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Labor Unrest on Tap In nb47p01.qxp 11/16/2007 8:30 PM Page 1 TOP STORIES Keep the Rent hikes force city’s fiscal tony firms to seek suspenders cheaper space —Alair Townsend on the need for PAGE 2 a Financial ® Control Board Oldies, rock radio Page 11 stations soar with people meters; losers cry foul VOL. XXIII, NO. 47 WWW.CRAINSNEWYORK.COM NOVEMBER 19-25, 2007 PRICE: $3.00 PAGE 3 Diddy speaks out on branding, More labor music’s many ills PAGE 3 unrest on Thain may fix Merrill, but it’s too soon to buy shares tap in NYC IN THE MARKETS, PAGE 4 Rabbis make office Workers want bigger Workers are demanding a calls, Christians greater share of the prosperity that piece of the pie; many of the city’s employers have get a Web site and enjoyed in recent years. But com- off-Broadway sings managers fear panies are reluctant to commit to NEW YORK, NEW YORK, P. 6 slowing economy generous long-term contracts just when the economy is slowing down. In some industries in which BY TOM FREDRICKSON companies have been struggling, BUSINESS LIVES employers are looking for conces- PET PERKS the flurry of strikes in New sions from workers, who are dig- York City may only mark the be- ging in their heels. Firms extend PRASHANT BHATIA MEREDITH WHITNEY DICK BOVE ginning of a long,cold winter of la- “There is anger out there, and it benefits to bor strife. is exacerbated by the opulent life- four-legged “Bankruptcy “[Citigroup] “The brokers Strikes by Broadway workers style that everybody sees,” says family and TV scriptwriters seemed to be Richard Boris, executive director members risk at E*Trade will be forced should be setting the stage for increasingly of the National Center for the PAGE 31 cannot be to sell sold at contentious contract talks in a Study of Collective Bargaining in ruled out.” assets.” once.” number of industries. Those af- Higher Education at Hunter Col- fected include the thousands of lege. “We have now the recipe for people who clean Manhattan of- very charged collective bargaining fice buildings and work in office across the board.” cafeterias, as well as radio news Unite Here is waging a cam- ATTACK-DOG writers and telephone technicians. See LABORon Page 8 AT DEADLINE HEALTH INSURANCE COSTS FOR ANALYSTS LARGE EMPLOYERS in the New Further trials ahead York area increased 6.3% for Blunt-talking group has shaken active workers this year, to an average of $8,730 per markets, driven out CEOs; employee.The increase is for Spitzer’s agenda much higher than the 5.1% has it gone too negative? that employers nationwide are experiencing, according to a BY AARON ELSTEIN Wish list at risk GOVERNOR’S survey released Monday, No. as Bruno feud helps PRIORITIES 19, by Mercer. Local in the past month, the credit crisis has forced banks to employers expect costs to write off more than $50 billion worth of subprime-related fuel Albany gridlock G RENEW horse-racing franchise climb more than 7% next year. getty images: dog G Employers nationwide expect / debt, driven the heads of Citigroup and Merrill Lynch from REFORM campaign finance an increase next year of only their plush corner offices and sent shock waves through BY ERIK ENGQUIST G REVISE Wicks Law 5.9%. global financial markets. G BAN junk food from schools It has also made heroes of a handful of hitherto humble gov.eliot spitzer abandoned his AS THE STRIKE BY THE WRITERS analysts leading the charge to force banks to come clean— controversial plan to give driver’s G PASS power plant siting law GUILD OF AMERICA drags into to quantify the damage and to compel players at the center licenses to illegal immigrants in or- a third week, at least one of the disaster to walk the plank. der to focus on his larger agenda, group of production workers but Albany insiders say it’s still un- and political support for the gover- are unlikely to be affected— Formerly known as docile pencil-pushers routinely par- likely that he will accomplish much nor, and Senate Majority Leader those who work on the four roting the happy talk of the companies they follow, half a in the coming months. Joseph Bruno’s animosity toward soap operas filmed in New dozen among the group of about 20 brokerage analysts who Mr. Spitzer’s priorities include him, have dashed hopes for major York City.The daytime track Wall Street have risen snarling from their cubicles. a slew of bills that piled up when progress. See AT DEADLINE on Page 2 See ATTACK-DOG ANALYSTS on Page 8 discord shut down the capital in “In all of my years in Albany— bloomberg news: street, wall bhatia, whitney June. Since then, declining public See MORE TRIALS on Page 9 47 5 REPORT TECHNOLOGY WEB EXCLUSIVE Online ads powering boom; Slide show of some ELECTRONIC EDITION hybrid workers in demand; of the city’s online 100 fastest-growing