Synopsis By: Lurie - Proceeding Author: Carl B. Frankel, Richard I. Thomas

Arbitrator Das describes the history of contracting-out in the Steel industry prior to the 1986 CBA negotiations and the extensive provisions, then agreed upon and largely still in effect, which restrict the contracting-out of “major new construction” or any work where it has been the consistent practice to have such work contracted-out; or where contracting-out the work is more “reasonable” than having it performed by employees. Guidance as to what is “reasonable” is afforded by 11 prescribed factors. Attorney Frankel notes that the “guiding principle” is that “work capable of being performed by B/U employees shall be performed by them.” The CBA provisions are set forth in an addendum. Finally, Attorney Thomas expresses management’s view that arbitrators should interpret questions of “major new construction” in light of the purpose of the intent of the agreement. This means considering the unfagmented scope of the project, and the normal work levels experienced by the bargaining unit.