In a groundbreaking effort to help get New York City construction workers back to work, the city Building and Construction Trades Council and their management counterparts have agreed to a historic project labor agreement that could save more than 10,000 jobs.

The pact, signed in June, is expected to stimulate more than $2 billion in construction activity by cutting costs and adopting new work rules that will increase productivity.

"It's going to put our members back on the job," said New York City Local 3 Business Manager Christopher Erikson. "In these tough times, you need to find ways to keep the work going."

The Economic Recovery Project Labor Agreement, which came out of months of intensive labor-management negotiations, is expected to reduce building costs by an average of 16 to 21 percent.

Under the pact, the building trades have agreed to a no strike-pledge and the maximum utilizations of apprentices whenever possible to save on labor costs. Labor also committed to a strict adherence to the highest standards of excellence on the job.

In return, union contractors agreed to freeze wages for management personnel, reduce profit margins and pledged against lockouts.

"Labor and management are not content merely to wait for a national rebound," New York Mayor Michael Bloomberg told New York Construction, a city trade publication. "(The) agreement is an important step to get stalled projects going again."

One of those projects is the Beekman Tower in lower Manhattan, designed by the renowned architect Frank Gehry. Construction on the 867-foot tower, which is slated to be completed in 2011, came to a halt last spring. "There was serious speculation that the 76-floor tower would be capped at 40 floors due to the economic downturn," Erikson said.

"Starting last fall, banks starting demanding a 40-percent down payment from developers instead of their usual 15 percent before they would give out loans," he said. "Some owners were talking about filling in their holes with sand."

But thanks to the savings made in labor costs by the new agreement, the tower's developer, Forest City Ratner Cos., resumed construction in June.

The agreement applies to 12 high-rise projects; developers of more than a dozen others in financial risk have applied for coverage. The agreement will run through the summer of 2010.

"We will revaluate where we are at in a year, but our contractors and members are now glad to be back on those projects that were in serious jeopardy," Erikson said.

"We have two problems in New York: the financial crisis and creeping nonunionism," John Cavanagh, chairman emeritus of the Contractors Association of Greater New York, told New York Construction. "This will help both."