Contractor faces judgment in dispute with labor union

New York City is a hotbed for the construction of glossy, expensive construction projects and landmark buildings. These building will often house notable companies and entities. One sticking point that is often a problem for the owners of these valuable pieces of land is dealing with the potential allegations of labor law violations and other issues with union members. For the union members, it is essential to have a competent union representation for their labor union. Without it, there is a major chance for various abuses to be done. It also provides protection for wages and benefits.

Two ongoing construction projects in New York have run into problems because of a labor dispute. The projects are said to have many issues with the union. One of the contractors was forced into bankruptcy because of a previous judgment that it make contributions of $76 million to union funds. The contractor works with masonry and concrete. The manager of the project ended the contractor's contract on the buildings because it had become insolvent, but told it to keep working with support from an insurance company. Financing from the contractor and the insurer would have let it keep working.

The judgment is being appealed. A union that received the judgment has frozen the company's bank accounts and stopped its work. A portion of the judgment was paid in early-November and sparked the bankruptcy filing. The initial issues with the union stemmed from allegations that the contractor had used non-union construction companies so they would not have to make payments for welfare and pensions.

With massive building projects, it is unavoidable to work with contractors. In some cases, these contractors will face problems with unions as to how they operate. Union workers benefit from having protection because it prevents companies from taking advantage of them and doing what this contractor is alleged to have done - and lost a judgment because of it - by giving them the ability to file a lawsuit. Any union would be well-advised to hire a legal firm that can provide protection with experience in labor law.

Source: bloombergquint.com, "NYC's One Vanderbilt, Manhattan West Towers Face Union Spat," Tiffany Kary, David M. Levitt, Nov. 13, 2017

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