Reference no: EM132605258

Question 1. Can the rig welders join the IWU and have the IWU represent their interests with the Rand Corporation?

Question 2. What steps would Jason and the IWU have to take to establish a union to represent the rig workers at the Rand Corporation.

You MUST utilize the IRAC analysis method to analyze the following three case studies.

CASE STUDY ONE

Rand Corporation "Rand" is a company in the construction, installation and servicing of oil and gas pipelines and related facilities for the oil and gas industry. Rand is routinely hired as a general contractor by oil and gas companies to build natural gas pipelines and compressor stations which transport natural gas from the wellheads to the owner's main processing plants. When Rand is the successful bidder on a project, it hires a variety of workers, including rig welders, to assist in completion of the project. Rig welders perform skilled welding on pipes, sheet metal, and other portions of gas industry facilities. They are routinely tested and certified by project owners to insure that they perform their jobs. They provide their own welding equipment which is typically mounted on flatbed pickup trucks. The equipped trucks are referred to as "welding rigs" and each welding rig costs between $45,000 - $50,000. Rig welders are also responsible for costs of stocking their welding rigs. Rig welders do not bid on jobs and do not have contractor's licenses that would enable them to do so. Rand simply hires rig welders at a set hourly rate to work on particular projects. Rand does not negotiate the hourly rate, and sometimes pays on a "straight contract" basis at approximately $27.00 to $30.00 per hour, and sometimes on a "split check" basis at a rate of $10.00 per hour for labor and $17 per hour for rig rental.

Work on a project is typically conducted six days a week, twelve to fourteen hours per day. Rig welders are supervised by Rand foremen and are required to arrive, take breaks, and leave at times specified by the foremen. They are not allowed to complete their work when they want and in most cases, it would be impossible for them to work with the other crafts and because other equipment and workers are necessary to move pipe for welding. Rig welders are not provided project blueprints. Instead, the foremen map out what pipes they want built and in what order. The foremen do not establish the welding specifications and standards, nor do they tell rig welder how to weld or how long a particular weld should take. Welding specifications and standards are established by the customer project owner and the quality of welding is overseen by an inspector hired by the customer. Because of the nature of the work, rig welders and other pipeline workers would be unemployed after completion of a project if they did not seek work on new projects. Accordingly, it is common for rig welders to work for several different companies during the course of a year.

Rand considered rig welders as independent contractors and asked each rig welder to sign a document entitled "Agreement with Independent Contractors" which states:

"It is the intent of the Parties involved to establish and maintain an 'independent relationship' rather than an employer-employee relationship. All Federal, State and Local laws regulations and guide lines should be adhered to accordingly. The independent Contractor is responsible for maintaining adequate amounts of insurance."

Jason Jones has been emailing the other rig welders concerning the long hours and the foreman's refusal to share blueprints which could make the rig welders' more efficient. He wants the rig welders to join the local Iron Workers Union "IWU" and they appear interested.