Does A Labor Strike in Chicago Signal Big Changes for Industry?

Will the asphalt industry be the next to face a labor reckoning? What’s unfolding in Chicago might be a sign of things to come.

The local Chicago 150 chapter of the International Union of Operating Engineers went on strike almost two months ago. Since it went into effect, municipal construction projects of varying sizes have been delayed or put on hold entirely due to the halt in material production. Simultaneously, the men and women of the union went to the picket lines, sacrificing the regular pay they depend upon. This all in response to what their leadership describes as “unfair labor practices” by the Chicago Area Aggregate Producers Association (CAAPA), a consortium made up of the 3 separate companies Lehigh Hanson, Vulcan Materials, and Lafarge Holcim, which collectively operate 35 quarries across Illinois.

Getting to the Table

At the start, it appeared that the strike might be resolved somewhat quickly. The Northern Illinois Material Producers Association (NIMPA), a separate material producing group the union deals with, quickly came to the bargaining table, and reached a new agreement for a contract in only four days. However, the negotiations with the CAAPA were not as straight forward.

Fallout and Ultimatums

As a result of these and other delays, the union filed suit with the National Labor Relations Board (NLRB) charging the CAAPA with “Refusal to Bargain/Bad Faith Bargaining (including surface bargaining/direct dealing)” on July 6.

The CAAPA’s response came on the evening of Friday, July 15, when they submitted a “final offer” that union president James Sweeney described as failing to address previously stated priorities and that it, “contained numerous significant deviations from important language changes that both sides agreed to during negotiations.” And in what appears to be an effort to strong arm the union into ratifying the deal, it came with a specific provision. Were it not to be signed by the end of Sunday, July 17, the companies involved would withdraw all owed backpay.

In a letter addressed to union members and posted to the union’s website, Sweeney said, “This new offer is in no condition to be voted on, but management is attempting to use retroactive pay as leverage to force members to accept it.”

The Rise Of New Labor

The real question that the situation in Chicago, with the Local 150 and the CAAPA, represents to our industry is: Could it be on the brink of what other major industries across the United States are going through? It’s no secret that a monumental shift in the American workforce is underway. Companies like Apple, Amazon, Starbucks, and just this week, Chipotle are all experiencing massive waves in collective action. Many of these mega-corporations spend millions in anti-union campaigns, while also using “labor shortages” as reasons for store closings or limited hours of operation.

The COVID-19 pandemic sparked a new awareness within the labor force, and the surge in labor demands from all areas of industry highlights labor’s value and importance. Yes, strikes like these can be an inconvenience to the local area. They can certainly disrupt routines and delay municipal projects, but the history of organized labor in the U.S. is filled with brave men and women risking their livelihoods to make a better future for their families.

Every American in the nation is feeling the burden of rising costs and creeping inflation. Bare-bones wage raises and benefits are effectively pay-cuts, when the costs of living skyrocket as they have over the last two years. What unfolds in Chicago, the Local 150, and how it is eventually resolved, may be an early domino to fall in our industry, and a sign of what lies ahead.