Las Vegas Sun

March 28, 2024

Las Vegas judge: Too early to rule on union labor requirement for jail work

A judge said Monday he can’t yet rule on the validity of a deal requiring contractors to use union labor in a four-year, $125 million project to renovate Clark County’s jail in downtown Las Vegas.

Clark County District Court Judge Jerry Wiese declined during a hearing Monday to approve or reject the Project Labor Agreement (PLA) for the Clark County Detention Center North Tower Renovation Project, saying he couldn’t rule on the contract because while the deal has been negotiated by county staff, it has not yet been approved by the county commissioners.

Nonunion contractors represented by Citizen Outreach Inc., dba as Nevada Business Coalition, sued the county April 8, charging they have been unfairly disqualified from bidding for the work because of the union-labor requirement. A phase now out for bid is for $30 million.

The nonunion contractors, represented by Las Vegas attorney Theodore Parker III, sought a court order blocking the PLA, saying the contract requires builders to enter collective bargaining with unions, hire workers through union halls and pay union wages and benefits.

In a court filing, he said the Nevada Supreme Court in a case from 1999 involving the Southern Nevada Water Authority has upheld PLAs only if they conform with the objectives of competitive bidding laws. In particular, they must not limit bidding or prevent the local government from awarding the bid to the contractor that submits the best bid, he wrote.

"Although the language of the PLA opens bidding on the Detention Center Project to all contractors, historically the practical effect is that only union contractors will bid on the project," Parker wrote in a court filing.

But Clark County staff, in a report for Tuesday’s County Commission agenda, said the PLA meets legal requirements because it does not violate Nevada’s Right to Work and Freedom of Association laws.

The staff report said the PLA "allows both union and nonunion contractors to bid on the project, it allows nonunion contractors to use up to seven core employees on a one-to-one basis with employees referred by the union and does not require any employee to join a union or pay union dues."

The Southern Nevada Building & Construction Trades Council, an association of 18 local unions, is trying to intervene in the lawsuit.

Darren Enns, secretary-treasurer of the union council, said in a court declaration that Project Labor Agreements were used to build many large local projects such as the Mandalay Bay and Paris hotel-casinos and expansions at the Las Vegas Convention Center and McCarran International Airport.

He said PLAs are good for project owners by eliminating the possibility of picketing or strikes over any matter.

"This means that the job can be done on time and on budget," his declaration said.

PLAs are also good for workers by giving them clear rights and a grievance procedure to enforce their rights.

One benefit for workers is that "the prevailing wage required by state law will be a reality," he said.

Projects without PLAs, like CityCenter and the Cosmopolitan Resort, have endured walkouts, he said.

During Monday’s court hearing, which included a standing-room only crowd of union construction workers, Wiese said he’d rule on the PLA later, assuming it’s approved by the County Commission.

If it’s approved Tuesday, all sides will likely file additional court briefs that Wiese will review before making a decision. That decision may come before the jail work contract is awarded.

"What we’re here to determine is whether the PLA will be valid for this project," the judge said. "The PLA hasn’t been approved yet by the county. Until the PLA is approved by the county, we don’t know the terms of the PLA.''

He noted the 1999 case involving the Southern Nevada Water Authority found PLAs are valid as long as they meet certain requirements.

"Because the PLA in this case has not been finalized, it would be premature for me to say whether it’s valid," Wiese said.

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