Local Ironworkers Union Stepping Up Efforts to Regain Houston Ship Channel Petrochemical Construction Market

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). As the Ironworkers local union #84, located in Houston, Texas, celebrates its 100th anniversary this year, it finds itself in a period of transition. That transition began recently, as the union initiated a concerted effort to reestablish itself in the large industrial petrochemical market in the vicinity of the Houston Ship Channel.

Responsible for construction of most of the buildings in downtown Houston, today, the Ironworkers local #84 has about 800 qualified ironworkers, but only a handful are currently involved in petrochemical plant jobs in the area. Ninety-nine percent of the ironworkers' work is currently commercial-related, as opposed to industrial. It wasn't always like that for the local, which was heavily involved in the petrochemical industry until the early 1980s, and had more than 3,500 qualified ironworkers. Around that time, the economy dropped, and construction jobs dried up, shrinking union membership. In addition to that misfortune, unions had gained a reputation as troublemakers and strikers. Non-union contractors took over as contractors of choice, seriously underbidding union competition.

Today, the face of the American union is changing, and the Houston local is a good example of that change. Founded on its core values of quality and safety, the union is spearheading a new marketing effort to reestablish communications with petrochemical plant owners. According to Ed Vargocko, Business Manager/Financial Secretary and Treasurer for the Ironworkers Local #84, "We're seeing a turnaround in the industry." Mr. Vargocko goes on to state, "Where once plant owners closed the door to union workers, recently doors are starting to be opened. And the reason for this turnaround is the core of what the union is all about - quality, safety, and production." In some cases, industrial plant owners are growing tired of engaging nonunion contractors, the majority of whose workers are unqualified and unskilled, leading to quality and safety concerns.

The ironworkers' new marketing effort is being brought to locals and signatory union contractors across the U.S. and Canada through the Ironworker Management Progressive Action Cooperative Trust (IMPACT) officed in Washington, DC. IMPACT Direct allows members online access to Industrialinfo.com's PECWeb Direct industrial project tracking system.

Mr. Vargocko states, "Industrialinfo.com was a big help to us, enabling us to get in touch with the proper contacts at industrial plants. There's over $7 billion worth of work planned for Harris County alone, and without Industrialinfo.com, we would never have been able to find out about it."

The Ironworkers' attention to quality, safety, and production has always made them leaders in the industry. The local Ironworkers apprentice program had about 180 apprentices in the school in 2003, and there are also ongoing improvement training programs, such as the journeyman upgrade classes, as well.

The Ironworkers are trying to get the word out about the benefits union workers can bring to the table and about the new attitude of the union. Mr. Vargocko states, "We are not the union we once were. There are no strike clauses in our contracts, and we are out there to do a quality job. We are not out there to slow projects down, or give owners trouble, or cost them money. We're trying to show plant owners that we are there for them."

The Houston local's new marketing effort is starting to bear fruit. Since Houston Local #84 started using Industrialinfo.com, they've established new relationships with Houston Ship Channel plant owners, such as Shell Oil Company's chemical and refining divisions, as well as The Lubrizol Corporation (NYSE:LZ) (Wickliffe, Ohio), Lyondell-CITGO Refining LP (Houston, Texas), and EVAL Company of America (Pasadena, Texas), a subsidiary of Kuraray Company Limited (Osaka, Japan).

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