BUILDING TRADES

Vol. 8, No. 2
April, 1999



	BUILDING & CONSTRUCTION TRADES Las Vegas Project Organizes 7,000 The pilot Building Trades Organizing Project (BTOP) has organized 7,000 workers from various construction crafts, representing a 35 percent rise in membership growth, as it campaigns to increase its unionized share in Las Vegas, one of the fastest-growing construction markets in the country. Formed two years ago by national leaders of the 15 construction unions, the BTOP's goal is to organize the entire Las Vegas market as a means of stabilizing wages, benefits and working conditions. To organize contractors on an individual basis can be counterproductive, since a newly-unionized employer can't compete with non-union contractors because of higher labor costs and may be forced to shut down, leaving his workers without jobs. There are about 11,000 licensed contractors in Nevada, many of them consisting of a handful of workers or even one individual. With 40 to 50 organizers in the field, many of them on the payroll of local construction unions, BTOP has become a force in the Las Vegas construction industry. Local building crafts have been fairly successful in unionizing the big jobs on the Strip, the string of hotels, restaurants and gambling casinos that have become a tourist Mecca. The big problem is organizing home building and light construction, such as stores, warehouses, schools and infrastructure projects. BTOP organizers have conducted strikes involving about 500 workers in the past three months, mostly over issues like the lack of clean drinking water, toilet facilities and abusive treatment by supervisors. They strive to get contractors to sign a "trigger" agreement under which they pledge to sign a standard union contract when 50 percent or more of contractors agree to be unionized. Robert A. Georgine, president of AFL-CIO's Building and Construction Trades Department, said: "The most important thing we've seen in Las Vegas is that construction workers will fight hard and make great personal sacrifices to bring unionism onto their construction sites, even in the face of fierce and often illegal resistance by their unfair contractor employers." Georgine said that the 15 building trades presidents were sufficiently satisfied with the Las Vegas operation to make it permanent and that the BTOP strategy would be carried to other major construction markets. Seattle has been chosen as a prime target for a large-scale organizing campaign, because it has a booming construction industry and a very active building trades council. More than 500 union members, serving as volunteer organizers, have been distributing literature and talking to workers at non-union job sites. Construction Unions Gained Members After losing members during the past five years, construction unions turned the corner with a net gain of 37,000, bringing their membership to 1,093,000, according to the Bureau of Labor Statistics. However, as a percentage of the industry's total work force, which reached a record level of nearly six million workers, unions slipped to 18.4 percent, down from 19.5 percent in 1997. The gap between the earnings of union and non-union construction workers remained at about 40 percent, with union members earning an average weekly pay of $790, compared with $496 for their non-union counterparts, BLS reported. The situation in the construction industry paralleled that of the AFL-CIO, where there was an increase of 65,000 members — also the first in five years — although union membership as a percentage of the nation's work force declined to 13.9 percent, down from 14.1 percent in 1997. IBEW in Drive on Residential Work Recognizing that there is a serious shortage of qualified electricians in the construction industry, the International Brotherhood of Electrical Workers (IBEW) has devised a strategy that will help it to expand its market share in the residential construction sector. The IBEW's organizing effort enlists the support of union contractors affiliated with the National Electrical Contractors Association (NECA) and involves the union's national joint apprentice training program. The appeal to non-union contractors is that by signing with the IBEW, they can obtain highly qualified electricians who have undergone extensive training. One of the union's problems is to get enough young people willing to undergo apprentice training, since many can find what they consider better career opportunities in other industries. Here is how Charles "Bud" Fisher, assistant to IBEW President John Barry, sees the problem: "The construction industry is confronted with a major shortfall of qualified people to do electrical work. People are not applying to the training programs. We know without a doubt that IBEW President (John) Barry and the leaders of NECA have established the best training program in the industry and we openly promote that we will train people to address the needs of the industry anywhere in this country in a timely fashion with qualified people. We know that providing qualified people is a major concern in the industry sector and will continue to be over the next decade." Non-union contractors may be attracted to the idea of getting skilled electricians, but they have a strong desire to keep wages low, especially because construction is a cut-throat industry, based on competitive bidding. There is strong resistance to paying the union wage and benefits, especially in residential construction. The IBEW, whose 750,000 members are employed in a variety of industries, has 250,000 in construction. St. Louis Laborers Approve 5-Year Pact In fairly harmonious negotiations with representatives of two contractors associations, the Laborers District Council of Eastern Missouri signed five-year contracts covering nearly 11,000 workers in metropolitan St, Louis. Its agreement with the Associated General Contractors of St. Louis gives 5,500 unionized laborers an increase of $4.50 in wages and benefits over five years. The same $4.50 hourly increase was obtained for an additional 5,000 laborers from the Site Improvement Association (SIA) . In both agreements, there is an initial 80 cent hourly increase for the first year starting March 1, 1999, with 55 cents going to wages and 25 cents to the pension fund. In the following four years, the annual hourly increases are 85 cents, 90 cents, 95 cents and $1 for the year 2003. The contract raises the hourly rate for commercial and heavy highway work to $21.54 an hour. Contributions to health and welfare remain at $2.75 an hour; pensions, at $2.85 an hour, and training, at 40 cents an hour. Employer contributions to the vacation fund remains at $1 an hour. Chicago Contractors Convicted of Fraud Three members of the Palumbo family, top executives of two Illinois road construction companies, pleaded guilty of cheating some 900 union members out of $3.3 million in wages and benefits. They were also convicted of defrauding the Illinois Department of Transportation through schemes that billed the agency for road construction work and materials that were never provided. In addition to paying fines of more than $15 million, the three executives, members of the Palumbo family, will serve prison terms ranging from between 15 and 21 months. Their two companies, Palumbo Brothers and Monarch Asphalt Co., cheated their employees by underpaying them and under-reporting their working hours, then creating false documents to conceal the fraud. The 900 victimized workers will receive the back wages and benefits due them. They are members of locals of the Laborers International Union and the International Brotherhood of Teamsters.

