Catherwood LibraryILR School

With the economic recession halting construction projects across the nation, unions and builders in New York City are approaching a deal to cut labor costs in hopes of moving forward with at least some projects in the current environment. On one end, developers who paid pre-recession prices for property want to continue projects, but risk huge losses on them without cutting costs significantly. Meanwhile, construction unions are growing more concerned about layoffs each day, struggling to maintain their command over the city's main projects, and yet hoping to avoid wage cuts. The deal would require concessions from both ends, but could potentially reduce labor costs by 15-20%. Skepticism surrounds the negotiations, with some unions more willing to deal than others, and some builders doubting the benefit of reductions given the drastic decreases in rent revenue to be gained.