Spotlight On 'Double-Breasting' In Construction Industry

Law360, New York (March 12, 2015, 12:31 PM EDT) -- Economic conditions in the construction industry directly related to labor costs have created union and nonunion shops within the same geographic area. These market conditions may manifest themselves in a particular segment of the industry. For example, a union contractor may not be competitive in the residential market in a locality or a union contractor may not be competitively bid new commercial construction work in suburban areas. This loss of competition may be attributed directly to escalated union wages and fringe benefit packages.

In response to such market conditions, many union companies have started an open-shop construction company in the same...

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