Labor Part of Union Subsidies Case Is Affirmed, Antitrust Part Will Go To Trial

In American Erectors Inc. et al. v. Local Union No. 7, Massachusetts District Court Judge Richard G. Stearns handed down an order denying Local No. 7 of the International Association of Bridge, Structural, Ornamental & Reinforcing Iron Workers’ motion for judgment notwithstanding the verdict, largely affirming the jury verdict in the labor portion of a suit accusing the union of using dues-based subsidies to give union companies an illegal edge. The order paves the way for a trial to begin on antitrust claims against the union. In their suit, plaintiffs alleged that the union took funds from workers’ paychecks for a “job target fund” and used the money to subsidize union contractors’ bids for construction contracts for which nonunion companies, such as plaintiffs were also competing, thus undermining the market.

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