The two sides of the city’s garment industry finally reached a contract agreement on June 28. The new contract settled the most contentious issue, health insurance, with employers agreeing to kick in $150, $180 and $210 monthly co-payments per worker to the insurance company for the next three years, respectively.
The contract was negotiated by three groups representing the manufacturers and the New York Metropolitan Area Joint Board, which represents more than 10,000 garment workers. The Chinatown chapter of the union, UNITE! Local 23-25 is one of the most active unions in Chinatown.
To offset the increase in cost of health care and prescription medicine, contractors and manufacturers also agreed to increase workers’ benefits by 1 percent for the next three years. Workers can also keep their benefits such as health care, medicine subsidies, pension and vacation.
Moreover, workers’ copayments will rise slightly after October 1, 2004. According to a press release from UNITE!, workers can find this information on their fourth quarterly bill statement from Blue Cross American Life Insurance Company or contact the union directly.
The new contract also gives workers wage increases. Workers who receive minimum wage will get a 1.5 percent raise; workers whose wage already exceeds the minimum wage will get a 3 percent raise. But according to insiders, since most of the workers in the industry receive minimum wage, only a few will benefit from the 3 percent raise.
Both sides agree on a six-day work week, Saturdays included, with a 44-hour cap. Anyone who works more than 40 hours a week will get overtime. The manufacturers initially sought to have workers work on Sundays, but made a concession on this point. Instead, they get the 40-hour cut off, which will give them some flexibility in planning around shifts and dividing the workload.
David Chin, who represented the Greater Blouse, Skirt &Undergarment Association, Inc. in the negotiation, characterized the process as “time consuming.” Chin said that while they were talking to the union, they were also reporting progress back to their own members. Chin said “Because many of the workers are Chinese, the association worked very hard to get them the most benefits,” he said.
May Chen, vice president of UNITE!, said that now that most of the unions in the industry have reached an agreement with the manufacturers, they will concentrate on getting factories that do not belong to any of the associations to sign the contract. The goal, Chan said, is to make sure that all workers have the same wage raise and benefits.
Chan acknowledged that the garment industry is facing a very difficult situation, especially after 9/11. Chan said that the union understands that manufacturers are having all kinds of economic problems so it has made some concessions. Chan said that the union is working hard to get Healthy New York, a N.Y. State health insurance program for the uninsured, to help employers with insurance costs.
