Capital area janitors union, employers to begin contract talks with inflation in mind

Listen to this article

The union that represents thousands of regional janitorial workers is about to launch contract talks with area cleaning contractors against a backdrop of lingering high inflation and an uncertain post-COVID-19 recovery in the commercial real estate market.

Leaders of 32BJ SEIU, the branch of the Service Employees International Union that represents over 9,000 building service workers in the Washington, D.C.-Baltimore region, including 1,200 in Montgomery County, said they will focus on securing higher wages and expanded benefits for workers in their next four-year collective bargaining agreement.

The Washington Service Contractors Association, the employers’ association for more than 20 major cleaning companies in the area, also expects negotiations to focus on inflation and post-pandemic office usage.

The talks will test how contractors can accommodate demands for inflation-driven raises even as they grapple with inflation’s impact on their own operations. It’s a dynamic likely to be repeated in contract negotiations in other industries.

Contract negotiations last took place four years ago. The current agreement, which will expire on Oct. 15, requires that janitors employed in Montgomery County earn a minimum hourly wage of $17, and includes paid vacation time and sick leave. The agreement also provides access to employer-paid health insurance for full-time employees, or those who work at least 30 hours a week.

Jaime Contreras, the executive vice president for 32BJ SEIU who also oversees its Capital Area District, said that since the union signed the last collective bargaining agreement factors such as the COVID-19 pandemic and inflation have shaped its priorities. Going into this year’s contract negotiations, the union will emphasize maintaining and increasing wages while protecting access to health care and bolstering retirement security.

Building service workers have been affected by inflation as well as the physical and health-related risks from working in person throughout the COVID-19 pandemic, Contreras said.

Inflation peaked at 9% last year after steadily rising since the beginning of the COVID-19 pandemic. Of late, inflation has slowly but steadily subsided, with economists now projecting a 4% annual rate.

Peter Chatilovicz, who serves as chief negotiator for WSCA, agreed that this year’s contract talks will focus heavily on wages, adding that he doesn’t foresee any additional contentious issues. Chatilovicz said he does not anticipate proposing any major takebacks but is prioritizing maintaining management rights to establish staffing levels and scheduling.

Chatilovicz also said that inflation and COVID-19 have affected contractors as well, particularly with lease renewals in flux as employers continue to juggle work-from-home and hybrid employee scheduling.

Shortly after the signing of the last agreement, Montgomery County passed a bill requiring employers in buildings with more than 350,000 square feet and above 50% occupancy to hire full-time building service workers. These employees are eligible for benefits, such as health care insurance, due to their full-time employment status; the bill was endorsed by the building service workers’ union and went into effect in 2022.

While Montgomery County ranks among the top counties nationwide in median income, it also finds itself with one of the highest median rent rates. Miriam Pineda, who works as a cleaner in Montgomery County, spoke at a Tuesday rally in Bethesda hosted by 32BJ SEIU ahead of negotiations, saying that as inflation increases, so, too, do the costs of housing and food.

Montgomery County Executive Marc Elrich spoke in support of the union at the rally, saying that the hourly wage of $17 for building service workers is not enough to allow them to afford safe and decent housing.

The WSCA and 32BJ SEIU will begin talks on June 22, and negotiations will extend into the fall. The bulk of talks will take place during the final month leading up to the October expiration of the current agreement.