^Hl/l/£y HD28 .M414 \^^ MIT Sloan School of Management Sloan Working Paper 4175-01 September 2001 UNIONS ON THE REBOUND: SOCIAL EMBEDDEDNESS AND THE TRANSFORMATION OF BUILDING TRADES LOCALS Sean C. Safford and Richard M. Locke The paper can be downloaded without charge from the Social Science Research Network Electronic Paper Collection: http://papers.ssrn.com/paper.taf7abstract id=283689 MASSAC _Pl JL'ri iTUTE ... . _____ 3 2002 LiBFl'XRIES UNIONS ON THE REBOUND: SOCIAL EMBEDDEDNESS AND THE TRANSFORJVLATION OF BUILDING TRADES LOCALS SEAN SAFFORD *Sean Safford Employment is a Ph.D. Candidate at the and RICHARD M. LOCKE* MIT-Sloan School of Management's Research. Richard M. Locke is the Alvin J. Institute for Work and Siteman Professor of Entrepreneurship and Poljucal Science at the Massachusetts Insdtute of Technology. a grant from the MIT Organizadonal Learning Center as part of a larger Locke on U.S. unions and their struggle to change for the modern era. Many thanks to Corinne Bendersky, Diane Burton, Rachael Cobb, John Dunlop, Roberto Fernandez, Isabel Fernandez-Mateo, Janice Fine, Tom Kochan, Jeff Grabelsky, Harry Katz, Marc Linder, Robert McKersie, Michael O'Lear^', Paul Osterman, Jesper Sorensen, Michael Piore, David Weil and to the parncipants in seminars at MIT's Insdtute for Work and Employment Research and at the 13* Annual Meeting of the Society for the Advancement of Socio-Economics, Amsterdam, the Netherlands for comments on earlier drafts of this paper. Finally, we wish to thank the many people who agreed to be interviewed as part of this project, especially Mark ErUch, Richard Kibbon and Matt Walters. This paper was supported by project led bv Richard A data appendix with computer programs used to generate the results Work and Employment Research, MIT-Sloan School of Management, Massachusetts Institute of Technology, 50 Memorial additional results and copies of the presented in the paper are available from Sean Safford Drive, Suite 580, Cambridge, MA 02142. at the Institute for Email: ssafford(a).mit.edu Abstract This paper seeks to understand economic on life the "social that where — can re-emerge how US as labor unions activit\' as well as Where unions communities - notwithstanding genuine efforts at launching - they are likely to stagnate. of building trade locals Pipetrades in the two more American political on union revitalization, and literature we hypothesize unions are able to rebuild linkages to other local groups, they should be successful revitalizing themselves organizationally. organizations institutions in important and viable organizations. Building on the extensive embeddedness" of economic local - once key in The paper fail to embed themselves new strategies reports the results of Boston, Massachusetts, and Pordand, Oregon. The other cities. objective information on set the unions' of cases focuses on the embeddedness in local cities' in their broader and rebuilding two matched One set at their own pair case studies of cases focuses on Carpenters unions. To gain networks we employed a survey that identified approximately 100 industry stakeholder organizations including builders, architects, engineers, major propern' owners, neighborhood and environmental groups, banks and lenders. were able to We conduct received responses from a series 46% local and state governments, and of the organizations we contacted from which we of network analyses that complement our qualitative research. Introduction how US This paper seeks to understand economic from life - can re-emerge a height of Union contradictory. place in the 35% economy in as 1955 to decline is - once key institudons in 11% just today. The from manufacturing to services, increased international competition) political allies in historically in We answer this industn,'. One result of anti- country', tiiis what (if we ask: Given the important role unions anything) can be done to reverse this situation? question through an analysis of two matched pair case studies in the construction set of cases focuses on Pipetrades' unions located in Boston and Pordand, Oregon. The economic contexts, factor endowments and use of tactics, cities. Despite their similar challenges, these four local unions have experienced very different organizational trajectories in recent years. Whereas the Pordand Pipetrades' membership, increased market its community, respect to the concerted Washington (Goldfield 1987; Fantasia other set of cases focuses on Carpenters unions in the same two its a 1998; Linder 1999). This paper does not seek to revisit or even to contribute to the debate on union decline in the US. Instead, have played and portrayed alternatively as the by-product of various secular trends taking union strategy by corporate interests and their al political explanations for this decline are multiple and often (Freeman 1985; Western 1997; Farber and Western 2001; Allen 1988) or the 1988; Bronfenbrenner, et American important and viable organizations. Union membership has declined the shift (i.e., labor unions its and renewed share, local has gained status as a significant contributor to the success of counterpart in Boston has continued to stagnate. Just the opposite occurred with two Carpenters' unions in these two cities. Notwithstanding efforts by several highly talented and energetic leaders, Pordand's Carpenters have languished. Their counterparts in Boston, the other hand, have fought back from the verge of collapse and are now on enjoying increasing wages and strong employment levels as well as renewed political clout in both the industn' and the region generally. How do we we explain understand these divergent outcomes in the face of remarkably similar challenges? why embeddedness" of economic activity' as well as on union on themselves in their local social, political the extensive literature revitalization, not unions can re-invigorate and re-launch themselves depends upon ' how and economic contexts. During we successfully they their We include all of these crafts under the umbrella term "Pipetrades." on the argue that whether or embed hey-day of power and Local jurisdictions differ with respect to the combination of plumbing, pipefitting, sprinklerfitring and other mechanical trades. can unions situated in almost identical economic, political and social contexts respond so differendy to the challenges (and opportunities) they face? Building "social How influence, unions were not simply membership organizations but rather central institutions in their communities. Thev were central vehicles for the social integration of immigrant workers and the political mobilization of working Schneirov and Suhrbur 1988, Kazin, class citizens (Lichtenstein 1983, economy, promoting 1989). They also played important roles in the sectors (e.g., garments), training and coordination functions in others industrial upgrading in certain (e.g., construction), and economic redistribuuon and benefit provision in most (Katz 1985, Fraser 1988, Jacoby 1991, Houlihan 1993). Their centralit)- in a whole network of organizational and and respected actors members but responsive not just to their period, however, they became communities but in their local many unions to the also well-informed community lost their centrality in the increasingly insulated institutional ties at large. nexus of made them not only important and responsive organizations — Over the course of the postwar local organization linkages. and isolated organizations, seen As a result, as representing "special interests" rather than broader societal goals. Today, some unions are changing and re-emerging revitalized unions have been successful at as vital and important organizations. These own changing because they have rebuilt not only their organizational capacities (Piore, 1994; Grabelsky and Hurd 1994; Juravich and Bronfenbrenner, 1999; Turner 1999, Ganz 2000; Voss and Sherman, 2000; Frost, 2000, Katz, Batt and Keefe, 2001) but their linkages to other organizations nen.vork of social and institutional and groups ties has been in their shown communities. Being embedded in an articulated of to be important for the sharing information (Granovetter, 1985; Burt, 1992; Podolny 1993, 1994; Uzzi 1996, 1997), the communicate across and identify with divergent also strategic ability to groups (Padgett and AnseU, 1993; Dutton and Dukarich, 1991; Zukin and DiMaggio, 1990), and the capacity to build alliances and/or to engage in collective action (Locke, 1995; Drawing on Locke and Jacoby, this literature, we 1997). argue that the rebuilding of multiple, cross-cutting insututions in the local communir\' provides unions with not just information. This information economic and political is more but more ties to other groups and varied and more key to helping unions both understand and respond to changes more representative range of stakeholders' interests. FinaUy, also provides unions with potential allies collective efforts. in their environments. Increased communication with multiple actors also helps local unions better understand stakeholders vocabularies and concerns and thus transform in ways that a timely Applying tliis and/or mediators embeddedness in future struggles in the local community and partners network theory to unions, we hypothesize that where reflect local in future unions are able to rebuild linkages to other local groups, they should be successful at revitalizing themselves organizationally. WTiere unions fail notwithstanding genuine efforts at to embed themselves launching new in their broader communities - and rebuilding strategies their own organizations — they are likely to stagnate. Construction unions, communities given most other like that craft unions, have historically been closely both product and labor markets were coterminous with the communities within which building trades workers roles not just in the local lived (Commons economy but 1934, Ulman also in the social 1989, Schneirov and Suhrbur 1988,Jacoby 1991, and HouUhan 1955). Building trades unions played active political life 1993). of their communities (Kazin Since the economic and technological innovations have broadened the scope of the beyond the local labor tied to their market/communit\' while various competition within the industr\' by introducing a strong, political late 1970s, however, industry's product changes have altered the nature of non-union of actors. Given these changes, set building trades unions have had to reach out beyond their traditional interlocutors and build broader of community and industry actors set Whether or not, and how, they if so, building trades unions, the tradition) other most can not rebuild their umons likely ties to in other sectors that are unions are successful what to redefine their place in the do so is among American the central question of this paper. If even unions (given their historical, craft-based other actors in their communities, then what hope can there be for much at rebuilding their actors in the industn,', then ties to a they are to regain their prominence in the industry. if are able to market less geographically community insights might bound? However, linkages and developing their experience new if building trades relationships with new provide for other unions also struggling new economy? Methods This paper reports the results of two matched pair case studies of building trade locals in Boston, Massachusetts, and Portland, Oregon, in order to explore the role embeddedness plays in unions' to transform themselves. cases focuses conducted on the as part of several national craft ^ One cities' of cases focuses on Pipetrades in the two cities.