Project Labor Agreement Approved for Private Sector 25-Story Museum Place Development Project in Downtown San Jose

Developer and unions agree to hiring local workers and paying them fairly

SAN JOSE, Calif., Aug. 31, 2017. – Tuesday, the San Jose City Council took the bold and moral action of approving the 25-story mixed-use Museum Place development project that contains a Project Labor Agreement (PLA) with local construction trade unions that requires the hiring of local workers for the project and that they be paid the prevailing wage. The PLA also contains provisions supporting apprenticeship work opportunities for veterans.

“We commend Insight Realty for demonstrating to the Project Labor Agreement “naysayers” that a developer proposing a private sector project can work collaboratively with unions to employ local workers and pay them a family sustainable wage and still make a tidy profit”, said Stan Smith, Business Agent for Sprinkler Fitters UA Local 483.

The Museum Place project is a 1.4 million-square-foot development (which includes a 60,475-square-foot expansion to the Tech Museum) with 263,676-square feet of office space. There will be 306 residential units and a 184 room boutique hotel. There will also be 21,074-square feet of retail.

In May of 2017, the San Jose City Council provided strong direction to the developer to meet and negotiate with local construction trade unions to reach a consensus on a community benefit component of the project. These negotiations produced the above referenced private sector development Project Labor Agreement.

“The City Council recognized that our community should also benefit from a private project of this size and Insight Realty demonstrated leadership and responded by ensuring that local workers get hired at a decent wage while also increasing the pipeline of construction trade apprenticeship workers,” said Dan Rodriguez, Business Manager for IBEW LU 332.

“The City Council utilized this opportunity to align this project with their values and that is a win-win for everyone involved,” said Al Gonzalez, Business Agent for UA 393 Plumbers, Steamfitters, and HVAC/R Service Technicians.

 

About Responsible Development San JoseResponsible Development San Jose — Building the Middle Class is a non-profit organization established to strengthen and grow the middle-class by ensuring developers hire local workers and provide them with a family sustainable wage and benefit package. We support apprenticeship programs that provide a pathway to a sustainable career and we support a direct entry program that allows Veterans to transition directly from military service to a career in the MEP construction trades.