Wednesday, November 4, 2015

John Dougherty: Building up the Building Trades Council



By Tuesday night, the election will be over and John J. "Johnny Doc" Dougherty, who leads the politically-connected International Brotherhood of Electrical Workers Local 98, can turn his attention to his next project, assuming the leadership of the Philadelphia Building Trades Council. In our wide-ranging and rambling interview, partially published in Sunday's Philadelphia Inquirer, Dougherty talked about his plans for the Council, his leadership philosophies and the importance of politics.


What follows are excerpts from the interview, with me adding context, in brackets, as necessary:
Dougherty talked about how he wanted to modernize the Building Trades Council, which is a coalition of construction unions. One of his first initiatives, he said, will be better marketing.
Question: What do you have in mind?

Answer: Of course, social media campaign -- we'll market ourselves a little bit better. Not just ads in ad books, we'll be omnipresent throughout the region.

Q: Anything else?

A: We have a PALM Built-Rite, which is a labor management coordination effort, which is significant and I think there's another level that can go to in today's world.

[PALM stands for Philadelphia Area Labor Management Committee and it’s a nonprofit enterprise that coordinates labor and management on building sites, helping to resolve jurisdictional disputes and bring the project in on time and under budget.]

Most companies have no interest in supplying benefits. They just want give people a contract, a 1099 and let them go. I want to specialize in all the things that corporations used to do for workers.

Q: What do you mean?

A: I want to make sure they have access to benefits. Most unions do, but anyone that doesn't [have benefits], I want to make sure we're able to facilitate it.

Q: Are you saying that you want to take these 1099s guys -- the so-called independent contractors -- and bring them into unions some other way? Explain. [Clients issue 1099, an IRS form, to independent contractors they hire, saying how much they were the contractors for their work]  

A: I want to brand the building trades. I want people to understand all the good we do, rather than the isolated every 25 years incidents that take control of our perception. 

Q: Like the Post Brothers? [The Pestronk brothers are developers who went toe-to-toe with the building trades on a project at 12Th and Wood Streets in Center City where they declined to use 100 percent union labor.  Punches were traded, there was vandalism and pickets prevented construction from continuing. Eventually a compromise was reached and the project was completed, but hard feelings persisted.] 

A: That's not something that bothered me one way or the other. I could do business with them guys tomorrow. I think they made -- as I've stated to you before -- I think they made a bad business decision. All you have to do is look at the building at 21st and Chestnut [which was financed by Local 98 pension funds]. It was done way ahead of schedule, under budget, and got flipped for twice the amount of money. It was a pension investment deal. I think it was built for $60 million, 100 percent union, without any L&I [City of Philadelphia] Licenses and Inspection] issues, without any permit issues and it got flipped for 108 million, so it was a significant investment for our pension fund. It was done 100 percent with craftsmen and the city got paid all the taxes and permitting fees it was entitled to. If you compare it to the Post brothers job where we had the symbolic, minor indiscretions, if you take a look at the number of tax dollars that came out of that job, it's minute.

 Q: Anyway, back to the 1099 idea.

A: I want to make sure that there is nothing that holds someone up from being a union employee. Most unions are prepared to organize. I just want to make sure membership doesn't have too many hurdles. 

Q: So, if someone is working as a 1099, instead of bringing them through the apprenticeship program, your thought is to devise an alternative path. Am I getting that right?

A: What I'd like to do is come up with a concept so that kids that go through the public school system have access to jobs, that we have a significant reentry program [for people released from prison], that we emphasize our helmets to hard hat initiatives and for the guy out there who is being abused, the 1099, who has the skill sets and interests, that we find spots for him in unions across the city. We have a  lot of tools out there that we don't really use well. The Palm Built-Rite program supplies not only labor management coordination  --  you never see jurisdictional issues which are the biggest faux pas in  the industry on Palm Built-Rite. If the owners cooperate with the Palm Built-Rite program, you see very few accidents, you see very few jobs that don't come in ahead of schedule and under budget, so I'm looking to use every tool we have and here's the secret. It's not this tool for that job or that tool for this job. I'm looking to take our whole tool box and implement it all the time.

Q: Like what? 

A: Pension investment.  OK?  East Market Street, East Market Street projects at 10Th and 12Th and Market were the catalyst for Brickstone's development on Chestnut Street and  the renovation of the Gallery. That was an easy one for me, because it was in Center City. But I also want to use that to help.

[Dougherty says that his union’s pension investments have spurred other development. He pointed again to the condo building at 21st and Chestnut, saying that investment paid off].
A: It just got sold for $100 million. So them type of returns are significant and them returns aren't just on a hot market. Them returns are on the craftmanship, the time in which the building was completed and the fact that there were no issues with the building.

Q: But there were issues – union  issues. [After the building was sold, the union cleaning crew was fired and replaced by a non-union crew. There were rallies and informational pickets.]

A:  There could union issues with every building in town, one way or the other. I just spoke at the SEIU 32BJ's contract ratification. [SEIU 32BJ represents the janitors who were ousted.] I spoke on behalf of my brother, but I also spoke of the relationship. I expect the building trades to have very cooperative in Philadelphia and surrounding areas with all the other unions.

Q: Speaking of marketing, do you think the Building Trades Council will do something in conjunction with the various union contractor groups who may be planning some joint marketing? I believe Emily Bittenbender, a contractor who is chairman of the General Building Contractors Association, has some plans.

A: I'm pretty friendly with Emily. I'm looking forward to Emily and myself doing some really good things together. I'm not smoking cigars with her.

Q: Does she smoke cigars? It's probably a badge of honor. You probably have to.

A: I don't have to, I'll tell you that much. I don't need any more badges. 

