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Your Turn: Project labor agreement needed in Worcester Red Sox deal (MA)

Posted by National Alliance for Fair Contracting on

By Frank Callahan
March 14, 2019

The city of Worcester, the Worcester Red Sox and Madison Downtown Holdings, a private developer, are building a $240-million downtown project that includes a new, $90-million, 10,000-seat stadium for the Boston Red Sox Triple-A Minor League affiliate team. Most see this as good news for the community. And it can be if the stakeholders embrace the use of a project labor agreement to ensure safety, equity and fairness for the workers who build the stadium.

Unfortunately, some contractor lobbying groups who advocate to pay workers lower wages are engaged in a cynical campaign aimed at ensuring the prosperity generated by this large proposal isn’t shared with the actual workers doing the work. They also don’t care if the project is done in the safest way possible, or with the best-trained workers possible.

Every fan sitting in that stadium over the decades that will follow its opening deserves to know that Worcester built its stadium in the safest way possible with the best-trained workforce. That’s just one reason why the union building trades are speaking up for a project labor agreement to ensure the safety of workers and the public in Worcester.

Project labor agreements, also called community workforce agreements or project stabilization agreements, emerged in the early 20th century as basic pre-hire agreements between the owner or contractor and the local building trades unions.

By the 1980s, these agreements were common in both the public and private sectors. Modern PLAs are negotiated on a case-by-case basis, and include sophisticated provisions that keep jobs running smoothly, promote efficiencies, and nurture the development of a skilled workforce. Most importantly, they prevent worker exploitation, wage theft and other illegal or unsafe acts that can harm local workers on a non-PLA job site.

For years, wealthy special interests have tried to undermine workers’ rights and advance narratives around the concepts of unions being outdated and unneeded. Despite the anti-worker spin promoted by organizations like the Merit Construction Alliance, public support for unions is growing. Meanwhile, union membership and the need for PLAs are also both on the rise in Massachusetts.

The building trade unions have been creating economic prosperity and a pathway to the middle class for workers throughout Central Massachusetts for generations. Right now, many Worcester area families could benefit from a good, union job in the construction industry.

Sadly, efforts are afoot in Worcester to lower safety, wage and training standards for working people on the new stadium project, putting Worcester workers at risk of losing life or limb, and in the position of earning less for the same work that is done elsewhere in the state. That simply would not be fair.

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Worker claims employer had him arrested based on his reporting of safety concerns (MA)

Posted by National Alliance for Fair Contracting on

AUTHOR – Kim Slowey
PUBLISHED – March 11, 2019


Dive Brief:

  • The U.S. Department of Labor (DOL) filed suit against a Boston-based contractor, alleging that the company took retaliatory measures against one of its employees – facilitating his U.S. Immigration and Customs Enforcement (ICE) arrest – after he reported a workplace injury, an event that kicked off an OSHA investigation. 
  • According to the lawsuit, José Martin Paz Flores (Paz) was working as a drywall taper for Tara Construction when he fell from a ladder and broke his leg. Based on Paz’s report to a foreman and a referral from the local fire department that day, OSHA began an investigation into safety conditions at the jobsite.
  • The DOL alleges that Tara CEO Pedro Pirez subsequently contacted law enforcement with concerns about Paz’s identity and facilitated Paz’s arrest outside of Tara’s offices, which resulted in his detention by ICE for days. 

Dive Insight:

The DOL is seeking back pay and damages from Tara on behalf of Paz, as well as other relief such as a neutral letter of recommendation for Paz, who has since been cleared to work, to present to prospective future employers. Reporting an injury and causing an OSHA investigation to be initiated are protected acts under federal whistleblower laws, which blanket all workers, regardless of immigration status. 

These protections, such as regulations prohibiting employer retaliation, are important because fear of adverse action can prevent employees from reporting illegal and/or unsafe activities. In Paz’s case, the retaliation came in the form of an arrest, but employers could also lash out at workers who report malfeasance of some sort through employment termination, demotion, denial of overtime or promotions, intimidation, harassment and reduction of pay or hours.

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Getting the Word out about Wage Theft (MA)

Posted by National Alliance for Fair Contracting on

by Sue Woodcock * March 22, 2019

Quite simply, wage theft happens when someone does work and is not paid for it.

“Immigrants are easy targets, most don’t realize it’s a crime,” said Kathleen Santora, a member of the recently appointed to the Lynn Wage Theft Taskforce and a union painter representing the Painters Union District Council 35 Local 939. “But wage theft can happen to anyone in any industry.”

