COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT Room 400, City Hall Philadelphia, Pennsylvania Thursday, April 4, 2024 2:19 p.m. PRESENT: COUNCILMAN MARK SQUILLA, CHAIR COUNCILMAN MICHAEL DRISCOLL COUNCILWOMAN JAMIE GAUTHIER COUNCILMAN JEFFREY YOUNG, JR. ALSO PRESENT:
Good afternoon and thanks everybody for attending. Welcome to the hearing for the Committee on Commerce and Economic Development today, Thursday, March 21st(sic). I note that the hour has come and a quorum of the Committee is present. To my left Councilmember Driscoll, to my right Councilmember Gauthier and Council President appointed Councilmember Harrity. This is a public hearing on the Committee of Commerce and Economic Development regarding Bill 17 No. 240088. Mr. McMonagle, will you please read the title of the bill.
Bill No. 21 240088, an ordinance amending Chapter 9-2300 of The Philadelphia Code, ("Protection of Displaced Contract Workers") to provide protections for service employees, including laid-off employees, all under certain terms and conditions.
Thank you. Before we call our first panel to testify, the Chair would like to recognize Councilmember Harrity for a comment.
Thank you, Mr. Chairman. The proposed amendments outlined in the bill closes loopholes that have excluded protections for workers in the past. Additional job categories such as all central services of the residential market concierges and door attendants. Added will be recalled protections for workers laid off due to a closing of a building, strengthening enforcement by authorizing City agencies to investigate any alleged violations and provide appropriate relief to impacted employees. The other amendments include clarifying that protections apply during the inhousing of contracted service and changes in building ownership; extend protections to workers who have worked at sites for at least three months; require successor employers to give workers a written job evaluation at the end of the transition period; protect workers when there is a conversion of the use or sale. And while the job security, improve and protect the rights of current workers who worked in large commercial buildings; prevent unnecessary taxpayer expenditures by keeping employed people during conversions and transitions. The bottom line is what I'm trying to do is help some of our lowest paid employees in the City of Philadelphia. It wasn't long ago that we were praising them for the work they did during the COVID crisis and now fastforward, it's like they're no longer needed and we're just trying to give them a little bit of added protection to keep people working. Thank you, Mr. Chairman.
Thank you, Councilmember. Mr. McMonagle, can you please read the first panel to testify.
Yes. Can we please have Daisy Cruz, Tiffany Cherry and Keisha Hayes please. (Witnesses approached Witness table.)
Daisy, we can start with you. And before each person starts, state your name for the record and then you can proceed with your testimony.
Okay. All right. So good afternoon. I just want to thank you for the opportunity to testify here today. Thank you, Chairman. Thank you, City Councilmembers. I'm the District Leader for SEIU 32BJ. The MidAtlantic 1201 District. We represent over 10,000 workers in Philadelphia in the tristate area. Several thousand of them work here in Center City. Many of our members found themselves in danger in losing their jobs to no fault of their own. Our union members are cleaners, security officers and building engineers and maintenance mechanics who make sure that the buildings are clean, well-maintained and secure so that businesses are able to function properly every single day. During the pandemic while the rest of the world were quarantined, our members risked their lives coming to work every single day. They were celebrated just like Councilmember Harrity said and honored as essential workers when it was still unclear exactly how the virus was spreading. They did the extra deep cleaning constantly and kept our buildings safe and operational. Many of our members were laid off. They lost hours and some unfortunately lost their lives. Now that they're coming out of the worst of it and entering into a time of recovery, we find that businesses that our members worked so hard to help stay afloat are making adjustments themselves. We expect that as social and economic times change, businesses will adapt but we cannot sacrifice the jobs of low-wage hardworking people so that billionaires can continue to get richer. We fought for displaced worker laws in the past to close the loopholes that left workers vulnerable to job loss from irresponsible businesses trying to avoid the living wages and benefits that our members fought so hard in their union contracts for so many years. This is not new language. This is not a new concept -- I'm sorry. This is new language but it's not a new concept. It is simply adapting to an already existing law that addresses changing circumstances. Passing these amendments to existing laws will give workers a chance to hold onto their wages, their health insurance, their pension at a time when they're the ones who need it the most. Businesses should not be benefiting off of the expense of poor hardworking people who live paycheck-to-paycheck. We ask you to continue to support us by voting yes on this displaced worker bill. By doing so, you will be sending a clear message to our workers, to our members that we are all in this recovery process together. If you vote no, you'll be voting no on poor hardworking people and voting yes for billionaires to get richer. I thank you truly for your time.
