Tag Archive for Request for Proposal for Prime Contractor for New Sacramento Kings Arena Refers to Project Labor Agreement with Construction Unions

Today’s the Day: Union Project Labor Agreement Announced for Construction of New Sacramento Kings Arena

Protest of Sacramento Kings Arena PLA

UPDATE: Critics of the Project Labor Agreement for the new Sacramento Kings arena were aggressive and pierced the orchestrated public relations message advanced by politicians and union officials at Sacramento Mayor Kevin Johnson’s September 4 press conference.

Here’s a YouTube video of an excerpt from the press conference.

News Coverage:

Union Deal on Downtown Sacramento Arena Prompts Protest – Sacramento Bee – September 5, 2013

Sacramento Makes Deal to Use Union Labor to Build ArenaSacramento Business Journal – September 4, 2013

Kings, Mayor Announce Union Deal for New Downtown Arena – KFBK News 1520 AM – September 4, 2013

Kings Arena Labor Agreement: Union Wages, Local Workers, No Strikes – Capitol Public Radio – September 4, 2013

Nonunion Labor Groups Outraged By Sacramento Kings Arena Deal – KOVR CBS 13/CW 31 – September 4, 2013 (KOVR also ran a positive story that unions and their political friends anticipated today: Sacramento Kings Arena Deal Would Create Up To 3,500 Jobs)

Worker Groups Clash Over Sacramento Arena Jobs – KCRA NBC 3 – September 4, 2013

Labor Deal Reached for New Sacramento Arena – KTXL FOX 40 – September 4, 2013 (video is the positive story that unions and their political friends anticipated today, but there is another story about opposition to the Project Labor Agreement that is not yet posted on the KTXL FOX 40 web site)

Labor Agreement Struck to Build Arena (starting at 2:35) – ABC 10 – September 4, 2013 (generally the positive story that unions and their political friends anticipated today, with about 30 seconds at the end about opposition to the Project Labor Agreement)


September 4, 2013 – 8:45 am: Sacramento Mayor Kevin Johnson, representatives of Turner Construction, union officials, and other dignitaries and community leaders will announce today at noon in downtown Sacramento that construction companies will have to sign a Project Labor Agreement with unions as a condition of working on the new Sacramento Kings basketball arena.

The announcement is being made as California State Senate President pro Tem Darrell Steinberg is gutting and amending a bill to give special breaks from CEQA to Sacramento Basketball Holdings LLC, the developer of the planned new arena for the Sacramento Kings professional basketball team.

Project Labor Agreements can increase costs of projects because of reduced bid competition. For example, see the 2011 study from the National University System Institute for Policy Research (in San Diego): Measuring the Cost of Project Labor Agreements on School Construction in California. It reports that “our research shows that PLAs are associated with higher construction costs. We found that costs are 13 to 15 percent higher when school districts construct a school under a PLA.”

It appears that reporter Steve Large with KOVR Channel 13 (CBS) News in Sacramento was the first to break the story, at 10:43 pm on September 3, 2013:

Sacramento Kings Owners Finalizing Labor Agreement With Unions For Arena Construction

Here’s a press release just issued by the Coalition for Fair Employment in Construction:

September 4, 2013
FOR IMMEDIATE RELEASE
Contact: Eric Christen, (858) 431-6337

Coalition for Fair Employment in Construction Condemns Union Project Labor Agreement for Taxpayer-Funded New Sacramento Kings Arena
Gut-and-Amend CEQA Exemption Bill is the Reason for Today’s Announcement

Sacramento – The Coalition for Fair Employment in Construction (CFEC) – a 15-year old California-based organization dedicated to opposing Project Labor Agreements – declares the Project Labor Agreement for the new Sacramento Kings arena as “a waste of taxpayer money and a payoff to unions to avoid baseless complaints and lawsuits under the California Environmental Quality Act (CEQA).”

“We have known for years that unions would target the Sacramento Kings arena for a monopoly on construction,” says Eric Christen, executive director of the Coalition for Fair Employment in Construction since 1999. “Today is the official announcement of this costly and discriminatory union deal for a publicly-funded project.”

Christen charges that the announcement about the Project Labor Agreement is happening TODAY (September 4, 2013) because California State Senate pro Tem Darrell Steinberg is gutting and amending a bill to give special breaks from the California Environmental Quality Act (CEQA) specifically for the arena.

“Steinberg needs union lobbyists and Democrats to push through his special CEQA exemption bill,” Christen said. “Requiring construction companies to sign a Project Labor Agreement with unions locks up majority support in the legislature for this special interest bill.”

Knowing the threat of a Project Labor Agreement on the arena, an alliance of business associations and taxpayer groups led a campaign in 2011 to qualify a ballot measure in the City of Sacramento to prohibit Project Labor Agreements on taxpayer-funded public works projects. Petitions were submitted to the city in December 2011, but the measure failed to qualify because of an unusually high number of invalid signatures.

Christen vows that the Coalition for Fair Employment in Construction will make the unions and the Sacramento Kings billionaires accountable to taxpayers and people who park downtown. “Opponents of taxpayer funding for this arena just found an aggressive new ally today.”

