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Tensions flare between trade unions, tourism agency over a project labor agreement

Jackie Valley
Jackie Valley
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Some local trade unions have a new nickname for the bustling Las Vegas Convention Center that welcomes thousands of visitors each year.

They’re calling it the “Las Vegas Deception Center,” and on Tuesday, union members stood outside the massive complex with signs displaying the negative moniker. Their unhappiness stems from what they say is a broken promise regarding an anticipated project labor agreement.

Weeks before construction begins on a pricey expansion project — which will add 1.4 million square feet to the complex — there’s no document in place with labor organizations spelling out the terms and conditions of employment.

“You’re able to put in that agreement things that will be for the community’s benefit,” said Don Campbell, executive director of the local chapter of the National Electrical Contractors Association. “It’s our public dollars. We would like it to stay in Clark County.”

Leaders of local trade unions say the Las Vegas Convention and Visitors Authority isn’t holding up its end of a bargain brokered ahead of the 2016 special legislative session. During the five-day gathering in Carson City, lawmakers approved public funding for both the Raiders’ stadium and expansion of the convention center — the latter of which was seen as a way to engender more support for the controversial football project.

The building trades initially had taken a neutral stance on Senate Bill 1, which authorized public funding for the projects, said William Stanley, executive secretary-treasurer for the Southern Nevada Building Trades Union.

But Stanley said that changed when the LVCVA approached the trades, asking for support in exchange for both construction projects operating under labor agreements. The trade unions threw their support behind the bill.

Fast forward nearly two years. The Raiders’ stadium project is being constructed under a project labor agreement — also known as a community benefits agreement — but the convention center addition doesn’t have one in place.

The situation drew trade unions to the LVCVA board meeting Tuesday, where leaders lamented the perceived unfairness of it.

“I was there (Tuesday) reminding them that commitments made in 2016 need to be honored,” Stanley said. “Relationships are built on trust. Why would I trust you again?”

But officials from the tourism agency argue they honored the commitment made, which they say was to fight for changes to state law that would have allowed the LVCVA to require a project labor agreement. Assembly Bill 159, passed during the 2015 legislative session, prohibits public entities from requiring or prohibiting a contractor from entering into agreements with labor organizations. (The bill makes exceptions for airports and water systems, deeming them critical infrastructure.)

Terry Jicinsky, senior vice president of operations for the LVCVA, said the tourism agency made good on its promise during the 2017 legislative session and backed Senate Bill 464. That bill would have authorized the LVCVA to require bidders, contractors and subcontractors to enter into labor agreements for the convention center expansion project.

The bill cleared both houses, but Gov. Brian Sandoval vetoed it.

“That’s where it’s black and white that the agreement to work together was executed,” Jicinsky said.

Based on their understanding of existing state law, LVCVA officials said they can’t even encourage a general contractor to negotiate a project labor agreement with the unions.

“It’s not our place to interfere with their business, and we’re very careful not to cross that line,” Jicinsky said.

That places the decision squarely on Turner/Martin-Harris, the joint venture selected in March as the project’s general contractor. Neither company returned requests for comment.

If the general contractor intends to negotiate a project labor agreement, time is of the essence, said Al Davis, the business manager and financial secretary for IBEW Local 357, which represents electricians.

“The bids are out there,” he said. “You can’t have subcontractors bidding on something and then change the terms and conditions of the project they’re on. It is time now to make this happen.”

The trade unions contend a project labor agreement winds up benefiting the entire community by ensuring local hiring, adequate health care and benefits for workers and guaranteeing a harmonious work environment — in other words, no strikes during the project.

“This isn’t a union or non-union issue,” said Campbell, who added that he wasn’t necessarily worried about losing jobs. “This is a community issue.”

The tourism agency estimates the convention center expansion and renovation projects will create 14,000 construction jobs. The LVCVA Board of Directors expects to finalize the cost of the expansion project with Turner/Martin-Harris at its September meeting. Construction would begin the following week.

The cost of the expansion project was previously pegged at $860 million. LVCVA officials said the new addition to the convention center should be complete by January 2021 — just in time for the large Consumer Electronics Show.

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