Jersey City tax abatement policy unfairly benefits union workers, group says in lawsuit

A group representing nonunion construction workers has filed a lawsuit against Jersey City, saying the city's tax abatement policy unfairly harms construction firms that don't have unionized workers.

The 13-page suit, filed last week in federal court in Newark by the New Jersey chapter of the Associated Builders and Contractors (ABC-NJ), says nonunion construction firms are "ready, willing and able" to perform work in Jersey City, but are thwarted by the city's "project labor agreements," which require developers receiving tax abatements to use union workers.

The city's PLAs are preempted by the federal National Labor Relations Act, which shows Congress intended labor-management relations "to be controlled by the free play of economic forces," ABC-NJ says in the lawsuit.

The trade group is also taking aim at the city's requirement that 20 percent of labor hours on construction projects that receive tax breaks must be performed by Jersey City workers, with some exceptions if there aren't enough of those workers available.

There is "no evidence" that the hiring of out-of-state workers on privately funded construction projects in Jersey City adversely affects the employment of otherwise qualified Jersey City residents, the lawsuit says, adding that this policy violates the privileges and immunities and the commerce clauses of the U.S. Constitution.

"Essentially, Jersey City has been saying that 'non-union contractors need not apply,' even though the vast majority of contractors in this state are in fact non-union and employ most of the construction industry workforce," ABC-NJ Vice Chairman Greg Sykora said in a statement. "Why should the market be closed to everyone but a small percentage of contractors who have union relationships?"

The lawsuit alleges that the Hudson County Building and Construction

Trades Council, which represents union laborers, "was consulted and actively involved" in drafting the original 2007 measure establishing PLAs.

Asked to respond, Mayor Steve Fulop said in a statement that the city is "proud" of its PLAs, which have "put more people to work" than anywhere else in New Jersey.

"What we are doing in Jersey City is working and as a matter of fact the project labor agreements apply to projects with abatements only in exchange for the unions giving Jersey City residents a formal career structured training path," Fulop said.

Regarding ABC-NJ's claim that unions had a hand in writing the 2007 measure establishing the city's PLAs, city spokeswoman Jennifer Morrill said it's common for legislation to include "feedback from stakeholders involved."

Source: NJ.com