“We have a very strong ordinance in Lynn, it has some teeth in it and can actually do something,” Santora said. Having a taskforce in place also makes a difference.

The Wage Theft Taskforce, comprised of one (1) designee submitted by the Lynn City Council, one (1) designee submitted by the Mayor, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Labor Council, one (1) representative chosen by the Lynn City Council from a list provided by the Lynn Area Chamber of Commerce, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Latino Business Association, one (1) representative chosen by the Lynn City Council from a list provided by the North Shore Building Trades Council, one (1) representative chosen by the Lynn City Council from a list provided by the Lynn Worker Center, and one (1) representative from the Lynn community chosen by the Lynn City Council from a list provided by New Lynn Coalition. Members of the Wage Theft Advisory Committee may be reappointed annually and must be appointed no later than the second meeting of the new year.

The wage ordinance was passed by the Lynn City Council in March 2018 after it was offered as a motion by then City Councilor and now State Representative Peter Capano.

“A business owner has the opportunity to do the right thing and pay up. Then they can continue doing business as usual with a bond to cover paying the employee for a year or it can end up in the attorney general’s office,” said Santora, who is a leading advocate for the building trades. She was nominated to the committee by the North Shore Labor Council.

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IUPAT DC 35’s Longtime Member Kathleen Santora Gets Appointed to City of Lynn’s Wage Theft Advisory Commission (MA)

Posted by National Alliance for Fair Contracting on

by Journal Staff * March 15, 2019

Longtime IUPAT District Council 35-member Kathleen Santora, a leading advocate of women’s recruitment into the building trades, joins city’s advisory board to fight wage theft and worker’s rights violations in City of Lynn

Painters Union District Council 35 is proud to announce that member Kathleen Santora, an advocate of workers’ rights in the building trades and a Lynn resident, has accepted a position on the City of Lynn’s newly created Wage Theft Advisory Committee.

The Wage Theft Advisory Committee, created as part of a city ordinance, will begin meeting bi-monthly to ensure that known violators of Massachusetts wage laws do not receive contracts with the City.

“Now that the committee has been appointed, I am eager to get to work. Wage theft violations occur all over the country, and I’d like Lynn to set an example that this will not be tolerated in this city,” said Ms. Santora.

Ms. Santora was nominated to the position by North Shore Labor Council President Jeff Crosby in part for her tireless efforts on behalf of workers’ rights, particularly those of women.

Through IUPAT DC 35, Ms. Santora has been a leading advocate of women in the workforce. In addition to her participation in DC 35’s Women in Action program which seeks to reach out to all women in the trades, Ms. Santora participates in leading unions in the Tradeswomen Tuesday initiative and Girls in Trades events.

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Workers demand state protection from wage theft (NV)

Posted by National Alliance for Fair Contracting on

By Jeniffer Solis
March 14, 2019

The Arriba Las Vegas Worker Center got its start a little more than a year ago by surveying 300 day laborers. One-third had been a victim of wage theft in the two months prior to the survey.

“It’s almost a ubiquitous phenomenon for low-wage workers, particularly in industries like construction, landscaping, and homecare professionals, daycare, and eldercare,” said Bliss Requa-Trautz, director of the Arriba Las Vegas Worker Center.

While wage theft exists throughout the workforce, it is widespread among the most vulnerable Nevada workers, said Requa-Trautz.

On Tuesday, working Nevadans met with state Labor Commissioner Shannon Chambers at Arriba Las Vegas Worker Center. Victims detailed wage theft experiences in an effort to push for more responsive solutions from the office of the Labor Commissioner.

One man spoke of his experience working for an employer who gradually stopped paying him before threatening to report him to the U.S Immigration and Customs Enforcement.

“I want you to help me get the pay I deserve for the work I did,” said the man in his native Spanish.

Yesenia Mejia, another victim of wage theft, told the commissioner about a case she filed in 2018 for a construction company she said refused to pay for the work of several employees. The Labor Commission refused to take texts, photos, and voicemails as evidence of the theft, said Mejia, and instead told workers to take their complaint to small claims court which would cost money they did not have. In the end the construction company was never penalized despite the various complaints, said Mejia.

“Please help us enforce penalties and get justice. Let them get what they deserve. If they don’t pay us, give them penalties or take their license,” Mejia pleaded.

