NEW YORK CITY—Reminding developers who's boss, Mayor de Blasio and the Related Cos. have reached an agreement whereby workers at the Hudson Yards project will command higher wages than previously planned, according to the Wall Street Journal.
The new wage structure cancels out an agreement the developer made with the previous administration. The administration plans to seek concessions on other large projects in the pipeline, even if they already have received city approval, notes Alicia Glen, deputy mayor for housing and economic development.
The changes will apply to some 1,650 engineers, security guards, janitors and customer service and marketing staff who are expected to work at the site on Manhattan's West Side once its opens. Most of Related's workers, many of whom are unionized, already make more than the $11.75 an hour originally mandated by the wage agreement. Employees of Related's affiliates, which could include some restaurants and a gym, also will benefit from the salary concessions.
The deal eliminates an exception to the 2012 living-wage law that exempted Related from paying living wages to its Hudson Yards. The company won that treatment because, at the time, it contended it was deep in negotiations on a deal with anchor tenants and that the law could have created an additional hurdle to some deals. Coach Inc., which purchased its space at Hudson Yards, will still be exempted from the deal with de Blasio.
City Hall is drafting legislation that would further expand the living-wage provisions, Glen tells the Journal.
Related and the Mayor's office did not respond to requests seeking comment by press time.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
