Tappan Zee builders, union in $7.3M dispute

The builder of the new Tappan Zee Bridge is accusing leaders of a major labor union of concocting a "back-room" deal to squeeze an extra $7 million out of the project for their members, according to court documents obtained by The Journal News/lohud.

Tappan Zee Constructors' allegation is part of an ongoing legal battle with the United Brotherhood of Carpenters and Joiners of America (UBC) and its two affiliates, Dockbuilders Local 1556 and Carpenters Local 279, over which trade has jurisdiction over certain work on the bridge's foundation — and at what wage.


Under the union's plan, costs would be $7.3 million higher because workers would earn the dockbuilders' hourly wage and benefit rate of $92.47, which is $22 an hour more than the carpenters' compensation.

TZC fired back, calling the UBC move the "latest in a long history of illicit schemes" by the union, including ties to organized crime.

"Essentially, the two UBC unions manufactured a dispute over which union was entitled to perform the work and then entered into a back-room 'settlement agreement' whereby the carpenters would agree to have the work done by the dockbuilders, at a cost that is $7.3 million greater than what the carpenters would charge..." TZC attorneys wrote in court papers.

But because the dockbuilders said they don't have the required manpower for the job, the carpenters would actually be doing the work, TZC officials claim in court papers.

In its petition filed in federal court in May, UBC leaders contend the work should be awarded to the dockbuilders.

Would the potential added cost fall to taxpayers or the bridge builder? No one's talking.

Representatives of TZC, the unions and the New York state Thruway Authority, which owns the bridge, either wouldn't answer questions or didn't respond to repeated requests for comment.

How the dispute started

Court documents show that in January, TZC assigned the carpenters some 400,000 hours of construction for structures on top of the concrete pile caps, including the main span towers. The work is part of the $3.9 billion bridge replacement project, one of the largest in the nation.

The dockbuilders objected, and in April, after the two unions negotiated with each other, the carpenters — who make $70.11 per hour in wages and benefits — agreed to relinquish the work to the dockbuilders.

TZC opposed the plan. The bridge builder claims that even though the carpenters said they were handing the assignment to the dockbuilders, the carpenters would ultimately be the ones performing the work.

Thomas Welby, a White Plains-based construction law attorney and adjunct professor at Pace University, said it's common on construction jobs for one trade to supplement another trade's crew.

"They may have jurisdiction over the work but they only have a certain number of union members in their hall," Welby said.

In those cases, another trade will lend workers on a permit. As a result, labor crews on a particular task may be made up of more than one trade.

In court papers, TZC called the unions' deal "fraudulent" and requested arbitration.

And that's when the case got even murkier.

Fight over arbitration

In his preliminary decision on May 5, arbitrator J.J. Pierson ruled in favor of the dockbuilders, noting the prevailing practice in local industry is to assign that type of work to dockbuilders.

On May 13, Pierson delivered a second opinion, acknowledging that his initial decision was "hasty" and "not fully considered." In this ruling, he concluded there was "no established trade practice" for delegating this type of work to either trade.

Based on the lower cost, he sided with TZC and awarded the tasks to the carpenters. A fight over which of Pierson's decisions is valid prompted UBC to file a petition in the U.S. District Court for the Southern District of New York. The case remains pending before Justice Andrew L. Carter Jr.

Reached for comment this week, Pierson said he couldn't discuss his decision, noting that it's up to the parties to "implement it or contest it."

TZC, citing the project labor agreement, contends the initial decision was not the binding one.

After reviewing the case at the request of The Journal News, Manhattan-based construction law attorney Ira Schulman wrote in an email that "it's unusual for an arbitrator to do a complete U-turn and issue two completely inconsistent awards within a matter of days."

Even though disputes between contractors and unions are common on construction jobs, how this one has played out is unusual, Welby said. He called the opposite rulings "quite surprising."

"It does seem that, to me, that the drafters of the procedures allowed for a preliminary and a final decision for expediency's sake," he said. "I don't think they were thinking the result would be changed during that period."

Final project cost?

Because the project labor agreement prohibits strikes or work slowdowns, construction on the bridge continues despite the legal fight.

Pile cap work has started. But it remains unclear if the work in dispute has and if so, who is doing it and at what cost.

It is also not clear what the potential additional labor cost means for the overall project's price tag. In 2012, TZC was awarded a $3.1 billion contract by the Thruway Authority to design and build the new 3-mile twin-span crossing by 2018. If it finishes on time and under budget, it gets the remaining money as profit. But if the project runs late or over budget, TZC would likely be responsible for those costs.

So far, the Thruway Authority has paid TZC nearly $1 billion.

Hourly wage and benefit rates for two trades:

Carpenters: $70.11

Dockbuilders: $92.47

Work in dispute: Some 400,000 labor hours for construction of structures on top of pile caps, including the main span towers.

Money at stake: $7.3 million

TZB by the numbers: Estimated overall price tag, including management and contingency costs: $3.9 billion

Bridge construction cost: $3.1 billion

Scheduled completion date: April 2018

Who is Tappan Zee Constructors?

Fluor Enterprises, Inc., American Bridge Company, Granite Construction Northeast, Inc., and Traylor Bros., Inc. — major construction companies — joined forces in 2012 to create the consortium called Tappan Zee Constructors, a new business entity.

Who is The United Brotherhood of Carpenters and Joiners of America?

The union is one of the largest in North America, according to its website, representing some 500,000 workers in the construction and wood-products industries. The union formed in 1881 when 36 carpenters from 11 cities met in a Chicago warehouse. Today, there are 36 regional and district councils across the U.S. and Canada.

Source: The Journal News/lohud.