Thank you. Please proceed. Just state your name and proceed with your testimony.
Good afternoon. My name is Keisha Hayes and I'm a cleaner at the Public Ledger Building, 620 Chestnut for 29 years. I would like to speak to you for a moment on the importance of the displaced workers protections currently on the books in Philadelphia and why we have such an urgent need to amend the current language. When I started almost 30 years ago, we were making $7 an hour. Then in 2000 we joined the union and our pay went to around $13 an hour. And after our latest contract negotiation, we make $22 an hour with full family health insurance. Because of my union, my ability to fight for better wages and benefits, I have been able to put both of my children through college and they both been able to have great medical care while on my insurance. So they were able to deliver my three grandchildren without having to worry about medical expenses. I am now helping my children put my grandchildren through Catholic school. Our jobs have become the kinds of jobs that change lives and improve families. And over decades of negotiation improvements, we have been able to earn the kind of wages and benefits to help us support our families and communities. But all these gains could be lost if another company takes over and does not hire us and negotiate to keep our union contract. Last year my building switched cleaning companies overnight to a non-union company and when I came to work the next day, my coworkers and I were told that our services were no longer needed. After 20 years I wasn't even allowed in the building and I was told by the new company I wasn't even allowed to apply. I immediately contacted my union. Because of the Displaced Worker Protection, we were able to fight to keep our jobs. Another cleaning company eventually came in and respected our rights and contract and protected us from having the rug completely pulled the rug -- I mean, for the rug completely pulled from under us. Now, coming out of the pandemic we are faced with a new threat. After working through COVID and being front line making buildings safe for businesses, we are faced with from commercial to residential which often means layoffs and changes in our employer. My building has gone from cleaners down to 2 as 22 renovations are being done around us. Half of the building has already been turned into condos. But if the building is sold or if it gets closed for renovations, I will have no protection whatsoever. Recovering or adapting to the world post-COVID has changed our industries and exposed us to new jobs, extensive workers like me who work so hard all these years to keep buildings in our downtown clean and safe deserves to be protected. Thank you.
Thank you. Yeah, move the mic in front of you. Say your name and then proceed. Thanks.
Good afternoon. My name is Tiffany Cherry. I've been a worker at the Bellevue for 13 years -- I've been working at the Bellevue for 13 years as a 32BJ SEIU cleaner. Our members are the ones that clean the Chambers of Commerce, which is in the same building. 32BJ has helped us see a standards -- a steady pay increase under the union contract. I've gone from $15 to $22 an hour. Half of the building -- half of the Bellevue -- well, one-half of the building is the hotel. The other half is residential. We had floors that 8 was residential. And now we're 9 down to 4 floors that's commercial 10 because the other 6 floors is now going to residential. Once a point in time we had 23 workers in the building. Now, we're down to 5 workers. on day shift, on nightshift. With the transition to residential workers, as I said we're down to cleaners. The current legislation protects workers during a switch. However, if a building closes completely for renovations, I would be out of a job all together. I would lose my seniority when it comes time to apply as it reopens. The threat of losing our jobs is a threat of losing our wages. It could also lead to us losing our health insurance, pension and benefits. These changes are not being made due to the work performance. They're being made based on the circumstances outside of our control, which is why displaced worker legislation is so important to us. If I lose my job, it will affect me in a major way. I have bills, children, mortgage to pay. Workers like me live and work in the community and I also support small business. This bill 17 not only means job security, it protects our ability to support our local economy. The owners of these buildings will -- hold on. Workers of the building will still be taken care of no matter how it plays out. We won't. We need your help to protect our jobs so that we can fight and maintain our rights, wages, working conditions and ultimately benefits, everyone. The world is trying its best to recover from the first global pandemic of our lifetime. It's enough that many of us lost friends and family. We should do everything we can to avoid additional stress of losing our livelihoods as well. Thank you. (Applause.) (Union chanting.)
Thank you. Thank you so much for your testimony. Mr. McMonagle, can you please read the next people to testify.
Can we please have Jeremiah Woosey -- Worsley, I'm sorry, and Barbara Cherry. (Witnesses approached Witness table.)
