Tennessee workers at VW plant vote to unionize with UAW

Todd A. Price
Gary Estwick

April 19, 2024

Volkswagen workers in Chattanooga overwhelmingly voted to join the United Auto Workers late Friday, giving the union a decisive foothold in the historically anti-union South.

Nearly three quarters of the workers voted to support the UAW, according to the final results from the National Labor Relations Board. Of the 4,326 workers eligible to vote, more than 3,600 casts ballots over the three-day election.

As the votes were counted Friday night, first a trickle — and later, a wave — of bold, red T-shirts with white lettering peppered the union hall Friday evening at I.B.E.W. Local 175.

Joseph McMullen walked into the hall around 9 p.m. expecting many of his Volkswagen colleagues to have voted to establish a union. But he was not prepared for the overwhelming pro-union support displayed on a projection screen.

“I think that matters,” said McMullen, an Alabama native who works in the quality department. “It sends a message.”

When the news of the final victory was announced, members of the crowd jumped, cheered and hugged. Minutes later, UAW president Shawn Fain arrived to congratulate VW workers.

“Many of the talking heads and the pundits have said to me repeatedly, before we announced, that you can’t win in the South,” Fain told the cheering crowd. “But you all said, ‘Watch this.’ You all moved the mountain.”

The victory came despite strong opposition from a coalition of six Southern governors, including Tennessee Gov. Bill Lee. On Tuesday, Lee penned a letter which urged workers to reject unions.

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US Department of Labor Recovers $1.5m for Laborers, Mechanics Working On Multi-Billion-Dollar Federal Program at California Navy Base

Agency: Wage and Hour Division
Date: March 20, 2024
Release Number: 24-468-SAN

35 contractors violated federal labor laws, shortchanging 413 workers

SACRAMENTO – Widespread violations of federal labor and contracting regulations by nearly three dozen employers with federally funded contracts at Naval Air Weapons Station China Lake resulted in the U.S. Department of Labor recovering more than $1.5 million in back wages and damages for more than 400 workers at the Ridgecrest facility.

Part of an initiative by the department’s Wage and Hour Division, the investigations sought to ensure contractors working on the $3.9 billion earthquake recovery program at NAWS China Lake met federal regulations for the employment of workers on projects supported with federal funds. The initiative seeks to bring construction employers into compliance and hold them responsible for paying workers prevailing wages and health and welfare benefits as required.

In investigations of 35 contractors spanning a two-year period, division investigators recovered more than $1.5 million in back wages and $32,291 in liquidated damages for a total of 413 workers for violations of the Davis-Bacon and Related Acts, the Contract Work Hours and Safety Standards Act, the Service Contract Act and the Fair Labor Standards Act. The division also assessed employers with $14,020 in civil money penalties as a result.

“Federal projects like these often strengthen the region’s economy, but when employers fail to pay workers all the required wages and fringe benefits they’ve earned, the full benefits are not felt,” explained Wage and Hour Division Regional Administrator Ruben Rosalez in San Francisco. “Employers unclear of their legal obligations and workers unsure of their rights can contact us to learn what it takes to comply with federal laws.”

Among the largest violators were subcontractors working on projects awarded to Environmental Chemical Corp., a Burlingame design and construction company doing business as ECC. The company was awarded two contracts as part of the Earthquake Recovery Program, including the largest construction project, the South Airfield Complex at NAWS China Lake. The subcontractors found in violation include:

  • Adecco USA Inc., a Jacksonville, Florida, recruitment and staffing service, failed to pay required prevailing wage rates, health and welfare benefits, and overtime while providing temporary staffing for food service, clerical, maintenance and housekeeping work. The division recovered $626,341 in back wages for 115 workers – some of whom were owed nearly $40,000 – for the violations.
  • Blue Knight Security & Patrol Inc., a Rancho Cordova security guard and patrol service providing security at a temporary housing site for construction workers, failed to pay overtime wages, prevailing wage rates and health and welfare benefits as required by law. The division recovered $313,045 in back wages for 54 workers.
  • Hensel Phelps, a Greeley, Colorado, commercial and institutional building contractor providing construction services, failed to pay prevailing wage rates, health and welfare benefits, and overtime compensation. The division recovered $184,172 in back wages for 37 workers.
  • ATCO Structures and Logistics, a Spring, Texas, prefabricated wood building manufacturer building living units for construction employees, failed to pay prevailing wage rates and overtime wages. The division determined ATCO owed $104,935 in back wages to seven workers.

