City Council Committee Approves PHL, Airline Lease Extension

By Mike Dunn

PHILADELPHIA (CBS) - A city council committee has approved a lease extension between Philadelphia International Airport and the airlines but not before lawmakers raised concerns about how employees of subcontractors are paid.

Council members object to some airport concessionaires contracted by the airlines that don't pay their workers the minimum wage on the premise that they receive tips.

Several of the workers testified about struggling to make ends meet, including Onetha McKnight:

"I started at $7 an hour, and today six years later, I make $7 an hour. I receive tips, but as you all know, tips are not guaranteed. There are days when I receive only one dollar in tips."

But airport CEO Mark Gale told the Council committee that the airport is not involved in the wage dispute:

"The Use and Lease Agreement represents a contract between ourselves and the airlines. And we typically do not interfere with the operations of those private sector entities with third party entities. Historically, and traditionally, the Philadelphia International Airport as run by the city has not engaged or interfered with those contractual relationships."

Councilman Wilson Goode asked Gale why the airport tracks wages for construction workers, but not these employees:

Goode: So you monitor and enforce wage standards for construction workers, but you don't do that for service workers?

Gale: For monies that the airport is expending, yes.

Goode: Is that fair? Is it fair to have…

Gale: It is what we have to follow, Councilman.

Gale was seeking approval of a two-year extension of the current lease between the airport and the airlines, which expires at the end of this month. He said if council failed to okay the deal, federal monies involving the massive airport expansion could be jeopardized.

But Council members like Cindy Bass argued that how these workers are treated reflects on the image of the airport and the city:

"This is really about employers behaving badly."

After a nearly three-hour hearing, Council's Transportation Committee approved the lease agreement with amendments that would -- among other things -- create a workforce panel that would help opportunities for these workers and others. The lease now goes to the full council for approval.