Heavy equipment operators strike, raising concerns of road construction delays

Frank Witsil
Detroit Free Press
Operating Engineers Local 324 went on strike Wednesday, which could tie up state road projects.

Hundreds of union workers who operate cranes and other heavy equipment on state roadway projects announced Wednesday the union went on strike after about a year of trying to resolve a labor disputes with Rieth-Riley Construction Co.

Operating Engineers Local 324 had been considering a strike against Rieth-Riley, a large Indiana-based firm that is working on state projects on Interstate-94 in western Michigan and Interstate-75 near West Branch, since last week.

Rieth-Riley is the only major union contractor that did not sign a new contract with the Operating Engineers after a labor dispute that halted projects around Michigan for several weeks last fall, a union spokesman said.

"Our workers have negotiated in good faith and the National Labor Relations Board has offered Reith-Riley a settlement to avoid a trial over unfair labor practice charges," said Douglas Stockwell, the union business manager, adding that the company has "refused to act in the best interests of its employees" and that the union was "left with no other recourse than a strike."

Michigan Department of Transportation officials said Wednesday morning the agency was not part of negotiations, and it is too early to determine how a strike may affect state projects and whether there would be project delays.

Rieth-Riley, however, said the strike is disrupting several projects throughout Michigan, adding that "there simply is no good reason" for the union to stop work.

Keith Rose, president of Rieth-Riley, said that the employee-owned company has "gone back to the table time and time again and ... offered up excellent employee compensation plans," but the union "has refused to attempt to negotiate a fair deal."

The company's position is that union claims that Rieth-Riley is participating in unfair labor practices are "merely accusations" and have not been decided upon by the NLRB. A hearing before the NLRB, the company said, is scheduled in October.

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Union officials said members "have faced a number of aggressive activities alleged to be unlawful by the NLRB from the company since June 2018 that could result in the company paying more than $1.8 million in back pay."

The union claims the company docked workers’ pay to take back money it had given to them in 2018, and calling the practice "bait-and-switch" and a "shell game" with wages, and denied workers unemployment benefits.

Rieth-Riley countered it has agreed to essentially all wages, terms and conditions of the new Michigan Union Contracting Group agreement that was put in place early this year, with the exception of the union’s

subcontracting clause, and added union members earn $58.67 a hour, $73.48 a hour on overtime.

"Michigan residents have spoken loud and clear," the company said. "They want to have the roads fixed. But rather than fixing the roads at a lower price, the union wants the taxpayers of Michigan to pay a higher price only because of the union’s greediness."

Rieth-Riley is one of the Michigan Department of Transportation's biggest contractors. Records show that MDOT currently has 88 state and local contracts with the firm with a combined value of about $172 million.

“A strike is always a last resort,” Ken Dombrow, the union's president said. “Unfortunately, Rieth-Riley — despite calling themselves a ‘family company’ — treats its workers unfairly and with malice."

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.