All right. Thank you for being here to testify. I guess, Ms. Cherry, we can start with you first if you want and then we'll go --
Okay. Hello. My name is Barbara Cherry. I'm a proud member of SEIU 32BJ and a cleaner at the Fashion District at 9th and Market Street. This will be my fifth year come September after working over years as an 13 educator. There are many changes 14 that's happening downtown with the 15 buildings being sold or converted 16 into residential. 17 I'm very nervous that if 18 this bill doesn't pass I could join 19 the growing list of people who have 20 lost their jobs through no fault of their own. Now, we desperately need you to pass this bill to secure job security and support for our families. Some of us have been doing our job over 25 to 30 years and some of us are so close to retirement and our union just negotiated a new contract with 401(k) and that can just be taken away from us. We're trying to set up a future for our families. Now, a lot of us come to the buildings -- a lot of people come through these buildings and they tell us we are doing a great job and we're keeping the buildings clean and they appreciate coming into a clean building and smell the part. Now, these developers are coming in trying to wipe out our workforce and our hard-earned benefits. Now, put yourself in our shoes. How would you feel if you were in our shoes losing your job and your family's livelihood is destroyed and maybe making less money and don't have the benefits we worked so hard for and then you have to start all over. You might not have great benefits or good wages. And we urge you to please do not pass this bill. Thank you -- I meant, pass the bill. I'm sorry.
Thank you for your testimony. We understand. We know what you meant. Jeremiah.
My name is Jeremiah Worsley. I'm a proud member of 32BJ. I've been working in Center City District cleaning the outside for the past years. 16 In that time we've been able to 17 negotiate pay raises and maintain great benefits for the care of my family and all the other families that work with 32BJ. Honestly the health benefits are what keeps me here. They take care of my blood pressure medicine which I get through the union, and they keep my kids -they got contacts and they get their braces and stuff through the union with the benefits. While I'm responsible for cleaning the outside of the buildings, what's happening to the inside of the building to me is really important. The testimony you heard here today so far is heartbreaking. It's heartbreaking to see to 30 11 people in the building who have 12 been at a job for decades put out. 13 I can't imagine losing my job that 14 I've been excelling at because of 15 the new building owner just to wash 16 the union away. 17 Now, I ask y'all to pass 18 this bill to (inaudible) on 19 displaced workers. We all deserve 20 a future we can be comfortable retiring and taking care our family also.
Thank you. Thank you so much for your testimony. Thank you both for your testimony. (Union chanting.)
Mr. McMonagle, will you please read the next panel to testify.
Can we please have Donald Haas and Richard McClure. (Witnesses approached Witness table.)
All right. Donald, if you just want to state your name for the record and proceed with your testimony.
Sure. My name's Don Haas. I'm here today in my capacity with my Co-chair of BOMA Philadelphia, Rich McClure. And I'd like to thank the Councilmember Squilla and the Commerce and Economic Development Committee for the opportunity to testify on Bill No. 240088. Let me state at the outset that the SEIU workers employed at the BOMA member buildings are highly-valued members of our property teams. They are reliable and dependable, coming to work all hours of the day and night-cleaning our tenants' offices, sanitizing restrooms, clearing snow and ice from the surrounding sidewalks. The duties they perform go on and on. The service workers of Philadelphia are on the front line when it comes to making our buildings hospitable places in which to work. As many of you know, BOMA members typically operate in the commercial office, industrial and retail sectors rather than multi-family owned residential. Our member buildings define the City's skyline. As we collectively, the public and the private sectors, seek to recover from the pandemic and remote work, no doubt we are facing some serious headwinds. Our industry is faced with tenant constrictions, inflationary pressures, skyrocketing insurance premiums as well as rising interest rates. In fact, we have a number of buildings surrounding City Hall which are currently in default of their loans or facing foreclosure. Simply put, these are challenging times. You have many other groups here today testifying about concerns or unattended consequences associated with this bill and we have at BOMA echo all of those concerns. As commercial building owners, we are struggling to make ends meet and to hold onto their assets. In some cases, sale or pursuit of an alternate path such as a conversion to residential might be the highest and best use. The City should embrace this, incentivize this rather than impose any measures which would be an impediment. I will not speak today on the points that others are raising but will instead focus on BOMA's primary concern, first and foremost government interference in a collective bargaining agreement and other mandating who an employer should hire. Building owners and labor relations commonly known as BOLR is a division of BOMA. Its principal function is to negotiate collective bargaining agreements on behalf of member buildings. BOLR has historically bargained in good faith with the SEIU. One could say that we're even partners in the administration in the Health and Welfare Fund. The most recent four-year contract was concluded this past fall. October 23rd to be exact. It was a very favorable contract for the service workers. 