Chicago Carpenters Sign New Agreement

The average rate for carpenters in Chicago may have gone up this year compared to last, but that doesn't necessarily mean exhibitors at tradeshows at McCormick Place will be paying more.

In fact, because of a new two-year collective bargaining agreement with the carpenters union that went into effect June 1, exhibitors will probably be paying less overall, despite the results in that category of Tradeshow Week's 2008 Survey of U.S. and Canadian Labor Rates.

New rules that could be easier on exhibitors' pocketbooks include straight time rates from 4:30 to 8:30 p.m. Monday through Friday at the break of a show and the time-and-a-half rate window being expanded from eight hours to 12 hours on Saturdays, said Juan Ochoa, president and CEO of the Metropolitan Pier and Exposition Authority. Previously, time-and-a-half and double overtime rates were charged, respectively.

“That's pretty good in terms of what the overall costs will mean to the shows,” he added. “(It shows) we're consistently moving in the right direction as it relates to our competitiveness.”

The Chicago & Northeast Illinois District Council of Carpenters is the fourth union representing McCormick Place workers to negotiate more flexible work rules during the past two years. Riggers, decorators and electricians previously negotiated new contracts that resulted in changes:

• reduced crew sizes
• reduced overtime charges, particularly on Saturdays
• no overtime charges at all during the first four hours after a show closes
• staggered start times
• a wider range of tasks exhibitors can do themselves
• customer service training for union workers

“We recognize the importance of the convention and tradeshow industry to Chicago, and that is why we were willing to make changes that will lower costs and provide greater flexibility for exhibitors,” said Frank Libby, second vice president of the carpenters union. “We believe the changes we agreed to will help attract more shows and lead to more work for our members.”

The agreement with the carpenters union was different from those negotiated with the union in the past because Freeman and GES, the two major contractors that stage shows at Chicago's McCormick Place, were able to negotiate directly with the union. Previously, the general service contractors had to abide by agreements made between the union and the Mid-American Regional Bargaining Assn., a group that represented Chicago-area building and construction trade associations.

“It's a huge stepping stone for us to get to that process,” said John Patronski, executive vice president of GES.

Ellen Beckert, spokeswoman for Freeman, said, “We put into place some specific conditions that were relevant to the tradeshow industry. Those are working conditions that especially impact the tradeshow industry because of the work that we do.”

In 2007, according to information supplied to TSW, the average carpenter's rate in Chicago was $87.20 for regular time (straight time), $131.98 for overtime (time-and-a-half) and $169.58 for Sundays (double overtime). This year, rates rose to $92.53 for regular time, a 6.1-percent increase; $140.42 for overtime, 6.4 percent; and $182.88 for Sundays, 7.8 percent.

The average U.S. rate for carpenters also rose, from $64.97 for regular time to $78.95, from $100.78 to $117.06 for overtime and from $115.18 to $144.01 for Sundays.

Beckert and Patronski said the new work rules will save exhibitors money because, for example, if a show closes at 4 p.m. on a Friday, exhibitors would pay the lowest rate for the four-hour period immediately after that and have a larger amount of time on Saturday when the time-and-a-half rate would apply.

“Rate is one thing, because labor has to be paid,” Patronski said. “The work rules and the straight-time window of building (and) crew sizes, those also become a huge driver when you look at bargaining agreements.”

Patronski said the work rule changes translate into more significant cost savings than if the rates weren't rising by a small percentage each year.

“Budgeting and anticipating labor cost in the city is more than the rate,” Beckert added.

Peter Eelman, vice president of exhibitions for the Intl. Manufacturing Technology Show, agreed.

“Rates are probably the least of our worries,” he added. “What can really make progress is when you can make these work rule adjustments that make sense to the exhibitors.”

Eelman is part of the Labor Management Council, a group made up of representatives of the MPEA, Chicago Convention & Tourism Bureau, show managers, service contractors and unions that deal with labor issues at McCormick Place and Navy Pier.

With the agreement with the carpenters in place, almost all the Chicago unions that deal with tradeshows have renegotiated contracts that are more show-friendly, according to the MPEA. The only remaining union involved with tradeshow work, the Teamsters, have a contract that expires Dec. 31.

“For us, it's a sign of continued progress,” Eelman said. “This is a goal we've had for many years.”

Eelman's show is scheduled Sept. 8-13 at McCormick Place, and he added that the new rules will help as show officials finish planning IMTS.

The agreement also allows for random alcohol and drug testing.

That, Patronski said, “is very, very significant.” He added it's important for employers to have the ability to test randomly rather than only after accidents occur because it promotes a safe work environment.

The previously negotiated contracts carry the same drug and alcohol testing provisions.