The Connecticut Supreme Court has upheld a Hartford electrical contractor’s challenge of the state’s requirements that union workers be used on public construction projects, possibly hastening an end to such requirements, authorities say.
Electrical Contractors Inc. successfully bid on two Hartford school construction projects, but the company challenged the inclusion of a project labor agreement (PLA) on each project, saying it should not be forced to use union labor on the jobs.
In ruling on Electrical Contractors’ lawsuit against PLAs, the lower court dismissed the case, saying the plaintiff lacked standing to challenge the city and state’s union requirements.
The company appealed to the state Supreme Court in 2009.
In its Jan. 17 decision, the high court ruled 6-1 that Electrical Contractors could challenge, and ordered the case back to the lower court to determine whether the plaintiff and its workers should receive monetary awards for being subject to the PLA.
The justices said Electrical Contractors is correct in claiming that PLAs are discriminatory and perpetuate fraud, corruption and favoritism, and that Electrical Contractors could challenge PLAs on the grounds of the Connecticut Antitrust Act.
Citing the high court’s strong wording, the Connecticut Associated Builders & Contractors Inc. said Electrical Contractors or another contractor may be successful in eliminating these union requirements from all jobs.
“The decision seems to believe that all PLAs are illegal,” said Connecticut ABC President Lelah Campo.
Campo said even if Electrical Contractors isn’t successful in winning monetary claims from the lower court, Connecticut ABC plans to submit more legal challenges in the future to directly have PLAs ruled illegal.
“For the most part, it shuts out open shops, which are 83 percent of the industry,” Campo said. “When you shut out 83 percent of the industry, of course it drives up the cost.”
Connecticut ABC is issuing notices to all owners of public projects that their PLAs could one day be illegal. Campo particularly called out the $839-million renovation of the University of Connecticut Health Center as part of the Bioscience Connecticut project, which will have a PLA.
Unions say Connecticut ABC is making much ado out of nothing.
The Supreme Court decision only granted Electrical Contractors standing to challenge PLAs and did not outright rule PLAs are illegal, said Charles LeConche, business manager of the Connecticut Laborers’ District Council.
“The ruling means nothing. It means they have standing,” LeConche said.
LeConche said the Supreme Court justices were mostly appointed by Republican governors, so the decision wasn’t a surprise to the unions.
The case and PLA challenge still has to play out in the lower courts. It could take six months or a year before the lower court hears Electrical Contractors arguments on the case again.
“I wish them luck, but they are not going to win,” LeConche said. “The future will dictate what the final ruling will be.”
