Non-Union Blues
Wednesday, April 28th, 2010Thanks to a decision made by the government of the state of Vermont – mostly the Douglas Administration but with the support of leading legislators – the new Lake Champlain bridge will cost Vermont taxpayers somewhat more than it might.
Thanks to that same decision, no Vermont worker is guaranteed to get one of the 150 or more jobs – some paying more than $47 an hour including benefits – on the $61 million project, the largest construction project in the state in some time.
Finally, thanks to the decision, strikes, labor jurisdictional disputes, or other work stoppages could interrupt progress on the new bridge, scheduled to be completed by July of 2011.
The decision was the state’s refusal to participate in a Project Labor Agreement (PLA). Under a PLA, construction unions agree to certain concessions, such as surrendering premium pay for late shifts and allowing flexibility in computing overtime. This holds down the price of the project.
They also agree not to stage strikes, slowdowns or other work delays, a provision especially important when officials – and the public – are impatient to finish the job.
In return, most of the workers are selected from union hiring halls, meaning union members get priority, though non-union workers are commonly chosen also, simply because the job requires more workers than there are union members in any area.
In this case, the federal government signaled its approval of using a PLA. The state of New York agreed. The unions made the necessary concessions.
Vermont said no.
To recap: The PLA would (1) Not cost anyone a penny; (2) Save the state and its taxpayers some hundreds of thousands of dollars according to the one study devoted to the question; (3) guarantee scores of Vermont workers high-paying jobs for 15 months.
And the state said no?
“It’s a philosophical opposition to unions,” said Sen. Vince Illuzzi, the Orleans County Republican who supports the PLA.
Not so, said John Zicconi, the spokesman for the Agency of Transportation, who said Vermont officials “didn’t think one (PLA) was necessary.”
Zicconi said Transportation Secretary David Dill told New York officials Vermont would consider the PLA if “nonunion shops were treated completely equally with the union shops,” a condition that he said was not met.
“Our non-union shops should have been on a level playing field,” Zicconi said. “That was the key issue to us.”
It was the key issue, Zicconi acknowledged, because the Agency was subject to “strong lobbying” by Vermont’s construction firms, organized as the Associated General Contractors of Vermont. Almost all of Vermont’s contractors are non-union shops, and obviously intent on staying that way. Both Zicconi and AGC officials said that under a PLA no non-union Vermont contractor could possibly get chosen as a subcontractor to do any work on the bridge.
But according to the “Due Diligence” report on the advisability of the PLA done by Arace & Co. consulting firm of Warwick, N.Y., non-union contractors win at leas”t 30 percent of all (contracts) under PLAs.”
The report also concluded that a PLA on the bridge “has the potential to produce cost savings for the Federal government and the taxpayers of New York State and Vermont. We estimate potential savings of approximately $1,756,032.”
Vermont’s share of that would presumably be several hundred-thousand dollars.
Besides, there do not seem to be any Vermont firms that could possibly win a subcontract for any of the work that would have been covered by the PLA. Zicconi and AGC sources said they hoped Vermont firms might get subcontracts for line-striping the road, installing the guard rails, or providing concrete.
But according to Michael Morelli of the Ironworkers union and other union officials, the less expensive contracts for line-striping and guard rails were not part of the draft PLA. And the concrete material, which is likely to be handled by a non-union Vermont firm, is considered supply, not construction contracting. It isn’t part of the PLA, either.
In fact, so many of the arguments in opposition to the PLA are so demonstrably incorrect that Illuzzi’s contention that state officials are motivated by “philosophical opposition” can’t be dismissed out of hand.
For instance, both builders and state officials repeatedly told lawmakers and reporters that the PLA would force non-union Vermont workers to “join a union.”
It would not. The workers would have to pay union dues while on this particular job. But they would not have to become union members, and they could stipulate that none of their dues money go for political activity. In the meanwhile, they and their families would enjoy the generous health benefits of the union plans.
And in disputing the consultant’s estimate of $1.7 million in savings, Zicconi said that would depend on whether the unions made concessions, and on the report’s assumption that union workers were more efficient, “and I don’t buy that.”
But the unions have already made the concessions. And the efficiency issue, according to Ed Acer of the consulting firm, based on findings that union workers are “more likely to be more productive and safety-conscious” because they are “graduates of rigorous state-certified apprentice programs,” accounted for $112,000, or .005 percent of the projected savings.
“That’s a rounding error,” he said.
A PLA would not have cost Vermont contractors a penny. All workers on the job will have to be paid the New York State prevailing wage, which is much higher than Vermont’s. A Vermont laborer, said, John Donahue of the Laborer’s union, earns about $12 an hour, usually with no benefits. The New York prevailing wage, he said, is $37 an hour, $23 in pay and the rest benefits. Even after deducting union dues (about $2.22 an hour) the worker earns a lot more under the New York system.
That, of course, could reveal a practical, rather than a “philosophical” reason Vermont contractors oppose the PLA. They may not want their workers to get a taste of the higher wages and benefits that unionization brings.
Labor leaders could be exaggerating when they say that without the PLA no Vermont worker might be hired. The general contractor, Flatiron Constructors of Colorado, is not likely to bring all 150 or more skilled workers with it. But Morelli of the Ironworkers said Flatiron was known for “self-performing” a great deal of its work and bringing some of its work force with it.
Efforts to reach Flatiron were not successful.
And Donahue might have been bluffing when he threatened labor unrest.
“We’re not going to stand by,” he said. “There could be picket lines and everything.”
But they are correct when they say that without the PLA there is no guarantee either that Vermonters will get any of these good-paying jobs or that there will be no delays because of labor squabbles. Under the draft PLA, 84 percent of the jobs would have been apportioned through local hiring halls in New York and Vermont, though non-union contractors could “drag-along” their own employes to make up the rest.
The final irony here is that there could be a PLA after all. Vermont’s refusal only scuttled plans for a public PLA. But the unions and Flatiron could negotiate a private agreement. Flatiron has operated under PLAs in the past. It was the general contractor for the replacement of the Mississippi River bridge in Minneapolis that collapsed in 2007. That jog was finished ahead of schedule and under budget, and it was conducted under a PLA.
A Flatiron official was in the Albany area yesterday, perhaps negotiating.
Under a private PLA, though, the taxpayers will not save the money. Flatiron will add it to its bottom line.






