A Laborers Union strike on Thursday shut down highway and building projects in the Chicago area, trimmed repair work on the Dan Ryan Expressway, halted modernization efforts at O’Hare International Airport and stirred concerns about the effect it could have on a construction-driven economy.
In the first walkout by the Chicago Laborers District Council since a nine-day stoppage in 1991, the union struck members of the Mid-America Regional Bargaining Association, one of several building associations with whom it has contracts.
As the laborers’ 5-year-old contract with about a dozen construction organizations ran out at midnight Wednesday, it had reached agreements or extended its contracts with all of them except MARBA, said union attorney Robert Bloch.
But in the case of MARBA, the union and builders remained far apart after a month of talks, and the union quit negotiations Wednesday, indicating its dismay with the contractors’ offer.
Warning that the strike could hurt major construction projects like the one on the Dan Ryan, MARBA said it would seek the help of a federal mediator to bring the union back to the bargaining table.
The Laborers’ workplace clout was quickly proven, as members of other building-trades unions refused to cross their picket lines, bringing an eerie hush over construction sites and putting thousands besides the laborers out of work.
With no talks scheduled between the laborers and MARBA, their dispute segued into countercharges and a debate over whether the contractors organization has the authority to bargain on behalf of its 250 members, some of whom are major firms in the Chicago area.
Randy Larson, a spokesman for MARBA, said that though his group’s right to bargain for its members expired Wednesday, it was ready to continue talks with the union.
“If we were to hammer out a deal, I am sure most contractors would say fine,” said Larson.
But Bloch said he was confused by MARBA’s willingness to still talk with the union.
“They have notified all of the contractors that they are on their own,” he said.
Larson described the negotiations with the union as “unusual” because it had not countered his organization’s initial offer of a $2.20-an-hour raise each year for a two-year contract. The average wage for laborers, whose health-care coverage costs are paid by their employers, is $30.15 an hour, he said.
But Bloch said the union did not respond to the contractors’ offer because there were other issues that needed to be dealt with.
One thing the union wants is more control over work subcontracted to members of other unions, said Larson, who added that such a change could have a “significant impact” on jobs.
The contractors oppose such a change because, he explained, “It would put us into constant disputes over who would have jurisdiction [over jobs].”
Larson acknowledged, as union officials pointed out, that such a clause exists in its contracts with other trades. But, he said, the “ramifications” could be more significant for the laborers because of contractors’ reliance on subcontracting.
Much of the work on the Dan Ryan Expressway will continue because the major contractor, Walsh Construction Co., has a contract with the union, said Mike Claffey, an Illinois Department of Transportation spokesman. But at least one of the firm’s subcontractors was struck, forcing it to halt its work, he said.
And out of 200 highway construction projects in the six-county area, at least 150 were stopped Thursday as a result of the strike, Claffey said.
“We certainly hope this is a short-term issue,” he said.
Construction work also was halted at O’Hare, where several hundred workers have been carrying out a modernization program since fall, said Rosemarie Andolino, executive director of the program.
Alan Lev, president of Belgravia Group, a leading residential developer, said one of his company’s downtown projects was shut down, and he was hoping for a prompt settlement.
“Over the last several years, we’ve been lucky that we haven’t had work stoppages,” he said.
Jack Ablin, chief investment officer for Harris Private Bank, said the specter of a long-term strike would be especially troubling for the Chicago economy because it has relied on a strong boost from its construction sector.
“A prolonged strike could have a profound negative impact on Chicago,” Ablin said. “Of all the major cities, Chicago enjoys probably one of the strongest construction markets.”
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sfranklin@tribune.com
