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Construction Industry Developments
November 2010

By: Richard H. Wessels, Esq.

With the collapse of the real estate market, unionized construction industry subcontractors have been making tough decisions about their relationships with labor unions. Here at Wessels Sherman we meet regularly with construction industry clients to develop workable labor strategies for them.

There are no simple, easy answers because the facts of each situation often call for different strategies. But, there are some fundamentals that construction industry employers need to evaluate.

Labor contract repudiation - The NLRB's Deklewa decision permits post expiration repudiation of contracts.

One person or zero person units - Similar to the Deklewa strategy, with one or less persons in a bargaining unit a labor contract can be repudiated. This can be done even during the term of a contract.

Double-breasting strategy - Contrary to popular belief, double-breasting is not illegal. It is a common strategy. Simply stated, it is a strategy of having a union company and non-union company. Care must be taken to assure sufficient separation.

Construction industry picketing - Controlling construction industry picketing is a big part of our practice here at Wessels Sherman. Usually this involves reserved gate or reserved time strategies. Picketing that violates the reserved gates or the reserved times is illegal and can be stopped.

Construction industry subcontractors who are interested in developing strategies along these lines should contact Dick Wessels at (630) 377-1554 or riwessels@wesselssherman.com.