In addition to these contractors, 31 additional contractors violated federal labor laws. View a list of all employers cited in these investigations.

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Executive Order on Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums

White House
March 6, 2024

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1.  Policy.  My Administration’s Investing in America agenda includes a once-in-a-generation investment in our Nation’s infrastructure.  This agenda is also driving the creation of well-paying jobs and growing the economy sustainably and equitably, and it will continue to do so for decades to come.  To fully realize the benefits of these investments, students and workers at all stages of life need equitable access to education and training for the good jobs in their communities.

Critical to achieving these goals is promoting Registered Apprenticeships, as described in title 29, parts 29 and 30, of the Code of Federal Regulations, which provide substantial benefits to both workers and employers.  As the Nation’s largest employer and procurer of goods and services, the Federal Government can be a model for the use and promotion of skills-based hiring, such as the use of Registered Apprenticeships, which reduces barriers to employment and attracts a diverse workforce to meet our Nation’s critical needs.  My Administration has made strengthening and empowering the Federal workforce a management priority.  As a part of its overall strategy to hire, retain, and develop the people needed to accomplish executive department and agency (agency) missions and to create equitable, transparent, and transferable career-development pathways, the Federal Government can scale and expand Registered Apprenticeship programs to modernize and broaden avenues to Federal jobs, thereby improving access to opportunities for underserved workers.

Additionally, Labor-Management Forums provide an opportunity for managers, employees, and employees’ union representatives to discuss how Federal Government operations can promote satisfactory labor relations and improve the productivity and effectiveness of the Federal Government.  Labor-Management Forums, as complements to the existing collective bargaining process, allow managers and employees to collaborate in order to continue to deliver the highest quality goods and services to the American people.

It is the policy of my Administration to promote Registered Apprenticeships to meet employer needs while investing in workers’ skills; reducing employment barriers; and promoting job quality, equity, inclusion, and accessibility for the benefit of the Federal Government and the Nation.  Further, it is the policy of my Administration to establish cooperative and productive labor-management relations throughout the executive branch.

(See Full Executive Order)

NAFC’s Board of Directors’ Elects New NAFC President and Chairman

NAFC is pleased to announce that its Board of Directors has elected Board
Member Ernesto (“Ernie”) J. Ordonez as its new Chairman and President. Ernie
succeeds Rocco Davis, retired Vice President of LIUNA. Ernie is a LIUNA Vice
President and Regional Manager of its Pacific Southwest Region covering the
states of California, Hawaii, Arizona. Ernie is a 2006 graduate of the Harvard Trade
Union Program. He is a second generation Laborer, becoming a member of
LIUNA Local 89 in San Diego, CA upon his graduation from high school .
During his career, Ernie has worked as a Laborer, Laborer Foreman, Recording
Secretary and Field Representative for Local 89, International Representative and
Assistant Regional Manager for the LIUNA Pacific Southwest Region before
assuming his position as Regional Manager.

NAFC welcomes Ernie to his new position and extends heartfelt thanks to retiring
Chairman and President Rocco Davis for his years of dedication and service to
NAFC, its members and to the entire labor movement.

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How solar contractors can meet IRA apprenticeship requirements

Kelsey Misbrener
October 30, 2023

The solar workforce is changing because of IRA apprenticeship and prevailing wage requirements that went into effect in January. Contractors that haven’t yet made a long-term recruitment plan have a few options available to help them do so.

To collect the full 30% ITC for projects 1 MWAC and larger, contractors with four or more workers on a jobsite must employ apprentices for a certain percentage of labor-hours and pay prevailing wages to all workers. For projects starting in 2023, registered apprentices must make up 12.5% of the on-site labor during the construction phase. That number increases to 15% for projects that start construction in 2024 and after.

