Union Picket Ends Outside 529 Fifth Ave Bldg. but Labor Unrest Persists with New Owner

An office building in midtown was sold to Namdar Realty Group and Fifth City Realty LLC in 2023 bought 529 Fifth Ave for $107 million two years ago but the union representing security guards and janitors said its employees are “under attack” after four workers were laid off recently.

| 03 Aug 2024 | 03:31

Workers for the 32BJ SEIU gathered on the humid sidewalks of 529 Fifth Ave. on July 10 to protest what they said was a refusal by new owners to negotiate in good faith with the union regarding wages, layoffs, and health care benefits nearly two years after new owners took over the building and recently laid off four workers.

A series of short protests outside the building in July resulted in movement to the bargaining table for the union and the new owners for the first time since the takeover by new owners two years ago, but a settlement ending the labor strife remains illusive. The union claims workers there are “under attack” from the new ownership group which has been outsourcing many of the jobs long held by unionized workers to L&J Janitorial Services, which the union said is low wage company run out of someone’s apartment in Queens.

“The cleaners are essential to the building’s future and must be respected,” said Denis Johnston, executive vice president and director of the union’s New York metro commercial division, after dozens of 32 BJ workers walked the picket lines.

“L&J’s refusal to provide the Union with basic information necessary to start the bargaining process is a clear violation of collective bargaining rights,” he said at the time. “We stand with the brave workers at 529 5th Avenue and will fight to defend their rights.”

Namdar Realty Group, and Fifth City Realty, LLC, a partner of Empire Capital, purchased the 20-story building from Silverstein Properties for approximately $107.5 million in the summer of 2023. Silverstein Properties had ownership of the building since 1978. Once ownership changed hands, employees that have worked for the property for decades said they began to see the changes and at least four long time employees who worked as security guards in the building were recently axed.

“A stable, reliable, and skilled workforce is under attack,” said 32BJ SEIU in a video on X (formerly Twitter) “Shame on Namdar.”

The union claimed wages were cut nearly in half for workers not laid off after the new owers contracted with a new cleaning company to perform jobs that long-time employees had been undertaking.

“L&J Janitorial, is run out of a small apartment in Queens, replacing previous cleaning company at the building ABM, a reputable, publicly-traded janitorial contractor that pays area standard wages and benefits.” according to a statement from 32BJ.

The union said L&J voided the cleaners health insurance, and cut their wages down to $16/hour, which is New York City’s minimum wage.

Johnston said after the job action last month, the new owners finally sat down at the bargaining table with the union for the first time since its acquisition from SilverStein Partners two years ago, but no new settlement has been reached at presstime. Representatives for the owners and the new company could not be reached for comment.