SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF NEW YORK

FCRC MODULAR, LLC,
Plaintiff,
-against-
SKANSKA MODULAR LLC and RICHARD A.
KENNEDY,
Defendants.
Index No. 652721/2014
Affidavit in Support of Motion for
Preliminary Injunction
-x
STATE OF NEW YORK )
: ss.:
COUNTY OF NEW YORK)
I, Gary LaBarbera, being duly sworn, depose and say:
1. I am President of the Building and Construction Trades Council of Greater
New York and Vicinity, ("BCTC"), which is an umbrella organization consisting of local
affiliates of 15 national and international unions in the construction industry representing
100,000 working men and women in New York City. I respectfully submit this affidavit on
behalf of the Modular Division Affiliates of the BCTC, and in support of FCRC Modular, LLC's
("FCRC Modular") application for a preliminary injunction against defendants Skanska Modular
LLC and Richard A. Kennedy. I understand the purpose of the preliminary injunction motion is
to have the FC+Skanska Modular, LLC plant (the "plant") reopened and get its workers back to
work. My organization supports this objective. I submit this affidavit based on my personal
knowledge of the facts, except where indicated and where based on information and belief, I
base my testimony on a review of documents including the pleadings in this mid other matters
between the parties.
FILED: NEW YORK COUNTY CLERK 09/10/2014 04:40 PM
INDEX NO. 652721/2014
NYSCEF DOC. NO. 29 RECEIVED NYSCEF: 09/10/2014
2. The Modular Division of the BCTC is an informal coalition of BCTC
affiliates that have been recognized as the collective bargaining representatives of the hourly
employees employed in FC + Skanska's modular construction plant. Those affiliates are referred
to herein as the Modular Division Affiliates. The hourly employees in tihe plant are commonly
referred to as "trade associates" based on their affiliation with the construction trades unions.
3. The approximately 157 trade associates employed by FC + Skanska
Modular worked pursuant to a collective bargaining agreement with the Modular Division
Affiliates up until August 27
th
, 2014. The trade associates were constructing modules that were
to be assembled into a high-rise modular building known as B2 BKLYN. B2 BKLYN is the first
residential building being erected in the Pacific Park, (a.k.a. Atlantic Yards) Brooklyn
development project, where a substantial number of market-rate and affordable housing units are
to be constructed.
4. The trade associates were recruited by FC + Skanska from the ranks of the
Modular Division Affiliates and their respective referral services, as well as local employment
centers serving the local community. The modular plant offered employment opportunities that
were unique in the construction industry as a new methodology for high rise construction, and
new work opportunities for local residents.
5. On August 27
th
, approximately 150 trade associates were abruptly
"furloughed" by FC + Skanska, without advance notice and without bargaining with the unions
that represent those employees. On the date the furlough was implemented, the employees also
got notice that their furlough might be converted to a permanent or temporary lay-off and that
they would lose their health insurance by the end of September. No WARN Act notices were
provided in advance of the furlough. No opportunity for workers to find new employment or
new training opportunities were afforded the trade associates. The furlough has been challenged
by the Modular Division Affiliates through both a contractual grievance under the collective
bargaining agreement, as well as before that National Labor Relations Board for a failure and
refusal to bargain with the unions.
6. Upon information and belief, the furlough was caused by a "stop work
order" issued by Skanska USA Building to FC + Skanska based on a commercial dispute
between the corporate partners in a joint venture and Skanska USA Building and Skanska
Modular LLC.
7. The work stoppage at the plant and the prospect that the plant will lose its
trained employees, will delay the completion of B2 BKLYN, which deprives Brooklyn of 181
affordable units that it urgently needs.
8. B2 BKLYN should be a prime example of a project built via the City's
50/30/20 Mixed-Income Program. The BCTC generally supports the affordable housing
initiative that has been undertaken in the City and the BCTC has partnered with community
groups and developers to find ways to deliver quality affordable housing while creating good
union jobs that can support the local residents and the economy.
9. Modular construction is one model undertaken in this unique affordable
housing initiative that supports good union jobs for local residents in both the plant and the
construction site.
10. Upon information and belief Skanska Modular LLC, as the managing
partner in the joint venture that is FC + Skanska, has taken steps to wind down the modular
plant, has removed some equipment, has made efforts to "button up" the plant, and has indicated
in notices to employees, the press and in court documents that in the absence of a resolution of
the commercial dispute, it will close the plant. Essentially, Skanska Modular and Skanska USA
Building threaten to abandon this model, as well as the trade associates and the community.
11. By contrast, the continued operation of the plant and the completion of B2
BKLYN via modular construction could be a prime example of a development project that
improves the City's economy by (1) providing much needed jobs to Brooklyn residents, and (2)
increasing the number of affordable apartments in the midst of a housing crisis that has rattled
the Brooklyn residential market.
12. More broadly, all construction workers at Pacific Park Brooklyn are union
employees. The project has already created many hundreds of union construction jobs and will
create thousands more through its completion.
13. The BCTC is committed to the completion of Pacific Park Brooklyn and
the benefits to the community that are intended to result from the completion of the whole
project, including the creation of new jobs and the increase in available affordable housing. The
plant and the more than 150 skilled union employees who work there is the key to the success of
this model.
14. For these reasons, we ask the Court to grant FCRC Modular's motion.
Sworn to before me this
ID day of September, 2014
Notary Public
IINOA CAMACHO
NOTARY PUBLIC-STATE OF NEW 08*
No. 01CA6224239
Qualified In Putnam County
Gary LaBarbera