Mr. Chairman.
Thank you, 6 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 Councilman Kenney. I would like to call to the witness table Rose White, Deborah Jackson Smith and Mr. Steve Merritt. The order that I have it here, Ms. White, you're first.
All right. Good afternoon. I want to start by saying thank you on behalf of the members and leadership of my union to Councilman Kenney for his leadership on introducing this bill and to you, Councilman Ramos, for giving me this opportunity to testify. My name is Rose White and I am the political organizer at Local 32BJ in Southeastern Pennsylvania. We represent about 85,000 building service workers from six states, plus the District of Columbia, and we have about 3,700 who are residents here in Philadelphia. Our membership here is primarily commercial office cleaners and also includes engineers, security guards 7 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 and building service workers in residential buildings. I am here today to stand in support of the amendment to Section 6 17-107 of The Philadelphia Code that would require that more building service employees in Philadelphia receive a prevailing wage. This will not only benefit workers who are not members of our union, but will also help to protect the wages and benefits which our union members have fought so hard for by prohibiting new building owners from undercutting the wages and benefits that our members are earning. We have a longstanding relationship with the Building Operators Labor Relations organization, the Center City Owners Association, and we work cooperatively with these organizations to make sure that area standards are maintained. Part of the goal of this bill is to level the playing field for building owners that we've been working 8 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 with for years. I frequently hear about new developments that are being planned, and many of those developments will receive tax credits and other financial assistance from the City either due to the historical value of the building, because the location of the building or for some other reason that qualifies them for a tax credit. Building owners compete for these tax credits and the zoning rights to build this city and for tenants to occupy their buildings. Building owners compete for customers to earn a profit. The one thing that building and business owners who receive assistance from the City should not have the right to compete over is how little they are able to pay their building service employees. (Applause.)
My union believes that local government should protect the rights and the livelihood of workers. It 9 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 is only fair that business owners and developers who receive contracts and financial assistance from the City should give back to the City in the form of family-sustaining jobs for workers in Philadelphia. As it stands right now, many residential workers are making a wage so low that they have to work multiple jobs. Requiring that these business owners and building owners who employ building service workers pay a fair wage will help individual families. Life-long Philadelphia residents have shared with me stories about growing up in neighborhoods where everybody looked up to the union members on the block, knowing that these people had stable jobs that they could support their families on. In a city with such a high poverty rate, having more people who are able to support their families with a single job will help to build communities 10 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 and provide role models for children in our neighborhoods. In closing, I want to reiterate that this amendment to Section 17-107 of The Philadelphia Code would benefit all Philadelphians, not just those who will work in these new buildings. Thank you.
Thank you for your testimony. Ms. Deborah Jackson Smith.
Good afternoon. My name is Deborah Jackson Smith and I used to work as a janitor in a large commercial building in Philadelphia earning $7 an hour, without health benefits. I want to tell you why a prevailing wage law like this would have made a difference in my life. Many janitors downtown in the Philadelphia area earn union wages, about $13 an hour, with medical coverage, vacation time, sick time and other benefits, while I was doing the same work 11 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 and only receiving $7 an hour. Every night during my five-hour shift I cleaned ten bathrooms that had no ventilation, because air conditioning was shut off at 6 o'clock. Last fall I had to leave the job because of a horrible allergic reaction to the cleaning chemicals that I had to use, since there wasn't any ventilation, and here, I am still scarred, as you can see. Also on my legs, my back and my chest (indicating). I had to deal with the fumes on a daily basis. I tried to get to a different area, different job, but there weren't any availabilities at the time. So I was placed on call, if someone has called out sick or vacation. It was only happening like on a daily like every other week, every other day. So I was unable to work, and today at this time I'm unemployed. The reason that I came here today to tell you my story is because in Philadelphia, Philadelphia deserves to 12 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 make -- we deserve to get decent wages, as many people are. This new law would help many hard-working people, just as myself, to earn a prevailing wage. More building owners would be required to hire contractors who pay the prevailing wage because of the benefits that they received from the taxpayers of Philadelphia, which would help the workers who clean the buildings to pay their bills and support their families. And that's why today, City Council, I would love for you to pass this bill. And I thank you for listening.
Thank you, Ms. Smith, for your testimony. Mr. Steve Merritt, please proceed with your testimony.
Thank you, Councilman. My name is Steve Merritt. I'm the General Manager of 1900 Market Street, a prominent commercial office building in Center City. I am pleased to be here today in my capacity as Chair of 13 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 the Codes and Legislation Committee of the Building Owners and Management Association of Philadelphia, commonly referred to as BOMA, to express minor concerns regarding Bill 070259. As means of background, BOMA is a non-profit organization whose members provide over 116 million square feet of office space for over half a million office workers today. Member buildings include virtually all of the major high-rise office towers in the City, including One Liberty, Commerce Square, Bell Atlantic Tower and the Wanamaker Building, just to name a few. BOMA and its members applaud Councilmembers Kenney, Ramos, Reynolds Brown, Greenlee and Goode for introducing this legislation. We clearly understand this legislature's intent in providing prevailing wage rates for all people living and working in the City of Philadelphia. That said, our members have 14 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 reservations regarding the broad language of the bill and how it may adversely impact operating costs with many office buildings. Operating costs is a significant component in the rental rate of every rental property in the City. We are concerned the specific language of this bill may require any building owner choosing to lease space in the City of Philadelphia to seek a rental rate slightly higher than buildings not choosing to do business with the City agencies, thereby creating market pressures which do not exist in today's environment and create a challenging playing field for City agencies trying to lease space within the City limits. In addition, language related to journeymen, apprentices and trainees relate directly to existing labor contracts operating in many buildings -- in fact, most buildings in the City -- which have been collectively bargained to the benefit of all parties by our agency 15 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 and the Building Operator Labors Relations, Inc., our bargaining entity. Legislative changes to these agreements would most assuredly have an impact on operating costs for all major buildings in the City, putting additional economic pressures on an already challenged Center City District. BOMA's goal is to provide a safe and healthy work environment for our tenants and our owners and the people who work in our buildings. We applaud City Council for considering this bold initiative on behalf of all who live and work in Philadelphia. We would ask, however, the Committee delay moving this bill to final Council and that considerable thought be placed on the negative effects this legislation might have on the present market conditions in the City of Philadelphia. Thank you.
