RAISING STANDARDS, IMPROVING COMMUNITIES NEW JERSEY’S SECURITY OFFICERS UNITING FOR GOOD JOBS AND A BRIGHTER FUTURE EXECUTIVE SUMMARY November 2012 PRIVATE SECURITY OFFICERS IN NEW JERSEY are coming together to join a union, 32BJ SEIU, to raise industry standards and to transform low-wage jobs into good jobs with decent pay and quality benefits. This transformation will bring millions of dollars over the next decade to private security officers, their families and their communities, thereby helping to stimulate local economies. Private security officers in New Jersey protect the full gamut of vital infrastructure in the state: commercial office buildings and corporate offices, public schools, courthouses, federal sites, colleges and universities, airports, museums, and health care facilities. Their work is essential to those who live in, work in and visit the state. The private security industry is profitable and growing. Yet across New Jersey, pay and benefits in the industry are paltry. Private security officers in New York City, Washington, D.C. and Philadelphia have successfully raised industry standards in their cities. The private security officers of New Jersey are committed to accomplishing the same. Average wages for private security officers in New Jersey are far below what it takes to sustain a family in the state. Raising pay would not only bring full-time workers and their families out of poverty, it would have a multiplier effect of millions of dollars that would strengthen communities. RAISING STANDARDS PROBLEM: NEW JERSEY NEEDS GOOD JOBS THE CURRENT SITUATION for working people in New Jersey is not good. In August 2012, the state’s unemployment rate hit 9.9 percent, the highest in 35 years, and it remains high at 9.8 percent.1 According to the New Jersey Department of Labor and Workforce Development, there were 448,000 unemployed people in the state in October 2012.2 The problem isn’t just jobs, but good jobs. Those who are working in New Jersey are earning less today than in the recent past. According to data from the U.S. Census Bureau, median household income in New Jersey decreased by 3.4 percent between 2010 and 2011.3 The result is greater poverty: almost 900,000 people in the state now live below the federal poverty level. Many contend that the annual income that the federal government considers as the poverty level does not accurately measure poverty. The Poverty Institute of Legal Services of New Jersey has developed the Real Costing of Living measure and by that standard, more than 2 million people in New Jersey today can’t meet their basic needs.4 The economic environment that New Jersey’s workers face has been deteriorating for the last 10 years. According to New Jersey Policy Perspective’s report, The State of Working New Jersey 2011: The Lost Decade: ● Real wages were lower in 2010 for the bottom 30 percent of wage earners in New Jersey than in 2000. ● Income declined for the bottom 60 percent of households between 2000 and 2010.5 What little job growth there has been in recent years has been concentrated in the service sector. Since June 2008, the largest employment gains in the state have been concentrated in the private sector service industry.6 For example, private sector service jobs are now the primary employment option for Newark residents without a college degree.7 PRIVATE SECURITY INDUSTRY JOB GROWTH, INADEQUATE STANDARDS The private security industry is a major employer nationwide and in New Jersey. The U.S. contract security industry employs more than 1.5 million security officers nationwide and is estimated to be a $20 billion industry.8 According to data from the Bureau of Labor Statistics9 and the New Jersey Department of Labor and Workforce Development, there are 20,850 private security officers in New Jersey, more than half in Northern New Jersey (Hudson, Essex, Union and Bergen Counties).10 The private security industry is growing rapidly, both nationally and locally. The Bureau of Labor Statistics predicts that nationally the number of security jobs will grow by 18 percent by 2020, creating over 200,000 new jobs.11 And according to data from the New Jersey Department of Labor and Workforce Development, the number of security jobs in the state will increase by 4.6 percent over the next 10 years.12 RAISING STANDARDS | 1 Security Officers in Northern New Jersey Race Gender Age Level of Education Source for all charts on this page: U.S. Census Data Collected by Integrated Public Use Microdata Series RAISING STANDARDS | 2 WHO ARE NEW JERSEY’S SECURITY OFFICERS? According to demographic data from the U.S. Census and the American Community Survey, more than 70 percent of Northern New Jersey’s private security officers are people of color. The area’s typical security officer