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Bill package aims to curb wage theft (PA)

Posted by National Alliance for Fair Contracting on

BY MELINA DRUGA | APRIL 4, 2019

Sen. Vincent Hughes (D-Philadelphia/Montgomery) recently proposed two bills aimed at protecting workers from wage theft.

Wage theft is when employers misclassify employees. Misclassification can cause any of the following scenarios: employees are not paid for all hours worked, employees are paid below the minimum or promised wage, employees are denied pay and access to benefits, employees are not paid at all, or employers make illegal deductions or steal tips from tipped employees.

The first bill would require employers to post information about the state’s Wage Payment and Collection Law. This information would include the definition of wage theft and worker remedies for violations. Failure to do so would result in a fine of up to $500.

The second bill would suspend or disbar violators of the law from participating in commonwealth procurement contracts.

“We have to strengthen our laws to protect working people and their right to get paid for the work they do,” Hughes said. “Employees need to know the law ensures they are paid for all hours worked, including overtime. Beyond that, we have to send a clear message to unscrupulous businesses that we will not tolerate wage theft.”

In 2013, wage theft cost Pennsylvania workers $258 million, according to Community Legal Services Philadelphia.

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United States: Minnesota Legislative Update: Bills To Watch (MN)

Posted by National Alliance for Fair Contracting on

Last Updated: March 14 2019
Article by Bruce J. Douglas, Kathleen Hoffmann and Brian A. Moen

The Minnesota Legislature is in session through May 20, 2019. This session promises to be very active with numerous bills affecting employers and the workplace. Major bills include paid leaves of absence (including family and sick leave), restrictions on an employer’s ability to access social media accounts, right-to-work legislation, vaccination exemptions, wage theft, and the legal standard for sexual harassment, and making available to a complaining party more information regarding the employer’s investigation and corrective action.

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Wage Theft: H.F. No. 6 and S.F. No. 1933

A Minnesota bill, H.F. No. 6, seeks to provide that “[n]o employer shall commit wage theft.” Generally, “wage theft” refers to instances where an employer intentionally does not pay an employee all wages to which he or she is entitled. Common examples of wage theft include denying meal or rest breaks, paying a wage below the minimum wage, withholding tips, and not paying overtime. Minnesota state law currently addresses many of these specific scenarios (see Minn. Stat. § 181.03), but the proposed bill seeks to broadly define “wage theft” to include all situations where “an employer has failed to pay an employee all wages to which that employee is entitled.”

The bill also seeks to introduce stricter recordkeeping requirements for employers, increase the Minnesota Department of Labor and Industry’s enforcement tools (e.g., granting it the ability to issue subpoenas), and impose stricter penalties on employers for certain violations. Specifically, the bill proposes increasing monetary penalties for certain recordkeeping violations from $1,000 to $10,000, and imposing harsher criminal penalties upon employers for violations. For example, under the bill, an employer would be guilty of a gross misdemeanor if it engaged in wage theft and the total of unpaid wages to all affected employees was $10,000 or more.

H.F. No. 6, as written, has 33 Democrat and 2 Republican sponsors, but it is opposed by the Minnesota Chamber of Commerce. Proponents argue the bill is necessary to protect not only Minnesota employees, but also businesses and the community, which are harmed by those engaging in wage theft. For example, supporters argue that businesses engaging in wage theft cause the state to lose revenue from unpaid taxes on employee income. Conversely, critics argue that the bill’s definition of “wage theft” would presumably include situations where an underpayment was unintentional, which would therefore criminalize honest mistakes (for example, an employer could be found guilty for an inadvertent payroll error that caused a shortage in an employee’s paycheck). The bill was referred to the House’s Judiciary Finance and Civil Law Division on February 14, 2019.

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Maryland just became the sixth state to raise the minimum wage to $15 an hour (MD)

Posted by National Alliance for Fair Contracting on

Democrats in Maryland just overrode the governor’s veto of the $15 minimum wage bill.

By Alexia Fernández Campbell
Mar 28, 2019, 2:20pm EDT

Maryland just became the sixth state to raise the minimum wage to $15 an hour.

On Thursday, lawmakers managed to override Republican Gov. Larry Hogan’s veto of a minimum wage bill. Maryland’s current minimum wage is $10.10, and the new policy willgradually raise the wage floor to $15 by 2025.

Hogan had blocked the bill earlier this week, claiming that such a change would “devastate” the economy. But it was clear early on that he would be unable to stop the national momentum building around a $15 minimum wage.