- The other set ongoing, project on union revitaUzation. industrial labor unions in the United States. We interviewed the leadership of These interviews yielded a Local jurisdictions differ with respect to the terminology and grouping of plumbing, pipefitting, steamfitting, sprinklerfitting "pipetrades." of Carpenters umons. These locals were identified from a series of interviews a larger, and set abilit)' and other mechanical crafts. For clarity, we include all of these trades under the umbrella term list of "innovatixc" local uaions that included various craft locals in Boston, Chattanooga, Houston, Kansas City, Las Vegas, Long Island, Los Angeles, Mobile, examining several of these unions, we chose New York Cit\', to concentrate on two Portland, Seatde and Toledo. After of locals sets in Boston and Pordand, given the comparabilit)' of their economic, social and political contexts.' In November 1999 and June 2000, we interviewed twenty union leaders, builders, government neighborhood leaders and major propert)' owners actors in Boston between hours. (An appendix at Fall the in We interviewed Boston. 2000 and Spring 2001. Each interview end of the paper lists lasted officials, twenty-three industry between one and three individuals interviewed in both cides.) In addition, we read thirty years worth of the Labor Press Pordand's longstanding labor newspaper of record for . background information. For the Boston on several first cities' histories compiled by is no comparable labor newspaper, we local trade unionists more objective information on the unions' . embeddedness in local networks we employed sun-ev that identified approximately 100 organizations representing important construction industry stakeholders in each These included city. neighborhood and environmental groups, received responses from series 46% builders, architects, engineers, local of network analyses that complement our The Construction The construction this industn,' has among we governments, and banks and lenders. contacted from which We qualitative research. industr\' before turmng we were turn to the now two case we outline, in highly stylized form, a how industry', characterized it to a brief discussion pairs. has shaped union strength and strategy. by myriad contractors, sub-contractors and unions various craft jurisdictions, emerged at the turn of die twentieth century as a by-product of 1972a). Within the industry', a "system" developed in new able to conduct a few of the major dimensions the nation's industrialization and urbanization processes (Christie 1956; Fine 1953; construct We evolved and changed along several important fronts over the course of the evolution has proceeded and The modern construction divided state major propert)' owners, Industry in Transition twentieth century. In this section, along wlxich and of the organizations of the changing context of the construction which properr\' Galenson 1983; MiUs owners entered into agreements to buildings with general contractors, and the contractors, in turn, entered into agreements with various sub-contractors ^ relied and conducted keyword searches of the two major newspapers, the Boston Globe and the Boston Herald Finally, to gain a hand cases, since there See Cobb and Locke 2001 for who a actually did the work. Initially, the union's role within the industry' was comparison of healthcare workers' unions in Boston and Los Angeles, another set largely one of enforcing common wages and working conditions among die contractors of a given geographic region (Houlihan 1993). By the 1930s, however, the unions had developed several additional roles within the industr)', including job placement and the provision of training and apprendceships. Through union were able hiring halls contractors minimum permanent to maintain only a staff, and contract with workers on a project-by-project basis (Jacoby 1991; Mills 1972a; Ross 1972). During the first 70 years of the twentieth In the 1930s, massive federally funded public craft-based structure. level of employers centur\', the industry slowly who competed for the largest projects on evolved within this traditional works projects gave a national scale. By the rise to a second Second World War, these contractors had developed reladonships with the national unions and negotiated separate agreements that applied specifically to their projects (Mills 1972a; Wolf At the same 1996). time, the industry (which had previously been undifferendated) sub-divided into four main categories: residendal, commercial/insdtudonal, industrial and heavy/high-way (Mills 1972a). For the most part, the building trade unions' structure place in the industr^^ developed their own In response to the staff and strategy evolved to match the changes taking emergence of national level contractors, the national unions and organizational capacities to deal with both national contractors and to lobby politicians and regulators in Washington on issues concerning the industry (Mills 1972a; GaUenson 1983). National contracts responsibilities as local between emerged local in the 1930s (Haber 1971). By the 1960s, however, the bifurcation of and national unions had generated considerable tensions within the unions unions began to lose the autonomy and power they had previously enjoyed (Mills 1972a; Dunlop 1961). Nevertheless, with time, local unions learned to adapt to this change by ensuring continued control over local hiring halls which guaranteed their indispensabilit}' to national contractors. At the same time, the locals learned to exploit national contracts these lucrative jobs in the event of a strike. In at the many by shifting politically cases, this allowed them important members onto to oudast local employers bargaining table. The segmentation of the industry also created problems for the unions. Before the Second most construction unions were well represented residential segment declined significandy in the residential market. after the War (Erlich 1988; the segments in which the unions had maintained a strong presence industrial and large-scale infrastructure projects — labor and coordinators of multiple project teams. of unions studied as part of this project. World War, But the union's grip on the Northrup and Foster 1975). Within —commercial, institutional, the unions remained essential as suppliers of skilled The union hiring halls continued to provide contractors with flexible staffing arrangements and the unions continued to provide access to collective goods such as health care and pension benefits which were made available to employers and workers contractors had come up through the ranks and thus been socialized into the industry through union apprenticeship programs. These programs, in turn, provided a information transfer and trust changes in the construction industn,' for All a most construction Relations between the unions and contractors were strong, especially since alike. of this whole much of the among industn,', common ground for communication, the contractors and union leaders. In short, in spite of various unions continued to occupy a central role in the governance of the twentieth century (Ichniowski and Preston 1989). began to change in the early 1970s. Although inflation rates increased for the US economy as 1960s and early 1970s, wages/prices in the construction industry rose even more. in the late Between July 1969 and July 1971 construction workers' wages rose by increase in the manufacturing sector. As a result, the federal 25% as compared government stepped to a 12% in to control wages in 1971. According to government leaders, the structure of collective bargaining in the construction Both "featherbedding" labor industry' created "perverse incentives" for excessive wage-price increases. contracts with extraneous work-related expenses and "leapfrogging" (i.e., seeking higher wages than their neighbors in another jurisdiction) were (Mills common practices in the industry 1972b; Galenson 1983). Higher wages were passed on to customers because there was oversight bv major property' owners industn' in these years. 36% unions in one jurisdiction of all War the federal government included. Between 1968 and 1970, 3000 strike acdvity in the industn,' since the - United States. strikes Strike rates took place in the industry, also high in the represendng This was almost double the rate that had prevailed in the (Linder 1999; Lipsky and Farber 1976). Altogether, the industry (and had developed a reputadon for being unruly, expensive, unproductive, and Pardy in response were to these issues, a litde in many its unions) cases, corrupt. committee of major national property owners convened in order to address what were perceived to be a set of "structural inefficiencies" that had crept into the industry over the course of its development. That committee, which eventually became incorporated into the Business Roundtable, issued a series of reports which recommended significant changes in the organization of the industry (Linder 1999). In addition to the industry's collective bargaining structure, the committee also identified an overall decline in productivity' generated by the increasing complexity of major projects, inadequate management on the part of contractors and property owners, and inefficient use of technology. The Roundtable generated a number of recommendations These included the creation of university and college based training in order to address these issues. programs for managers and productivity related research and protocols for project managers' oversight of major projects. However, among the most important changes advocated by the Business Roundtable was the development of a cohort of professional construction managers and construction management firms. Over the course of the last thirtv years, these firms have largely replaced the system of general contractors in the industry. No longer do shift size deal directly with contractors. Instead, construction managers They employ no construction workers of organization. This owners of any of properrv owners during the construction process, administering every act as agents directly with propert\' their both sub-contractors and suppliers to build structures. has generated several important consequences for unions in the industry. First, the advent of new building technologies, has encouraged further specialization among sub-contractors. This specialization, contractors to seek out projects competed for work within their on a wider geographic home led to the erosion of specialization separated the different crafts. steelworkers and the in certain parts down Whereas in the past most contractors management and technological innovations have also of the industry. In the past, clear boundaries The work of carpenters, work of pipefitters was an effort to drive scale. in turn, has forced geographic areas, today contractors increasingly bid for projects across several state lines. Conversely, construction in of a project's own. Construction managers contract construction management, in conjunction with the introduction of both detail for example, distinguishable from was that costs and because of changes in the boundaries are increasingly blurred. This has exacerbated tensions distinct from that of of sheet-metal workers. Today, way buildings are built, these craft among the unions, which have found themselves fighting with one another over competing jurisdictions. In the early 1970s, the Associated Builders and Contractors (ABC) emerged as a significant lobbying and education force within the industry with a mission to promote and support non-union or "open shop" construction (Northrup and Foster 1975). their prominence within the which sets a wage industry' The ABC it saw out to dislodge the building