April 21 (Bloomberg) -- A threatened strike by 25,000 New York City doormen and other residential building workers was averted after their union reached an early morning contract agreement with property owners.

Two minutes before last night's midnight deadline, spokesmen for the Realty Advisory Board on Labor Relations Inc., representing property owners and operators, and the Service Employees International Union, Local 32BJ, told reporters at the New York Sheraton Hotel and Towers they were extending talks because ``the elements of an agreement'' were on the table. A new four-year contract was announced at 1:10 a.m.

``We're very pleased we were able to reach the agreement, avoid a strike, and continue to work together,'' 32BJ President Michael Fishman said.

The current contract expired at midnight and the union had threatened to pull doormen, porters, handymen and elevator operators from 3,500 residential buildings, the majority in Manhattan, rather than accept owners' demand for a one-year wage freeze and employee contributions to health care premiums. A strike would have left a million residents to fend for themselves with security guards in their lobbies instead of concierges and porters.

The agreement, which must be ratified by the Realty Advisory Board's directors and the union's rank and file, provides a raise of 8 1/4 percent over four years. There will be a six-month pay freeze, with the first 2.06 percent annual raise going into effect in October, six months into the new contract. Health and pension benefits are unchanged.

``This agreement will serve both the employers and the employees and provide us with cost certainty,'' said James Berg, president and chief negotiator for the Realty Advisory Board.

Owners had claimed that rising costs for fuel and insurance and a slowing real estate market made union concessions necessary. The union had argued that owners could afford to be more generous amid a booming real estate market.

Under the old contract, a doorman made $37,300 a year, not counting overtime and tips, up 5.7 percent from $35,300 three years ago. Wages will go up by an average of $793 a year over the course of the contract, which expires April 20, 2010.

In the past year, the average price for Manhattan co-ops and condominiums rose 7.1 percent to $1.3 million, according to a report earlier this month from property appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman. It was the slowest pace in three years.

To contact the reporter on this story: Josh P. Hamilton in New York at jphamilton@bloomberg.net.

Last Updated: April 21, 2006 01:54 EDT