"Janitors File Petitions to block financing of new Detroit Metro terminal"

Wednesday, March 16, 2005

Janitors fight airport expansion
Union, angry over job losses, leads drive to block financing of new Metro
terminal.
By Joel J. Smith
The Detroit (MI) News


ROMULUS -- A petition drive mounted by a service workers union angry that 83
janitors at Detroit Metro Airport were replaced by nonunion workers could
delay or block construction of the planned $403 million North Terminal. 

Service Employees International Union Local 3 in Detroit said it has
collected 20,000 signatures from registered Wayne County voters and will
file a petition this week with the Wayne County Airport Authority. 

The union says by state law, the petition will force a Wayne County
referendum where voters can decide whether the airport can sell $530 million
in bonds to finance the North Terminal and other airport projects. 

Airport officials told The Detroit News on Tuesday they expect to sell the
bonds on Wall Street in April under an authorization secured in 2001. "We
don't believe the bond sale can be stopped," said Michael Conway, airport
spokesman. 

But David Radtke, a lawyer for SEIU, said the union is simply following the
procedures outlined by the airport authority at its Jan. 27 meeting. 

According to the meeting's agenda, the authority gave a "notice of intent"
to sell the bonds that "triggers a 45-day referendum period required by
state law for revenue bonds." 

"They don't want to have a referendum," Radtke said. "They want to issue the
bonds without any challenges." 

If the union is successful in forcing a referendum, Conway said, it could
mean serious cost overruns and damage the region's image. 

"If your market has the reputation that every time you start a project
someone challenges it or drags it out, it's not the right message Detroit
needs to send right now," Conway said. 

"If there is a referendum, I'm confident we would prevail. But a countywide
vote would cost money, slow everything down and make every project more
expensive," he added. 

The Service Employees union enlisted the help of AFL-CIO in Detroit in
collecting 20,000 signatures, 5,000 more than it says it needs to force a
referendum. 

While the union questions the need for another new airport terminal at
Detroit Metro, it says it is primarily fighting for jobs and fair pay for
its members. 

"Our ultimate goal is to see our folks back to work," said Dana Sevakis, a
Local 3 program director. "We need to put public pressure on the airport
board, and there is no other way to do it but this way. 

"It's a fight-or-die situation for us." 

The 27-gate North Terminal scheduled to open in 2008 would be home to
airlines including Southwest, Spirit and American and will provide room for
new airlines, including possibly Jet Blue. It would replace the 50-year-old
Smith Terminal, an outdated facility long maligned for ratty carpeting,
broken furniture and scarce shops and restaurants. The airport's vacant
Davey Terminal will be demolished to make room for the modern North
Terminal. 

The airport authority plans to retire the bonds through landing fees paid by
airlines and other airport revenues. 

Airport officials say the new terminal will have amenities on par with the
$1.2 billion, 97-gate Midfield Terminal that opened in February 2002 and is
used primarily by Northwest Airlines, Metro's largest carrier. 

The Service Employees union is upset that the airport authority, which
oversees Metro Airport, approved a contract on March 30, 2004, for
janitorial services at the Smith and Berry terminals. Six janitorial
companies bid on the three-year contract. Knight Facilities Management of
Saginaw was awarded the job after coming in $6 million below the
next-cheapest bidder. It was the only nonunion company to submit an offer. 

The 83 janitorial workers at Metro, some who had been employed there for
more than 20 years, were replaced April 1. 

Wendy Marshall, a 28-year-old single mother from Detroit, said the change
has pushed her into poverty. Marshall, who has helped collect signatures,
had worked as a janitor for more than three years at the Berry Terminal
until she was terminated. She was hired as a janitor at the Midfield
Terminal by a different contractor, but at $8.35 an hour, about 27 percent
less than she earned previously. 

"I can't afford health care with my new employer," Marshall said. "Their
co-pay is $92 a month. I go without insurance and my 2-year-old daughter is
covered by Medicaid. It's been pretty hard on all of us. I survive one day
at a time." 

Her mother and father also lost their jobs as janitors at the airport and
neither has found a new job, she said. 

Conway said the airport authority had to accept the lowest bid. 

"Our procurement ordinance says we must accept the lowest qualified and
responsible bidder," Conway said. "There is no question the company is
qualified. There was little choice for the board." 

Union officials acknowledged that high-paying construction jobs would be
lost if they're successful in delaying or stopping the new terminal project.


"It's a concern that construction jobs would be lost," said Pete Hanrahan,
president of Local 3. "We're not against development at the airport. But
those construction jobs are not long-range employment. After the
construction, the jobs left are $8 an hour. ." 

They think they are untouchable. This is our only way. It's an attention
grabber." 

Hanrahan also is concerned that huge airport bond issues could put Wayne
County at risk if one or more large airlines go bankrupt and couldn't pay
the airport's landing fees. 

But Conway said the airport simply would make the bond payments through the
landing fees of replacement carriers.

At issue 

   . A service workers union at Detroit Metro Airport is collecting petition
signatures in an attempt to block the sale of $530 million in bonds to build
a new terminal.

   . Metro Airport officials don't believe the bond sale can be stopped and
plan to sell them next month under a previous bonding authorization. 


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