Largest Public/Private Industrial Investment in New York History Off Limits for Non-Union Labor

3 June 12, 2009  State & Local Construction, Uncategorized

The Business Review (Albany) reports that GlobalFoundries has committed to building its $4.2 billion chip plant, the largest public/private industrial investment in the state’s history, with a discriminatory and costly project labor agreement (PLA) (“Done deal: Work begins on $4.2 billion chip fab,” 6/12).

GlobalFoundries this week submitted a letter to the Empire State Development Corp., sealing an agreement that will reward the future chip maker with $650 million in cash to help build the $800 million building, and another $550 million in tax breaks.

New York taxpayers are investing in this deal, but local non-union contractors and their employees won’t be able to work on this project unless they agree to the discriminatory and inefficient terms of a PLA.

The PLA prohibits companies like Bast Hatfield, a non-union company that employs 200 laborers, from working on the site.

“My 200 employees that pay taxes in New York state can’t work on the project that we all paid for. It’s a sad day for New York,” said Bast.

“Most of my guys live within a half-hour of the site and they won’t be able to work there,” Bast said.

It’s a shame that the largest public/private industrial investment in the state’s history isn’t benefiting all New York construction workers — it will only benefit workers who belong to a union.

We have Governor Patterson to thank for this sweetheart deal for unions.

New York construction unions are powerful contributors of cash and man-hours to pro-union Democrat candidates. Unfortunately, this quid pro quo is common between politicians and construction unions throughout New York and across the country.  It is one of the major reasons PLAs are implemented on public projects.

Check out the PLA lovefest by Governor Paterson and New York Senators and Assemblymen here.

Despite the investment of public dollars, it is unlikely taxpayers will have oversight to monitor this project for inefficiencies and increased costs that have plagued other PLA projects.  GlobalFoundries will claim that construction of their plant is proprietary information and politicians and taxpayers will never know how far tax dollars could have been stretched with genuine open competition free from a union-only PLA.

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3 Responses to Largest Public/Private Industrial Investment in New York History Off Limits for Non-Union Labor

Richard Dorrough July 16, 2009 at 8:04 pm

I have been trying for over a month to obtain a copy of the Malta Project Labor Agreement negotiated between the Unions,Governor Patterson and Global. All have refused to release a copy saying it is now a private document. I am a 22 year Union member and a NY Taxpayer and I am appalled at the refusal to provide a copy of this document. I have been refused my the Governors Office,NY DOL,the AFL-CIO and other Unions as well as my own Carpenters Union.I have been refused by the Unions because I am not Pro Union enough
The premise for the demand by the Unions for a PLA was the use of Public Money on this project.As a result of the PLA Global was awarded another 15 million. Now after getting the PLA the Unions say this is a private document. This is ridiculous. I ask your help in obtaining a copy of the PLA so we NY taxpayers may see the details and determine if all workers are indeed protected under its terms.
Thank You
Richard Dorrough

BenBrubeck July 20, 2009 at 8:13 am

Richard- We have run into similar roadblocks obtaining this PLA. If I am able to obtain a copy of it, I will be happy to post it on here and explain how this PLA will reduce competition from qualified and local contractors and their employees.

I will email you when I receive a copy. – BB

Richard Dorrough July 31, 2009 at 8:47 pm

I have the PLA and I now understand why they worked so hard to hide it.The unions conspired with Patterson to extort this job. Non Union workers FORCED to pay Union dues and pay into the Unions Welfare funds if their employer has not fund set up.83 – 93 % of all workers MUST be union. Outrageous. The Carpenters Welfare Fund is a mismanaged mess. They have lost millions to Madoff. They are illegally withholding Annuity payments from their membership. They have lost entire Pension funds. They are under investigation by the EBSA for possible Title 1 violations.

I would hope the non Union sector would lead a legal challenge to oppose any contributions to these funds. I would hope the ABC raises a very PUBLIC campaign to expose these facts. Of course it is difficult to fight this corruption when the Unions lawyers stack themselves with ex federal and State Politicians as well as ex NLRB,EBSA and DOL employees. This includes Basil Patterson,Harold Ickes,Reese Cooper and others. Have a look at Meyer,Souzi English and Kline. Have a look at Robert M Archer who as we speak is legal counsel for ERISA as well as the head of Archer,Byington,Glennon and Levine more Carpenters attorneys and cronies. They brag about their clear conflicts of interest in their bios used to solicit clients. Our EBSA investigation was handled by Gary Thayer ex EBSA investigator now Union cronie/Lawyer and Robert Archer ex NLRB lawyer and present ERISA Legal Counsel handled him.Nice.
In the name of contrived concern for NY workers Patterson conspired with a private organization(Unions) who only represent 30% of the NY workforce to FORCE a private company MW Zander to hire ONLY Union members and to pay kickbacks to the Unions.Is there not a legitimate legal challenge here??

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