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Simon Agrees to Janitor Pay Raises

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Simon Property Group has agreed to give raises to 3,000 janitors.
"We want to ensure all our properties have labor peace. We want to make sure people are treated fairly," said John Rulli, chief operating officer of operating properties for Simon.

Simon reached an agreement with the Service Employees International Union. Simon, like most mall owners, is not the direct employer of its janitors. That work is subcontracted out. So the cost for the higher salary will be passed on to contractors.

Update: The deal is much larger than the initial story indicates. Westfield has also reached an agreement with SEIU. Overall, about 5,000 workers at Simon and Westfield malls will be able to form a union, get raises and get health insurance.

SEIU began targeting malls in May as a spinoff of its Justice for Janitors campaign that helped organize janitors at office buildings.

For a while, SEIU was running a Web site Inside Malls that featured stories about the employment conditions of mall workers. But that site seems to have been taken down.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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