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Chicago Housing Authority Workers Fighting to Keep Their Jobs
75 SEIU Local 73 members who provide vital public housing services recently received layoff notices.
SEIU Local 73 represents members who work for CVR, a union contractor. Chicago Housing Authority(CHA) contracts with CVR to provide several components of the Section 8 public housing program. Members work in the call center assisting public housing applicants and residents. The 5 year contract between the CHA and CVR ends this year.
Chicago Housing Authority staff issued RFPs for a new five year contract providing services to Chicago public housing recipients. CVR, a union contractor, and Nan McKay, a non-union contractor bid to provide the services to public housing recipients. Nan McKay was awarded the contract because it submitted a lower bid. The CHA decision to use a non-union operator because it provides lower wages and benefits to employees is not a Chicago value.
If financial costs were the sole factor in making the decision on how CHA provides these services, then the choice of a non-union contractor does not make sense. A CHA study was done last year on the design, implementation, and costs of bringing the services recently bid in-house. The CHA study recommending bringing the program in-house demonstrates a $23.4 million savings over 5 years. The Nan McKay contracts is a $19 million savings below current costs over five years.
Chicago Housing Authority’s own documentation concerning the contracts, bids, and the in-house study demonstrate a $4.4 million additional savings if CHA brings the program in-house. CHA’s decision to contract to a non-union vendor, spend more money than in-housing the services, and lay off an experienced 95% minority, 70% female workforce belies logic.
This is self-defeating. Many of our members who work in the Housing Choice Voucher program are Section 3 hires or they have been recipients of public aid in the past. Now, the CHA board is going to allow them to get laid off. Isn’t it part of CHA’s mission to help residents “Find, Keep and Advance in a Job” and also build their own economic independence? By contracting out these services, CHA is working against its own mission.
Local 73 members are activated and fighting for their jobs. Workers testified at the CHA board meeting in May. Click here to check out the video of the meeting. Members appear at the 2:02:00 time mark.
Chicago is a union town and you do not treat union workers like this. We plan on going to the City of Chicago and demanding a solution. These are hard working women and men that are going to be out of work because the City decided to award this contract to a non-union contractor. Local 73 members will testify at next week’s City Council Meeting on May 23rd.