Related Companies and Union Labor Announce a Truce
The Building and Construction Trades Council of Greater New York and the Hudson Yards developer have agreed to end their ongoing disputes.
NEW YORK CITY—Related Companies and the Building and Construction Trades Council of Greater New York have announced an agreement to end their public disputes, to move forward with building Hudson Yards.
As part of the truce, Related agreed to withdraw its lawsuit filed in March 2018 against the BCTC and its president Gary LaBarbera. The complaint had accused the union organization of corrupt practices. The BCTC represents 100,000 union members in New York City and local affiliates of 15 national and international unions. They had responded that the real estate company was retaliating against the #CountMeIn campaign where union members were banding together to oppose open-shop and non-union construction. The effort resulted in vocal street demonstrations and protests. The conflict had escalated in the court of law and the court of public opinion.
As for the union’s part of the deal, BCTC agreed not to participate in Hudson Yards protests and adversarial campaigns.
The $20 billion Hudson Yards is the largest private real estate development in the US. It spans approximately 26 acres with 18 million square feet of commercial and residential property and more than 100 retail businesses. It stretches from Tenth to Twelfth avenues and from W. 30th to W. 34th streets. Both sides have an interest in the project and issued the following statements:
LaBarbera’s said: “Together we have put aside our differences and come to an historic agreement that will benefit the city’s economy and our workforce with good, middle class construction jobs for years to come. Throughout a relationship that has spanned decades, Related has employed more of our tradesmen and women than any other private developer and together we proudly built Phase I of Hudson Yards.”
He referenced joint commitments to modernization and competitive models. He also stated his organization would work with Related and member unions to support modern efficiencies, good wages and benefits and safe working conditions.
Bruce Beal, Jr., president of Related Companies said: “The agreement is a win-win and reflects our shared values and commitment to good paying jobs with great benefits, skills training, and expanded opportunities and diversity, and will continue the great tangible legacy of commitment, quality and craftsmanship evidenced at Hudson Yards. It also is an important step forward in modernizing the industry with creating greater transparency, and offers the potential for even more New Yorkers to join this great industry.”
Both leaders thanked Mario Cilento, president of the New York State AFL-CIO, for assisting in facilitating the agreement.
Related had employed full union labor according to its agreement with BCTC completing Phase I of the development. Disputes arose with building 50 Hudson Yards. Related reached an agreement with carpenters’ unions who would do the skilled services on the project although the developer also used non-union labor for other jobs. In November 2018, a City & State New York article “A New Weapon in the War over Hudson Yards,” stated “Hudson Yards will signal whether or not nonunion labor can make serious inroads into a construction sector that has long been the domain of organized labor in New York City.”
Previously LaBarbera had pressed for full union employment on construction jobs. Whether the references to modernization and competitive models points to non-union work, the extent that will occur, and whether Hudson Yards will be a weathervane remains to be seen.