The SEIU Local 1 Union Contract: Key Points and Implications

SEIU Local 1 overview

Service Employees International Union (SEIU) Local 1 is headquartered in Chicago, Illinois and represents approximately 50,000 union and non-union workers. More than 20,000 of its members work as janitors on the City of Chicago’s commercial high-rises. When unionized, the Chicago building cleaning services industry has the potential to impact hundreds of thousands of Chicagoans—many of whom are working-class people—who rely on pristine office buildings for their livelihoods in non-cleaning services, such as accounting, information technology, and facilities maintenance . Through a staff of attorneys, organizers, members and community leaders, SEIU Local 1 serves as a voice for its members as well as their families and communities. SEIU Local 1 makes representations to numerous governmental and regulatory agencies, serving as a watchdog for its members and the residents of Chicago. It organizes together with allied groups and individuals businesses to meet specific challenges facing Chicago and its neighborhoods. More than 160 organizations have joined together as Chicago United for Equity, a coalition to further anti-poverty initiatives in the cities and towns along Chicago’s Central and Southeast Sides, where many of SEIU Local 1’s members live and work.

Union contract overview

The union contract, also commonly referred to as a Collective Bargaining Agreement (CBA), is a formal agreement between the employer and the union that outlines the terms and conditions of employment for the employees represented by the union. For members of SEIU Local 1, the union contract is a vital element of their employment and workplace relations. It serves as the law of the workplace and lays out critical components such as wages, hours, benefits, and employer obligations among other things. Here are some of the common terms covered in the SEIU Local 1 Union Contract: Wages: The union contract typically lays out the agreed upon hourly pay rate for union members as well as any increases over the life of the contract. Hours: The contract will also address the number of hours employees should work per week, as well as any overtime and premium pay policies. Leave: Family and Medical Leave under Illinois law (FMLA), as well as other types of sick and vacation leaves are generally covered. Overtime: Many contracts have specific overtime pay provisions, such as the rate of pay for working more than an eight-hour shift, working on holidays, working weekends and so on. Union Security Provisions: This is the requirement that employees who benefit from the union’s representation must join the union or pay a fee to the union to help offset the costs of the union contract. Shop Steward: This is a union member who has been elected or appointed to represent the union and member employees in various venues, including grievance hearings. Disciplinary Procedures: This is the procedure for dealing with workplace offenses, a critical element of the contract.

Key contract points for SEIU Local 1 members

Several key provisions are often at the heart of SEIU Local 1 contracts. These provisions help to shape not only the immediate working conditions of employees and the wages they earn but also offer a framework for resolving disputes when they arise.
Wages and Benefits
One of the key purposes of any labor contract is to document the wages and benefits owed to each employee, with SEIU Local 1 contracts often setting forth traditional wage and salary scales. A common provision in many SEIU Local 1 contracts are cost-of-living adjustments, which will set out a minimum raise employees are to receive on a regular basis, often tied to standards such as inflation rates.
Working Conditions
Some SEIU Local 1 contracts will have provisions on the preservation of specific working conditions the employer must maintain for its employees, beyond those covered in the wage and benefit section.
Dispute Resolution
Almost every SEIU Local 1 contract will have some type of grievance procedure to handle disputes that may arise between employees and the employer. Often, an employee must first file an internal grievance through their union chapter. After that, the employee may appeal to upper levels of the union or the labor board, while still being required to pay the monthly dues owed to the employer.

How SEIU Local 1 negotiates contracts

The SEIU Local 1 negotiation process for contracts begins with a series of meetings with the unit’s elected bargaining committee. LEAF representatives meet with the bargaining committee to help them formulate their proposal, which is then put into contract form. This proposal is then voted on and distributed to the affected membership. The bargaining committee is composed of elected members and LEAF representatives who are responsible for negotiating on behalf of the entire membership. For external negotiations such as bargaining with McDonald’s for a wage increase, the Committee will come to a consensus on their proposal. When negotiating an internal contract, such as the annual wage increase with the firm, the Committee will come to consensus and prepare a proposal that they then bring to the entire membership at a meeting. The members will announce their approval and endorse their recommendations. The proposal signed off by the membership is then formally presented to the employer. Once bargaining begins, management often has its own proposal that it wants to put forth to the membership. This may be, in their opinion, a take-it-or-leave-it offer. The bargaining committee continues to push back and negotiate until an agreement can be reached that both parties can live with without putting the livelihoods of its members on the line. This often is a hard-fought battle that is never easy. Members are pushed by management to ratify contracts that have not completely resolved all outstanding differences. When possible, the negotiations are completed on the first day of bargaining. Occasionally, when an agreement cannot be made on the last item in a proposal, the issue remains open between the two sides. During this time, Local 1 will continue to work under the old contract and both sides agree to revisit the open item(s) at a later date. These are generally administrative issues that keep bargaining open while allowing the union to move ahead on other motions or organizer campaigns. In order for a contract to be ratified, it takes two-thirds of the members voting in favor, including those that do not attend the meeting. If a member is unable to attend, Local 1 provides multiple ways for them to participate in Commission business, such as surveys sent via e-mail, personal letters showing support of specific issues, and phone calls from an organizer regarding their vote on the contract. Ratification of a contract is a big deal. Members go to the meeting and elect people they know, trust and work with to support their interests. Even though everyone does not attend the bargaining committee meetings, they trust that their elected leaders have done due diligence and they can rely on their representatives to protect their livelihood. Because of that, employees are able to manage their workday, go home and be with their family and feel confident that if anything does happen, they will have someone to fight for them. Negotiations are an important part of the day-to-day operations of the union and should be heard. They often see both sides of the argument and help generate opinions on the issues. They establish foundations for the union that goes well beyond just the people at the table. Negotiations are the foundation for education on issues that all members face at work on a daily basis.

