Contact: Gerry Fritz, (703) 812-2062              For Immediate Release
             fritz@abc.org                                 May 26, 2011

Washington, D.C. – In testimony today before the U.S. House Education and the Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions hearing on "Corporate Campaigns and NLRB: The Impact of Union Pressure on Job Creation,” ABC member Chet Karnas, president and owner of Lone Sun Builders, Inc., Albuquerque, N.M., told committee members that, “unions have launched several corporate campaigns against us over the years, during which they have engaged in many unethical practices, including attempts to smear our name through bannering.

“These signs (bannering) were emblazoned with inflammatory, unfounded claims about our labor policies, and designed to publicly humiliate and discredit us,” said Karnas. “These deplorable tactics are desperate attempts to unfairly gain market share by targeting merit shop construction companies and their clients, regardless of the wishes of their employees.”

Karnas detailed the campaign against his company led by the Southwest Regional Council of Carpenters. He explained that the union violated his company’s property rights, issued false claims, made vulgar and threatening remarks, and vowed to put his company out of business. Karnas said he fought back with his own public relations campaign to restore his company’s name. However, he said business has suffered greatly.

“In all, we estimate that we have suffered a 20 percent to 30 percent decline in sales directly due to the negative impact of the carpenters’ corporate campaign,” Karnas said.

Karnas also discussed a Sept. 2010 ruling by the National Labor Relations Board (NLRB) that supported the carpenters union tactics.

“It is unfortunate that the Board (NLRB) has chosen to turn the clock back more than 60 years to a time when secondary boycotts threatened to paralyze the industry and stifle job growth,” Karnas said. “The NLRB’s decision will no doubt embolden and encourage more unions to incorporate this practice into their already aggressive and irresponsible corporate campaign efforts.”

To download the full testimony of Chet Karnas, and view video of the hearing, go to the U.S. House Education and the Workforce Committee’s Subcommittee on Health, Employment, Labor and Pensions hearing website located here.

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Associated Builders and Contractors (ABC) is a national association with 75 chapters representing more than 23,000 merit shop construction and construction-related firms with nearly two million employees. Visit us at www.abc.org.