Gov. Cuomo told an AFL-CIO meeting Monday that he wants to “pay more for union jobs because the government shouldn’t pay a poverty wage.” The governor’s comments, as might be expected, drew thunderous applause from the union audience attending the labor organization’s convention at the Sheraton New York.
Cuomo is looking at unprecedented state subsidies to re-start the 421-a program, which granted tax breaks to developers for building affordable housing.
The program wasn’t renewed by the state legislature after Mayor de Blasio reached a deal last year with the Real Estate Board of New York to extend it — but without a provision requiring union-level wages.
Cuomo told the AFL-CIO it makes sense in the long run for taxpayers to cover higher union wages.
“More and more, you see developers using non-union labor,” said Cuomo.
“Now they want government to validate that decision by saying government will fund the program that pays non-union labor and they are criticizing me saying, `Well I want to pay more just because the unions want the union jobs.’ I want to pay more so we have union jobs because government shouldn’t pay a poverty wage, that’s why I want to pay more. I want to pay more because I want us to have skilled labor on that job and built it right the first time and build it to last. I want to pay union labor because I want benefits and healthcare and the government doesn’t have to subsidize it.”
Speaking to reporters before the meeting, the governor — who is up for re-election in 2018 — was even more emphatic.
“We are not going to allow government to support a program that does not provide union labor,” he said.
A real estate source said the industry is “agnostic” about Cuomo’s subsidy proposal since it will be taxpayers — not developers — who picking up the tab.
Developers who participate in the affordable housing program have agreed to pay trade workers up to $65 an hour for Manhattan projects and $35 an hour for jobs in the outer boroughs, the source said.