Recent SEIU Local 1 contract changes and updates

SEIU Local 1 contracts have seen significant updates in recent years, particularly in areas concerning wages, benefits, and worker protections. These changes reflect the union’s ongoing commitment to advocate for the best interests of its members. Recently, the SEIU Local 1 and the employers they negotiate with have come to various agreements that address important matters for workers.
One significant tweak was made this year: the wage hike going into 2019. This increase for workers covered by the SEIU Local 1 agreement makes it so they are some of the highest-paid individuals in the building service and maintenance industry. Already receiving a living wage in 2018, these workers could make up to 20 percent more than the Chicago minimum wage. This is a major win for the SEIU and building service workers alike, as it means that these workers will be paid a significant amount above the bare minimum required for them to live in the city.
Changes to employee benefits are also in store for SEIU Local 1 workers. Not the least bit satisfied with crumbs being handed out , the SEIU delivered a major piece of bread to its members with an agreement with Minute Maid. This agreement means that Minute Maid workers who are part of SEIU Local 1 will receive a $20,000 raise as part of their new labor agreement.
The SEIU, including members of SEIU Local 1, recently scored a huge victory from Protection One Security Corporation. The recently settled lawsuits will put a private security corporation on the right path concerning its disability and overtime payment practices. It was ruled that Protection One knowingly broke federal and state law by not making disability and overtime payments to its workers.
Protection One allegedly employed misclassifications to donate disability and overtime pay. These alleged misclassifications were costly and will be corrected under the terms of the labor agreement.

Impact of the SEIU Local 1 contract on workforce

The service contract between SEIU Local 1 and its contracting employers defines a framework wherein employee rights are codified and safeguarding workplace standards in the short and long term. First, the agreements oblige contracting businesses to pay designated wages and benefits to employees, even as administrations change hands. Second, the agreements are binding between the service employer and the union, regardless of who belongs to a given bargaining unit. Remedies for violations of these agreements allow any affected employee to report grievances to the union, and the organization can then pursue remedy on behalf of the affected employees (or class of employees). This protects workplace standards against the risk of individual retalliation for whistle-blowing, and it connects a group of employees with a shared grievance with the resources necessary to pursue remedy.
In addition to defining employment terms and parameters with unions, legislative action at the city and state level has also helped cement these agreements as vital to employment standards. For instance, Massachusetts extended protections to workers represented by unions rather than those working without extra support; this change effectively expanded the scope of remedial actions that affected workers can access. Any measures that ensure workers are compensated in line with market conditions or rather than forcing them to compete with one another also serve to improve the effectiveness and comfort of the work environment.
The measures and guarantees contained within SEIU Local 1 agreements help ensure that employees with similar roles and responsibilities can expect broadly the same employment experience, even at competing employers. This is a factor that can benefit employee morale across the board and even help ensure a sense of workplace unity.

Challenges faced by SEIU Local 1

The SEIU Local 1 Union faces some headwinds in reaching a collective bargaining agreement with the Employers in its jurisdiction.
First, despite a national economy that is experiencing a strong season of growth, the target market for most Local 1 workers is the northern Illinois area. With Illinois still faced with an enormous budget deficit and substantial debt, there are some economic pressures that must be keenly considered in any Local 1 negotiations.
Second, in the past few years the Employers have pushed back against the Workers’ demands with greater vigor. Employers are increasingly unwilling to make concessions that were once viewed as "common" in negotiations. Additionally, the Employers have been relatively successful in adjusting Workers’ hours and work rules to meet their own needs. This may prove to be a point of contention as negotiations proceed.
Third, in the past few years court cases have been decided that affect pay and benefits. There is no way to know at this point how these cases will affect negotiations going forward, but the cases are worth mentioning. Arbitration between the Workers and Employers has been affected the following decisions: In the Lichten, et al. v. Blue Cross Blue Shield of Michigan case, the Court of Appeals for the Sixth Circuit, relying upon the Supreme Court of the US decision in Smith v. U.S. Postal Service, held that "where a collective-bargaining agreement provides benefits based on the participant’s base salary or on the average of the participant’s base salary during a period of time preceding retirement, as opposed to benefits based on the amount of the participant’s contributions to the plan, the provisions of the agreement offsetting the base-salary-based benefits with the participant’s pension benefits do not violate ERISA." No. 06-2466 (6th Cir., Sep 21, 2009).
Additionally, the U.S. Department of Labor has imposed additional requirements concerning certifications for participants in union defined-benefit plans under the Employee Retirement Income Security Act (ERISA). Beginning on September 30, 2010, employers must prepare a new benefit plan and adopt the new certification.

Future of SEIU Local 1 contracts

As labor laws continue to evolve, and the future of organized labor hangs in the balance, this will obviously have an impact on the future of SEIU Local 1 contracts and negotiations.
Many of SEIU Local 1’s bargaining powers are built into local and state legislation that have helped to further strengthen the benefits and protections given to service workers. For a union with such a strong hold in the Chicago and New York areas, this is good news for SEIU Local 1 members and their members’ futures; as new policies that benefit union workers continue to arise.
As part of this ongoing effort to tighten and expand protections for union workers , SEIU Local 1 recently organized a massive picket outside of the banks on LaSalle Street in downtown Chicago. This picket, organized in February, called for justice for service workers on City of Chicago projects and sending a message to banks that do business with the City. These workers were empowered by SEIU Local 1’s commitment to fighting for their dignity, and the continued commitment to raise wages and improve working conditions for all service workers across the State of Illinois.