Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Urging Support of a Labor Harmony Agreement
Purpose: To provide a Labor Harmony Agreement within the City of Newark
Additional Information:
Sponsor(s): Council Members Eddie Osborne and Anibal Ramos, Jr.
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WHEREAS, the City of Newark (“City”) understands that retail, distribution centers, and warehouse industries constitute vital sectors of the City’s economy; and that through continued investment and significant economic interest in the financial viability, stability, and competitiveness of these sectors throughout the City it will enhance the delivery of goods and essential services to our communities while increasing the job market for local residents. This will stimulate local economies, increase revenues into our communities, and promote a vibrant downtown; and
WHEREAS, the City has a compelling interest in having labor disputes in connection with large contracts resolved without the disruption of strikes, lockouts or slow-downs; and
WHEREAS, a Labor Harmony Agreement can protect the City from such disruptions; and
WHEREAS, it is strongly urged that the City attach labor harmony requirements to publicly funded private projects to ensure a return on its investment by creating good jobs and avoiding potential labor strife.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The City Clerk shall forward a certified copy of this resolution to the Honorable Mayor and Acting Director/Deputy Mayor of the Department of Economic and Housing Development no later than ten (10) days from the date of passage of this resolution.
Labor Harmony.
2. Definitions
As used in this Section:
a) “Contractor” means a company undertaking a covered project or the operator of a retail establishment, distribution center or warehouse that is part of a covered project.
b) “Proprietary Interest” means an economic and non-regulatory interest of the City and/or the Department of Economic and Housing Development at risk in the financial success of the retail establishment, distribution center or warehouse that could be adversely affected by labor-management conflict, including, but not limited to, property interests and financial investments.
c) “Covered Project” means any project in which the City and/or the Department of Economic and Housing Development enters into an agreement for a development after the effective date of this Section where: (i) a retail establishment, distribution center or warehouse is one of the functions of the project; (ii) the entity or City and/or the Department of Economic and Housing Development enters into an agreement with its Contractor or Subcontractor contracts for the development of such retail establishment, distribution center or warehouse; (iii) the City and/or the Department of Economic and Housing Development has a Proprietary Interest in the project or in the retail establishment, distribution center or warehouse; and (iv) the retail establishment will have more than ten (10) employees, the distribution center or warehouse will have more than twenty (20) employees.
d) “Labor Harmony Agreement” means an agreement between the Contractor and a labor organization that represents a substantial number of retail, distribution center, warehouse employees in the State, which requires that the labor organization and its members refrain from picketing, work stoppages, boycotts and/or other economic interference against the Contractor, and the Contractor agrees to maintain a neutral posture with respect to efforts by the labor organization to represent employees at the Covered Project.
e) “City and/or the Department of Economic and Housing Development” shall mean any entity, agency or public authority authorized or contracted to conduct economic development activity on behalf of the City of Newark.
3. The City and/or the Department of Economic and Housing Development is urged not enter into any agreement or contract under which the City and/or the Department of Economic and Housing Development has a Propriety Interest in a Covered Project, unless the agreement or contract requires a material condition that the Contractor or a Subcontractor thereof enter into a Labor Harmony Agreement with a labor organization that represents retail, distribution center or warehouse employees in the State for a period of at least five (5) years.
4. It is further urged that any Contractor or Subcontractor covered by a Proprietary Interest shall incorporate the terms of the Labor Harmony Agreement in any contract, subcontract, lease, sublease, operating agreement, concessionaire agreement, franchise agreement or other agreement or instrument giving a right to any person or entity to own or operate a retail establishment, distribution center or warehouse.
5. Notwithstanding any provision of this Section, the City and/or the Department of Economic and Housing Development may enter into an agreement or contract wherein the Department of Economic and Housing Development has a Proprietary Interest in a Covered Project without a Contractor entering into a Labor Harmony Agreement, if the City and/or the Department of Economic and Housing Development determine that the project would not be able to go forward if a Labor Harmony Agreement was required, or the cost of the project to the City and/or the Department of Economic and Housing Development would be substantially increased by such requirement. Such a determination may be supported by a written finding by the City and/or the Department of Economic and Housing Development setting forth the specific basis for such determination, which may include experience with similar projects, earlier requests for proposal for the same project or a detailed evaluation of potential bidders. Such written determination may be included in any public materials provided to any board or agency official in connection with the project and may be maintained by the City and/or the Department of Economic and Housing Development.
6. A Notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within ten (10) days of its passage.
STATEMENT
This resolution hereby authorizes the Newark Municipal Council support of a Labor Harmony Agreement and requirements for publicly funded private projects to ensure a return on the City’s investment by creating jobs for local residents while avoiding potential labor strife that will ultimately stimulate local economies and increase revenues in our communities.