Unions have a legit gripe

It’s difficult to explain why, exactly, there’s a disagreement over the revised project labor agreement (PLA) requirement for city-funded economic development projects. Just asking the question is confusing enough. But like most political issues of the day, the solutions are both nuanced and obvious.

It all stems from Cloquet’s requirement that private construction projects that receive city aid valued at over $175,000 (usually in the form of loans and tax-increment financing; the city rarely just contributes a grant or a lump-sum payment for any project) must use union labor, or pay union wages, and work through a regional building trades council to meet all the other PLA requirements. That’s been the ordinance since 2017. This means a private company that wants to, say, build a strip mall along Highway 33 will need to pay union wages, if they ask for substantial economic development funds from the city.

I’m generally in favor of promoting unions just as I appreciate the contributions business leaders and developers make to our community. It’s the give-and-take between the two sides that, when working correctly, contributes to the quality investments we see around here. Unless you are paying attention, most people don’t realize how developers work with the city to get their projects built. It’s an important relationship. All these groups (government, private business, and labor unions) come together to get things done.

That balance is always going to teeter-totter one way or the other; it’s rarely perfectly balanced. Occasionally, for example right now, when one entity, for example the city of Cloquet, makes a change to the way they do things, other groups, like the unions, for example, may not like it and will let their feelings known.

So I was impressed when dozens and dozens of union members came to City Hall on two separate evenings recently to show solidarity and protest the removal of the city’s PLA requirements for private developments.

On one hand, Cloquet’s Economic Development Authority wants to see as much development in town as we can handle. The unions do, too, but they want to make sure these projects use union labor. And the developers want to see a friendly business climate with eager workers, but are always protecting their ability to make a profit.

Last week’s action by the City Council worried union leaders, who fear that any reduction in mandating union labor is a slippery slope that could weaken unions. I can understand their fear. Unions were born out of an imbalance in economic power: the business leaders exploited the workers, often with the approval of government leaders, which led to a wealthy class that did little work and a working class that had little wealth. It’s been a struggle ever since, and union leaders understand that any weak spots could quickly lead to the demise of unions and the protections they offer.

I’ve seen firsthand how unions have benefited our region. Driving around Carlton County, you’ll see people living in decent housing; driving decent vehicles; and sending their kids to decent schools. There’s not a huge disparity between the standards of living for most people, and that’s thanks, in part, to the effectiveness of unions in our county over the years. I can understand why the unions fear a return to the old days.

I do admire the dedication all those union folks have to their cause. It’s rare to see well over 100 people attend a city council meeting, much less two meetings in a row. But the city staff did their homework, and the council eventually decided to follow staff recommendations and see what happens.

Now that PLAs are no longer required for private projects with over $175,000 in city financial assistance, we’ll see if there is any major effect on union labor in our area. If there is, you can bet this issue will arise again.

Pete Radosevich is the publisher of the Pine Knot News community newspaper and an attorney in Esko who hosts the cable access talk show Harry’s Gang on CAT-7. His opinions are his own. Contact him at [email protected].