MGS Resolves Six-Year Union Dispute - Client Gains Critical Concessions
MGS partner Jeff Scolaro recently resolved a multi-year dispute involving a construction client and the powerful Construction & General Laborer District Council of Chicago & Vicinity, garnering not only a fair monetary assessment but a much-needed reality check for the Union regarding its audit and grievance procedures.
The Dispute
The dispute started when the Union initiated an audit and grievance over allegedly incorrect employee classifications and resulting unpaid union dues and related payments. The matter came before the Joint Grievance Committee which sustained the grievance and assessed millions of dollars against the client. The Joint Committee process is notoriously skewed toward the unions, to the point that many construction employers view the entire proceeding as essentially “rigged.”
Nevertheless, MGS negotiated on behalf of the client and worked the Union down from the exorbitant award to an amount the client considered palatable even if not necessarily fair. The Union, however, abandoned the agreement and went to federal court to assert the grievance and enforce the Joint Committee’s full award.
The Litigation
Having made every effort to resolve the dispute within the Union-friendly grievance process, MGS took the fight to the more level playing field of the courts. MGS opposed the Union’s claims and filed Favored Nations and other counterclaims against the Union. Through discovery and summary judgment motions MGS showed the Union it could not support the award it sought, forcing the Union to at long last engage in good faith negotiations. In the end, the Union lowered its demands, agreed that certain audit findings were wrong, accepted a fraction of the inflated amount it originally sought and abandoned some industry-wide practices that created an uneven playing field for many contractors across the greater Chicago area. That resolution brought the client and similar contractors peace of mind and future certainty in their relations with a powerful Union.
“Even though negotiation is often the best way to resolve a union dispute, it’s important to know when it’s time to fight fire with fire.”
Key Takeaways
Employers have alternatives to unfair union processes
The short-term cost of litigating against union overreach can bring greater long-term value
Fair outcomes are most likely when both sides see the need to negotiate in good faith