75 over a four-year period, percent increase in 7 pension, increased benefits and a 8 continuation of a fully-funded 9 health care. Again, we value our 10 partners in purple and yellow who 11 helped us navigate the pandemic and 12 the same was reflected in the 13 contract. 14 During the course of the 15 good faith negotiations with 32BJ, 16 increased displaced worker 17 protection were solved intended 18 primarily to assist the SEIU in 19 organizing service workers in the 20 growing residential sector. In the end, the members opted to taking more generous compensation package than fight for the enhanced worker protection. As I noted a few moments ago, the negotiations concluded on October 23rd. Much to BOMA's chagrin, three days later on October 26th a bill was introduced in City Council seeking to gain legislatively the displaced worker protection the SEIU opted to forego at the bargaining table. That's not good faith. If you pass this bill today in its current form, you are setting a terrible precedence. Under the circumstances, it appears that City Council was seeking to override a collective bargaining agreement that is just months old. BOMA objects to this level of governmental interference in a long-established labor practice.
A practice that is supported at the federal level by the National Labor Relations Act as well as by Pennsylvania state labor law. BOMA member buildings have long abided by these wellestablished state and federal labor practices. We placed our trust and partnership with the SEIU and with the 32BJ and with the prescribed collective bargaining process. We trusted that the negotiations we had were in good faith. Issues of concern to all parties would be resolved in good faith and that the CBAs would be allowed to stand for the duration of the term once they had been ratified. If Council is determined to pass Bill 240088, it must move forward in spite of the 32BJ's recently ratified collective bargaining agreement. BOMA would urge Council to exempt collectively bargained employees from this bill. I repeat, any advance of this bill 21 should specifically exclude collective bargaining agreements. In the end, BOMA wholeheartedly believes employers should be able to hire and develop teams that contribute to the overall success of the organization. That holds true for both the public and private sector. Thank you.
Thank you so much for your testimony. Any questions from the panel? (No response.)
Seeing none, thank you so much. MR. McCLURE: Thank you.
Mr. McMonagle, can you please read the next panel to testify.
Can we please have Will Carter and Regina Hairston. (Witnesses approached Witness table.)
Regina, you can go first. Just state your name for the record and then proceed with your testimony.
Certainly. Good afternoon. My name is Regina Hairston, President and CEO of the African American Chamber of Commerce for Pennsylvania, New Jersey and Delaware. The African American Chamber of Commerce is not for this bill in its current form, the Displaced Workers bill, as it relates to conversion. We understand that the intent of this bill is to protect workers' rights as it relates to conversions. The bill is sweeping and it's sweeping our small businesses with it. It does not specifically state that it is only for conversions. And when that happens, our Black firms are caught up into the legislation. The narrative continues to be billionaires get richer, but the voice of the smaller businesses are not taken into consideration. And as I sit here today, April 4th, if we look back at April 4, 1968, what was today? It was the assassination of Dr. Martin Luther King, Jr. The night before he was standing with union workers as the African American Chamber of Commerce does, we stand with union workers. It was the business owners during the Civil Rights Movement who were the force behind ensuring that there could be an advocacy voice. When folks were getting arrested in Atlanta, it was Herman Russell and it was those folks who were paying for folks to get out of jail. So Black businesses are a part of the ecosystem to ensure that workers have rights and Black businesses should also be considered -- not just Black businesses, but small businesses, Brown businesses, should also be considered when we're looking at legislation when we are protecting one constituency, how does it impact the other constituency. We always look at it from a 30,000-foot level and we don't think about the folks that are being swept up in it at the ground level. So I implore you if you pass this legislation, that it's done so with amendments that only contain it to conversions. So thank you for your time.
