Some good news on the Labor front. In early-September a federal grand jury in Boston issued a verdict in favor of five open shop steel erectors, including American Steel & Precast Erectors, Greenfield NH, who filed suit against Ironworkers Local 7 for conspiring to deny work to non-union steel erectors through a job targeting fund. The five contractors sued Local 7 in a district court, claiming the union conspired with union contractors to monopolize steel erection work in the Boston area. The union used Market Recovery Program funds to help underbid non-union companies. Initially the court granted summary judgment to Local 7 prompting the non-union contractors to appeal the decision. On review the appeals court reversed the decision and sent the case back to the district court for resolution and a jury award. The decision is significant and precedent-setting. It is hopeful that it will result in a larger antitrust case against Local 7 focusing on the union’s Market Recovery Program and antitrust laws.

Job targeting is a tactic used by several unions to subsidize the union collective bargaining rates to underbid non-union contractors. The unions utilize market recovery funds that are collected from their signatory contractors. Feedback from members indicates that it is increasingly being used on projects in our region. Earlier this year, a study conducted by George Mason University showed that construction labor unions spent more than $1 billion in market recovery funds between 2000 and 2007 in an attempt to underbid non-union contractors.