Today’s PLA announcement by Turner Construction will take place at noon at Cesar Chavez Plaza in downtown Sacramento Downtown Plaza Piazza court near Macy’s, K Street between 4th Street and 5th Street. CFEC will be on hand to make sure the voices of Sacramento’s workers, apprentices, contractors and taxpayers are heard.

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Here are some of my tweets about the announcement of the Project Labor Agreement:

 


Here are various articles about the Project Labor Agreement threat for the Kings arena:

How Are Unions Funding Opposition to a Vote on Public Funding of the New Sacramento Kings Arena? – www.LaborIssuesSolutions.com – August 10, 2013

Request for Proposal for Prime Contractor for New Sacramento Kings Arena Refers to Project Labor Agreement with Construction Unions – www.LaborIssuesSolutions.com – July 10, 2013

The Union Quest for a Project Labor Agreement on a New Sacramento Kings Basketball Arena: Part One – 2006 – www.LaborIssuesSolutions.com – January 21, 2013

Out of Nowhere: Project Labor Agreement and Community Benefit Agreement Tacked on End of Motion for New Sacramento Kings Basketball Arena – www.TheTruthaboutPLAs.com – March 9, 2012

City Council Endorses PLA for Sacramento Arena Project – State Building and Construction Trades Council of California (web site) – March 7, 2012

Pay to PLA? Local Ballot Measures Aim to Curb Union Power on Public ProjectsSacramento News & Review – August 18, 2011

Union Fight Already Brewing on New Kings ArenaSacramento Bee – June 16, 2011

How Are Unions Funding Opposition to a Vote on Public Funding of the New Sacramento Kings Arena?

A few construction trade unions have joined a Sacramento-based political committee and have made or pledged contributions to this committee to ensure that citizens in the City of Sacramento don’t get to vote to derail the city’s arrangement with the owners of the Sacramento Kings professional basketball team to build a new arena.

As I most recently reported in Request for Proposal for Prime Contractor for New Sacramento Kings Arena Refers to Project Labor Agreement with Construction Unions, contractors will probably be required to sign a Project Labor Agreement with unions as a condition of working on the arena construction. Unions have been waiting for the opportunity to build a new arena for many years, and they are intent on seeing it built – under a union monopoly.

An August 1, 2013 article in the Sacramento Bee (PAC Pushes Sacramento Arena Vote but Won’t Say Where It Is Getting Money) reported that an organization called DowntownArena.org revealed the source of “nearly $15,000” of contributions received or pledged for a campaign opposed to a ballot initiative that would stop the arena arrangement. This group consists mainly of local business groups (including construction trade associations) and unions.

Meanwhile, many ordinary citizens in Sacramento (and the surrounding region as well) are unhappy with the idea that the city will borrow $212 million for construction of the $448 million arena by selling bonds, with the principal and interest paid back through fees on people who park in downtown Sacramento. A law firm in Southern California that has represented the former owners of the Kings has reportedly funded a campaign (STOP – Sacramento Taxpayers Opposed to Pork, aka Stop Arena Subsidy) to collect signatures on petitions to qualify a ballot measure that would stop it. The initiative would prohibit the City of Sacramento from spending public money on a professional sports arena without approval of a majority of voters in an election.

Apparently based on information provided by the executive director of Region Builders, a trade association that established the DowntownArena.Org campaign, the Sacramento Bee article states that the “International Brotherhood of Electrical Workers donated $2,500.” Under the article, a list of donors includes “National Electrical Contractors Association/International Brotherhood of Electrical Workers: $2,500.”

The first reference is simply a union (with no local affiliation indicated), but the second reference combines a union AND a construction trade association. A contractor trade association and a union would not be making a joint contribution if the money came from their PACs or from their general operating budgets.

To confuse matters, the DowntownArena.org web site lists “IBEW Local 340” and “National Electrical Contractors Association (NECA) of Sacramento” separately (not jointly) as supporters.

I’m wondering if the donor is actually the NECA/IBEW Northern California Labor-Management Cooperation Committee (LMCC). Why is the distinction important?

  1. If money comes from the union PAC and/or the association PAC, it means the source of the money to DowntownArena.org is voluntary political contributions from either union members or contractors to a state-regulated Political Action Committee. These PACs have detailed reporting requirements.
  2. If money comes from the general operating expenses of the union and/or the association, it means the people running the organizations simply made a decision to send some of their income or assets to DowntownArena.org. The right to do this under state election law is quite limited.
  3. If money comes from the NECA/IBEW Northern California Labor-Management Cooperation Committee (LMCC), it means the source of the money to DowntownArena.org is employer payments mandated in collective bargaining agreements that are sent by contractors to a trust fund authorized under the obscure federal Labor-Management Cooperation Act of 1978. These LMCCs are generally unregulated and have few reporting requirements. It’s easy to get this money – the employer payments are even incorporated into state prevailing wage rates.
  4. It’s even possible that the money came from another trust fund managed by NECA and IBEW and authorized under the Employee Retirement Income Security Act (ERISA).

I suspect the donor of the $2500 is the NECA/IBEW Northern California Labor-Management Cooperation Committee (LMCC). But no one will know until February 2014, after DowntownArena.org submits its semi-annual report to the Fair Political Practices Committee. I’ll update this post at that time.