3. Is it legitimate for a labor organization to negotiate a work preservation clause which seeks to encourage contractors to perform work on the job site using union labor by imposing an economic incentive not to outsource the work elsewhere to lower paid employees? Rocket Motor Corporation

(RMC) entered into a project labor agreement with 17 local building trades’

unions concerning a building remodeling project at one of the company’s manufacturing plants. As part of the project labor agreement, the unions agreed not to engage in any strikes, slowdowns, or other work stoppages and not to honor the picket lines established by any other labor organization at the job site. RMC agreed as part of the project labor agreement to hire contractors and subcontractors who would employ individuals to perform construction work from each specified type of trade represented by the 17 unions at terms and conditions of employment equal to the terms specified in any applicable union contract covering the type of work to be performed. The project labor agreement called for final and binding arbitration to resolve any disputes arising from the interpretation or application of the terms of the project labor agreement.