trades unions from by undermining union legislation such floor tied to the union scale for attacked licensing laws that set as favoring government projects. as the At the Davis-Bacon Act, state level, the union sponsored training programs. At the same time, the organization set out to create an alternative set of institutions to those in which the unions had central. In many jurisdictional Over cities, the ABC open shop created its own training programs, hiring hall become mechanisms, and administrative boundaries, government lobbyists, and healthcare and pension plans. the course of the 1970s and 1980s, this so-called by establishing a "open shop movement" spread from city to city foothold in suburban areas and then targeting union strongholds in the center cities (Northrup and Foster 1975; Northrup 1984; Erlich 1985). Contractors were forced to chose whether to remain with the union-dominated set of institutions or shift to those offered by the open shop. affiliated Since 1970, in cir\' ABC itself grew after city, that decision has from a 23,000 members todav. plummeted over tliis more often than not been in favor membership of 3,000 contractors and 17 chapters More importantly, as Graph 1 same period from approximately *** Graph 1 in of the open shop. The 1970 (Erlich 1986) to shows, union coverage in the industry has 41% in 1970 to just 18% over nationally today. here *** The Unions Response ' National construction unions and their local shop challenge bargaimng in a variety in the late affiliates of ways. The unions have responded to these changes and to the open- initially 1970s and early 1980s. Yet, these had litde effect on a different tack into the umons' ranks rather than focusing on the more traditional "top convince contractors to sign union contracts. As part of down" approach this effort, the unions of exclusion - which is that attempts unions implemented the COMET program, an innovative attempt to educate rank-and-file members about both histor)' Some their decline. by intensifying "bottom up" organizing which brings non-union workers direcdy pursued to reacted to their losses with concessionary the unions' portrayed as the underlying causes of the unions' decline - and on ways the unions could use organizing to remedy its past mistakes. Others, have sought to respond by reducing their costs and offering contractors a variety of concessions or even subsidies for their projects. These "targeted funds" facing significant set aside a portion non-umon competition. as use various labor many unions have and OSHA of workers' wages in order to subsidize union contractors Still others have sought to combine both approaches regulations to pressure contractors into signing umon contracts. as well Finally, simply redoubled their emphasis on superior training as an inducement to contractors. Regardless of the particular mix of strategies employed, the results of these efforts have been, at best, mixed. While the unions' coverage in the industry increased briefly boom in the late 1990s, as Notwithstanding graph this generally 1 at the height of the construction shows, membership density has again started to decline. dismal picture, however, a more disaggregated examination of construction union activity and membership rates reveals significant variation at the some local construction We now level. In fact, unions have successfully rebounded in recent years. Facing the same pattern of declining market share and diminished political presence, these few unions renewal. local show signs of organizational turn to an examination of four local cases in order to account for these different outcomes. 10 Pipetrades in Boston and Portland: Plumbers and Fitters' A Tale of Two Locals Loca/ 290 in Port/and, Oregon With the onset of the Great Depression, Portland became the including the massive BooneviUe the U.S. entered the the federal cir\- at industrialist to build ships for the the juncture of the of several major public works projects located eighty miles east of Second World War, government of Pordand Dam site war Pordand on the Columbia As Hiver. Henry J. Kaiser was awarded major contracts from effort. Kaiser located his operations just outside the Columbia and Willamette Rivers. Over the course of the War, the Kaiser slup yards along with a few other smaller operations produced over 1,000 liberty ships. Membership massive in the building trades, At the height of the war, effort. in the countn,' with over 10,000 Pordand area lumber miUs and area seeking which had been strong before the war, skyrocketed work building trades' in the ship yards. work Building and maintaining these By political leaders in the In the 1970s, however, the was the facilities who had community (Abbot open shop movement began had 1983). to establish a foothold in the region. from the open shop movement took place outside of Pordand, Much of As in the outiying areas. and focused instead on several major projects that The cities. of these projects was the 5400 million dollar Trojan nuclear power plant located outside Pordand. Events took a serious turn for the worse in 1981 as the region descended into the deepest recession had seen since the 1930s. The open shop, which had been gathering strength years, largest formed the core of the allowed the unions to maintain employment levels for their existing membership in the major largest this relocated to the the 1950s and 1960s, Pordand's building trades a result, the unions' leadership ignored this challenge of 1990; Wollner 1990; Abbott 1983). After the War, absorbed the thousands of workers in the post- War years. become economic and the competition for example, Pordand's electrical workers union members (Kesselman factories as a result took advantage of the crisis it in the state for several (Wollner 1990). As the open shop entrenched itself more deeply into Pordand's construction economy, major contractors were faced with the stark choice between maintaining their umon affiliation and shifting to the open shop. Some split the bill by creating "double- breasted" operations with both union-signatory and open shop subsidiaries. This allowed contractors to selectively bid on work depending on the location and politics of the project (Northrup 1995). Nevertheless, union contractor's share of the market plunged from 1979 to just 61% in 1981 (Nordirup 1984). 11 91% of non-residential projects in Coincident with the recession ot the early 1980s and the pipefitters' unions were engaged rise of the open shop, the local plumbers' and in a bitter jurisdicdonal fight. Plumbers tradidonallv work on potable water systems. Pipefitters generally handle hearing and cooling. The changing nature of the industry began to blur the boundaries benveen these ru'o This was especially true crafts. in the area of high tech manufacturing which requires special plumbing systems for delivering purified water to clean rooms. Manufacturing, of laid all kinds, had tradidonally been the province of the claim to lucradve high-technology related plumbing systems were within work arguing their jurisdicuon. When that "clean The plumbers, however, rooms" requiring special the state descended into deep recession in the benveen the two facdons turned into an open turf war. The two groups, which early 1980s, the rift then had joindy bargained a single statewide wage settied for $0.74 less than the fitters rate, and thus threatened to lure contractors with violence erupting on a began fitters' away from to picket until The plumbers' negotiated separately in 1983. counterparts. Faced with the prospect of dramatic losses, the sites fitters. their fitter plumbers' work number of occasions. In 1982, the national union stepped in to resolve the situation. The plan called for a complete consolidation of the state's various locals under the auspices of the newly created Local 290. Interim leadership, mainly taken from the existing plumbers union leadership, contractors. Frightened by the set out to mend growing number of defections, the union engaged with individual contractors to strike more lucrative arrangements. relationships with in ad hoc bargaining Eventually, these ad hoc agreements extended to individual projects and included non-signator)' contractors. However, these agreements created greater problems for the unions as contractors threatened to defect from the union contract unless they received In 1988, a new more leader. agreements and set Matt Walters, took over the about introducing the business manager. contractors' profit favorable terms. At making the same abilities. a new set local's reigns. of internal of showcase apprenticeship training to rebuilding ties to traditional contractors work practices that facilities in years of insularity and decline. in the office the Pordand area and around the many of whom had been However, Walters was 12 to restrict initiated a state. and cleaning up internal union practices, Walters officials, of a plan to create a of $0.10 per hour worked. The fund build relationships with key leaders in the industry' in various parts of the state. major contractors and government power ad hoc all were thought approached contractors with training fund fueled by an unusually large contribution series immediately rescinded rules that consolidated time, the local loosened Finally, Walters He In addition set out to These contacts included alienated by the union's many also careful to cultivate relationships with a whole new set stakeholders, including propert)' owners, architects and engineers, and building materials suppliers. announced In 1993, the Intel Corporation chip manufacturing facilities in the area already. promised to bring a new- level where contractors on this had decided to locate time at the of economic in the Intel's its a new dollar facility the Pordand area construcdon - the largest computer company had just several announced The company, however, had typically After the announcement, Walters sites. headquarters are located, to personally meedng plant Pordand suburbs. The company had acdvit\' to the region. massive project. Prior to his engineering consultant - However, the muld-billion used non-union contractors on flew to San Jose, world in the tacilit\' it make the case for using union with Intel, Walters met with a chemical named Reinhardt Hanselka. Hanselka had worked for several years on quality control and had acquired both inside knowledge of Intel's decision-making processes and in depth understanding of the specific knowledge, sophisdcated manufacturing workers' safet\' facilides. skills and capabilides required to construct the most Walters learned that Intel was pardcularly concerned with and carried those concerns over to construction projects. its exceptional safety compliance measures of its contractors. company was which Its receptive to ideas that operations were located. would portray it At the same time, he learned that the quality its project, Intel company inclined to make the case that it was in the first place. To in roles in gain approval communit}''s best interests to invite the to build there. Walters used simple: had communities of life played important securing the tax-abatements that had been responsible for luring Intel in the for The company expected in a favorable light within the Economic well-being and its this information in his pitch to usmg union contractors - craftsmen to construction Intel access to the management team. The message was most highly skilled — and hence safety In addition, by allying with the union, Walters argued that Intel improving community' standards by teaching building-trades workers valuable high-tech related construction The company would ensure in the region. would be