is an African American man between the ages of 20 and 29 with a high school diploma or GED.13 According to the Urban Institute, African American families are historically “less likely to be working and more likely to receive public assistance, and they earn lower incomes on average and suffer from higher rates of poverty.”14 By organizing to raise standards, New Jersey’s security officers are seeking to reverse this historic trend. NEW JERSEY’S PRIVATE SECURITY INDUSTRY: LOW PAY, FEW BENEFITS In a state that desperately needs good jobs, the rapidly growing, and profitable, private security industry offers jobs with low wages and few, if any, meaningful benefits. Low pay in the industry is evident in data from the Quarterly Census of Employment and Wages, which gives average wages for private security officers both statewide and at the county level in New Jersey. (See chart below.)15 Additional data pulled from a random sampling of job postings for security officers in New Jersey between “I’ve been here for five years and I only make $10.50 an hour. I need to pay bills and put food on the table. That’s why I’m organizing: I have two kids I need to provide for.” – Luz Feliciano, security officer, 500 Plaza Drive, Secaucus, N.J. August and October 2012 shows that starting pay for unarmed security officers can be as low as $8 an hour, much less than the pay rates published in the Quarterly Census of Employment and Wages. According to the federal government’s poverty guidelines for 2012, the poverty line for a family of three is $19,090.16 Earning $8 an hour would put many security officers who work fulltime and have families below this threshold.17 But in fact, the situation may be even more difficult than the data suggests: Legal Services of New Jersey’s Poverty Research Institute has concluded that the federal standard is an inadequate measure of poverty for a number of reasons. The figure does not vary by state, thereby failing to account for the high cost of living in places like New Jersey. The Poverty Research Institute has thus developed a measure called the Real Cost of Living (RCL) based upon the true expenses a family faces to meet its basic New Jersey Security Officer Pay AREA/EMPLOYER HOURLY SALARY WEEKLY SALARY ANNUAL SALARY Statewide $11.74 $470 $24,441 Bergen County $11.39 $456 $23,695 Essex County $12.23 $489 $25,443 Union County $10.24 $410 $21,296 Source: Quarterly Census of Employment and Wages, Bureau of Labor Statistics RAISING STANDARDS | 3 needs. New Jersey’s RCL in 2008, the last year it was calculated, was about three times the federal poverty level, or $54,930 for a family of three.18 Thus, the average wages for security officers in New Jersey are far below what it takes to sustain a family in New Jersey. Low pay is not the only problem in the private security industry: rather than receiving benefits from their employers, many security officers rely on public programs, such as Medicaid or New Jersey Family Care, for health care. According to the New Jersey Department of Human Services 2011 Annual Report on Access to Employer Based Health Insurance, last year there were 2,629 employees of security services companies and their spouses and dependents on New Jersey Family Care or Medicaid. We estimate that this costs the state approximately $23.9 million annually.19 The large number of security officers earning so little that they qualify for public health care takes a toll on the already broken state budget. PUTTING PUBLIC SAFETY IN PRIVATE SECURITY HANDS Private security officers are filling in the security gaps that drastic cuts to the police across New Jersey have created. Since 2010, budget shortfalls have led cities throughout the state to lay off many police officers and to reduce significantly the size of local police forces. The consequences have been significant. Trenton, Paterson and Atlantic City all made deep cuts in their police departments since the start of 2010.20 In November 2010, Newark reduced its police force by 167 officers, the department’s largest reduction in force in 32 years.21 (See the snapshot at right for details.) In early 2011, Camden reduced its police force by 168 police officers22 and it recently terminated the remaining police force of 273 police officers and is relying instead on a new countywide police force.23 It is essential that private security officers receive the pay, benefits and training they need to meet the responsibilities being put on them. But work conditions in the industry today are such that turnover rates can be high in these low wage positions and more training is needed. This poses a threat to security officers and the public alike. SNAPSHOT Newark Private Security Officers Play Major Role in City’s Renaissance Newark is still recovering