IUOE Local 150, Phoenix Construction Reach Labor Deal on Google's $832M Michigan City Data Center
The International Union of Operating Engineers (IUOE) Local 150 and Phoenix Construction, LLC have reached an agreement to bring union-affiliated workers onto Google’s Project Maize data center in Michigan City, Indiana, according to a joint September 18 press release from the union. The agreement covers Phase II of the roughly $832 million project and follows months of public dispute between the union and the developer.
Under the agreement, workers through IUOE Local 150-affiliated contractors will staff the site as Phase II construction begins. “IUOE Local 150 is proud to partner on Project Maize and demonstrate the superior skill, training, and professionalism of our operating engineers,” said James M. Sweeney, President-Business Manager of IUOE Local 150. John Peret, Director of Construction, Data Center Division at Phoenix Construction, said the company is “pleased to have a committed and ready source for qualified workers through Local 150.”
The deal resolves a dispute that had escalated significantly. In June, Local 150 filed an emergency intervention with the Indiana Utility Regulatory Commission over NIPSCO’s power-service request for the site, citing worker-safety allegations, reliance on out-of-state and foreign labor, and a documented workplace fall injury. The union was on an unfair labor practice strike against Phoenix Construction at the time and had also sued Michigan City in federal court over site fencing that blocked public right-of-way access. Wednesday’s agreement does not resolve the union’s separate federal litigation against the city.
What It Means for Subcontractors
- Data center developers facing union pushback over local-hire commitments have a concrete precedent here: a formal labor agreement resolved a multi-month dispute without halting Phase II construction, a path other Indiana and Midwest data center projects may look to replicate.
- Subcontractors bidding on Project Maize’s remaining phases should expect IUOE Local 150-affiliated crews on-site going forward; non-union subcontractors and staffing arrangements that triggered the original dispute (out-of-state and foreign labor use) carry renewed regulatory and reputational scrutiny.
- The unresolved federal litigation over site access and the earlier OSHA citation for inadequate working-surface evaluation are signals that safety and labor-practice compliance on this project remain under active watch, a relevant data point for any subcontractor evaluating the site’s risk profile.
