Press & News

Roger Price Published in Real Estate Finance
10/18/2006

The October issue of Real Estate Finance includes Roger Price’s article, “What the Breakup of Unified Organized Labor Means for the Construction Industry,” on the impact of the AFL-CIO split and creation of the Change to Win (CTW) union federation on construction workers. The CTW, which was formed in July 2005, includes members who belonged to the International Brotherhood of Teamsters (Teamsters), Laborers’ International Union of North America (Laborers) and the United Brotherhood of Carpenters and Joiners of America (Carpenters), and has identified construction as one of eight industries it will target in organization efforts.

Roger describes the schism between the AFL-CIO and CTW that has resulted in aggressive organizing, anti-corporate campaigns, and increased incidence of strikes due to failed collective bargaining, as demonstrated in June 2006 when the Laborers struck a Chicago-based building association after its contract expired and bargaining efforts failed. In addition to revealing the hard stance unions are expected to take in contract negotiations, this strike demonstrated the cohesiveness of the building trades unions. Despite the CTW/AFL-CIO split at the national level, local union members remained loyal to one another as other building trades unions refused to cross the Laborers’ picket lines, effectively shutting down work on major construction sites in Chicago.

Disputes are expected over  which unions’ members have a right to perform certain work. Such disputes were typically resolved through the AFL-CIO’s Building and Construction Trades Department (BCTD) or by the National Labor Relations Board (NLRB). CTW member unions representing construction workers and the International Union of Operating Engineers, however, have withdrawn from the BCTD and formed their own body, the National Construction Alliance (NCA), which claims that the breakup will result in fewer jurisdictional disputes, but the existence of dual bodies responsible for assigning work in the construction trade will likely create disputes.

Roger suggests that employers take steps to minimize the effect on their business. Non-union employers who would like to keep their non-union status should review their policies and procedures to ensure that they are maintaining a positive work environment and address any vulnerabilities that may be exploited by an anti-corporate campaign. Union employers must also take steps to minimize the disruption aggressive union tactics might have on their operations and explore methods to increase their bargaining power before contracts expire. Additionally, union employers should create plans to deal with strikes and jurisdictional disputes in ways that will minimize work stoppages and disruptions on the job site.