United Airlines has resisted pressure from a coalition of black groups seeking a role in United`s selection of minority-owned firms to work on its $400 million expansion project at O`Hare International Airport, according to an airline executive.
”We`re meeting all the goals without any help,” said J. Richard Street, vice president of airport affairs for United.
So far, United has awarded contracts totaling $69.6 million at O`Hare. Minority-owned businesses have received $20.4 million, or 29.3 percent, and women-owned businesses have received $4.3 million, or 6.2 percent, Street said.
He said the airline`s construction management firm, Turner Construction Co., has selected the minority- and women-owned firms that have received contracts.
According to United`s figures, 77 percent of the contracts for minorities and women have gone to firms from the Chicago area.
The list of minority contractors includes some of Chicago`s more established firms, and the subcontracts range from $10.4 million for concrete to a few thousand dollars for survey work.
In recent weeks, black groups, including the Chicago Urban League and Operation PUSH, have been trying to persuade airlines to give them a role in selecting minority firms and monitoring compliance with affirmative-action goals on the $1.5 billion O`Hare expansion.
On Thursday, American Airlines signed an agreement with a coalition of four black groups in which the airline promised to award 25 percent of the work on its O`Hare project to minorities and women. American also gave the organizations the right to monitor its compliance.
American already had hired a minority construction firm to help recruit minority contractors to work on its $200 million expansion.
So far, American Airlines has awarded $38.1 million in contracts on its O`Hare expansion project. Businesses controlled by minorities and women have received $5.1 million, or 13.4 percent.
American spokesman Joseph Stroop said the airline is putting the finishing touches on a new set of contracts that will push the total amount to about $49.4 million. Of that, $11.7 million, or about 23.7 percent, will go to firms controlled by minorities and women.
Operation PUSH was part of the black coalition that reached the new agreement with American, and PUSH`s executive director, Rev. Willie Barrow, said United Airlines was the coalition`s next target.
In an interview Friday, Street said he and other United officials have been approached by several black organizations and politicians, including Rev. Jesse Jackson and several aldermen.
Some minority contractors who have talked with United officials hinted that their association with the project might provide United with a
”political plus,” he said.
”When you are doing a $400 million project, you`ve got a lot of friends out there,” Street said.
But United believes there are sufficient guarantees in its contract with the city to ensure a high level of participation by minorities and women, Street said. The city contract calls for awarding 20 percent of its work to minorities and 5 percent to women.
As a result, he said, the airline sees no need for agreements with outside organizations.
”By complying with our contractual obligations to the city, we are complying with the points these groups have been making,” Street said.
