Leaders of the Pennsylvania Convention Center send an open letter to stakeholders

Recent changes at the Pennsylvania Convention Center have been highly covered in the last year, including new management and high-profile union issues over new work rules that were implemented to make the exhibitor experience more streamlined and up-to-date after some negative receptions.

The two unions barred from working at the center after failing to sign new work rules by a deadline — the Carpenters and Teamsters — have been holding frequent protests outside of the Convention Center about their “lockout,” which leaders at the Convention Center say have cast a “negative light” on the center.

So, in order to address the problems at the Convention Center, leaders sent documents to the center’s stakeholders to give their take on the situation — including one titled "Setting the Record Straight," listing various "facts" and "myths," one such "myth" being the unions' saying they had been locked out.

The letter dated Aug. 5 was signed by John McNichol, president and CEO of the Pennsylvania Convention Center Authority (PCCA); Gregory J. Fox, chairman of the PCCA; and Bob McClintock, chief operating officer of the SMG, the Convention Center’s management company.

The Carpenters, however, say they can see through what they describe as a smokescreen.

"It’s just a sad attempt from them to deflect the issue. A six-page document means nothing," said Marty O'Rourke, spokesman for the Metropolitan Regional Council of Carpenters. "It's a sad attempt on their part to put a positive spin on a situation they created and that they could end tomorrow."

The unions filed a complaint with the National Labor Relations Board against the Convention Center earlier this year on grounds that center officials bargained in bad faith. The NLRB recently dismissed the charges because it lacked jurisdiction over the case since the Pennsylvania Convention Center Authority is a “political subdivision” of Pennsylvania. In response, the unions have taken the charge to the Pennsylvania Labor Relations Board.

The mediation hearing with the PLRB is set for Sept. 8. If the situation can't be mediated on that date, there will be a hearing on Oct. 14.

"The Convention Center could solve this rather than doing a six-page document," O'Rourke said, "[They can] resolve this on the mediation hearing."

Here's the full document:

Setting the Record Straight

Carpenters and Teamsters Are Attempting to Re-Write History. The PA Convention Center Is Looking to the Future.

MYTH: The Carpenters and Teamsters are "Locked Out."

FACT: There has been NO "Lock Out" of the Carpenters or Teamsters. Both unions were given the opportunity to work at the Convention Center under the same terms and conditions agreed to by the other trades and both unions "Opted Out" of that opportunity. They both made an informed decision not to join our efforts to make the Convention Center more competitive.

MYTH: There is "Labor Unrest" at the Convention Center as a result of the new Customer Satisfaction Agreement.

FACT: There has never been greater harmony on the show floor among our union labor workforce, management and most importantly - customers. There is a new customer-focused spirit of cooperation resulting in less confusion, greater efficiency, cost savings and enhanced overall customer satisfaction.

MYTH: Carpenter and Teamster protests are bad for business and bad for Philadelphia.

FACT: Public opinion and the industry reaction to the new Customer Satisfaction Agreement have been overwhelmingly positive. Philadelphia and the Convention Center had a negative reputation associated with labor "hassles" and high cost. Today, PCCA and labor leadership are being hailed throughout the industry for taking the necessary steps to repair Philadelphia's broken image. The City and the Center can now move forward with its union partners to repair the damage done over the past several years.

Since May 6th, we have been able to successfully book several conventions with an estimated economic impact of nearly $100 million with great prospects on the horizon. New customers as well as past customers are looking at Philadelphia again.

MYTH: The Carpenters and Teamsters claim that they thought they had until May 10th to sign the Customer Satisfaction Agreement.

FACT: May 5th at 11:59pm was the clearly stated deadline for all six unions to sign the new Customer Satisfaction Agreement. All six unions were made aware of the deadline. The Carpenters acknowledged the deadline in writing on May 4th. On May 6th, Carpenters leader Ed Coryell told the Convention Center Board of Directors on which he serves that he would never sign the deal. It wasn't until the Carpenters realized the other unions agreed to do the work the Carpenters abandoned that they began to pressure the Convention Center to allow them back into the building.

Claims by the Carpenters and Teamsters that they thought they had until May 10th are inaccurate. May 10th marked the expiration of their collective bargaining agreements - these are separate agreements defining terms and conditions of wages and benefit payments.

MYTH: The Carpenters and Teamsters signed the CSA after May 5th and there is no reason why the Center should not allow them to return to work.

FACT: The offer extended to all six unions required signature by the May 5th deadline. It was made very clear that the Center and SMG would work to reallocate the work left behind by any non-signatory union once the Center's Board ratified the agreement. The Board voted unanimously to ratify the agreement on May 6th and the work was reallocated, as promised, on May 7th. The Center received signed copies of the CSA from the Carpenters on May 9th pre-dated to May 7th (the day the work was reallocated).

It is important to note that the CSA is a contract between seven parties including our four stakeholder unions, the PCCA, our management company SMG and our labor supplier, Elliott-Lewis. Any modifications or changes to this agreement would have to be agreed to by all parties.

Any effort now by PCCA to impose changes on the other parties to the Agreement would certainly: (1) be seen as bad faith by such parties and reduce the Center's credibility for years to come, (2) upset a newly formed service delivery platform that is working extremely well for the building and its customers, and (3) be perceived by the industry as a signal of retreat by the PCCA Board from its determination to move forward in a positive, collaborative way with willing partners to the benefit of customers.

From the Center and SMG's perspective, things have never been better on the show floor, labor is working cooperatively with one another, and our customers are pleased. In the past, many shows were marred by frequent labor disputes and disagreements over union work jurisdictions. We have encountered no such problems and we believe that is largely because these four unions are committed to our partnership and the success of the Center.

MYTH: Carpenters and Teamsters gave up overtime to make the Center more competitive.

FACT: More than 10 years ago, all six unions negotiated collective bargaining agreements in the best interest of the Center and the union workforce. Those agreements included concessions by the unions but did not eliminate overtime. This is another attempt by the Carpenters union to confuse the issue.

MYTH: Management allows overtime savings to be pocketed by contractors.

FACT: The Convention Center is a place of commerce. Customers including contractors, show managers, decorators and exhibitors all have rights under our licensing agreements to generate profits based on their own separate business relationships. The Center management does not control or have any right to intercede on what contractors charge their customers.

The Center's Board of Directors and management have made it a priority to work with the contractors to ensure ethical and transparent billing practices.

MYTH: NLRB found evidence that Convention Center deviated from the law.

FACT: This is an intentionally misleading interpretation of the NLRB's decision to dismiss the case. The NLRB dismissed the charges and made NO findings other than that they did not have jurisdiction in this case. When summarizing the Carpenters' position, the NLRB noted that the Carpenters presented evidence regarding the Center's bargaining obligations, but the NLRB did not reach any conclusion on these allegations. Instead, the NLRB simply dismissed the case.

Source: Philadelphia Business Journal