contributing Intel's agreed to build skills. In short, its facility it would be a perfect match. with union plumbers and fitters. In the process the union established a direct relationship with a major property owner, by-passing the typical arrangement in which the building contractor (and more recendy, construction managers) stood between the union and the customer. In doing so, the union gained direct access to information about technological innovations and new building requirements while at the same time developing 13 new relationships with — whom property owners, consultants, engineers and architects - actors with it had previously not interacted. These new relationships had positive over effects for the union. By the mid-1990s, fifteen other spill major chip-manufacturing related projects were launched of building and construction investments theoredcallv have been built with Local 290 used its new ties to to the Intel project, about segment of the work with By embedding the union. Local 290 reinvented in high tech construction. local industry. The results itself into the 1990s Pordand became a major destination for traveling plumbers and had developed time, the capabilities the union its other plumbers' and training program fitters' locals — in the course already among alike — fitters. an all new By the mid- At the same fitters nationally. of staffing increasingly sophisticated projects — the best funded in the country nationwide. Today, a majority of plumbers and both uruon and non-uruon workers team of itself as were impressive: since 1993 chip manufacturing projects in the Pordand area have employed union plumbers and helped transform 50% were - the architects, engineers, and consultants specialized in high-tech and regional companies specializing essential player in this - and prior labors construction to convince these companies to local Although each of these projects could (Ertel 1996). non-umon Portland area bringing nearly $16 billion in the into a fitters in receive ongoing training at the union's training model for the region facilities, financed by a SO. 86 hourly levy against members' wages. Walters reputation in the community' today following representative All this goes comment from an back to about the industry. the leading edge. that kind is unique. a is that of a progressive and effective labor leader, as the area contractor suggests: group of contractors fifteen years ago that started a dialogue wanted to focus on education and things that would keep us on We As a contractor, you go into bargaining with great ideas about getting of stuff into an agreement. [UA Local 290 Business Manager] Matt [Walters] He guy, he'd be has built a culture where that kind of thing someone I In 1998, uruon signatory' contractors had captured the had existed prior to the is possible. If I was a union want representing me. 89% of the region's large projects, matching the levels open shop offensive (Bureau of Labor and Industries 1999). Plumbers' lj)cal 12 in Boston, Massachusetts By the Second World War, Boston was widely recognized as a major center of education, commerce, shipping, and naval operations. Manufacturing, however, had been more generally in New England for many years. The on the decline both in the city and post- War years brought significant demographic 14 shifts in the region as tlie development construction of suburban highways and tax incentives that encouraged oud^ing areas began drawing people and jobs out of the in Notwithstanding construction sector growth tradesmen in the government of Boston were working cit)' at or near led efforts to generate investment in the including the Prudential Center and 1999). in the 1960s, At the same time, however, challenge union shops for the employment in these years, bolstered by with the construction of large scale projects Government Center complexes (Boston Redevelopment a most union membership stagnated. Building full cit)' city. Authority' cadre of non-union contractors had set up shop and began to lucrative work outside the city Limits where new housing and some commercial development were locating (Erlich 1990). After suffering along with the rest of the countrv' through the stagflation of the 1970s, the Massachusetts economy boomed in the early 1980s. High-tech giants such as Digital Computer, and the Raytheon Corporation located the Route 128 Corridor. In the ser\'ices sectors that sprouted up in these years cirv' As of Boston itself, the financial, insurance, real estate and professional built most of the downtown skyscrapers while non-union companies built the vast majority of the high-tech- a result, the "Massachusetts Miracle" kept in their respective Laboratories oudying areas of Lexington, Concord and Newton, along saw tremendous growth. Union contractors related structures. employed cit\' in the Wang umon and non-union both geographic domains. Nevertheless, the suburbs grew and thus the gap between the clVf middle of the 1980s, 70 percent of the much workers faster than the based unions and the open shop in the suburbs increased. By the state's construction workers were working non-union (Erlich 1990). In 1989, the area's economic fortunes took a turn for the worse as the Route 128 corridor was hit hard by the downturn in the computer industry (Saxenian 1994). 1990s had a particularly heavy impact on the financial and Unemployment soared 17% and as the At the same dme, the recession of the real estate related firms located in the Massachusetts Miracle crumbled. Downtown construction both in the city and in the suburbs ground to a vacancy rates early cit}'. climbed to halt. Like other unions in the area. Plumbers Local 12 had been losing strength in the Boston suburbs for several years. \)CTien Agents and Kevin Cotter took the reigns of Local 12 set out to restructure the union's responsibilities in 1985, he hired two more Business governance by consolidadng management and financial under the office of the business manager. During the short-lived "Massachusetts Miracle" the local's main tactic for securing work was 15 to ensure they were well integrated into the regulatory processes that govern land use planning in Massachusetts. Property owners often approached the building trades for support in the planning process in return for a project with union contractors. Cotter, by all accounts, and forged strong relationships with many of the area's commitment became comfortable prominent to complete the in the halls politicians. of government These relationships were instrumental in maintaining die union's presence in the city of Boston. Unfortunately, however, these reladonships were not successful at expanding the fortunes of the union to the suburbs outside the cirv', was forced to negotiate ad Notwithstanding these where the majont\' of work was being performed. As hoc arrangements with contractors efforts, signatory contractors work was located outside of the implemented projects. a joint city's The labor-management keep pro-union contractors trust its if their immediate suburbs. In 1994, the union fund used to subsidize contractors bids on targeted project funded contractors' participation in trade in contact with the local order to keep them in the union fold. continued to leave the union, especially urban core and labor-management in a result, owners, suppliers and architects. shows It also in order to allowed the local to provide funds to contractors engaged in head-to- head bids against open shop contractors. Despite their efforts, the local (which represents only Plumbers, the Pipefitters and Sprinklerfitters are separate locals and enjoy even less favorable reputations in the community) did not escape somewhat backward and that the local prior mistakes. ineffective. Area contractors believe As one contractor from a rural part of the state put its image as union did not learn from its it: WTien the economy was poor [in the early 1990s] a lot of mechanical guys went to work in the open shop. As the economy started to pick up, they all came back to the union. Now they don't have enough apprentices and so, up go the wages. They are headed in the same direction in terms of organizing. PLAs [Project Labor Agreements, employed on major infrastructure projects such as the Big Dig, Deer Island and reconstruction at Logan Airport] are their last hurrah. The [plumbers and fitters unions] have seen that in downtown there are some fairly large contractors coming in to do downtown work. But, they can't get their people interested in pay cuts. [As a result] they are still doing lots of side agreements. The local union, in turn, sees contractors in equally critical terms. "They are busy servicing customers," Cotter explained, "but they don't go outside their clique." In short, unlike their counterparts in Pordand, the Boston uruon did not same time build new actively seek to redefine old relationships with existing contractors while at the relationships with new actors, outside the poliucians that had been the union's traditional allies. 16 narrow group of contractors and Cotter himself reports he has few occasions to interact with property' owners. manager the owner plans The In general, he to use in order to figure contrast with the Pipetrades in Portland companies expand to mainly concerned with finding out which construction is is out a strategy to secure the work for his members. best illustrated by the decision of several high tech go non union. In 1994, Sun Microsystems and the Cisco Company announced plans to Boston suburb of Boxborough. The structures were the their facilities in the of many plant first expansions planned over several years; expansions that the manufacturers would eventually accelerate order to meet the increasing demand for their products during the high tech Both companies had previously used union contractors on such major particular projects each selected undermine the union's standing among firms threatened to result, non-union contractors. Cotter all felt boom projects. of the that the decisions 1990s. late However, for these by these two major Boston area major property owners. As he sought to change the companies' plans by using the unions' leverage both on the various planning boards as well as a in major shareholder (through the union pension plans) in these a local two companies. Cotter ultimately succeeded in reversing the decision by Sun and Cisco to employ non-union contractors, but the basic message key contractors in the area. was clear: the local Only through In contrast to Pordand, there Pipetrades unions had lost their standing old-style pressure tactics could the union reverse the among situation. was none of the sharing of information and close linkages with property owners, engineers, architects or consultants that could have helped the Boston local regain its centrality in the local construction industry. Notwithstanding a booming market led by public works projects such treatment plant and by high-tech and hospital related construction - numbers of skilled plumbers and (see table 1, below). At the same fitters nonvithstanding similar overall trends itself as a to reverse key player its for these time, plumbers' and demand despite the overall growth in die area's was not able - wages all massive new sewage of which demand significant workers in and around Boston have stagnated fitters' union membership has merely held steady for construction in the local as a workers economies and (see graph 2, below). In short, similar use of tactics, the Boston local organizational fortunes while the Pordand local was successful at re-launching in the local construction industry. How do we account for these differences? Explaining the Different Outcomes One's first reflections insunct would suggest that the outcomes observed between the two locals are, in of deeper, more structural differences between the two local fared better than its cities. fact, In other words, the Pordand Boston peer because Pordand's economy was stronger and or the demand 17 for skilled plumbers and Or, perhaps, Portland fitters greater. thus the challenges faced bv local its explanations, however, reveals their a is more union friendly environment and unions were not as great. Closer examination of these possible inability' to sufficiendy account for the divergent outcomes discussed above. Differences in Demand Periods of increasing employment are thought to favor unions since ught labor market condidons are believed to strengthen unions and weaken employer resistance to them (Farber and Western 2001; Ashenfelter and Pencavel 1969; McKersie and Brown one would expect employers concerned about securing would turn more to the unions readily, thus 1963). In the construction industry, a sufficient supply of skilled tradesmen strengthening the union's position (MiUs 1972a). Were labor market conditions significandv different in these two cities? Graph in 3 shows unemployment that rates in the 1980s for construction both Massachusetts and Oregon.'