advertising NEWSPAPER companies Pages 19-26 workforce www.crainsnewyork.com/slideshows/tech 71486 01068 0 CNYB 11-19-07 A 2 11/16/2007 7:57 PM Page 1 AT DEADLINE Continued from Page 1 six-figure advertising campaign Swanky offices dramas, including All My against JetBlue Airways for Children and One Life to Live, paying its guards poorly. have scripts written to keep The ads from Service them going through the end of Employees International Union January. If the strike continues, Local 32BJ appear on cable feel crunch the shows will hire nonunion television, taxi television and the ghostwriters to sustain the Internet.The union is seeking episodes, sources say. to organize workers of Summit Meanwhile, speculation is Securities, which provides 80 mounting that late-night talk guards to JetBlue.The workers of rent hikes shows are considering returning are paid just $20,000 a year, one to the air after Thanksgiving, ad claims, “not enough to feed a with hosts including David family.” Many firms decide to relocate Letterman and Jon Stewart, writing their own shows. PRESIDENTIAL CANDIDATE JOHN EDWARDS PLANS to create a to less desirable buildings SPANISH FAST-FASHION RETAILER profile on Community Connect ZARA IS CONSIDERING leasing a Inc.’s five niche social BY THERESA AGOVINO four-story, 16,000-square-foot networking sites— space at 500 Fifth Ave., at West BlackPlanet.com, the tower at 450 park ave. is clean, elegant and 42nd Street, according to MiGente.com, AsianAve.com, efficiently managed, and its location in one of industry insiders. Landlord 500 GLEE.com, and Fifth Ave. earlier this year Faithbase.com—according to Manhattan’s premier office districts bestows a ousted its former retail tenants, the Manhattan-based firm. His certain cachet. Lee Elman loves having his including tobacconist Nat wife will also answer questions business at the site. Sherman, to make room for a posted by members. Opponent fashion flagship. A Zara Barack Obama has had a profile His love has boundaries, however. Mr. Elman’s competitor, Swedish H&M, on the sites since Oct. 5 and has rent will more than double when his lease expires opened a store on the opposite attracted more than 200,000 next October, to about $140 a square foot. Because corner in September.The asking friends. In additions, CCI says it the added expense will significantly cut into his rent is about $125 a square foot. is in talks with Sen. Hillary None of the brokers involved in Clinton’s campaign team. CCI’s profit margins, Mr. Elman is looking for new the negotiations would sites have more than 19 million space. Unless he can find a place to share in comment. members. another swanky building, Mr. Elman is RIVERWIRED INC., A NEW SOCIAL A PUBLIC VIEWING OF THE FIVE resigned to downgrading to a location with NETWORKING SITE that aims to PROPOSALS to develop the fewer amenities and less panache. provide “light green” Hudson Rail Yards begins “I need to move out,” says Mr. environmental content to the Monday, Nov. 19, at a storefront Elman, president of an mainstream market, goes live in at 335 Madison Ave.The January.The site, founded in exhibit will be opened for 14 eponymous real estate investment April by Catherine Billon, a days, including weekends, from firm. “Rents are crazy.” former Time Warner executive, 8 a.m. to 8 p.m. Comments Brokers say dramatic rent plans to generate revenue will be accepted at the site and hikes have spurred increasing through advertising. It has online. An MTA spokesman raised $1.5 million in seed says the public’s opinions will numbers of office tenants at the capital. be among the criteria city’s better addresses to seek considered as the agency space in less illustrious quarters. A UNION REPRESENTING narrows the number of In the past 10 years, rents in the “CRAZY RENTS”: Lee SECURITY GUARDS is launching a proposals it will evaluate. I Elman’s real estate highest-quality buildings have investment firm must move to a less more than doubled, forcing prestigious address. nonprofits and businesses with THIS WEEK IN CRAIN’S thin margins—such as ad agencies and architecture ALAIR TOWNSEND -------------------11 33 See RENT HIKES on Page 9 THE INSIDER------------------------------------12 david neff david WEEK IN REVIEW -----------------------14 REAL ESTATE DEALS--------------16 THE WEEKS AHEAD ----------------17 Ferry deal hits choppy sea NEIGHBORHOOD price for the boats and other related pay has not been disclosed. JOURNAL------------------------------------------18 Price dispute over equipment that Statue Cruises must If no agreement is reached soon, REPORT: boats to Ellis Island, acquire as a condition of its new Statue Cruises will likely have to contract with the National Park bring in its own boats by Jan.
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