New airport lease gives wage hike to subcontractors' workers

A NEW LEASE agreement between Philadelphia International Airport and the airlines that use it will serve as more than just an economic stimulus.

The lease, approved by City Council yesterday, ensures that airport subcontractors will pay workers $12 per hour as required in the living-wage standard passed by Mayor Nutter in January. The lease will take effect July 1.

The agreement follows extensive discussion among the airport's chief executive officer, Mark Gale; SEIU Local 32BJ's vice president, Gabe Morgan; and American Airlines vice president of government and airport affairs Michael Minerva. American Airlines represented more than a dozen airlines at the airport that hire subcontractors to provide baggage handling, aircraft and terminal services.

Airport workers were concerned that American Airlines would successfully pressure City Council to include a provision in the contract excluding subcontractors from paying workers the full wage. Primeflight Aviation Services, subcontracted by American and other airlines, currently pays its employees $7.25 per hour.

"Contractors have been paying those workers poverty wages and they've been violating their rights almost routinely," Morgan said. "We're really happy to finally see a lease that in some way reflects the concerns of those workers."

The airlines also agreed not to fire subcontractors if their workers choose to unionize. Alfred Williams, a baggage handler for Primeflight, said the right to unionize meant more to him than the money.

"We're just so happy that is finally going to happen for us and that we're going to get the respect and treatment we deserve," Williams said.

The next step is to secure benefits for airport workers, Morgan said. Primeflight workers have limited benefits, such as earning one hour of paid sick time for 40 hours of work, he said.

"If their workers would follow the laws, it would make it a lot easier for workers to obtain those conditions," Morgan said.

At least for the agreement's five-year life span - it also has two one-year extensions - the workers will be protected.

The lease, valued between $2.8 billion and $4.1 billion, also will help to fund future renovations, restroom repairs, improved baggage-handling services and other projects at the airport, Gale said. Airlines agreed to provide $158 million for capital projects, he said.

"We believe that this proposed agreement means the continued growth for the airport and the city," Gale said. "I believe that it represents a good deal for the airport, for the city and for all the stakeholders involved."