Related engages in business practices that endanger the timely and responsible completion of work on their projects and expose their partners and financiers to entanglements in litigation and negative media. Recent hallmarks of some of Related’s development projects, particularly at Hudson Yards, include allegations against construction firms of sexual harassment and racial discrimination, unfair labor practices, and fraudulent use of alter ego firms to evade paying union benefits. One of Related’s own business entities is involved in a federal investigation separate and apart from any of the preceding.
Related has built a reputation for producing a high-quality construction product while using union contractors whose workforce is highly skilled and trained. The quality and safety standards that union-members have brought to past Related projects enables the firm to sell future investors, including government agencies, a false bill of goods. Using a reputation built on union quality, Related intends to use an inferior open-shop model. As described in detail in this report, open shop contractors used on Related projects, including projects in Hudson Yards, introduce exploitation and danger to Related projects.