TranSystems Corporation - LGM Construction

February 28, 2000
Letter of Understanding: Tenant Improvements
Mr. Barry Luboviski, Secretary-Treasurer
Building and Construction Trades Council of Alameda County
8400 Enterprise Way, Room 101
Oakland, CA 94621
RE: Port of Oakland Maritime and Aviation Project Labor Agreement: Tenant Improvements
Dear Mr. Luboviski:
During our negotiations of the above-captioned Agreement, the Unions sought commitments
from the Port to cover construction improvements that may be done by Port and Airport tenants
during the life of the Project Labor Agreement. You and we acknowledged that we could not
impose such a commitment on the tenants for both legal and practical reasons. At the same time,
we recognize that without the unique protections that a project labor agreement offers, there is no
way to insulate tenant contractors from the kinds of disruptions that come about in circumstances
where local bargaining results in a strike against the contractors in the area or when union
workers work alongside nonunion workers.
The Unions have advised us that the PLA protections will not be extended to any work that is not
expressly covered by the Agreement. That is, you have specifically reserved the Unions’ normal
rights to conduct lawful concerted and protected activities at the Project site directed at any
entities not covered by the Agreement. We have, in turn, expressed our position that the Unions
have the ability (and the obligation) to manage any disputes that may arise in a manner calculated
not to disrupt covered work under the Agreement. You have agreed that it is not the Unions’
intent to disrupt the Project work in any way.
We therefore share a mutual desire for the Project site to be free from such potential labor
tensions and disruption. In the interest of promoting labor harmony and recognizing that the Port
is not legally or practically empowered to compel its tenants to adopt and adhere to the terms of a
PLA, the Port will notify each of its tenants when they undertake construction work on their
leased premises of the importance of maintaining labor stability in the performance of their work.
This notification will specifically include a description of the PLA and its benefits as one means
for achieving stability. The Unions agree that this PLA or one of comparable terms (including
specifically the commitments not to engage in strikes, picketing or other economic pressure) will
be made available to the tenants for their work if they should choose to have such an agreement
for their work.
PORT OF OAKLAND MARITIME AND AVIATION PLA
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