Legal Definitions - prehire agreement

A prehire agreement is a formal contract established between an employer and a labor union. In this type of agreement, the employer commits to hiring individuals who are members of that specific union, or who agree to join the union within a certain period, for particular jobs or projects. These agreements are often used in industries where project-based work is common, such as construction, to ensure a stable and skilled workforce.

Here are some examples to illustrate how a prehire agreement works:

• Example 1: Construction of a New Office Building

  Imagine "Urban Sprawl Developers" wins a contract to build a large, multi-story office complex. To ensure they have a consistent supply of skilled carpenters, electricians, and plumbers throughout the multi-year project, Urban Sprawl Developers enters into a prehire agreement with the "Building Trades Council," a coalition of local construction unions. This agreement stipulates that Urban Sprawl will primarily hire union members referred by the Building Trades Council for all relevant construction roles on the office complex project.

  This illustrates a prehire agreement because Urban Sprawl Developers (the employer) and the Building Trades Council (the union) have a contract where the employer commits to hiring union members for a specific, large-scale construction project.

• Example 2: Opening a New Manufacturing Plant

  "Future Motors Inc." decides to open a brand-new electric vehicle assembly plant in a region with a strong union presence. To ensure a smooth startup and access to a trained workforce, Future Motors signs a prehire agreement with the "United Auto Workers" (UAW) union. Under this agreement, Future Motors commits to recruiting a significant portion of its initial workforce for the new plant from the UAW's pool of experienced and certified members.

  This demonstrates a prehire agreement as Future Motors (the employer) and the UAW (the union) have an understanding where the employer prioritizes hiring union members for the staffing of its new manufacturing facility.

• Example 3: Staffing for Large-Scale Event Production

  "Spectacle Productions," a company that organizes and staffs major music festivals and theatrical tours, frequently needs large crews of stagehands, lighting technicians, and sound engineers on short notice. To guarantee access to reliable and skilled professionals, Spectacle Productions enters into a prehire agreement with the "International Alliance of Theatrical Stage Employees" (IATSE) union. This agreement allows Spectacle Productions to quickly fill positions for its events by drawing directly from IATSE's roster of experienced union members.

  This example shows a prehire agreement because Spectacle Productions (the employer) and IATSE (the union) have a contract that ensures the employer can consistently access a pool of unionized, skilled labor for its recurring event production needs.