* However, 1990s as reliable a result of the technology led building information and Boston were is available, unemployment identical at just 7.5%. unemployment rates unemployment rates were between these two unions local was just in it in as in these same we wiH were high 4% it is in the date for which both Pordand historically low important to note that construction between 1994 and 1996, two key years unemployment rates surely tor had some impact on the alone can not explain the very significant differences Pordand's local grew by over 8%. Moreover, last rates in the construction industries in membership growth Carpenters), also enjoying these themselves so that by 1998, the Anecdotal evidence suggests that 4% difference divergent outcomes of our two locals, in boom lower in Oregon by about this in general both areas, construction employment grew have continued through 2000. Yet, our narrative. Although membership in workers that took place in these same years. Whereas 50% between 1994 and see later, other 1999, growth is Pordand construction unions same favorable labor-market conditions, were not the Boston (e.g., the able to revitalize years. l^gal and Regulatory Context Another important alternative explanation would hold that changes in the legal and regulatory context might explain differences between the two locals (Freeman 1985; Fantasia 1993; Goldfield 1987; Erlich 1988; Northrup 1991; ^ Data on unemployment rates for AUen 1988, 1994, 1995; Linder 1999). In other words, unions plumbers and fitters in both ciues does not proxy. 18 exist. This measure is the best available situated in more umon-tricndly environments more better than their peers in other, could be considered a Whereas in Massachussetts, prevailing makes it easier for at wage legislation applies across the state, in the union scale only non-union contractors to states have a where union contractors compete in outlying parts Oregon of electing government officials at both the generally favorable to unions, Oregon's strong environmentalist significant political conflicts for pro-labor politicians. of the and is not movement do not appear a licensed trade both local level that are has generated Similar pressures have not strongly in Massachusetts. Political and regulatory contexts At the same state. Finally, while fitters. state Oregon, are in the majority. This since pipefitting Massachusetts requires licenses for both plumbers and histor\' however, Oregon and regulatory environment than Massachusetts. time, barriers to entn,- into the industry are lower in in that state. severe challenges and thus perform less l:'ace hostile political environments. If anything, less favorable political prevailing wages are set will emerged as be a significant to determinant of the different outcomes. Strategies and Union In contrast to the Capacities economic and political explanations above —both of which generally attempt to explain union decline and the possibilities for renewal as a function of the external environment in which unions are embedded capacities, leadership and — organizational and social strategies to explain the rise Keefe, 2001; Voss and Sherman 2000; 1998; Graebelsky and Hurd reveals that strategies and between our two the open shop locals. in the Ganz 2000; movement accounts and fall of unions focus on union in the U.S. (Katz, Batt and Frost 2000; Turner 1999; Bronfenbrenner, at al 1994; Goldfield 1987). However, careful analysis of the two cases tactics alone also fail to adequately explain the observed differences In both Pordand and Boston, the unions responded to the initial surge of 1970s and early 1980s with similar rounds of wage concessions. These had Utde to no effect on the emigration of contractors to the ranks of the open shop. Both locals then turned to ad hoc, one-on-one bargaining with union and non-union contractors. Essentially, signaled the unions' willingness to promise to undermine the union staff individual projects with undermine the unions' position as union workers. scale in Ad hoc exchange for this a contractor's bargaining only served to further long time signatory contractors became upset with the special treatment afforded their competitors and workers grew increasingly frustrated with the unpredictable wages and working conditions they found from one job to the next. 19 In the late 198()s, the unions turned to more innovative and even created targeted funding arrangements that taxed uaion that essentially was used members' wages to subsidize signatory contractors shop contractors. Both uruons reformed Both unions radical approaches. when bidding endowment to create an against lower-cost open more their internal structures giving their top leaders decision making authorin,'. Finally, the Pipetradcs locals in both cities redoubled dieir training each case, involved the construction of impressive showcase training programs which, in stocked with the latest — manufacturing facilities equipment. Pordand's facilities rooms required especially the clean focus on facilities the needs of high technology —while Boston's for chip manufacturing concentrates on large scale insdtutional construction projects such as hospitals and universit)' research facilities. In short, both unions employed similar tactics but, as we saw, with vet)' different results. Embeddedness and Social Our field thev are Its Impact on Union Strategy research suggests that the key difference between these two local unions embedded in their local the degree to which is communities. Indeed, the degree of embeddedness appears to explain Our many the effectiveness of the tactics each union employed. interviews with local union leaders and other local stakeholders revealed that Pordand's local purposefully reached out in the 1990s to a set of actors - materials suppliers - with in particular, to whom major property owners, architects, engineers, among major narrow group of industn,' actors with relations with other stakeholders a result all contractors, whom it it ties 1980s and early and building In Boston, our the union had not previously been in close contact. interviews indicated that although the local Pipetrades unions had strong establishment as well as late both within the regulatory did not actively seek to develop ties outside of the had been dealing for decades. Moreover, the unions' took place within official arenas: of joint membership on governance committees or as allies within the context of bargaining, as before community planning boards. In Portiand, interactions between the local union and other actors occurred not just within official arenas but also within a context of cooperative interaction either in developing playing an intermediary role between In order to obtain a more new community environmental groups and skills or with the union builders. objective picture of the nature and character of these ties, we conducted a survey of major construction industry stakeholders in both Portiand and Massachusetts. Specifically, identified three separate that stand to profit (those who live communities of stakeholders: (1) property owners (consisting of organizations from the ownership of developed properties), and work in the built environment), and 20 we (3) (2) neighborhoods and communities builders (organizations that are responsible for constructing the built environment). Within each of these major stakeholder groups, we identified the following categories of industry participants in order to determine the appropriate sample space based on Burt's (1992) formulation of structural equivalence: (1) Building trade unions, sub-divided for the purposes of the study into: (a) (2) pipetrade locals; and, (c) other building trade locals including state and local building trade councils; Building contractors (including construction managers, general contractors, sub-contractors and (3) carpenters locals; (b) specialty' contractors); Government (mcluding state and local construction as well as agencies that government agencies responsible for regulaung large amounts of construction services such demand as highway departments); (4) Major property owners, sub-divided into: (a) propert}' managers and developers, (b) manufacturers; and, (c) universides and health care providers; (5) Utilides; (6) Environmental, community planning and neighborhood organizations; (7) Architects and Engineers; and, (8) Banks and Lenders. We compiled a list finally, of the most prominent organizations within each category for each We contained approximately 200 organizations. then contacted all an actual and on-going relationship sur\'ey The Of these, we responses in Pordand, for a total of 93 organizations in total) that were list They were asked to indicate - received 41 responses in Boston and about 52 all - a response rate either over the telephone, survey delivered through regular mail - which of 46%. among ' do you or someone An in else in the organizations listed would they consider depth discussion of methodology' used in defining the at the to be We entered boundaries of the network, the design and administration end of the paper. 21 a "which organizations on the your organization communicate with on a regular basis." of the survey appears in the methods appendix found their though an on-line survey or on "in their organization's network." Specifically, they were asked to identify, list suitable for of these organizations became both the Respondents within each organization were personally contacted by telephone to request participation. list was determined by whether or not an organization had to the industry. instrument and the survey universe. Each of these organizations and ultimately idenufied 101 of these organizations in Portland and 103 in Boston (204 in inclusion within our network analysis. Suitability city.