Know What You've Signed...And What You Should Be Signing

• Andy Cole
• January 28, 2010

As a busy seasons of contract negotiations nears, contractors should review all of their union agreements and make a determination as to whether they should terminate some of them. As a general rule, according to Builders Association member Ogletree Deakins, if you do not use an agreement there is no reason for you to be signatory to it.

Terminating union agreements can involve at least three scenarios:

• A contractor has not directly employed members of a particular trade (including non-Association trades) a substantial amount of time. The contractor can continue to subcontract the covered work pursuant to its normal practices without itself being signatory to the agreement.
• A contractor is signatory to an agreement in a geographic area where it is not performing and does not intend to perform work in the foreseeable future.
• A contractor signatory to a Builders Association agreement is also signatory to a "short-form" agreement with that same union. The "short-form" contract can be terminated as long as the contractor remains bound to the union through the BA contract.

Later this month, members will receive a bargaining rights informational packet from the Builders Association. Once you've evaluated your contracts and determined any that are to be terminated, consult the Association or qualified labor counsel to determine the timing of the notice and if there are any withdrawal liability issues.

For more information on this or any other labor topic, contact the Builders Association's Director of Labor, Denise Herdrich.