The construction site of the 565 Building on E. Grand River Avenue has brought an ongoing labor dispute to East Lansing, as picketers demonstrate against one of the building’s contractors.
Members of the Michigan Regional Council of Carpenters and Millwrights, or MRCC, have occasionally gathered outside the project since early November. The picketers carry signs claiming Kent Companies, a Grand Rapids-based contractor with offices across the country, does not pay their workers the area standard wages and benefits. A similar picket took place during the construction of the SkyVue project on Michigan Avenue earlier this year.
“We have a collective bargaining agreement that established the wage and insurance benefits of the area,” Kevin Klingler, one of the directors at the MRCC, said. “Kent Companies does not pay their employees the area standard wage and benefit package that is negotiated for the area.”
Klingler said the MRCC has negotiated with the Associated General Contractors of Michigan, or AGC, for different geographic areas in the state to establish said standard. AGC of Michigan Vice President of Labor Relations Scott Fisher said Kent Companies is not a member of their organization, and thus it is outside of their authority to intervene in the dispute.
Klingler said companies that contract Kent Companies are aware of the labor dispute and the accusations against them.
“In most cases they are notified long in advance of awarding (contracts),” Klingler said. “They take the risk of embroiling (themselves) into the labor dispute unless they make the managerial decision to adhere by the labor standards established in a geographic area.”
Kent Companies CEO Jeff VanderLaan, however, said the accusations levied by the MRCC are false.
“It’s an old and tired claim that they’ve been (using) against companies like ours, 'merit shop' companies who are successful and participating in high profile, good projects … it’s a total lie,” VanderLaan said. “Not only do they not know anything about what we pay, we pay our people industry-leading benefits, pay, merit bonuses ... we do 401(k) matching, we do profit sharing, we provide medical and dental benefits.”
VanderLaan said the pickets are an attempt by the unions to stay relevant, when he believes they no longer are. VanderLaan said Kent Companies’ workers have never decided to form a union because the company treats them well.
“We focus on our people, we take care of them, we try to provide them with as much opportunity (as possible),” VanderLaan said. “That’s why our company has never chosen to become unionized. The carpenters take a tactic that tries to shame us or spread false issues about us, and that’s exactly what it is.”
VanderLaan said he did not know what the default wage paid to entry level Kent Companies workers is, but he believes it is higher than union wages because no dues are deducted. Leah Gradl, corporate marketing manager for Kent Companies, said in an email that pay information is not typically released because of its competitive nature but compensation translates into total cost in terms of man hours.
As Kent Companies is not bound by the collective bargaining agreements, Klingler said the MRCC does not have any legal issues with Kent Companies and a solution to the dispute comes down to whether Kent Companies chooses to change their business practices.
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