Friday, July 18, 2014

Appeals court ruling outlaws union-favored hiring practice



A federal appeals court has ruled that communities in four New England states, including Massachusetts, cannot require companies bidding for public construction jobs to have apprentice training programs, a blow to trade unions that have traditionally benefited from such policies.

A federal appeals court has ruled that communities in four New England states, including Massachusetts, cannot require companies bidding for public construction jobs to have apprentice training programs, a blow to trade unions that have traditionally benefited from such policies.

In a decision issued Wednesday, the U.S. Court of Appeals for the First Circuit in Boston ruled against the city of Quincy in its challenge of an earlier decision that sided with Merit Construction Alliance, a Kingston-based nonprofit that represents 75 non-union contractors.

The original ruling, given by U.S. District Court Judge Rya Zobel, says Quincy’s ordinance that requires contractors bidding on public works jobs to have a state-approved apprentice program - used by most unions - violates a federal law that sets minimum labor standards for private employers.

The appeals court decision essentially means cities and towns in the First Circuit, comprised of Massachusetts, Rhode Island, Maine, New Hampshire and Puerto Rico, can no longer narrow the public-bid process by requiring apprenticeship training.

Ronald N. Cogliano, president of the Merit Construction Alliance, said the ruling creates an even playing field for non-union shops that have been unfairly passed over for public jobs in certain communities. Cogliano estimated nearly 20 communities in Massachusetts have ordinances similar to Quincy's, including Boston, Springfield, New Bedford and Worcester.

“It’s a big victory for merit shops and, in general, for taxpayers, as well,” Cogliano said. “When you artificially limit competition in any market, prices go up. Fewer bidders means higher prices. It’s Economics 101.”

On Thursday, City Councilor James Timmins said Quincy’s apprentice requirement was meant to ensure that all construction workers were properly trained. In response to the district court ruling last year, Timmins said without the training requirement, non-union firms have a competitive edge over union labor because they don’t pay their employees as well.

“The apprenticeship training programs have been a very productive part of our community and workforce development,” Timmins said Thursday. “It’s a loss that goes beyond the trade unions and into the community.”

In response to Merit’s lawsuit, the city agreed to stop requiring that contractors’ crews be at least one-third Quincy residents for city projects. In a 2011 ruling on a similar Fall River ordinance, Zobel ruled such requirements give contractors with local employees an unfair advantage in securing municipal work.

The Quincy and Fall River cases are part of a broader push to challenge “responsible employer ordinances,” which in many ways mirror employment conditions set by labor unions, across the state.

The city of Quincy did, however, score a victory Wednesday when the appeals court said the city didn’t have to pay about $60,000 to cover Merit’s attorney’s fees. The appeals court to asked the district court to reconsider the attorney’s fees issue.

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