Contractors File Unfair Labor Charge With NLRB
posted November 20, 2008
The Mechanical Contractors Association (MCA) of Chattanooga has filed an unfair labor charge against several union groups, saying they are trying to impose a unilateral rate hike that could cost Volkswagen millions of dollars at its new Chattanooga plant.
Connie Hood, President of the Mechanical Contractors Association of Chattanooga, said the United Association of Journeymen and Apprentices of the Plumbers and Pipe Fitters Industry (UA), located in Washington, D.C., is seeking to impose a 24.9 percent increase for work at the huge new plant at the Enterprise South Industrial Board.
He said it is about $6 per hour higher than rates agreed by the MCA with union groups in June.
The complaint with the National Labor Relations Board office in Atlanta is against the Pipefitters and Steamfitters Local No 43 and the Mid-South Multi-State Pipe Trades District Council No. 21. Both are affiliates of the UA. Also named in the charges was the Plumbers and Steamfitters Union Local No. 43 located in Chattanooga.
Mr. Hood said, "In an effort by the Chattanooga MCA to block the Mid-South Multi-State Pipe Trades District Council No. 21 from forcing a labor rate increase for all UA workers performing work at the new VW plant, the unfair labor complaint has been filed. Depositions are being taken this week and a ruling is expected soon.
"We (MCA) have a labor contract in place, one that was fairly negotiated with the Local 43 and finalized on June 30, long before VW announced Chattanooga as the site of their new home. Those negotiated rates were then submitted to VW through the Building Trades Counsel immediately following the announcement that Chattanooga had been chosen for the new VW site."
"Through negotiations, our current contract gives UA Local 43 members an increase of almost 6.9%, following an increase of 7% in June 2007, far more than the norm in today's difficult economic times. We are now faced with the Mid-South Multi-State Pipe Trades District Council No. 21 trying to step in with total disregard of our current contract and demanding wage rates different from and in excess of the wages and benefits specified in our agreement."
"For this to occur after the VW announcement in mid-July is nothing more than price gauging or taking advantage of our community’s good fortune."
"The Mid-South District Council's attempt to force a 24.9% increase for work performed at VW beginning in January 2009, in conjunction with a current total wage package, could end up costing VW millions - not to mention additional cost to tier one and two vendors and suppliers who may also plan to join VW at Enterprise South Industrial Park."
"We are very fortunate that VW selected our city for their new home, and to think the results of an enormous amount of hard work by our city officials could be jeopardized is very disturbing to me. At a time when our economy is at the brink of disaster and both GM and some economists believe the UAW and high wage and benefits demands are a major cause of their financial predicament, one would think the UA and its affiliates would not be so forceful in their unreasonable demands at Volkswagen. Could this be a glimpse of what the UAW has in store for the world’s largest automaker should they consider a union workforce in Chattanooga?"
"Allowing the unions to step in whenever and wherever they wish, with unreasonable rate hikes, could end up costing future jobs for our community as well as much-needed work for our local union contractors. Should they be successful in their efforts, other vendors and suppliers may decide to locate elsewhere - outside the limelight of Enterprise South."
Mr. Hood said local union members have not yet been approached by the Mid-South Multi-State Pipe Trades District Council No. 21. But he said unions in Nashville, where labor rates are higher, have joined.
He said if the higher labor rates are imposed, it could cause Volkswagen to opt instead for a major non-union construction firm. He said that would eliminate local builders because there is not a Chattanooga non-union firm large enough to handle the job. He said the closest such firm might be in Knoxville.
Mr. Hood also said member firms of the MCA who have already submitted bids to Volkswagen for work at the site could stand to lose up to $500,000 if the higher labor rates are imposed.
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