BUILDING & CONSTRUCTION TRADES

Las Vegas Project Organizes 7,000

The pilot Building Trades Organizing Project (BTOP) has organized 7,000 workers from various construction crafts, representing a 35 percent rise in membership growth, as it campaigns to increase its unionized share in Las Vegas, one of the fastest-growing construction markets in the country.

Formed two years ago by national leaders of the 15 construction unions, the BTOP's goal is to organize the entire Las Vegas market as a means of stabilizing wages, benefits and working conditions. To organize contractors on an individual basis can be counterproductive, since a newly-unionized employer can't compete with non-union contractors because of higher labor costs and may be forced to shut down, leaving his workers without jobs. There are about 11,000 licensed contractors in Nevada, many of them consisting of a handful of workers or even one individual.

With 40 to 50 organizers in the field, many of them on the payroll of local construction unions, BTOP has become a force in the Las Vegas construction industry. Local building crafts have been fairly successful in unionizing the big jobs on the Strip, the string of hotels, restaurants and gambling casinos that have become a tourist Mecca. The big problem is organizing home building and light construction, such as stores, warehouses, schools and infrastructure projects.

BTOP organizers have conducted strikes involving about 500 workers in the past three months, mostly over issues like the lack of clean drinking water, toilet facilities and abusive treatment by supervisors. They strive to get contractors to sign a "trigger" agreement under which they pledge to sign a standard union contract when 50 percent or more of contractors agree to be unionized.

Robert A. Georgine, president of AFL-CIO's Building and Construction Trades Department, said: "The most important thing we've seen in Las Vegas is that construction workers will fight hard and make great personal sacrifices to bring unionism onto their construction sites, even in the face of fierce and often illegal resistance by their unfair contractor employers."

Georgine said that the 15 building trades presidents were sufficiently satisfied with the Las Vegas operation to make it permanent and that the BTOP strategy would be carried to other major construction markets. Seattle has been chosen as a prime target for a large-scale organizing campaign, because it has a booming construction industry and a very active building trades council. More than 500 union members, serving as volunteer organizers, have been distributing literature and talking to workers at non-union job sites.

