Brooklyn, NY – The union representing New York City Carpenters is charging the largest teachers only retirement fund in the world with violating its own Responsible Contractor Policy in Coney Island.
CalSTRS — the California State Teachers’ Retirement System — manages a nearly $255 billion portfolio on behalf of some 965,000 educators across the Golden State. It also owns a majority interest in a development company called LCOR currently building a massive rental and retail complex at 1515 Surf Avenue.
According to the Carpenters, the piles and foundational work — representing about 25-percent of the project — has already gone nonunion.
Nonunion workers on the job are reportedly earning between $25 to $35 an hour with no benefits, training or investment in their future. In contrast, union Carpenters — depending on the specific craft — demand the outer borough rate of roughly $70 an hour, in addition to employer-paid training, healthcare benefits, pension benefits, annuity benefits and vacation pay.
The development project still has the potential of generating hundreds good middle-class sustaining jobs over the next few years. But, so far, CalSTRS doesn’t see any contradiction in allowing LCOR to build non-union.
“CalSTRS, through our Responsible Contractor Policy, supports and encourages fair wages and fair benefits for workers employed by our contractors and subcontractors,” CalSTRS spokesperson Thomas Lawrence told LaborPress in an email. “The project at 1515 Surf Avenue is no exception, and we work closely with all partners to ensure that the policy is implemented.”
The union pension fund’s Complaint Review Committee initially determined a complaint from the NYC District Council of Carpenters to have “no merit.” A new CalSTRS’ Appointed Appeals Committee, however, is reportedly now reviewing that finding.
“The California State Teachers Retirement System needs a lesson in action words,” Carpenters’ Director of Communications Jill Watson told LaborPress. “‘Supporting’ and ‘encouraging’ are different than actually providing fair wages and benefits to workers.”
The union says CalSTRS gets an “F” for not adhering to its own Responsible Contractor Policy and requiring LCOR pay hardworking construction workers at 1515 Surf Avenue what they are rightfully owed.
“And the grossly opportunistic decision by CalSTRS to use the term ‘labor market standards’ to justify that employer paid medical, training and benefits do not have to be paid as specifically called for in the RCP — is a failure to all workers at best and detrimental to the values of all unions — including their very own teachers union to which they have a fiduciary responsibility,” Watson added.
The NYC District Council of Carpenters says CalSTRS is not only hurting union carpenters in New York City, but all unions — including those that contribute to CalSTRS funds — and is calling on CalSTRS to “not leave any worker behind and enforce the credo of their very own RCP for the remaining construction at the Coney Island project.”
A large group of about 75 to 100 angry union Carpenters on Tuesday February 8, rallied outside the construction site located between West 15 and West 16 streets carrying placards denouncing LCOR CEO Anthony Barsanti and CalSTRS’ executive board.
The Carpenters insist there is still time for CalSTRS to build the rest of the project with local union labor.
“There is still time to make sure that the jobs go to union workers who live in the community, rather than to nonunion workers coming from other states,” Watson said.
