Building & Construction Trades Council v. Associated Builders & Contractors (Boston Harbor)

The Massachusetts Water Resources Authority (MWRA) (defendant) was a government agency that owned a construction project to build various facilities to clean up Boston Harbor. The clean-up efforts were expected to cost $6.1 billion over 10 years. MWRA selected Kaiser Engineers Inc. (Kaiser) as its project manager. To facilitate harmonious labor relations and labor stability throughout the project, Kaiser advised MWRA to allow Kaiser to negotiate a collective-bargaining agreement with the Building and Construction Trades Council (the union). MWRA concurred. Kaiser accordingly negotiated an agreement that included recognition of the union as exclusive bargaining agent for all craft employees, dispute-resolution methods, a union-security clause, use of the union’s hiring halls to supply the project’s craft-labor force, a 10-year no-strike commitment, and a requirement for all contractors and subcontractors to abide by the agreement. MWRA adopted the agreement and directed that all contractors’ project bids must incorporate a specification to abide by the collective-bargaining agreement (the bid specification). In a proceeding before the National Labor Relations Board (the board), the general counsel found that the collective-bargaining agreement was valid under the National Labor Relations Act. The Associated Builders & Contractors of Massachusetts (plaintiff), an organization representing nonunion construction employers, sued MWRA in district court seeking to enjoin enforcement of the bid specification on preemption grounds. The district court denied a preliminary injunction, but the court of appeals reversed, concluding that MWRA’s conduct was preempted. The matter came before the United States Supreme Court.