Atlantic City CC Anticipates State Election

This may be an "off" year when it comes to electoral politics, but California isn't the only state looking toward an election that could change things drastically. Exhibitors and show managers who use the Atlantic City Convention Center may have their own problems as well.

Ever since a judge's ruling earlier this year, general contractors have been able to use whatever labor union they want to get their work done at the center. Many, however, now believe that could all change if the balance of power between Democrats and Republicans in the New Jersey State Senate shifts as a result of a Nov. 4 state election.

Currently, there are an equal number of Democrats and Republicans in the State Senate. If Democrats find themselves in the majority after the election, many fear the pro-labor union politicians will appoint new members to the Atlantic City Convention and Visitors Authority board, provoking a change in the way work is distributed among labor unions at the center. Some claim the carpenters' union has been pumping money into Democratic Party coffers and, in return, would demand new board appointees name the union the primary labor broker at the facility, in charge of distributing work among the other unions.

"It's been heavily rumored that they could change the labor scheme. It's totally at the whim of a political catfight," said a worried Patrick Perrino, president of general contracting firm Atlantic Exposition Services (AES). Some, like Perrino, believe such a move could come as quickly as two weeks after the state election as payback for providing election support to the Democratic Party.

"My request would be that if there's a labor change, those most directly affected by it get made a part of the planning process" said Walter Shatz, executive director of the Specialty Advertising Assn. of Greater New York and show manager of the largest tradeshow at the Atlantic City Convention Center, Promotions East.

"If you can't tell me how much more money it will cost or what the changes in the work environment will be based on, then I'll be likely to sue you," Shatz added, of the possibility of changes being made solely because of political motives.

Labor disputes have been rampant since 1998, when a new facility opened under SMG. The building manager granted most work to the carpenters.

AES refused to employ only carpenters, maintaining SMG did not have the authority to determine a labor provider for the building. SMG banned AES from working at the center until it signed the labor agreement. Finally, that same year, SMG allowed AES in with the stipulation that it use the carpenters' union exclusively; pay double the regular rate for overtime rather than time and a half; and forbid set-up by exhibitors, even if their exhibit fell under the 10′×20′ space requirement allocated under the new convention center's labor agreement.

Still unhappy after 12 shows under the new agreement, Perrino's general contracting firm decided to test SMG's policy by hiring painters and stagehands. SMG challenged the decision and AES filed an unfair labor charge with the National Labor Relations Board. Eventually, in February, the Third U.S. Circuit Court of Appeals found in favor of AES. AES now hires the painters and stagehands without paying overtime for the first eight hours of the workday regardless of time of day, and gives exhibitors the option to set up their own booths.

However, under pressure from the carpenters, in July the ACCVA board considered, but rejected, a proposal to hire the union as an exclusive labor broker. "The board decided it was happy with the way things are," said Susan Ricciardi, director of media relations for the ACCVA.

Perrino believes that the July ruling should have been the end of the dispute and regrets it may arise again after the state election.

Denying the election will have any influence on convention center operations, Ricciardi said, "It's certainly nothing on the agenda as far as we're concerned."