Legal Definitions - double-breasted operation

A double-breasted operation describes a business structure where a single owner or ownership group manages two distinct companies that operate in the same industry. One of these companies is unionized, employing workers who are part of a labor union, while the other is non-unionized, employing workers who are not. This arrangement allows the owner to pursue a broader range of contracts and projects, catering to clients who specifically require union labor as well as those who prefer or need non-union services, often due to cost considerations or project requirements.

• Example 1: Construction Industry

  A large construction firm owner operates "Metro Builders," a company whose skilled tradespeople are all members of various construction unions, specializing in large-scale public works projects like bridges and municipal buildings. Separately, the same owner also runs "Urban Renovations," a non-union company focused on private commercial fit-outs and residential developments.

  This illustrates a double-breasted operation because the owner can bid on government contracts or projects for clients that mandate union labor through Metro Builders. Simultaneously, Urban Renovations allows the owner to compete for private sector work where clients might prioritize lower labor costs or greater flexibility, which are often associated with non-union operations, effectively capturing different segments of the construction market.

• Example 2: Transportation and Logistics

  The proprietor of "Cross-Country Freight," a trucking company whose drivers are part of a national transportation union, also owns "Rapid Delivery Services," a separate, non-union courier and local delivery service.

  Here, Cross-Country Freight can secure contracts with large manufacturers or distributors that require unionized transport for interstate shipping, ensuring compliance with specific labor agreements. Rapid Delivery Services, being non-union, can offer more competitive rates and flexible scheduling for businesses needing quick, localized delivery services without union stipulations, thereby expanding the owner's reach across the entire logistics sector.

• Example 3: Event Staffing and Production

  An entrepreneur runs "Elite Stagecraft," a company that provides unionized stagehands, lighting technicians, and sound engineers for major concerts, theatrical productions, and large-scale conventions. Independently, they also own "Event Support Solutions," a non-union entity that supplies staff for corporate conferences, private parties, and smaller festivals.

  This setup allows Elite Stagecraft to work with venues and artists that have collective bargaining agreements requiring union labor for their productions. Event Support Solutions, on the other hand, can offer more adaptable and potentially lower-cost staffing solutions for clients whose events do not have such union requirements, enabling the entrepreneur to serve both the unionized and non-unionized segments of the event production industry.