Unions Prepare to Begin Construction on Affordable Housing in Portland

Building trades unions are in the process of negotiating labor agreements on a new affordable housing project in downtown Portland. The eight-story building will include 201 affordable units at 89 Elm Street in Portland’s Bayside neighborhood. Construction is expected to begin in the spring.

The building is part of a larger 804-unit development project designed to fulfill Portland’s inclusionary zoning requirement that 25 percent of units must be deemed affordable housing. The other 603 units will be market rate housing. The contract has been awarded to a joint venture between Turner Construction and Penobscot General Contractors.

The project is supported through Maine’s $50 million share of the Biden administration's American Rescue Plan funds dedicated to be used on affordable housing initiatives. The Maine State Building & Construction Trades Council and Maine AFL-CIO worked closely with Senate President Troy Jackson and our allies in the Legislature to carve out $20 million of the federal funding to build affordable housing under project labor agreements (PLAs) — pre-hire agreements between the Building Trades Council and the general contractor that establish fair labor standards and a blueprint for efficient construction. PLAs ensure construction workers are paid fairly and receive great benefits and projects are delivered on time and under budget.

Jason J. Shedlock, President of the Maine Building & Construction Trades Council and Regional Organizer for LIUNA New England, said he and his team at the Building Trades Council are still in the process of negotiating the terms of the agreement, but every building trade union in the state who wants to participate should have journey workers and Registered Apprentices working on it.

Critics of the project have pointed out that the 89 Elm Street building will deviate from best practices by segregating low-income residents from other residents by income, but Shedlock says union leaders have been speaking with commuinity members to hear their concerns and explain the opportunities for Bayside residents to build this project. Because of the union advantage, they will be able to earn fair wages and family-sustaining benefits.

"Predictably, many developers, non-union contractors and the business class are busy dusting off the same old anti-union arguments in an attempt to convince people that the sky is going to fall if we are so bold to compensate workers fairly," said Shedlock. "While neighbors are not keen on the developer choosing to concentrate the affordable units in one structure, neighbors do support the project because it will employ low-income people from the community and hopefully pave the way for future housing projects built with union labor."

Shedlock said he is coordinating with the Union Construction Academy of Maine’s pre-apprenticeship program on their second year of programming so that upon graduation, students will be able to seamlessly transition into Registered Apprenticeships with any number of trade unions that are slated to work on the job. Success on the project not only means a well-built structure that's finished on or ahead of schedule and serves working families, it also means continuing to train and put to work a diverse workforce — including people of color, immigrants, women, veterans, workers who have been involved in the justice system and others.

While the building trades unions are oftentimes the go-to personnel when developers want the big and important jobs done right, they have not had the opportunity build a lot of residential housing together in recent years. But Shedlock said the successful completion of the 89 Elm Street project will once again demonstrate that skilled union members are well-equipped to be a key part of the solution when it comes to Maine's affordable housing crisis.

"As you stand at the project site, the tent encampments of unhoused individuals are within eyesight," said Shedlock. "They serve as the ultimate reminder that these units are needed; and needed yesterday.Good thing this project will be built by the best in the business. So when the next project is ready to proceed, our trades unions will once again be ready to answer the call."