The Indiana Laborers’ District Council is asking those constructing a new data center in Sullivan County to commit to using local, union labor for the project.
The labor council is “calling on Potentia Inc. and all parties connected to the proposed Google-backed data center development at Heartland Industrial Park in Sullivan County, Indiana, to commit to a binding project labor agreement and prioritize Indiana workers and contractors on the massive project,” the council said in a news release.
“We want local workers on the project,” said Brian Short, the council’s business manager.
Robert Davis, president of the Sullivan County commissioners, said he’s tried to help facilitate a meeting.
“We’re not having any luck with it so far. We’ve been trying to work hand in hand with the union and the developer to try to get a face to face meeting, and they (developer) want to keep having phone meetings and we want a face to face meeting,” Davis said.
He’s trying to assist the union, Davis said. Last month, Houston-based Potentia Inc. announced a large-scale technology infrastructure development — which includes a data center — at Heartland Industrial Park in Sullivan County.
Potentia in April stated the project represents $65 billion in total investment by tenants and partners by 2030.
The park is expected to create 2,750 construction jobs and at least 500 permanent local positions above the regional average salary, Potentia says.
The company also has committed more than $54 million in community payments to Sullivan County and will donate 15 acres for a new fire station, its release states. The labor council said the development “has been promoted publicly as a transformational investment for Sullivan County, with promises of job creation and long-term economic growth,” a news release states.
However, the labor council says early site work has already been awarded to out-of-state contractors while qualified local workers and contractors are being sidelined.
Labor leaders say representatives associated with the project previously indicated that discussions surrounding a project labor agreement were underway before major construction activities began.
A project labor agreement would establish local hiring standards, wages, benefits, safety requirements, and workforce participation expectations for the project.
Instead, according to union representatives, contractors from outside Indiana have already mobilized to the site while local skilled workers are being left behind.
Potentia provided the following statement from Rich McCrea, the company’s founder and CEO: “Potentia is the developer of Heartland Industrial Park, not the general contractor, and Potentia is not managing negotiations with labor organizations. The decisions regarding the construction workforce and subcontracting are being made by the general contracting team that was retained by the project’s development partners.
McCrea continued, “Potentia has taken a community-first approach to the Heartland Industrial Park project since planning began. We are working with all parties to address these concerns and reach an outcome that benefits everyone. Nothing about this situation changes our timeline, and it will not affect the financial and long-term commitments we’ve made to the people of Sullivan County.”
Joe Bolk, business manager of Laborers’ Local 204, said that “no one is opposed to economic development or investment coming into Sullivan County. But a project this size should be creating careers and strengthening communities right here in Indiana — not shipping work and wages out of state.”
Davis, Sullivan county commissioner, said before commissioners approved a road use agreement and community development agreement with the developer, he asked both union representatives and the developer if they were trying to work out a project labor agreement and if they believed something would be worked out.
Davis said he got a ‘Yes’ from both. Commissioners then approved the two agreements, but they provided the developer with no incentives or abatements, he said.
Davis said he is in touch with union representatives almost every day and so far, “They’ve had no luck.”
Davis said of the developer, “I feel like they’ve come to us in bad faith and they have told us things that weren’t true or led us to believe things that weren’t true that have not come to fruition.”
He said there have been some issues with roads being used that are aren’t supposed to be used. Legal counsel is addressing that, Davis said.
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