^ Freeman these data into Ucinct 5 (Borgatti, Everett and matrix representing ties A within the neKvork. given for the absence of a possible tie. the data as well as to present the entire The one (1) 1999), a computer program indicates the existence make resulting matrix allows us to "map" of network of that a tie produces and a zero a (0) is from several inferences graphically. ties Table 2 shows several measures of network centrality for the two Plumbers and Fitters unions. The two reported centralit)' in different wavs. the organizations. measures gauge the degree to which actors The first, Our "degree" centralit\' in organization is among is network are connected to one another number of ties to and from simply a measure of the data allow us to measure both "in-ties" and "out-ties", that from organizations and those degree of centrality, in a that are received from others. Tltis is, ties that are sent asymmetry allows us to interpret the terms of prestige or prominence. The higher the score, the more prestigious the actors in the network. The second measure, "betweeness", computes Here we distance information must travel between different actors in the network. the shortest are interested in seeing whether or not this information travels through the unions in question in order to assess whether among or not these unions control or broker the flow of information are reported as standard deviation units, standard deviation, allowing us to anchored to the mean score make comparisons between the Pipetrades in Portiand are considerably the more prominent and information to and from other actors in their city in two are a The actors in the network. each cities. city scores and then divided by the The results indicate that more important conduit of than their counterparts in Boston by two at least standard deviations from the mean. Expressed graphically, the differences are even more evident. The responses were pooled into the twelve categories indicated above from which organizations in the network. between the groups was categor)' Two at least 0.5. groups we in the derived the density of network were considered This indicates that at least of actors regularly communicates with organizations 50% among ties tied if the density the "in-ties" to the two unions side-by-side. The figure organizations in the network to the two unions, excluding highlight the unions in question. The Plumbers and of in-ties including, importandy, significant locals in levels all in the other category. shows the other of contacts of the respondents within one entered asymmetrically in order to differentiate between sending and receiving show the various groups of ties ties in ties. These data were Figures 1 and 2 reported by other the network in order to Fitters in Portiand receive by far the larger number of communication from major property owners. The Boston, on the other hand, were snubbed by 22 all of the actors other than their fellow building trades unions. network. set 1 show Figures 3 ;ind 4 ties going The Pordand Icre too, the differences are apparent. of actors network compared in the to the narrow *** Figures These data allow us narratives presented above, The precedmg 1 , 2, set local reports des to a much more of contacts reported by the Boston boom it suggests that the Pipefitters in in the Seen in their local construction industry networks. analysis strongly suggests that Oregon were not simply embeddedness played light of the beneficiaries of the Pordand and Boston. However, locals in a single matched is pair case study perhaps the product of some broader difference between Boston and Pordand. In order to control for a degree to a key role in explaining the divergent can not entirely rule out that the differences observed between the two local unions we conducted locals. taking place around them. outcomes of the Pipetrades effect", diverse 3 and 4 here *** conclude that our two local unions were significandy different to which thev were embedded within high tech building other direction, from the unions to others in the in the this "city second matched pair case study of the carpenters' unions in these two cities. Carpenters Unions in Oregon and Massachusetts Pacific-Northwest Council of Carpenters, Oregon District In the late 1970s, Pordand's Carpenters' unions, realizing they faced a significant challenge from shop forces, attempted to shift to a more aggressive organizing posture. organizer affiliated with the national union, headed up the rural contractors for organizing with one of the first new uses of Marc Furman, initiative. ^ Furman set descended into recession in the early 1980s, the young out to target large "bottom-up" organizing techniques focused efforts on organizing workers direcdy, rather than starting with their employers as the state a open first. that However, union was forced to abandon these innovative organizing efforts in order to focus exclusively on relieving the suffering of their existing membership. At the height of the recession of the reported 80% unemployment major manufacturing presence '' Furman would late later become a rates. early 1980s, several Carpenters were especially hard in the area pioneer of — fell many of the of Oregon's carpenter locals hit as the lumber industry — the into crisis (Wollner 1990). innovative organizing tactics the union began to employ in the 1980s and early 1990s. 23 Desperate to get wage This had cuts. engaging their in members back litde effect this strateg)- membership grew to those employed by result, the union began the Pipetrades locals. locals against each other unions suffered significant losses and their increasingly frustrated with dramadcally variable wages and working condiuons. favoridsm unions manifest towards their former signaton,' contractors also chaffed at die (disloyal) colleagues a result, the and manipulated wages by playing an effort to secure the best possible deal. As a Long-dme membership numbers. As their declining one-on-one ad hoc negodadons similar Contractors took advantage of in on round of deep to work, Carpenters locals steeled themselves for a and current compedtors. Bv the mid-1980s, major contractors in the Pordand area began contemplating a switch to the open shop. Several set up "double breasted" operations that allowed them to compete for whichever regime best suited their interests. main contractors' association leading contractors sided with the union's market share declined from This development prompted a bitter dispute with the to a split within that organization. open shop leading 90% work under A in of the significant majority The Carpenters to a swift erosion in the union's position. of non-residential construction 1980 to city's than less 60% in 1984 (Northrup 1984). The national Carpenters union return to many Pordand to was forced to step in to remedy the situation. Marc Furman was asked develop a new statewide structure intended to mitigate some of the problems the The new separate locals within the state had generated. organization took fuU responsibility for organizing workers and coordinating wage rates in different parts of the union was restructured once again, this time, as part of a state. In the early 1990s, the major nationwide reorganization mandated by international union headquarters. This second reorganization shifted control of the multi-state regional organization headquartered in Seattle, representational responsibilities shifted Council director who was away from Oregon and a parts of Northern itself. geographic areas, Whereas in more locals to a managers and toward new a new District organization renegotiated into a regional pact covering Washington was a response to the increasing regionalization in the past carpenter contractors generally stayed within relatively recent years, specialized contractors have the entire Pacific-Northwest. The particularly in the Seatde region State, California. In part, the regionalization of the union's structure the industn,' local business them Pordand Washington. At the same time, direct appointed by the national president. The collective bargaining agreements, incorporating Idaho, to 24 a narrow begun bidding on work throughout union's regionalization strategy has been where the union has maintained of somewhat successful, strong political and economic presence. However, it stemming the union's that repeated work has not helped the union in securing decline in the Pordand in outlying parts Instead, contractors area. of Oregon or in and other stakeholders report changes in leadership and lack of strong decision making authority weakened the Carpenters' union in both Pordand and the rest of the state. Graph in 5 shows the percentage of carpenters who Bureau of Labor Statisdcs', shows cycle. boom, before members of the union graph, which pools responses that Pordand's Carpenters share during the heaviest years of the building end of the construcnon The Current Population Survey. into several three vear time frames, tail identified themselves as finally union actually gaining lost market somewhat toward the Table 3 confirms the erosion of the Pordand Carpenters' position showing that carpenters' real wages actually declined during the years of heaviest demand. These data did not benefit all indicate that the building boom Pordand experienced diat in the Pordand area construcdon unions. For the Pordand Carpenters, they were unable to take advantage of the market up-turn. Degan, the union was "caught with its To it mid-1990s looks as quote one Carpenter leader, if Tim pants down." Inten-iews with both the Carpenters' union leadership and other informants in Pordand indicate that as a result of power batdes and multiple internal restructuring processes, the union has alienated itself from many of their most important local parmers. Discussions with contractors and union leaders indicate that the union developed a reputation for indecision, as all major decisions were subjected to review by higher levels of the organizational hierarchy. Ultimately, the union decided in the mid-1990s to seek wherever Its it became membership, available. who outside traditional jurisdictional boundaries, its While potentially serving to bolster the employment prospects of served to further alienate the local union from other regional this action building trade unions work felt threatened by the Carpenters' encroachment of their jurisdictions. ***Graph 5 and Table 3 here *** New England Council of Carpenters The strategies of the Carpenter locals tlrmly rooted in a "top in and around Boston down" philosophy of organizing that incentives for contractors to sign-on to the union contract. trouble in the mid-1980s, floated it realized that it had in the lost its grip 1970s and early 1980s were emphasized maximizing the However, as the union ran into over the workforce. Workers openly between union and open shop contractors, accepting work with whatever firm offered 25 the best opportunity at any given works ot public just as the By projects. its assault on the in the Carpenters' public and to other decision makers a diet state's prevailing rate law (Erlich formidable grass-roots political operation to defeat the measure and undertook significant efforts to root out criminal exposed cracks on the state, surviving the mid-1980s, several locals were embroiled in corruption scandals open shop movement launched an The union geared up 1990). moment. Dozens of locals dotted image. It activit)'. became But the events nevertheless clear in the industry diat the union's both to the umons' leadership power, even in the city of Boston, had waned. While the rest of the union was beginning to implement "bottom-up" organizing Cambridge-based affiliate problem, which resulted to engage company, to locate in a new in the incarceration Rocked by strategy. a particularly egregious corruption of several of the union's leaders, the new leadership decided few carefuUy chosen clashes with a leader in its searched for a strategies, the union's a major high-technology employer, Biogen. The bio-technology research and pharmaceuticals, had recendy announced new headquarters and its technology intensive research facilities in the city's its decision new Technology Square neighborhood next to MIT. The local challenged the enough for the company's request for community' as a whole. began to work closely with the town-gown relations. a tax abatement on the grounds diat they were not doing Simultaneously, the local increased many community groups on cir\''s The uruon began its decided to take on the city's to ally with constituencies in the city regardless two major academic owners and construction consumers hearings before the city's — in the city architecturally and in When terms of noise and traffic. highly trained and well paid union carpenters. MIT When its states later the carpenter's —MIT and Harvard, both major the local could count At the on solid allied witii land community support. In community groups interested same time, the union incorporated a call for the ways that improved community standards by using As a result, the union won commitments from Harvard major projects using union contractors. the national union stepped in to implement a England from to build of whether the were better integrated into surrounding neighborhoods both universities to use their construction budgets in and institutions planning board, the union successfully in ensuring the universities' buildings community housing and issues such as groups' agenda's had any cLrect bearing on pencLng construction projects. local intake of apprentices and under one unified agreement prior experiences to its new new regional structure covering the six in the early 1990s, the regional strategy. 