Since this is a new initiative for the clean energy industry, the Dept. of Labor (DOL) is working with a few partners to coach and acclimate contractors to the country’s well-established apprenticeship system.

The Interstate Renewable Energy Council (IREC) was contracted by the DOL to lead the Apprenticeships in Clean Energy (ACE) Network, a national coalition of industry, education and workforce development leaders working to create, expand and diversify Registered Apprenticeship opportunities in the clean energy industry.

“The intermediaries can help understand what that process of registering a program is, what the requirements are, navigate that process, and also navigate where additional funding may be available to support programs,” said Richard Lawrence, program director at IREC.

IREC is specifically tasked with recruiting more veterans into the clean energy industry. Veterans in Registered Apprenticeship programs can access a monthly housing allowance benefit through the GI Bill, making apprenticeships appealing for this population. IREC is also working to bring other diverse workers into the industry who may not have access to green employment without an apprenticeship program.

“Being an ‘earn-while-you-learn’ model, as they say, is a great way to attract diverse candidates. You remove a lot of the barriers that are associated with similar pathways, like getting a college degree, where you’re having to often pay for those courses up-front,” Lawrence said.

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Illinois joins lengthening list of states outlawing wage theft

October 30, 2023

By an overwhelming legislative majority Illinois has joined the lengthening list of states to outlaw wage theft.

The measure, signed by Democratic Gov. J.B. Pritzker in September, shows again the importance of state-level lawmakers and governors to workers.

That can be both positive and negative. The nation is increasingly politically polarized. In “Blue States,” such as Illinois, New York, California, and, this year, Michigan and Minnesota, elected officials respond to workers’ support with worker protection legislation unlikely to make it through Capitol Hill.

But in often gerrymandered and/or racially polarized “Red States” – such as Texas and Florida and other Southern and lightly populated Great Plains states – right-wing radicals, funded by corporate special interests, enact and enforce worker suppression and voter suppression legislation, often at the same time.

Illinois’ wage theft bill, HB1122, was one of the top priorities of the state AFL-CIO. The Illinois House passed it 68 to 38 and the state Senate agreed 35 to 20. It takes effect next July 1.

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New regs impact government construction contracting

New England Biz Law Update staff
October 31, 2023

The the U.S. Department of Labor has issued a final rule updating regulations that implement the Davis-Bacon and Related Acts (DBRA).

The DBRA requires contractors and subcontractors on federally funded construction projects to pay their workers at least the prevailing wage rates for the locality in which the work is being performed. The final rule is the first comprehensive update to the Davis-Bacon regulations in over 40 years.

The rule includes a number of changes, including:

Restoring the 30% rule. The final rule restores the DOL’s definition of prevailing wage that was used until the Reagan Administration. Under this three-step process, the prevailing wage is that which is paid to a majority of workers in the classification. If no majority exists, then the prevailing wage is the rate paid to at least 30% of workers. If no rate is paid to at least 30%, then a weighted average will be used. (Previously, the average was used if a prevailing wage was not paid to 50% of workers.)

Adopting wage escalators. The final rule allows the DOL to more frequently update prevailing wage rates. Rather than hinging on DOL wage surveys, periodic updates will now be based on total compensation data from the Bureau of Labor Statistics Employment Cost Index, which tracks both wages and benefits. Rate updates will occur every three years, at most.

Strengthening worker protection and enforcement rights. The final rule includes new anti-retaliation provisions to protect workers. The rule also strengthens the DOL’s ability to withhold money from federal contractors in order to pay employees their lost wages.

Providing greater clarity. The rule updates a number of definitions that affect applicability. For example, “building or work” now includes solar panels, wind turbines, broadband installation, and the installation of electric car chargers. Other changes affect who is considered a “material supplier” or a “prime contractor.”

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Framingham construction company fined nearly $1 million for wage theft

Eric Casey
November 2, 2023

PI Construction Management, a Framingham-based company, has been fined $926,898 by the Massachusetts Office of the Attorney General for violations of the Massachusetts False Claims Acts.