Construction Unions Gained Members

After losing members during the past five years, construction unions turned the corner with a net gain of 37,000, bringing their membership to 1,093,000, according to the Bureau of Labor Statistics. However, as a percentage of the industry's total work force, which reached a record level of nearly six million workers, unions slipped to 18.4 percent, down from 19.5 percent in 1997.

The gap between the earnings of union and non-union construction workers remained at about 40 percent, with union members earning an average weekly pay of $790, compared with $496 for their non-union counterparts, BLS reported.

The situation in the construction industry paralleled that of the AFL-CIO, where there was an increase of 65,000 members — also the first in five years — although union membership as a percentage of the nation's work force declined to 13.9 percent, down from 14.1 percent in 1997.

IBEW in Drive on Residential Work

Recognizing that there is a serious shortage of qualified electricians in the construction industry, the International Brotherhood of Electrical Workers (IBEW) has devised a strategy that will help it to expand its market share in the residential construction sector.

The IBEW's organizing effort enlists the support of union contractors affiliated with the National Electrical Contractors Association (NECA) and involves the union's national joint apprentice training program. The appeal to non-union contractors is that by signing with the IBEW, they can obtain highly qualified electricians who have undergone extensive training.

One of the union's problems is to get enough young people willing to undergo apprentice training, since many can find what they consider better career opportunities in other industries.

Here is how Charles "Bud" Fisher, assistant to IBEW President John Barry, sees the problem: "The construction industry is confronted with a major shortfall of qualified people to do electrical work. People are not applying to the training programs. We know without a doubt that IBEW President (John) Barry and the leaders of NECA have established the best training program in the industry and we openly promote that we will train people to address the needs of the industry anywhere in this country in a timely fashion with qualified people. We know that providing qualified people is a major concern in the industry sector and will continue to be over the next decade."

Non-union contractors may be attracted to the idea of getting skilled electricians, but they have a strong desire to keep wages low, especially because construction is a cut-throat industry, based on competitive bidding. There is strong resistance to paying the union wage and benefits, especially in residential construction.

The IBEW, whose 750,000 members are employed in a variety of industries, has 250,000 in construction.

St. Louis Laborers Approve 5-Year Pact

In fairly harmonious negotiations with representatives of two contractors associations, the Laborers District Council of Eastern Missouri signed five-year contracts covering nearly 11,000 workers in metropolitan St, Louis. Its agreement with the Associated General Contractors of St. Louis gives 5,500 unionized laborers an increase of $4.50 in wages and benefits over five years. The same $4.50 hourly increase was obtained for an additional 5,000 laborers from the Site Improvement Association (SIA) .

In both agreements, there is an initial 80 cent hourly increase for the first year starting March 1, 1999, with 55 cents going to wages and 25 cents to the pension fund. In the following four years, the annual hourly increases are 85 cents, 90 cents, 95 cents and $1 for the year 2003.

The contract raises the hourly rate for commercial and heavy highway work to $21.54 an hour. Contributions to health and welfare remain at $2.75 an hour; pensions, at $2.85 an hour, and training, at 40 cents an hour. Employer contributions to the vacation fund remains at $1 an hour.

Chicago Contractors Convicted of Fraud

Three members of the Palumbo family, top executives of two Illinois road construction companies, pleaded guilty of cheating some 900 union members out of $3.3 million in wages and benefits. They were also convicted of defrauding the Illinois Department of Transportation through schemes that billed the agency for road construction work and materials that were never provided.

In addition to paying fines of more than $15 million, the three executives, members of the Palumbo family, will serve prison terms ranging from between 15 and 21 months.

Their two companies, Palumbo Brothers and Monarch Asphalt Co., cheated their employees by underpaying them and under-reporting their working hours, then creating false documents to conceal the fraud.

The 900 victimized workers will receive the back wages and benefits due them. They are members of locals of the Laborers International Union and the International Brotherhood of Teamsters.

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