Nathan Newman ------------------
McGreevey orders use of union construction workers Bergen Record | 1-18-2002 | JEFF PILLETS
TRENTON -- In one of his first official acts, Governor McGreevey on Thursday ordered state contractors to use unionized labor on virtually all large public construction jobs. McGreevey, meeting with reporters in his State House office, said the use of union workers required in his Executive Order No. 1 would lead to better construction of roads, schools, and other projects and save taxpayer money in the long run.
"I am reaffirming my commitment to . . . working with contractors that have a tradition of doing good work at a responsible cost to the public," McGreevey said.
Business leaders and representatives for non-unionized workers reacted harshly to the governor's order and predicted it would not withstand a court challenge. They argued that McGreevey was not only discriminating against non-unionized workers but placing an onerous new burden on taxpayers.
McGreevey's action also was criticized as a lucrative form of political payback to the state AFL-CIO and other labor unions that worked tirelessly for the Democrat's election.
The executive order, which guarantees the use of union workers on most highway projects as well as New Jersey's $8.5 billion school construction program, would direct millions of dollars in dues into union coffers.
"Governor McGreevey has gift-wrapped billions of taxpayer dollars and given it to the labor unions," said Jeff Stoller, vice president of the New Jersey Business and Industry Association. "This order will create a virtual monopoly for labor unions. It shuts out hundreds of qualified contractors and thousands of non-union workers."
Stoller added that McGreevey's action is "particularly maddening" in light of the state's $2.4 billion budget shortfall and looming fiscal crisis.
"He's telling everyone to tighten their belts, then he turns around and gives labor a sweetheart deal on the backs of the taxpayers," Stoller said.
On Thursday, McGreevey also announced formation of a special cost-cutting commission that will examine all state spending and by Feb. 1 recommend avenues out of the cash crisis.
The commission, McGreevey acknowledged, will look at possible state worker layoffs and the elimination of some services in addition to new revenue sources.
"Everything is on the table except the income and sales tax -- they will not be increased," he said.
The use of union set-asides similar to those ordered Thursday has a controversial history in New Jersey.
Gov. Jim Florio signed an executive order guaranteeing such "project labor agreements" in September 1993 in the midst of his reelection campaign. Three days after issuing the order, Florio, a Democrat, received the endorsement of the AFL-CIO.
Six months later, newly elected Republican Gov. Christie Whitman rescinded the order, saying it effectively blocked competition on public works projects.
The New Jersey Supreme Court also has frowned on such arrangements. In 1994, the court said project labor agreements defy the spirit of bidding laws whose "aim is to secure for the public the benefits of unfettered competition."
Outside New Jersey, similar labor agreements have been blamed for inflating the duration and cost of public projects such as construction of Boston's Central Artery, known as the Big Dig, and the expansion of San Francisco International Airport.
Charles Wowkanech, the New Jersey AFL-CIO leader who has been credited with reviving the labor group as a powerful political force in the state, did not return phone calls Thursday.
Wowkanech, who was on stage with state and federal lawmakers and other dignitaries when McGreevey was sworn in Tuesday, has maintained that the agreements not only provide for a uniform set of hiring standards, but ensure the use of highly skilled laborers and quality work.
McGreevey predicted that organized labor would, in the long run, save taxpayer money through lower repair and maintenance costs, especially with school construction.
"I am convinced this is the soundest way to go," he said.
The new order goes into effect immediately.