Contract disputes can be very costly and time-consuming. In Pennsylvania and West Virginia this week, more than 200 pipeline con­struc­tion work­ers walked off their jobs following a heated contract dispute.

Negotiations between the Pipe Line Con­trac­tors Asso­ci­a­tion and the Teamsters reportedly fell through over pro­pos­als to change retire­ment processes for the Teamsters. The Teamster contract expired Dec. 31, and the Pipe Line Contractors Association wants the Teamsters to accept 401k savings plans that would take place of pension benefits, according to news reports.

The Dallas, Texas-based Pipe Line Contractors Association is made up of more than 70 pipeline construction companies. In total, more than 700 Teamster pipeline workers planned to walk off of their jobs from various pipeline sites around the country this week.

In Pennsylvania and West Virginia, most of the affected workers have jobs related to the Mar­cel­lus Shale and Utica Shale nat­ural gas reserve drilling sites. The rise of drilling in the Pennsylvania area has led to many business and employment legal concerns, including that of the Teamsters and the Pipe Line Con­trac­tors Asso­ci­a­tion.

This highly-publicized and large scale contract dispute is an example of the importance of employment contracts. Such contracts should balance the interests of both the company and employee in order to provide a successful relationship between the two parties. It is important that you understand each clause and provision of a contract before you accept and sign it. Employment litigation attorneys can assist to draft contracts as well as provide legal advice during contract disputes.

Source: State Impact, "Benefit's Dispute Leads To Pipeline Construction Walk-Off," Scott Detrow, Jan. 4, 2012