Dive Brief:
- Although President Donald Trump had reportedly productive meetings with construction industry trade unions, his administration has placed long-time open-shop proponents in key positions at the Department of Labor, which could mean the two sides are headed for conflict, according to ProPublica.
- At the heart of growing trade union concern is Geoffrey Burr, former construction lobbyist and previous vice president for government affairs at the Associated Builders and Contractors, a group that advocates for an open-shop industry, Bloomberg BNA reported.
- The confirmation of Trump's labor secretary pick, Andrew Puzder, has been held up, so Burr, as well as Davis-Bacon critic Nathan Mehrens, have become influential forces as they transition the DOL to run under a new Trump administration.
Dive Insight:
Some experts report that Burr is in line for the chief of staff position as soon as Puzder is confirmed, which would allow him great influence over DOL policy, including issues like prevailing wage (Davis-Bacon), which he advocated against as part of the ABC.
Burr's former organization, the ABC, scores states on a point system, what is calls the Merit Shop Scorecard, and tracks how "business-friendly" they are according to several benchmarks. Prevailing wage laws and project labor agreements (PLAs) bring the score down, while a favorable environment for public-private partnerships and workforce development bring the score up.
PLAs have become the latest lightning rod in the union versus open-shop debate. On Jan. 10, several construction industry groups — including the Associated General Contractors of America, the Associated Builders and Contractors and the National Association of Home Builders — sent a letter to President-elect Donald Trump asking him to repeal President Barack Obama’s 2009 Executive Order 13502, which urges government agencies to require PLAs on projects exceeding $25 million. Opponents of PLAs claim they restrict competition and raise costs. However, proponents claim they are a way of controlling costs and quality on the job, and they reject the idea that they place an undue burden on nonunion contractors and employees.
The trend toward reduced wage requirements and less union-like work conditions has been developing for some time. Last week, Missouri became the 28th right-to-work state in the U.S. The Missouri law voids the previous requirements that workers on union projects must join the union or pay dues. The state's new Republican governor, Eric Greitens, campaigned on getting rid of the requirement as part of his business-friendly platform. Union representatives, however, have said they will take the measure to voters in 2018 if they can get support from 5% of voters in two-thirds of Missouri's congressional districts by Aug. 28.