26 As New union employed the lessons learned regional union official Mark Erlich explained: W'c had enough poliucal leverage so there was an intormal message to developers not to on pick what is to use a union or open shop general contractor. legitimately union the market. We had a and what few people had to pay close attention to The new It isn't. in the Its all only decision about perception of who realized earlier than most that you tliose perceptions. embedded in the minds of property owners and contractors its new on geographic mobility and on all major properrv' owners. As a result, it is now to many state's as to In addition to loosening restrictions in other parts of the country. universities, community organizations and generally agreed that the Carpenters union in and around an organization one needs to take seriously If way time, the regional leadership has carefully cultivated a wide range of relationships outside of narrow confines of the industry including the According its projects regardless of their location. This undermines the of "double-breasting" that has hampered unions' efforts IS Building blurring strict craft Lines, the union requires signatory contractors working outside of Boston to use union labor At the same alike. regional agreement in such a entice contractors in oudying areas into signing the union contract. Boston . has to do with perception of the strength of union reputation of strength in Boston, the union structured the . regional organization has since actively taken steps to ensure that the perception of the union's strength remains practice The owners' But, \vc started to develop that perception early. us. whether is if one hopes to buHd a major project in the area. one area contractor: you In the are going top to last bottom, the Carpenters are the most effective union in Boston. seven years the Carpenters have gone through huge changes. There just wasn't the same effort in the 1980s. Then, they didn't care at an organizing fanatic. He'U do what ever it all about organizing. Dave New England Council of Carpenters] is takes to get someone wrapped up. Boston is [Bergeron, Executive Secretary-Treasurer of the locked up for Carpenters, but not the other trades. Graph 4 (above) confirms this assertion showing that the Carpenters union's market share has increased steadily throughout die 1990s. Table 3 (above) shows that carpenters' wages have reached historically high rates after recovering from the deep recession of the early 1990s. Betweenjuly 1999 and June 2001, 466 new contractors signed the union's regional agreement. The Carpenters Cases in Comparative Perspective Again, the dominant explanations concerning union decline and renewal do not seem to explain the Carpenters union's divergent outcomes. Unlike plumbing and pipefitdng, carpentry Licensed trade and thus fewer barriers to workers' entry for this industry exist. This easier for workers to move between industries depending on where their Graph 6 shows construction industry employment as a percentage 27 of sldlls total is makes not a it are best rewarded. employment in both Portland and Massachusetts from 1978 to 1999. m employed A high proportion of Oregon's workforce was the construction industry just prior to the crash of the early 1980s. Later, however, the sector gained workers culminating in historically high industry labor force participation in the 1990s. late Boston, on the odier hand, off with relatively litde starts construcdon, but builds up as the area enters participation plunges indicator of m the late demand, in the late 1990s. this chart Boston would suggest local is in early futilit)^ Labor force Taken later 1990s. both states were particularly high. Graph in high as an demand In light of these facts, the do not adequately explain the 6 here *** outcomes between these two different 1980s as the significance of the open shop threat became the in the 1980s. in especially impressive. conceded wage and working conditions As boom that carpenters in Oregon was *** Tactics alone also economic 1980s before regaining strength in the However, demand greater success of the its employment in clear, an effort to stem the cases. In the each of the cides' Carpenters unions flight of contractors to the open shop. of these efforts became evident, both unions made a decision to break away from strong identification with the other building trades in their areas. had bargained according to longstanding government lobbying. differentials Officially, coordination Previously, the building trades, as a whole, and patterns and combined forces with respect was accomplished through joint membership in to an area's Building Trades Council. Informally, however, the unions and contractors' associations had developed pattern bargaining bound norms wage that maintained accepted locals to strike in defense differentials among the different crafts and of maintaining jurisdictional boundaries. In both cities, however, the Carpenters unions walked away from membership in Building Trades Councils and announced their intention to bargain wages separately. This move away from the other trades reflected changes that had been taking place in the structure of the industry itself Traditionally, building trade unions have sacrosanct. A carpenter caught doing work that was considered could e.xpect a bitter protest from the other union's blurring craft boundaries and eliminating local. some of the generate. Non-union contractors employed lower work while maintaining divisions site among the vehemendy defended to The open shop, in contrast, profited from inefficiencies that strict craft jurisdictions could accomplish mundane tasks on the skilled trades for more complicated work. By backing away from their close association with the other trades, the Carpenters 28 boundaries as be within another union's jurisdiction skilled laborers to most craft in both cities had decided to meet the open shop on its own terms while, at the same time, tacitly challenging other unions' complacency. The Carpenters locals in both Boston and Portland also joined the front throughout the countr)' employing innovative organizing tactics was tlie emplovment the union. loss of its practice of "salting" in at a The non-union contractor tactic some in a local sent Among most important of these the out-of-work union members to seek an effort to convince the contractors' workers to sign on with forced the contractor into signing the union contract by threatening best workers, the chief source of a contractors competitive advantage. efforts reflected a force as a which tactics. of building trade unions line "bottom-up" philosophy whole rather than focusing on success. However, neither that full The him with union's organizing emphasized the importance of organizing the work employment for existing more local has ignored the membership. These Toward tactics found "top-down" process of generally accepted attracting contractors to voluntarily sign-on to the union contract. this end, both of the Carpenters unions have implemented policies designed to assist contractors by restructuring hiring processes and loosening rules that restrict access to hall pension and health care benefits for new contractors. The new Finally, both unions have undertaken significant internal restructuring made possible to implement contracts that apply throughout the multi-state geographic regions it the efforts. structure has covered bv the regional council. These contracts offer different wage rates for different parts of the More importandy, however, make region depending on to take his or her crew with them onto projects that are outside of their immediate geographic location. local conditions. they it possible for a contractor This should help to attract non-union contractors located in oudying areas that want to break into the lucrative city-based construction markets while at the to travel with their have been especially successful show existing contractors crews intact as they bid on work outside their typical geographic confines. Analyzing the network data helps to explain from methods same time allowing the union's in the various innovations implemented in both locals Boston. Table 4 presents the centrality data for the two locals derived identical to those reported that the Carpenters in whv on above for the Boston enjoy much greater construcuon industry stakeholders. On plumbers and fitters unions. Tliese data centrality within the overall average, the Massachusetts Carpenters are network of construction industry stakeholders than are their counterparts in network of more central to the Oregon by about one standard deviation. Here too, the graphical representation provides a clear picture of what this centrality looks like in terms of social structure. Figures 5 and 6 indicate that in-ties to the Boston Carpenters include developers, major property owners, community groups and 29 utilities. In-ties to their counterparts in came onlv from other Portland unions. Similarlv, figures 7 and 8 show diat out-ties from the two Carpenters locals differ significantly with the union in Massachusetts reaching out to the entire network while the union in Portland maintains a ver)' restricted set of relationships. *** Table These 4, Figures 5, 6, 7 and 8 here *** data, read in conjunction with the cases, indicate that Massachusetts's Carpenters merely lucky, "in the right place within the industr,?, a new access to and information set union was not Rather, as the process of regionalization unfolded at the right time." of important stakeholders emerged. The union's embeddedness gave on these emerging stakeholder interests it and thus opened up new opportunities for the local to re-position itself as central to the emerging needs of the industry's players. At the same roles time, the Carpenters' and identides that are embeddedness has allowed emerging it to negotiate a distinct identity as the industry regionalized throughout New among the England. Similar processes of regionalizadon have taken place in the Pacific-Northwest. However, the Carpenters' lack of embeddedness there has kept the union from fuUy integration into the addition, industry's new configuration. In and perhaps more importandy, the unions' embeddedness has contributed to new mission its