from the major scarring event in its history, the riots of 1967, to which some have attributed the city’s decline and poverty. Today, Newark is experiencing an economic and cultural revitalization. Newark is now home to major corporations such as Prudential Financial and PSEG; universities such as the New Jersey Institute of Technology and Rutgers; and cultural and sports venues such as the Prudential Center, Bears and Eagles Riverfront Stadium; major transportation hubs such as Newark Liberty International Airport and the Port of Newark; and the city’s pride, the New Jersey Performing Arts Center. Private security officers in Newark play an integral role in protecting the city. In 2004, for instance, the U.S. Department of Homeland Security warned of an Al Qaeda terrorist threat to five buildings in the country, among them the Prudential Building, and raised the terrorism threat level for Northern New Jersey.24 Yet private security officers in the city, like Andre Lugo whose story is on page 6, still struggle to make ends meet. Raising standards in the industry is not just a matter of decency for security officers, it is vital to those who live in, work in or visit Newark. RAISING STANDARDS | 4 SOLUTION: RAISING INDUSTRY STANDARDS SECURITY OFFICERS IN New Jersey are coming together to raise pay, benefit and training standards in the private security industry. The gains they make will improve not only their lives, but also that of their families and communities. Those security officers in the state who already have won union recognition and a contract that includes family health care benefits are markedly better off now. “At the end of March, my wife was in the hospital with pneumonia. The health insurance we have as part of the agreement between my union and my employer was phenomenal,” comments Joe Jensen, a security officer at 30 Hudson Street in Jersey City and a 32BJ member since 2010. “It covered her treatment at the hospital and the medicine when she came home. It’s been very comforting to know her health care has been so good. And the insurance took the burden off my mind about paying for medical treatment.” When security officers successfully raise standards in their industry, the results will greatly benefit not only their families but also their communities. Small increases in hourly wages would bring millions of dollars to New Jersey communities. Some examples: ● A $1 per hour pay increase would add about $43.4 million in wages to security officers each year. ● A $2 per hour pay increase would add about $86.7 million in wages to security officers each year. ● A $3 per hour pay increase would add about $130.1 million in wages to security officers each year. This additional income would likely flow right into New Jersey communities. Working people tend to spend STANDING UP FOR HEALTH CARE Tonya Lesaine, security officer, Harmon Cove, Secaucus, N.J. I am a security officer for Harvard Security. I am my family’s only wage earner, taking care of Julissa, my two-year-old daughter. I love my job because I get to work with people and I get to help them. But things get hard sometimes when you don’t have affordable health care and you don’t get paid sick days. When I’m sick, I have to work anyway because I cannot afford to take the day off. Getting health care that is affordable would help a lot. With my responsibilities and all the bills I have, it would make a big difference. That is why my coworkers and I are working so hard to organize a union so we can fight for better training, better pay and better benefits. RAISING STANDARDS | 5 “I have no health insurance and I haven’t received a raise in over four years. The workplace should be a place of respect. Employers must meet our call for fair treatment.” – Andre Lugo, security officer, 80 Park Place, Newark, N.J. MY STORY Andre Lugo, security officer I am a security officer for SOS Security. I make $12.25 an hour, after working in security for 10 years. I haven’t received a raise in over four years. I live in Newark with my mom and my brother. Every time the phone rings, I answer in fear a debt collector is at the other end of the line. Payday doesn’t bring me relief because my pay is long gone before they even cut the check. Where does the money go? Bills, bills and more bills. There are basics like rent and utilities, food, laundry, my car payment and insurance, gas and tolls. Never mind my student loan. And every month there are the unexpected expenses like car maintenance. Often, something doesn’t get paid and has to be pushed off until the next month. This is what living paycheck to paycheck is like. How do I stretch my pay? I skip meals, often enough now that I am used to that empty stomach and light-headed feeling. My mom skips her blood pressure