Q: Do you smoke?

A: I've never had a cup of coffee or smoked a cigarette.

Q: I always wondered why the Building Trades Council didn't have a website, since everyone goes online for everything.

A: Listen, that's part of Pat Gillespie's genius. [Patrick Gillespie has been at the helm of the Council for decades] Pat Gillespie knew what he was good at. People in the petroleum market love Pat Gillespie. People in the healthcare industry -- Pat is a big Blue Cross guy, as everybody well knows. [He's on the board of Independence Blue Cross]. In the health care industry, Pat knew what he was doing. In the hospitality industry, Pat was ahead of himself when he was on the Convention Center board. And again, if you remember, Pat was probably the stimulus behind the initial [Customer Satisfaction Agreement in 2003]  that then got blown up after Mayor John Street's last term . Pat's genius was, even from a legal perspective, Pat was carrying sins from 20 years. He's done a nice job at continuing the growth of the industry and being in front of a lot of cutting edge construction developments. Take a look at Pat Gillespie's inclusionary initiatives. If you took at some of the steps he took to become a one-stop purchasing of benefits, pooling our resources. But you have to remember, Pat has a very difficult job as the head of the building trades. It’s a very significant position. You have to be strong enough to handle it.  Out of the 40 or so unions you represent, 25 of them are prominent in their own right.

[At this point, Dougherty took a little walk through labor history, making the point that Gillespie led union leaders, who themselves were very powerful and who advanced from Philadelphia to national positions. They represent a generation of leaders that are already retired or close to it, so Gillespie’s leaving signals the passing of an era.]

 “You've got people like Tom Kelly, the sheet metal worker who went on to be the secretary -treasurer of the international. You got people like John Dougherty [Yes, another John Dougherty – also from Philadelphia] and  Pat Finley, who both went on to be international presidents of the Cement Masons. You take a look at Ed Keenan and Ed Coryell and  Sam Staten. They were all the best of the best there ever was in their own unions and they all grew up with a Pat Gillespie at the helm.

I always thought that Pat's type of leadership was, `Hey, let's not over-exaggerate my importance. But when I need to put my foot down, you have to have the capabilities of doing it.
Q: Speaking of leadership, what about Bernard Griggs? [I asked this because rumor had it that Bernard Griggs, from the Bricklayers union, one of Gillespie’s deputies, had been passed over for the top job.]

A: Instead of talking about Bernard Griggs, let's talk about Freddy Cosenza and Bernard Griggs [both top deputies at the Building Trades Council]. I'm going to re-evaluate both of them. I have every intention of keeping them there. I have a different work ethic than Pat. And I don't mean I work any harder. I'm a guy who pops in at 6 p.m. and expects my guys to be there at 6 p.m. I'm not old school. So some guys might not want to work with me. 

Q: Any other plans?

A:  I refer to Pat's activity as his genius because he did things with less money, with so many powerful people in the room and got  consensus more than most people. His drug and alcohol initiative was one of the first. I'm going to try to make that more nationally recognized.  
Q:  What else are you thinking about?

A:  My plans are, as I did with Workers Stand for America, you  see that little program we had? [In 2011, the International Brotherhood of Electrical Workers spearheaded a convention in Philadelphia for all workers, union and non-union, and Dougherty took the lead in planning it, continuing the momentum beyond the event.]

That was a think tank that became a do tank. That was a group of unions who got together and didn't talk about what was wrong, but talked about we can make things right. The firefighters, police officers were there, the SEIUs, the AFSCME, the Teamsters, everybody. My goal with the trades will be the same thing. I've already taken some steps. I'm already in the process of trying to modernize. When people are friends, we're going to reward them. If people go out of their way to be our enemies, we're going to make sure we don't participate with them.

Q: You mentioned attending a meeting with Smith Kline drug executives and all the building trades that worked on their new building in the Navy Yard. Is there a something like a Building Trades Council for pharma?

A: I'm going to participate in all of them. You know the old book, `Getting to Yes?' But no one ever took `Yes’ to another level or enforced  `Yes’ or explained what `Yes' was. I'm going to spend time doing that. 

Q: What was the pharma thing?

A: In this case, it was Smith Kline who was a partner, because it was in Philadelphia, because they built and their building was done on time, ahead of schedule and under budget and they have great relationships with us. So when they get new products, maybe we help them maybe patent something. [What] people don't understand is that I also want to be a partner. If Sunoco is a partner, I want to be able to help Sunoco. If Smith Kline is a partner, if there is something we can do,...

Q: Like what?

A: Help them get a patent on something. 

Q: How could you help them?

A: We could lobby on behalf of them, like a regular lobbyist. 

[This next answer demonstrates why it can be tricky to interview John Dougherty. You have to navigate a dense thicket of words. His thoughts go off in many directions before coming back to the point. I added a few words in brackets to help.]  

And why would we do it? If you have a pill that my guy [a union member] has to take -- I pay over $80 million a year to Blue Cross for [union] benefits --  I have a [union] prescription card that if that kid [a union member] opens his pocket,  I open my pocket.  You get a prescription for 5 or 10 bucks, $20 if it s really special. Why would I want to take…  In my pocket right now, I have a Nexium and a Lipitor.  I call them the spoiled brat drugs. I work out and do everything, but if there is a modern medicine that allows me, mid-day,  to grab, at 3 or 4 p.m., a donut, I'm going to do it.  If something comes up [Dougherty means a new medicine] that I may pay a little more, but you only have to take one a week, instead of one or two every day, why would I not help a company do that?  That is something we would never do before.

So, in my role, I'm going to make sure that when you are a partner with the building trades, you get as much from us as we do from you.

Source: Philly.com

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