HEALTHY TERMINALS ACT BILL
LOOMS OVER EMPLOYERS
many small businesses that operate
cleaning and security services
at three Port Authority airports,
the only airports subject
to this legislation. These companies
have been hard hit since
much of their work is based on
passenger volume. The pandemic
quickly wiped out air travel
for months and the companies
serving the airlines laid off thousands
of people, and are faced
with other increasing costs. So,
we have a situation where it is
the right thing to do for uninsured
workers while at the same time, it
is a bad time for any costs to be
increased as many businesses
are struggling to exist and provide
a myriad of services, both
healthy and operational to keep
their employees and airports
functioning. Every person from
companies interviewed was supportive
of insurance for these
workers. So the common bond
of support from the legislators,
the 32BJ Union and employers is
well founded.
Health benefits have been an
issue for both the companies offering
them and the cost to the
employee. Years ago, health insurance
was affordable enough
for companies to offer free-ofcharge
to employees. However
over the years, the premiums
have increased regularly and
more and more companies had
to cut back on the benefits. Employees
were asked to contribute
to the cost and these contributions
were deducted from their
pay. Combined increased premiums,
lesser medical coverage
and loss of pre-existing conditions,
coverage as well as additional
increased employee costs
have made medial health insurance
a serious problem for many.
The Obama ACA was designed
to help millions of people
who were not able to be covered
due to their income level. In the
case of airport workers earning
minimum wage, even this minimum
may be too much for many
workers to qualify and others
may not have tried to apply. So,
hence the Health Terminals Act
became a way for some of these
unskilled, often people of color,
and new entrants to the work
force, to have medical insurance.
This became even more important
as the Covid pandemic attacked
and killed hundreds of
thousands. A number of which
were not insured against any hospitalization
or good health care
22 AIRPORT VOICE, JUNE 2021
and provide essential services. It
is a known fact that poorer people
suffered and died disproportionatelly
from Covid compared
to those with better health care
coverage that included health
education, prevention and good
health facilities.
Rob Hill, 32BJ Vice President
and Director of Airports Division
Commented on the legislation,
“Airport workers have been
on the frontlines of this pandemic
for a long time and their healthcare
cannot be deferred any longer.
As we recover from the pandemic
and as passenger levels
continue to rise, we must prioritize
the needs of our essential
workers, and Healthy Terminals
Act accomplishes that in a monumental
way. During bargaining,
we worked together with employers
to ensure the proper implementation
of the legislation, and
we look forward to the first group
of workers receiving their health
coverage come July 1.” Some of
the impacted companies say that
they were not consulted about
this proposed legislation when it
was being formulated and there
are many aspects in law that are
not clear to them and seem to not
be fair to employers.
The HTA requires that
$4.54per hour be provided by
employers to obtain health insurance
to every documented
30 hr. full-time employee with
the first wave of increases beginning
in July and a second wave
in September. According to one
company manager, “If we have
to pay, we will pay, but we need
to understand the variables.” He
said. Variables include the gray
areas on exactly which companies
that are required to participate.
In spite of the words of
the legislation, it is still not clear
exactly which categories are included.
Another variable is how
any currently provided health
benefits are to be calculated
against the mandated $4.54. Yet
another variable is who administers
the program and how exactly
is the money distributed to
employees? Will there be yearend
rebates on paid insurance
such as that provided by insurance
companies to current employers.
One company manager
estimated that it would cost
about $8,000 per employee per
year extra to provide the mandated
benefits. With a company
of 2,000 employees that would
equate to about $16 million a
year just for one company. How
would that $8000 per employee
be handled and who would oversee
the distribution? The concern
is what company can afford
this approximately 25% immediate
increase in pay and how will
these costs be paid by the different
stakeholders at the airports.
In addition to this new expense,
several owners say that
they are also faced with an additional
minimum wage increase
in September of close to a dollar
an hour per employee as well
as increased airline fees due
to the Port Authority, some of
which were deferred fees due
to the pandemic. Because of all
these impending costs while the
commercial aviation industry is
still down about 60% from 2019,
business owners are scratching
their heads in frustration and trying
go figure out how to stay in
business.
Will airlines and other facilities
accept these legitimate increases
or will they decide that
NY airports are just too expensive
to operate and move elsewhere?
Will non-union outside
firms come in and undercut with
low pricing since they may not
be impacted by this legislation?
These are concerns by many airport
businesses that have costs
constantly increased.
Another issue is how do these
particular cleaning and security
companies get reimbursed?
They feel that these costs need
to be accepted by the airlines.
Problem is that virtually all of the
companies have contracts with
the airlines. How many include
a fee increase provision like the
HTA? Another issue is having to
pay out hundreds of thousands
of new dollars to the program and
then have to wait for payments
back from their customers, some
which can take months.
The bottom line is that the bill
sponsors and the 32BJ Union
feel that it is time for these workers
to have adequate insurance
from the companies that employ
them, and it is clear that the companies
impacted are very concerned
over their survival during
these days of low airline volume,
depressed revenue and the incoming
additional expenses
during this rough period. They
are seeking to have a deferral
of the imminent increases in the
HTA and the minimum wage until
the volume increases to a level
where these costs are economically
feasible.
As the deadline looms for
the legislation implementation,
talks continue among all the parties
and it is hopeful that an economic
resolution can crafted so
both the workers and the employers
can remain healthy.
Airport companies stunned by imminent cost increases
Continued from page 1
Terminals are some areas where the cleaners and wheel chair workers work every day facing the public.