Antitrust lawsuit filed against IBEW Local 3 and electrical contractors

Alleging a conspiracy to keep telecommunications contractors from telecommunications installation work in New York City, two telecommunications installation contractors, U.S. Information Systems Inc. (USIS) and Odyssey Group Inc. (Odyssey), filed a lawsuit last week in federal district court in Manhattan alleging antitrust violations by Local 3 of the International Brotherhood of Electrical Workers (IBEW) and several electrical contractors that employ Local 3 workers. The suit alleges that IBEW Local 3 and the electrical contractors are conspiring to take over the market for installation of telecommunications wiring and systems in the New York metropolitan area.

According to the complaint, the following actions by the defendants are part of a concerted effort to exclude USIS and Odyssey from telecommunications installation work in the area:

• Threats of disruptions and delays in construction projects unless Local 3 electrical contractors also do the telecommunications work;
  
• False statements about the plaintiffs and their businesses; and
  
• Jobsite intimidation, harassment, and vandalism.

Tactics used by the defendants to extend their electrical installation monopoly into the telecommunications installation business, according to the complaint, include statements that buildings are "Local 3 only" buildings and threats that there will be labor unrest if IBEW Local 3 workers are not employed. In addition, the complaint alleges that the defendants have taken actions to keep the plaintiffs off bidding lists, had the plaintiffs' telecommunications installation jobs reassigned to electrical contractors, and interfered with the plaintiffs' work, equipment, and personnel.

USIS and Odyssey employ Communications Workers of America (CWA) employees and have in the past filed several complaints against the IBEW Local 3 with the National Labor Relations Board, alleging unfair labor practices. The plaintiffs have prevailed in all instances, but the defendants' behavior continued at future work sites, which compelled Odyssey and USIS to file this action in federal court to address the fact that the defendants' ongoing actions have caused them antitrust injuries.

USIS and Odyssey have routinely been able to show in the bidding process that they are the best qualified and the most cost-effective at completing the telecommunications installation work, but nonetheless had work bids denied. They seek damages of more than $50 million after trebling and are prepared to show that the total harm to building owners and the general public is many times greater. In addition to Local 3, the defendants are A&R Electric Co., Adco Electric Inc., Five Star Electric Corp., Forest Electrical Corp., IPC Communications Inc., Nead Information Systems Inc., and Petrocelli Electric Co. Inc.

The New York office of King & Spalding, a national law firm, is representing USIS and Odyssey.

Edited by John Spofford