‘Shortchanged’ Workers At Newark Airport Win Back Wages: NJDOL

NEWARK, NJ — New Jersey state officials are returning more than $2.2 million in back wages to 811 workers who were “shortchanged” by Swissport USA Inc., an international aviation company that provides services at Newark Liberty International Airport, authorities announced Thursday.

According to the New Jersey Department of Labor and Workforce Development (NJDOL), the case is the first enforcement effort done under the Healthy Terminals Act, which was signed into law in 2021 to create new minimum wage and benefits requirements for certain Newark Liberty International Airport and Newark Liberty International Train Station workers.

• See Related: NJ Healthy Terminals Act Takes Off; Gov. Signs Health Care Bill

State officials said the investigation was launched after NJDOL’s Division of Wage and Hour Compliance received a handwritten letter signed by 19 Swissport workers, who alleged they were not being paid the prevailing wage or supplemental health benefits rate they were entitled to under the law, in addition to improper payment for all hours worked.

Service Employees International Union (SEIU) Local 32-BJ also submitted a complaint to the NJDOL on behalf of 35 Swissport workers.

• See Related: Cargo Workers Strike At Newark Airport Over 'Unfair Labor Practices'

Swissport manages an air cargo warehouse at Newark Airport. The global corporation has been serving airlines there since 2013, according to its website.

A spokesperson for Swissport previously told Patch that the company denies the workers’ unfair labor practice allegations, fully complies with applicable labor regulations, and provides “competitive wages and benefits.”

“In all the cities we operate in the United States, Swissport fully complies with operating permit requirements,” the company said. “The health and safety of all our employees is the highest priority for Swissport, as evidenced by our Best-in-Class record.”

That’s not what investigators found, however, according to the NJDOL:

“An audit was performed for September 2021 to September 2022, comparing information provided by Swissport to job duties described in interview with workers. Investigators found that Swissport did not pay the correct prevailing wage and corresponding health benefit rates to employees working at Newark Airport, as required by the Healthy Terminals Act, and determined Swissport to owe $2,223,762 in back wages and liquidated damages. The company was also assessed $53,515 in penalties and $11,370 in fees. Violations included failing to pay prevailing wages and benefits to covered airport employees under the Healthy Terminals Act, uncompensated preliminary and postliminary shift time and other unpaid/late wages.”

Swissport also conducted a self-audit for health and wellness benefits under the Healthy Terminals Act, state officials said. Wage and Hour investigators verified this audit to ensure all workers received the correct amount.

The company paid employees directly for these health benefits following the audit, the NJDOL said.

NJDOL’s Wage and Hour division previously audited Swissport in 2021, resulting in violations for unpaid wages and overtime. As this was Swissport’s second offense for unpaid wages, liquidated damages of $24,841.98 were applied for the unpaid wages related to this issue.

“These workers are charged with ensuring safe operations at some of the busiest transport hubs in the world, and they deserve to be compensated and cared for appropriately for such an important job,” Labor Commissioner Robert Asaro-Angelo said.

The case marks the third-largest back wage settlement for the department, officials said. In 2006, Raymour and Flanigan paid $2.5 million to its workers and the previous year, Nestle Waters North America paid $3.6 million after being found liable by the state.

• See Related: 300 Cargo Workers At Newark Airport See Long-Awaited Pay Boost

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