In many ways, this can be attributed to Mayor Mamdani’s newly released “Block by Block - The Housing Plan for a New Era,” which proposes $22 billion in capital investment over five years to build 200,000 new affordable homes and preserve 200,000 more. The plan also allocates $5.6 billion to NYCHA repairs, aggressive zoning overhauls, and tenant protections through roof-to-cellar inspections.
But buried in the 112-page document is a wage provision that threatens the very workers who will build these homes. The administration frames its policy as a win for labor, but the reality is that the plan implements a $40.00-per-hour top scale limit for construction wages on these projects.
Let's be perfectly clear: a $40.00/hour top scale is not a prevailing wage. It operates as a strict cap.
Because of this rigid $40.00 maximum hourly rate, signatory contractors of the NYC Building Trades will completely lose the ability to compete for or participate in this work. Highly skilled union carpenters, laborers, electricians, plumbers, ironworkers, and operating engineers earn far above a $40.00/hr top scale when you factor in standard prevailing wage rates, health benefits, pensions, and mandatory apprenticeship funding. The end result - General contractors utilizing non-union laborers and companies that circumvent codes and regulations.