Democrats control both chambers in Maryland’s General Assembly, and passed the wage hike bill with a veto-proof majority. On Thursday, they overwhelming voted to override Hogan’s veto by 96-43 in the House and 35-12 in the Senate.

Maryland is now the third state to phase in a $15 minimum wage so far this year, and the sixth overall. In February, New Jersey and Illinois did so, too.

While Hogan’s veto was not surprising (he has always opposed a $15 minimum), it’s a striking position in a state where the $15 minimum wage is so popular with voters in Maryland and across the country.

The law will benefit about 573,000 workers in Maryland who currently earn less than $15 -about 22 percent of the state’s workforce, according to the National Employment Law Project.

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NH Voices: Jeff Sullivan — Prevailing wage: Working families prevail (NH)

Posted by National Alliance for Fair Contracting on

By JEFF SULLIVAN
Apr 7, 2019

MR. REAP’S RECENT commentary on SB 271 (An Act to Require Prevailing Wages on State-Funded Public Works Projects) misses the mark and distorts the reality. Trying to turn the debate to a union issue is an effort to contort the facts, and the benefits, of the proposed legislation.

Despite wide-spread public misconception, a misconception also apparently shared by the CEO of the Associated Builders of New Hampshire (he should know better), prevailing wage is not “union” wage. Prevailing wage, both federally and in the states with similar laws, is based upon extensive surveys conducted in which contractors disclose wages and benefits paid to its workforce. There is no distinction between union and non-union workers. These surveys will then set direction for wage rates to be paid to construction workers on government-funded projects.

The “facts” tossed around by Mr. Reap have no support when put to the test. Simply put, a prevailing wage law will require contractors to compete for public projects in New Hampshire based on a set of criteria that ensures its workforce is the best-trained, best-equipped and best managed. Projects will be awarded to high-performing contractors; not to those that can assemble the cheapest, least-trained workforce. It is no coincidence that jurisdictions with prevailing wage law protections have the lowest incidence of workplace injury and death. Supporters of SB 271 understand all the ancillary benefits of a well-codified prevailing wage law.

Mr. Reap’s loudest claim is that prevailing wage will drive up the costs of construction and that the sky will fall with “higher property taxes…service cuts [and] busted budgets.” These are the bellwether sounds of those who try to influence public policy by threatening taxpayers with threats of increased government intrusion into our pockets. Again, the facts of prevailing wage laws in other jurisdictions belie these assertions.

In a recent, first-of-its-kind nationwide study on the impact of state prevailing wage laws, the reality of legislation such as SB 271 was proven to provide positive results across economic, social and fiscal areas. In its nationwide survey, “The Economic, Fiscal and Social Impacts of State Prevailing Wage Laws: Choosing Between the High Road and the Low Road in the Construction Industry” (Manzo, et al, 2016), it was shown that states with prevailing wage laws have higher workmanship, productivity and job-safety than states with no prevailing wage protections. Additionally, states without prevailing wage laws have a higher percentages of public health insurance and other forms of public assistance. New Hampshire’s rolls of those on public assistance is a prime exhibit in support of the argument that good paying jobs are the best social program any state can provide its citizens.

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Toms River contractor faces prison for failing to pay workers prevailing wage (NJ)

Posted by National Alliance for Fair Contracting on

Michael L. Diamond, Asbury Park Press
Published 3:12 p.m. ET March 27, 2019

A Toms River construction contractor pleaded guilty Wednesday for not paying his employees prevailing wages for their work on a student housing project in Camden, the New Jersey Attorney General said.

The state recommended Albert Chwedczuk be sentenced to three years in prison. He also must pay up to $200,407 in restitution to his workers.

“This employer cheated his workers and hoarded public funds for his own enrichment,” Attorney General Gurbir S. Grewal said in a statement. “This case is a message to all employers that we will not tolerate contractors underpaying their workers and lying about it.”

Contractors working on government projects are required to pay employees prevailing wage, which includes both wages and fringe benefits based on collective bargaining agreements for a particular trade in the county where the work takes place.

Chwedczuk, 45, had been barred since 2014 from working on public contracts because of previous violations of the Prevailing Wage Act when he operated Ren Construction LLC and Real Construction LLC, authorities said.

They said he created a new business called Bella Group LLC to obtain a subcontract worth $400,000 to perform masonry work for the Cooper Camden Student Housing Project on South Broadway.

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