Thank you. William Carter, Vice-President of Local Government Affairs for the Chamber of Commerce for Greater Philadelphia. Good afternoon, Chairperson Squilla, Vice-Chair Jones and esteemed members of the Committee on Commerce and Economic Development. Thank you for giving us the opportunity to testify on this legislation. Many of you, if not all of you, already know me. But for those who may not, once again William Carter. I not only work at the Chamber, but I am a founding member along with this young lady of the Inclusive Growth Coalition, which is a group committed to informing local leaders regarding policies that will grow all businesses and increase the number of people working in good-paying jobs in Philadelphia. I am one person, but as a part of the IGC I advocate for job and business growth through the engagement of diverse partners from every corner of the City. We believe legislation like this, particularly as currently drafted, and I must say as currently drafted hurts small and diverse businesses' ability to grow and then hire. Philadelphia is already seen as a difficult place to do business, and we're trying to change that narrative and we appreciate working with you all in that regard, but it's due to the high cost and also really the overregulation of entrepreneurs out here. And I know this bill is built as once again building owners versus workers, but that's not the case. As Regina indicated, this is sweeping in their service contractors, many of whom are scraping by to try to grow their businesses here. We're trying to help them grow. You know some of the names out here. I'm not going to say them. I've heard some have been targeted already, and I don't want to even put them at more risk. But I will say that there are several service industries that are represented by minority owners who are in this space and want to grow in this City. And this does add cost and time and extra burden onto their bottom line. And I've heard from them ad nauseam and it's something to be considered. We must consider them. So it's extremely unfortunate, the community members who would be most affected by this whom I'm talking about now are not here with us to testify. Their absence does not indicate any disinterest, but it's due to limitations on time that local entrepreneurs who work 24/7. They're not 9-to-5 workers. They work 24/7. And somebody reminded me how they are competing out here every day -- if you can recall when you're running for office every four years, that year that you're running for office and those sleepless nights and wake up with tightness in your stomach, that's every day for a business owner. That was your one year to compete for four years, and then the next four years the same feeling. But business owners wake up every day with that feeling. And although I work for the Chamber and I helped found the Inclusive Growth Coalition, I tell people I do this for the culture. Both of my grandfathers were entrepreneurs. My grandfather on my mother's side was a contractor. My grandfather on my father's side was the first licensed Black plumber in the history of Richmond, Virginia where I'm from. And he is originally from Philadelphia, North Philadelphia, born and raised, then move to Virginia. I just will say this, we have to consider both. This is not an either-or consideration for the hardworking people, working families. All of them are working families. Just because you work for yourself doesn't mean you're not a working family. As a matter of fact, you're working so hard that you're creating work for other people. That has to be considered and certainly respected when we talk about legislation like this. So we just ask that the amendments be properly considered that will limit the impact on our diverse businesses, whether they're Black, Brown, small or what have you. We want to make this City a better place for all businesses and we want to make Philadelphia the best place for both businesses and workers.
Thank you so much for your testimony. Are there any questions from members of the Committee? (No response.)
Is there anybody else that we did not call who would like to testify before the Committee today? (No response.)
Seeing none, I know the sponsor is still willing to work with all parties, both union and concerned Chambers and other folks and has committed to continue working with everyone on this legislation. So with no further comments and no further questions, that'll conclude the hearing. And then we now go into a public meeting. Chair recognizes Councilmember Driscoll for a motion on Bill No. 240088.
Thank you, Mr. Chairman. I move that Bill No. 240088 be reported from this Committee with a favorable recommendation and further move that the rules of Council be suspended to permit first reading of this bill at the next session of Council.
Before we have proceed, I also want to for the record state that Councilmember Young was present for the hearing and the meeting. Is there a second on that motion?
Councilmember Harrity is noted for seconding the motion. It has been moved and properly seconded that Bill No. 240088 be reported from this Committee with a favorable recommendation and further move that the rules of Council be suspended as to permit the first reading of this bill at the next session of Council. All those in favor will signify by saying aye. (Aye.)
The ayes have it and the motion carries. That will conclude the meeting today. I thank the Committee on Commerce and Economic Development. Thank you for all that testified. Have a good day. (Committee on Commerce and Economic Development concluded at 2:54 p.m.) C E R T I F I C A T I O N I, hereby certify that the proceedings and evidence noted are contained fully and accurately in the stenographic notes taken by me in the foregoing matter, and that this is a correct transcript of the same. __________________________________ TANEHA CARROLL