In 1950 a small group of building contractors in Baltimore, Maryland, was conducting business with the belief that unionized and open shop companies could work together cooperatively. Their philosophy was threatened, however, by local building trades unions who were beginning to witness the decline of their perceived stronghold on the industry due to the success of these construction contractors. They held that these“open shop” contractors, who were progressively becoming more successful at securing work projects, were a threat to their organizational strength. The “solution” adopted by union leaders was to eliminate the competition by forcing the merit shop contractors to leave jobs or to sign collective bargaining agreements—many times resorting to violence in order to achieve their objective. To combat these tactics, this group of independent individuals formed Associated Builders and Contractors, Inc. as a means to protect the right of non-union individual to freely and fairly determine the fate of their own businesses. Today, ABC continues to be the leading advocate of this concept—known as the “merit” or “open shop.”

Fundamentally, the merit shop philosophy espouses free enterprise on the jobsite and is based on three key points:

• It is in the public’s best interest that all construction contracts be awarded to the lowest responsible bidder—regardless of labor affiliation—through open and fair competition. This practice assures the taxpayer and the consumer of the best possible job for the dollar.
• Management has the right to direct the activities of a company according to policies and goals established by corporate leadership.
• Each worker in a merit shop company should be paid and promoted based upon his skills, initiative, and desire for individual accomplishment.

Nationally, Associated Builders and Contractors represents more than 25,000 “merit” or “open shop” contractors, subcontractors, suppliers, and associated firms. Its member companies are bound by an ardent belief in the value of the merit shop—the most effective construction tool in America.