medication, too, to stretch out the medicine. I have no health care benefits at all because the package my company offers is too expensive. And when you’re poor like we are, your options are very limited. Like the time I went to a student hospital and had my tooth pulled because a simple procedure that could have saved my tooth would have cost $4,000. I couldn’t even begin to dream of that. Later, another tooth cracked and I got an infection that spread to my cheek. The pain was unimaginable and I was in despair because I didn’t have health care I could afford or a doctor I could trust. It’s enough to drive a person crazy, but I keep faith and stay strong. I fight now to help organize my coworkers so that together we can bring better training to the industry, better pay and better benefits, especially affordable health care. Many co-workers are in the same boat I’m in. We are organizing to end these horrible conditions so no one has to suffer the way I have. We put our lives on the line every day for the safety of the buildings where we work and their tenants. We deserve to have our voices heard. We deserve better. That’s why we are standing up for our families and ourselves. Our future is at stake. RAISING STANDARDS | 6 their earnings on rent or mortgage payments, groceries, school supplies – all the stuff of everyday family life. The multiplier effect of increased earnings – and spending – would likely benefit local economies. Economists at the U.S. Department of Commerce have developed a series of formulas known as multipliers that estimate what the overall increase in earnings and jobs for workers and their communities would be if some workers received better pay. The formulas indicate that the multiplier effects of raising pay for New Jersey’s security officers include stimulating economic activity in the communities where the officers work and reside: ● If New Jersey security officers earned an additional $1 per hour, the multiplier effect would result in $102 million in increased economic activity in New Jersey. ● If New Jersey security officers earned an additional $2 per hour, the multiplier effect would result in $204 million in increased economic activity in New Jersey. ● If New Jersey security officers earned an additional $3 per hour, the multiplier effect would result in $306 million in increased economic activity in New Jersey. This validates, to a great extent, the premise of the effort to improve industry standards: Raising wages for security officers across New Jersey will likely create an economic ripple effect that would strengthen communities and benefit all New Jersey residents. The Effect of Pay Raises on Security Officers’ Families $1/hr. pay increase $43.4 million in additional earnings per year for NJ families $2/hr. pay increase $86.7 million in additional earnings per year for NJ families $3/hr. pay increase $130.1 million in additional earnings per year for NJ families In millions The Multiplier Effect of Security Industry Pay Raises $1/hr. pay increase $102 million in increased economic activity in NJ communities $2/hr. pay increase $204 million in increased economic activity in NJ communities $3/hr. pay increase $306 million in increased economic activity in NJ communities In millions RAISING STANDARDS | 7 “Some of the things that I have seen and experienced in 10 years as a security officer are so horrible that I often think of just giving up. Then I look at my responsibilities to my family, and I know that I have to keep fighting for changes to make the security industry a better profession. This is our fight, the fight of our lives.” – Charles Apiyo, security officer, 80 Park Place, Newark, N.J. SNAPSHOT Security Officers in Jersey City Win Legislative Campaign to Raise Standards for Building Service Workers More than 17 percent of Jersey City’s residents live below the federal poverty line.25 Yet the city has offered millions of dollars in subsidies to corporations in its attempts to lure them into office towers along the city’s “Gold Coast” waterfront.26 Those entities that receive public subsidies have a particular responsibility to provide workers with decent pay and benefits. Public money should not be used to support jobs that require workers to depend upon public benefits like Medicaid. Security officers recently helped to pass the Standard Wage Bill in Jersey City, which raises standards for security officers and other building service workers at buildings where the city leases space or at projects that received $1 million or more in city subsidies to spur development. RAISING STANDARDS | 8 GOOD JOBS, STRONGER COMMUNITIES PRIVATE SECURITY OFFICERS IN NEW JERSEY are coming together to raise standards in their industry because they must. Right now, although most work full-time, inadequate