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JOB TARGETING PROGRAMS AGAIN RULED ILLEGAL ON PUBLIC CONSTRUCTION -- DISTRICT COURT UPHOLDS LABOR DEPARTMENT DECISION

 WASHINGTON, Feb. 25 /PRNewswire/ -- Associated Builders and Contractors (ABC) issued the following:
 A U.S. district court judge ruled that it is illegal to require employees working on federally financed construction projects to put money into a special fund in order to subsidize the bids of union contractors.
 The practice is called job targeting and it has already been declared illegal by the Department of Labor's Wage Appeals Board. ABC, which had argued the case before the board and had submitted an amicus brief to the district court, hailed the decision, declaring it a "major victory for open shop contractors."
 ABC General Counsel Maurice Baskin, of the law firm Venable, Baetjer, Howard, Civiletti, said the court accepted ABC's argument that job targeting programs violate the Davis-Bacon Act by allowing employee wages paid on public construction jobs to be returned to union employers.
 Baskin said that the decision affects both private and public sector construction employers, because it prohibits targeting money collected from public works employees from being spent to subsidize any construction employer.
 Under job targeting, local construction unions assess their members to subsidize labor costs for unionized contractors bidding on specific projects. This permits the union contractor to effectively reduce his hourly wage cost and underbid targeted open shop contractors, while the union continues to report its high area wage rates as "prevailing."
 The case revolves around the current collective bargaining agreement between a chapter of the National Electrical Contractors Association and the International Brotherhood of Electrical Workers, Local 595. In this agreement, dues were diverted from the union members' vacation plan in order to fund job targeting programs.
 ABC is also pursuing job targeting in the private sector, where the group is challenging programs involving the National Electrical Contractors Association, its Oregon chapter, the International Brotherhood of Electrical Workers Local 48 and two union contractors.
 -0- 2/25/93 /CONTACT: Dick Haas or Mike Henderson of


As sociated Builders and Contractors, 202-637-8800/

CO: Associated Builders and Contractors ST: District of Columbia IN: SU:

TW-MH -- DC021 -- 0516 02/25/93 15:45 EST
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Date:Feb 25, 1993
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