of organizing unorganized carpenters. In the 1970s and 1980s both unions gained reputations communities further the as crony organizations whose leadership controlled access narrow interests organizing posture in the of themselves and late their in in their ways that served only to membership. As both unions turned toward an 1980s and early 1990s, they each encountered resistance from communities and from potential workers. By more effectively reaching out to those communities, the Massachusetts carpenters have been able to rehabilitate their image in the community. This has brought their efforts to secure lucrative projects as same time, carpenters and employers evidenced by the union's success alike are more wiUing at MIT and to accept the unions' claims them allies in Harvard. At the of transformation. Conclusion This paper has argued that the ability vibrant organizations depends upon how respective social, political and of building trades unions to reform and re-launch themselves as successful they are at (re-)embedding themselves in their economic contexts. Through an building trades unions in Boston and Portiand, we have sought analysis to show of two matched pair cases of that faced with similar challenges and employing analogous tactics, those locals that truly succeeded in re-inventing themselves 30 (the Pipefitters in Portland and the Carpenters central positron within a dense and social changes were of other in their industn,'. less successful at strategies network of local ties. on their Their embeddedness in an articulated network of local stakeholders' needs, The other two local and numerous allies in their their own struggles to adapt to unions (Plumbers in Boston and Carpenters in Portland) renewing themselves - notwithstanding genuine efforts and rebuilding rely provided these more successful local unions with strategic information, a institutional tics better understanding Boston) did so because they were able to in organizations - because they had failed to at launching broaden new embeddness their within their local communities. The importance of embeddedness is not unique to our two sets of local unions, nor industries with local, geographic scopes. Its is it importance has been Ulustrated for other restricted to US unions in other Voss 1993, Rubinstein and Kochan 2001, Cobb and Locke 2001, industrial settings (Cobble 1992, Rubinstein and Hechscher, 2001) as well for unions elsewhere (Locke 1990, Streeck 1997). In other words, regardless of whether the union is operating in a locally bound industry or even a more market, occupying a central position within an industry's expanded network of stakeholders is global key to the union's on-going strength and vibrancy. This approach to understanding the shifting organizational fortunes of labor unions has significant implications for both union strategy' and labor scholarship. For unions it implies a fundamental re- thinking of their current strategies. Rather than focus primarily on a tool-kit of tactics (organizing, lobbying, etc.), their industn' of political, unions need also to work hard - be they local or global. economic and social important not simply because it In other words, groups will at rebuilding their place in US within the networks that define unions need to rebuild their an array order to regain their centrality within these networks. This provide unions with strategic information and potential more importandv because more frequent and open communication/interaction with stimulate the unions to ties to become more open and responsive organizations. Only allies is but these groups wiU in this way will they earn the central role they so desperately need to survive. For labor scholars, the analytical perspective argument advance beyond the internal in this paper suggests that the contexts within which the unions are do much upon depends as the context in other local organizations and institutions as This is too need to broaden our dynamics or vicissitudes of the unions themselves and focus more broadly on it, we embedded. What unions do, how well they which they are embedded and the linkages they develop with it does on their own organizational capacities and tactics. perhaps even more so today, in a period of rapid technological change and globalization 31 when the contours of their industries are in constant flux. To paraphrase a line from Tennessee Williams's Streetcar Named Desin, in today's turbulent world, unions, like the rest not just of strangers but of good neighbors as weU. 32 of us, A can benefit for the kindness References Abbott, Carl. 1983. Portland: Planning, Allen, Steven. Rflations Reiteu: . and Growth a Ta'entieth-CentHry City. 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Construction Industry Union Membership and Coverage, 1966-2000 45 40 35 c 2 30 25 20 15 ^ Graph Carpenters' Market Share, Boston and Oregon, 1990-2001 4. 60% 50% 40% IM assachu^etts I () re g o n IrFrr^D The numbers are generated from raw monthly data 36 months per category) with the exception of the "99-01" category Source: Current Population Survey basic monthly survey. aggregated into three year intervals which Graph is based on 26 months (all (i.e., of 1999, 2000 and die first two months of 2001). Construction employment as a percent of total employment: Oregon and Massachusetts, 1978-1999 5. -Oregon -M assachusetis .=f^ ^oi^ /- ^c*" ^<,* s^'* ^^ N^'' n'^'^' N'f''° Economic Census of the United States http://www.census.gov/epcd/ec97/us/US000.HTM Source: 37 s'*'* Tables Tabl e 1. Plumber and Year Fitters' Wages, Massachus etts and Oregon, 1982-1997 Figures Figure 1. In-ties to Pipetrades, Mass. Figure 5. In-ties to Carpenters, Mass. Figure 6. In-ties to Carpenters, Other Unions Other Unions Carpenters Oregon Carpenters Pipctrades Pipe trades Arch/Eng Arch/Eng Contractors |Contractors Ualiues Ualities Developers Developers Government Property Owners Property' Owners Universities Universities Community' Banks Figure 7. Out-ties from Carpenters, Mass. Figure 8. Out-ties from Carpenters, Other Unions Carpenters Communit\' BanEs Otlier Carpenters Pipetrades Oregon Unions Pipetrades • Arch/Ene Arch/Eng ^Contractors Utilities Developers Developers Government Property' Owpers Property' Owners Univ/Hosp Univ/Hosp Banks Communit\' Banks 40 Communit\' Methods Appendix The network data are based conducted Boston. analysis. sur\'ev in All The on rwo site visits to Portland and an equivalent amount of field work work identified the principle groups that were included in the network field of the building trade unions in were chosen based on the following A. Government organizations satellite cities were contacted. each city received a survey. The others identified in the criteria: In addition to the large urban areas, a sample of large towns and . We asked to be connected to the official most responsible for construction. Tv'pically, a senior land-use planner, construction inspector or both responded. In addition, a number of state agencies were identified including those overseeing the state's highway department and transportation agencies. These agencies were asked building codes, its to provide of organizations represented on any lists official committees advising the agency head or in any of the major functional areas of the agency having to do with construction. The organizations contacted were taken from each of the Commerce "Book of Lists" which contains information on the city's largest Property owners B. various sectors. . We contacted the twenty-five largest of these in addition to city's Chamber of property owners in all major and teaching hospitals. Banks and Lenders were identified in the same way as property owners. Arcliitects and Engineers were identified in the same way as property owners. Communir\' groups in Pordand were contacted from a list maintained by the Multnomah County universities C. D. E. The List for Boston was compiled from the authors' familiarity with the area and from interviewees. Contractors In Pordand, contractors were chosen through contacts resulting from the field interviews with a selection of union and open shop contractors included. Contractors in Boston were chosen from among the largest contractors listed in the Chamber of Commerce "Book of Public Library. F. . Lists." The list first contacted each of the organizations by telephone to identify the person of the organization's network ties to who had researcher the best knowledge other construction industry stakeholders. Respondents had a choice of completing the survey by hand (through the regular line A of these organizations became both the survey instrument and the survey universe. mail), on the phone, vial e-mil (hard copy) or on- over the Internet. About half of the surveys were completed on the phone, about one third were completed over the Internet and the remainder were completed either by e-mail or by hand. These data were entered into Ucinet 5 (Borgatti, Everett and Freeman 1999), a computer program designed to conduct network analyses, which resulted in a square matrix equal to the number of responses squared. CentraUty measures were calculated on data from the full network of individual organizations. See Wasserman and Faust (1993) and Freeman (1979) for a discussion of network centrality measures. The figures were generated bv partitioning the matrix according to the categories Listed in the text of the paper and then calculating the density of ties between cells of the resulting 12x12 matrix. 41 Interview Appendix Nution^il Mark Avers, Construction Department IBEW AFL-CIO Director, John Dunlop, Professor Emeritas, Harvard Universit\' Robert Georgine, President, Building and Construction Trades Department (BCTD), Jeff Grabelsky, Cornell University; Consultant to BCTD, AFL-CIO Richard Kibbon, Former Chief-of-Staff, Business Roundtable Stephen Lerner, Organizing Director, BCTD, AFL-CIO JeriT Rhodes, United Brotherhood of Carpenters' National Organizing Director Jim Sala, Internadonal Organizer, United Brotherhood of Carpenters Boston Bobbv Banks, Director of Apprendchip Training, Ironworkers Local Mark Erlich, New England Council of Carpenters Codey, Organizer, Bill 7 IBEW Local Joe Dart, President, Massachusetts Building Trade Council Jav Hurlev, Business Manager, Ironworkers Doug Hugh Husid, Goulston Storrs, P.C. Kelleher, Plumbers Contractors Associadon Jim Loud, Contractor Joe Nigro, Business Manager, Boston Building Trades Council Dave Powell, Sprinklerfitters Union Leo Reed, Mechanical Contractors Associadon Carl Tower, Project Manager, Kaiser Engineers Bill Sullivan, Ken Six Willis, Contractor Labor Reladons Manager, Kaiser Engineers anonymous contractors Pordand Ted Audland, Contractor, former head of the AGC Jake Benshoof, Retired Plumber and Community Activist Don Bern.', IBEW Gerald Bruce, Business Manager, Cliff Davis, Member, IBEW IBEW Tim Degan, United Brotherhood of Carpenters, District Council Eric Franklin, Organizer, Northwest District Council of Carpenters Marc Furman, International Organizer, United Brotherhood of Carpenters Sharon Genaci, Environmental Activist Tim Gothier, President, Otto Herman, NECA REBOUND, Building Trades Council, Seatde, Washington Bob Okano, General Contractor Wally Mehrens, President, Columbia-Pacific Building Trades Council John Molis, Business Manager, Bricklayers Jim Moss, Past President, Plumbers' Union Bob Shiprak, President, Oregon Building Trades Council Bill Sikara, Representative, Plumbing and Pipetrades Contractors Council Jim Stuckenschneider, Federal Mediation and Conciliation Service Matt Walters, Business Manager, Plumbers and Fitters John Williams, Environmental Consultant 42 AFL-CIO 323? Date Due Lib-26-67 3 9080 02246 1229