pay keeps security officers and their families struggling to get by. Many live in poverty and must rely on Medicaid or New Jersey Family Care. This does not have to be the case. The private security industry is profitable and growing. A private security workforce that is treated with respect, paid a fair wage, provided health care, and well trained is in everyone’s interests: security officers and their families, but also their communities and the people who work in, live in or visit the state. Security officers provide an essential service, particularly at a time when police forces are being slashed. Raising standards in the private security industry in New Jersey will create jobs that can sustain families and strengthen communities, thereby helping to reverse the trends that have hurt so many of the state’s working people. Security officers in New Jersey are forming a union with 32BJ SEIU to raise standards in their industry and make life better for their families and communities. RAISING STANDARDS | 9 ENDNOTES 1. “New Jersey Jobless Rate Increases to 35-Year High of 9.8%,” Bloomberg News, August 16, 2012 15. Quarterly Census of Employment and Wages, Bureau of Labor Statistics 2. “Unemployment Rate Moves Lower, Private Sector Employment Moves Upward,“ Department of Labor and Workforce Development Press Release, October 18 2012 16. 2012 HHS Poverty Guidelines. 3. Household Income for States: 2010 and 2011, U.S. Census Bureau 4. “Poverty Benchmarks 2012: Assessing New Jersey’s Progress in Combating Poverty,” An Annual Report from the Legal Services of New Jersey Poverty Research Institute 5. The State of Working New Jersey 2011: the Lost Decade, New Jersey Policy Perspective, November 2011 6. The State of Working New Jersey 2011: the Lost Decade, New Jersey Policy Perspective, November 2011, pages 3-4 7. “The Growth of Low Skill Service Jobs and the Polarization of the U.S. Labor Market,” David H. Autor and David Dorn 8. White Paper On The U.S. Contract Security Industry, Robert Perry and Associates, July 2012 9. Bureau of Labor Statistics, Quarterly Census of Employment and Wages 10. Occupation Profile – Security Guards in Hudson County, New Jersey Department of Labor and Workforce Development 11. Bureau of Labor Statistics, “Occupational Outlook Handbook,” Published March 29, 2012, Retrieved September 14, 2012 from http://www.bls.gov/ooh/ Protective-Service/Security-guards.htm 12. New Jersey Department of Labor and Workforce Development, Estimated and Projected Employment by Detailed Occupation: 2008-2018 and Estimated and Projected Employment by Detailed Industry: 2008-2018 13. U.S. Census Data Collected by Integrated Public Use Microdata Series 14. “Racial Disparities and the New Federalism,” The Urban Institute, October 2007 17. Job Posting for “Security Officers” or “Security Guards” in North Jersey on craigslist.org., September-October 2012 18. “Poverty Benchmarks 2012: Assessing New Jersey’s Progress in Combating Poverty,” An Annual Report from the Legal Services of New Jersey Poverty Research Institute 19. Annual Report on Access to Employer Based Health Insurance, 2011, New Jersey Department of Human Services 20. “In NJ, Police Layoffs Lead To Drop In Arrests,” Associated Press, November 20, 2011 21. “Newark finalizes 167 police layoffs after union refuses Booker’s plea to return to negotiating table,” The Star Ledger, November 30, 2010. 22. “After heavy police layoffs in 2010, arrests plunged in Newark and Camden in 2011,” by James Queally, The StarLedger, May 1, 2012 23. “To Fight Crime, a Poor City Will Trade In Its Police,” by Kate Zernike, New York Times, September 28, 2012 24. “U.S. Warns of Terror Threat Against Financial Buildings,” by Christine Hauser, New York Times, August 1, 2004; “A Surprise at Prudential: It’s a Terror Target,” By Jason George and Damien Cave, New York Times, August 3, 2004 25. “Poverty Benchmarks 2012: Assessing New Jersey’s Progress in Combating Poverty,” An Annual Report from the Legal Services of New Jersey Poverty Research Institute 26. “Goldman Sachs Gets Deal For 2nd Jersey City Tower,” By Charles V. Bagli, New York Times, July 19, 2007; “Jersey City Council woos Goya Foods with tax abatement measure,” by Terrence T. McDonald, The Jersey Journal, October 27, 2011; “Wall Street firm to move 1,600 jobs to Jersey City,” by Lisa Fleisher, The Star-Ledger, October 14, 2009 RAISING STANDARDS With more than 120,000 members, 32BJ SEIU is the largest union of property service workers in the U.S. We are united to raise standards at work and improve conditions in our communities so that one day “working poor” will be a contradiction in terms. For more information about us: www.seiu32bj.org. 32BJ SEIU 1 Washington Park Suite #1203 Newark, NJ 07102 RAISING STANDARDS | 12