More than 100 years ago, New York contractors agreed to only use union labor on job sites. Now, they’ve had enough. If building trade contract talks in New York City do not yield fruit by a June 30 deadline, NYC contractors have revealed via a letter to the Building and Construction Trades Council that they will “terminate the New York Plan for the Resolution of Jurisdictional Disputes” – the first step to formally breaking the business model that has existed since 1903 where all contractors jobs are build with 100 percent building trades members,” explained Louis Coletti, president of the Building Trades Employers’ Association (BTEA)[1].  Coletti added that the vote was no one that “nobody in the BTEA ever wanted to make,” but that NYC contractors will not be able to survive if they cannot get the unions to make certain changes to “help us and to help them.” Unions have responded that terminating the agreements is not on the table as far as they are concerned.

Analyst Hope Cohen calls the situation “potentially the most serious standoff that we’ve heard about,” adding “Maybe there is going to be a strike. Cohen recently wrote a report on the area’s construction industry, charging that the New York Plan resolution process, which prohibits work stoppages and requires contractors to be fully union, “has resulted in less productive work rules.”

Do you agree with the BTEA that the New York Plan is outdated, or should NYC contractors stick to their agreement?

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[1] http://www.crainsnewyork.com/article/20110602/REAL_ESTATE/110609955