Mr. Merritt, thank you for your testimony. 16 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 Any questions from this Committee to our panel? (No response.)
Seeing none, thank you so much for your testimony this afternoon. Is there anyone else who wishes to testify on this bill? Please come forward. Please state your name for the record, though we know who you are.
Good afternoon, members of the panel. My name a Jihad Ali and I'm an advocate on behalf of African-American contractors, and I also work with developers in the affordable housing field. I wanted to take an opportunity to come because Councilman Kenney has said something that really triggers some thoughts in my mind. You talked about how everybody deserves a right to participate. Listening to the panel before, the one gentleman that talked 17 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 about the million something square foot, what he left off of that is what do they charge for a triple A-rated space in the City of Philadelphia. He talked about operating costs. What are the operating costs? There should be a way that we can figure out what these costs are and we can see that, yeah, it may impact something, but what it's going to impact is the profit that these businesses are making. And what amazes me on this side of the table when I deal with these issues on participation and diversity is, when is enough ever enough? You heard somebody say you never have enough money. Well, that's certainly said from the people with the money, because the people that don't have the money, they get by week by week scrounging on $50, $100. Those are the people that have responsibilities, that have families. But we look at the paper every day. We see young men and women out 18 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 there getting killed in the streets, but when you look at where are they going to get jobs at, they call -- what was the name that you referred to yourselves as now? AUDIENCE: SEIU, Service Employers International Union.
Thank you. Before, if you think back in our history, if you look back in the '50s and the '60s, this was the only occupation African-Americans could get. I mean, I know that from my family. So now today here we are in 2007. You hear a lot of testimony about, well, they can't -- African-American men and women cannot get into the building trades because of whatever reason. Now we're saying, Okay, let them go be janitors in the building, but we're not going to pay them. And that's really ironic, because we're really just turning -- some people are just turning their back. I think that this panel is 19 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 doing the right thing. Let's deal with the problem. If there's a problem about the market and rental space, let's deal with that when it arises, but let's give these people the wage that they deserve, because you're here on behalf of these people that are down here today, but there's millions more out there in the streets. But it's really an answer to the future, because at least when you go to these -- well, to me, a lot of young boys come up to me and say, I want a job, can you help me? If I was a building owner and I had these buildings, I would like to give them a job, but not only because it was -- it would be a way for them to make a decent living. And that's really what we're talking about. So, yeah, it's tough to make the decisions that you're going to make, but you got to make them. And, yeah, some business owners aren't going to like them, but they're going to have to get over it like they've gotten over 20 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 everything else. And if it's something that we have to deal with in the future that the City has a problem with office space, let's deal with it then, but do what you have to do. Do the right thing. Pass this bill. Give these people a decent living and let's move on and tackle some other problems. Thank you. (Applause.)
Thank you. I appreciate the gentleman's comments, and I just want to say part of the purpose of this bill is not only ensuring that people have a better or improved quality of life and standard of work, but also to recognize the fact that in this law we are recognizing the dignity of the work that they do, because if we can protect and watch out for construction trade workers -- and that's a thing that we are supposed to do, some who make $30, 21 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 $40 an hour and have earned that wage and work hard and work a dangerous job -- we can also take and enshrine in law the opportunity to recognize the dignity of the people who maintain those buildings, who guard those buildings, who take care of those bathrooms and take care of those offices, because we believe that their work is worthwhile and dignified and they should be paid a -- not a designated rate but a prevailing rate, just like other trades have done. So I'm proud on two occasions: Number one, being able to improve the quality of life, along with my other Council colleagues, but also recognizing that what they do matters, and we take it for granted a lot, and we shouldn't. (Applause.)
Thank you, Councilman Kenney. Now I recognize Councilman Greenlee.
Yes. 22 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 Just very quickly to add to that, I just disagree slightly with one thing Mr. Ali said. He said the tough choice we have here. This one is easy. This one is very easy. It's just the right, fair thing to do. So I'll just add that. Thank you. (Applause.)
Thank you, Councilman Greenlee, for your comments. Is there anyone else who wishes to testify on this bill? (No response.)
Seeing none, this will conclude our public hearing. We will now move into our public meeting. We are now in our public meeting, and the Chair recognizes Councilman Kenney for a motion on Bill 21 No. 070259.
Thank you, Mr. Chairman. I move that Bill No. 24 070259 be reported out of this Committee with a favorable recommendation and a 23 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 request made for a rules suspension to allow for first reading at tomorrow's Council session. (Duly seconded.)
We've got a second. All those in favor signify by saying aye. (Aye.)
Let me just add that this bill has been moved and seconded, Bill No. 070259, and that it be reported out of Committee with a favorable recommendation and that it's further moved that the rules of Council be suspended to permit first reading of this bill at our next Council session. Thank you for your participation this afternoon. 24 4/25/07 - LABOR & CIVIL SERVICE - BILL 070259 (Applause.) (Committee on Labor and Civil Service adjourned at 1:20 p.m.) - - - 25 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on April 25, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)