Abstract
The labor–management relationship is about effectively using leverage. This includes the use of bargaining leverage and the use of resource and investment leverage. Labor–management relationships have expanded their use of leverage by using additional leverage tools against third parties, instead of each other. If labor–management negotiators can achieve a constructive leverage mean, they are able to access additional tools to improve community outcomes including market share improvements, hours worked by members, and projects captured by signatory contractors. This contrasts sharply with the use of destructive bargaining leverage that focuses economic distribution in a zero-sum game. A case study of the relationship between a contractor’s association and labor union is used to show how the use of leverage can dramatically increase if a leverage mean is achieved and a series of common goals can be established.
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Notes
- 1.
CIAR was created by Builders Exchange to manage the traditional labor relation’s activities. Over the course of the last 125 years, Builders Exchange has moved from an association that only had union contractors as members to one that has about 30 % union contractors as members. This reflects changes in the construction market place, not a change in philosophy. The Builders Exchange exists to represent contractors of all types and will do so in the most efficient manner possible.
- 2.
Mr. Daniel Rose led the union from 2004 to 2006. He is noteworthy only for being the primary suspect in a murder investigation that was never solved. Mr. Rose was a New York State Trooper at the time of the investigation and subsequently left the force. See Niagara Falls Reporter, March 9, 2004, “Retired Detective Names Union Boss Big Suspect in Woman’s Disappearance” by Mike Hudson.
- 3.
The union had failed to file the required notice of bargaining with the Federal Mediation Conciliation Service. Strikes or lockouts are prohibited if the notice has not been filed.
- 4.
Mr. Rose read and initialed every page of the agreement before signing it. Later, he claimed he did not agree to portions of the text, which he had initialed, relating to wage rates for tile finishers who he believed should have higher wage rates.
- 5.
Many of the contractors that sign with the bricklayers also have agreements with the other unions, known as the basic trades. The basic trades include the laborers, bricklayers, carpenters, and operating engineer. There is significant overlap in work jurisdiction between the trades. This can result in a trade being over or under utilized depending on its wage rate relative to the other trades. In the case of the bricklayers’ agreement, their wages became out of step and there was such a bad feeling created that work was reassigned to other trades when feasible.
- 6.
The agreement was so well received by the international union that one of the union team members subsequently became the national director of collective bargaining. In addition, Local 3 was one of only two locals in the country that was able to sustain and grow work hours during the economic down turn.
- 7.
It should be noted that the use of pension assets is highly regulated. The projects considered by the Local 3 Rochester Pension Fund were all put through a rigorous process. This includes review by professional investment consultants and qualified plan asset managers (QPAMS) to determine investment feasibility and appropriateness for the plan. The plan may not make investments that are inconsistent with Department of Labor and Internal Revenue Service rules, even if the investment would increase employment.
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Hilger, A.A. (2014). Leverage in a Labor–Management Relationship: Maximizing the Use of Leverage by Finding a Constructive Leverage Mean. In: Anderson, D. (eds) Leveraging. Springer, Cham. https://doi.org/10.1007/978-3-319-06094-1_7
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