11
Role of Alondra
Until the late 1970's, UCIC was the dominant member of this
complex of organizations. However, UCIC's installation workers
were unionized, competitive pressures increased, and a trend
toward employment of nonunion workers developed in the Southern
California construction industry. In 1978, Alondra, which had
previously been an inactive corporation, began to conduct
insulation sales and installation business using nonunion
installation workers, while UCIC continued its insulation sales
and installation business using union installation workers. By
operating Alondra and UCIC in this fashion, Mr. Munro implemented
the business operating concept of "double-breasting", under
which, out of a total business operation, one entity is subject
to union contracts, while the other entity is not. During the
middle and late 1980's, Alondra, with its lower labor costs, grew
in size, while UCIC experienced a decline in business because of
its higher labor costs.7
6(...continued)
This corresponds to annualized growth of 11.43 percent if we take
the time until 1986-87 as being 9 years (and 12.94 percent if we
take it as being 8 years). Using the Producer Price Index
instead, we get similar figures: $327,604.34 in 1987 dollars;
total growth of 205.28 percent, representing 13.20 percent annual
growth over 9 years.
7The Carpenters' Union, at a date unspecified in the record,
filed a lawsuit challenging the structuring of Alondra as a
nonunion shop, on the grounds that UCIC and Alondra were one and
the same business entity for labor union contract purposes.
Eventually, around 1986 or 1987, a settlement was reached with
(continued...)
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