Skip to main content

Lamar Construction's closure creates organizing opportunity

Date Posted: August 1 2014

Lamar Construction Co., a large, long-time nonunion contractor headquartered in Hudsonville in west Michigan , abruptly closed its doors on July 9, throwing about 280 workers onto the jobless rolls.

Lamar, established in 1938, shut down after a bank cut off its credit line, MLive reported. The company employed about 170 workers in West Michigan and also had operations in Kentucky and Colorado. The company said in a statement it would continue operating its structural steel erection business, and that prompted quick responses and offers of help for workers from both the anti-union Associated Builders and Contractors and the Iron Workers International Union.

The iron workers, who had unsuccessfully attempted to organize Lamar, cited news reports saying the company closed without providing workers their last week of pay – “a callous reminder of the disregard some contractors have for their work force,” a union statement said.

“The Ironworkers union is working with solid contractors who have positions immediately available for these laid off workers,” said Ironworkers North Central States District Council President Colin Millard. “These reputable contractors will guarantee their wages and provide real insurance benefits, training, pensions and fair conditions of employment so workers don’t end up experiencing the same kind of workplace issues six months from now that they had when working at Lamar.”

An MLive article “helpfully” reported that the ABC started an online resume bank and job center for the newly unemployed Lamar employees. That raised a red flag with the iron workers, who released their own statement on July 21.

“The ABC was founded as a radical political organization for construction employers and has traditionally acted in the interest of business owners, often at the expense of the workers,” said Millard.  “The ABC’s offer makes no mention of the quality of jobs these workers may be offered.  It would be a further injustice to the workers to have to, once again, endure substandard employment when there are many good contractors offering real benefits and opportunities for advancement with positions open for skilled, quality workers.  These workers deserve quality jobs.”

The statement continued: “The ABC has a long history of opposing efforts to improve worker health and safety regulatory improvements and attacking project labor agreements and prevailing wages, designed to ensure that government projects create good jobs and stabilize local economies. The ABC has given Lamar Construction several awards in the past generally reserved for their members, including one for ‘Excellence in Construction Safety.’  Recent news reports have revealed that the company has had over 100 safety violations by OSHA in the past 10 years.”

Lamar was no small player in the construction industry. Among the top 10 largest contractors in Michigan with $151 million in revenue in 2013, it was ranked No. 355 on the Engineering News Record’s list of the Top 400 U.S. contractors this year.

The company was no stranger to labor strife or safety violation. In 2013, the ENRreported, “striking former workers alleged that Lamar subjected them to discrimination, improper training, wage violations and unsafe working conditions. The workers, members of Workers Freedom Coalition (WFC), picketed Lamar jobsites, urging businesses to decline contracting with the firm.” Lamar’s president said the WFC was a front group for Iron Workers Local 340.

“Under Lamar, these workers have had to endure a contractor that stole from them through wage theft, cheated building owners through the use of fraudulent welding certifications and swindled the insurance companies through acts of worker’s comp fraud,” Millard said. “What the workers need now is fair employment that gives them a voice on the jobsite and guarantees their wages and benefits.”