Unions, contractors clash over proposal to require labor equity in Spokane projects

Unions and contractors clashed Monday over proposed reforms to major public works projects in Spokane.

If approved next week by the City Council, contractors bidding to build Spokane’s city roads, facilities and other public infrastructure projects of at least $5 million may soon have to show that a quarter of the project’s labor will come from underrepresented or impoverished communities living in the city, as well as provide healthcare and other benefits.

Priority hires must either be a graduate from a state-certified pre-apprenticeship program; a veteran, person of color, woman, those formerly convicted of a crime, formerly homeless or a tribal member; or living in an area of the city with higher rates of poverty and lower rates of higher education and employment.

Councilman Paul Dillon, alongside several area unions such as Carpenters Local 59, Ironworkers Local 14 and International Brotherhood of Electrical Workers 73, unveiled the “Public Dollars for Public Benefit” act at a June news conference.

Dillon and union supporters argue the new law would ensure better protections for construction workers on city projects, ensure a larger portion of local tax dollars are paid out to local workers and promote the development and retention of a local skilled workforce. Contractors and other critics fear some of the provisions would be difficult to comply with and dissuade many non-union general contractors from bidding for city projects, decreasing competition and raising bid costs.

“We do not believe the government should mandate or compel any firm to change its labor policies in order to perform these projects,” said Cheryl Stewart, executive director for the Inland Northwest Associated General Contractors, during a Monday reading of the proposal. “This law is not inclusive, it’s exclusive: over 85% of Washington’s workforce is non-union, and 98% of women- and minority-owned firms are non-union, and these contractors and their employees would be shut out or forced to change their labor policies.”

Some contractors also argued Monday that an existing labor shortage would be exacerbated by excluding the vast majority of contractors in the city. The additional reporting and administrative requirements and required employee benefits could also prove overly expensive for smaller outfits, others added.

Union representatives argued that the law would significantly bolster worker protections and prioritizes contractors who prioritize their workers.

“If a contractor won’t invest in their workforce, we must ask, are they the ones we want to build Spokane’s public projects?” asked Matt Chapman, a representative of Ironworkers Local 14.

Chapman also argued that any cost savings that would be lost from these reforms ultimately came from low-balling contractors who “cut corners.”

Stewart pushed back at what she saw as the disparagement of non-union contractors.

“Laws are in place to protect against bad actors, and suggesting that only union contractors follow the law is not true and disrespects the many companies that have built this city for years,” she said.

The law is currently scheduled for a vote on Aug. 25.