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Big Apple Firms and Unions Will Cut Costs To Boost Work

Publication Date: 6/3/2009
Author: Debra K. Rubin
Format: HTML

In an effort to jump start building projects in New York City and put idle union construction workers back on the job, the leaders of more than 40 different building trades and union employer groups announced on May 29 what they termed a “historic compact” to cut wages of both labor and management and end expensive work rules. Proponents claim the citywide project-labor agreement will cut costs by as much as 21% on the first 12 high-rise and other commercial projects that it covers, representing $2 billion of construction and 10,000 jobs. But some are less enthusiastic about the cost savings, some unions are declining to participate and some developers may have to rethink profit margins in a changed city economy.

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