realestate

NYC Construction Wage Bill Criticized for Increasing Costs, Decreasing Housing Supply

Union Laborers Seek Wage Requirements for City-Funded Housing Projects Amid Cost Concerns from Adams Administration.

U
nion laborers are pushing for a City Council measure that would mandate wages and benefits worth at least $40 per hour on city-funded housing projects. The Construction Justice Act, backed by the Mason Tenders' District Council, aims to ensure fair pay for workers building affordable housing. However, the Adams administration argues that setting a wage floor would cost hundreds of millions of dollars and hinder its goal of increasing housing production.

    The bill's sponsor, Council member Carmen De La Rosa, expressed frustration with the administration's stance, saying it pits the needs of workers against those of developers. The measure would apply to projects receiving city subsidies worth $1 million or more, with construction costs exceeding $3 million.

    Estimates suggest that the wage requirements could slash housing production by 1,000 to 2,500 units annually, forcing difficult tradeoffs between building affordable homes and meeting labor demands. The Real Estate Board of New York echoed the administration's concerns, suggesting that a lower wage threshold would be more feasible.

    The bill also includes provisions requiring at least 30% of hours worked on a project to be done by local residents living in poverty-stricken areas or public housing. Labor unions argue that market precedent exists for paying construction workers $40 per hour, and that it's time to move beyond a project-by-project approach to raising wages.

    The measure has gained broad support in the City Council, with 34 sponsors, including some who have expressed frustration with the administration's stance on labor issues. The bill is now awaiting further review and potential amendments before being voted on.

New York City construction workers protest wage bill on city streets.