NEW YORK—As 23 construction contracts reached their expiration date on June 30, millions of dollars in building projects were on the line, not to mention a potential power shift between private and union workers.
Some unions made concessions; some contract deadlines have been extended until July 7 to allow for further negotiations; and a potentially hostile situation and widespread strikes were averted.
A relatively small but powerful union, Operating Engineers Local 14 agreed to “major modifications” in their contract at the 11th hour, thereby avoiding a strike that would have trickled down to many other unions, reports Louis Coletti, president of the Building Trades Employers’ Association (BTEA). Coletti could not comment on the nature of the concessions, as a document outlining the agreement is still being drafted for distribution to the union’s membership.
The crux of the negotiations, however, was union labor costs and what contractors deemed inefficient practices. Union workers cost 30 percent more than private construction workers on average. Contractors insisted the unions cut their costs by 20 percent. BTEA has indicated it will no longer hold to an agreement with the unions to only use union labor.
Unions across the nation have feared a power shift ever since Wisconsin Gov. Scott Walker stripped unions of collective bargaining rights in March.
The operating engineers hold a particular power that is under threat: they have a monopoly over issuing licenses for crane operators—an integral part of high-rise construction. Mayor Michael Bloomberg wants to implement a national licensing system, a process Coletti says is moving forward.
“We want to remain union contractors,” said Coletti. “There is value in hiring union, but the owners that we work for are willing to pay a 10 percent premium, not 30 percent,” he added. The union leaders did not respond to inquiry as of press deadline.
Some unions made concessions; some contract deadlines have been extended until July 7 to allow for further negotiations; and a potentially hostile situation and widespread strikes were averted.
A relatively small but powerful union, Operating Engineers Local 14 agreed to “major modifications” in their contract at the 11th hour, thereby avoiding a strike that would have trickled down to many other unions, reports Louis Coletti, president of the Building Trades Employers’ Association (BTEA). Coletti could not comment on the nature of the concessions, as a document outlining the agreement is still being drafted for distribution to the union’s membership.
The crux of the negotiations, however, was union labor costs and what contractors deemed inefficient practices. Union workers cost 30 percent more than private construction workers on average. Contractors insisted the unions cut their costs by 20 percent. BTEA has indicated it will no longer hold to an agreement with the unions to only use union labor.
Unions across the nation have feared a power shift ever since Wisconsin Gov. Scott Walker stripped unions of collective bargaining rights in March.
The operating engineers hold a particular power that is under threat: they have a monopoly over issuing licenses for crane operators—an integral part of high-rise construction. Mayor Michael Bloomberg wants to implement a national licensing system, a process Coletti says is moving forward.
“We want to remain union contractors,” said Coletti. “There is value in hiring union, but the owners that we work for are willing to pay a 10 percent premium, not 30 percent,” he added. The union leaders did not respond to inquiry as of press deadline.