The violation stems from the failure of a BPI subcontractor, Superior Carpentry of Framingham, to pay prevailing wages to employees working on two public construction projects in Westport and Middleborough. This led to a complaint against the company being filed in December 2021, according to a press release released by AG’s office on Wednesday.

The fine was the result of litigation between BPI and the attorney general’s office, in which BPI argued that they were relying on the accuracy of the forms submitted by Superior. BPI denied any knowledge of the fraud being committed by Superior, according to the release, but admitted that it did not take steps to ensure that the payroll information was accurate.

This is the first case under the False Claims Act that affirms that contractors are liable for facilitating misconduct by subcontractors, according to the press release.

The AG’s office estimated that workers on the project were underpaid by a combined total of $256,539.

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Nearly $16M in wages, benefits recovered for more than 2,800 workers denied full pay by 62 subcontractors on federal project at New Jersey military base

Agency: Wage and Hour Division
Date: January 29, 2024
Release Number: 23-2598-NAT

A widespread investigation by the U.S. Department of Labor has recovered nearly $16 million in back wages and restored over 24,700 paid sick leave hours to leave banks for more than 2,800 workers denied their full wages and benefits by 62 subcontractors hired to construct temporary housing and provide services to Afghan refugees at Joint Base McGuire-Dix-Lakehurst in New Jersey.

After 75 investigations that included Jupiter, Florida-based Disaster Management Group LLC, one of the project’s general contractors, and 61 subcontractors, the department’s Wage and Hour Division found DMG and its subcontractors violated federal law, including the McNamara-O’Hara Service Contract Act, the Davis-Bacon Act, the Contract Work Hours and Safety Standards Act, the Fair Labor Standards Act and Executive Order 13706, by failing to:

Pay minimum prevailing wage rates to workers.
Pay fringe benefits.
Pay proper overtime.
Offer required paid sick leave under Executive Order 13706.
Properly classify workers as employees in their appropriate trades according to the work they performed.
Maintain required records, including segregating any benefits that may have been paid from wages.
Provide required notices to workers informing them of their rights under federal law.

The division found DMG liable for its own violations of federal law as well as for violations committed by its subcontractors for work performed at Joint Base McGuire-Dix-Lakehurst. Managed by the Department of Defense, the project involved contractors from 17 states and Puerto Rico tasked with building temporary housing and coordinating delivery of medical, food and translation services as part of Operation Allies Refuge and Operation Allies Welcome to resettle Afghan refugees. The project began in July 2021 and was completed in February 2022.

In addition to paying the back wages and fringe benefits, DMG signed an enhanced compliance agreement with the department that requires it to develop and follow strategies to prevent, detect and resolve potential non-compliance by, among other things:

Creating a written prevailing wage compliance manual to include employees’ federal protections.
Vetting potential subcontractors’ ability to perform work in compliance with prevailing wage laws.
Monitoring itself and its subcontractors proactively by periodically conducting confidential employee interviews, reviewing basic and certified records, analyzing the use of classifications related to the work performed, verifying fringe benefit payments and maintaining a list of all employees of all subcontractors on any covered contracts.
Requiring subcontractors to certify compliance on all prevailing wage projects.
Verifying that the agency has incorporated the correct labor clauses and wage determinations.

“Every worker deserves to be paid the full wages to which they are entitled, and this compliance agreement, which recovers millions in wages for hundreds of workers, should serve as notice to other government contractors that the department will utilize its full power to enforce vigorously federal wage laws,” said Solicitor of Labor Seema Nanda.

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US Department of Labor, Nevada office of the Labor Commissioner Partner to protect and promote workers’ rights, educate employers 

Agency Wage and Hour Division
Date February 6, 2024
Release Number 24-185-SAN

The U.S. Department of Labor announced today that its Wage and Hour Division district office in Las Vegas and the Nevada Office of the Labor Commissioner signed a collaborative partnership to enhance and promote joint outreach, investigations and information sharing.

Through the partnership, the division’s Las Vegas district office will cooperate with the Office of the Labor Commissioner on cases with jurisdictional overlap, specifically those involving wage theft. A Memorandum of Understanding will help both agencies effectively continue to work together on areas of mutual interest, including educating employees and employers about their rights and responsibilities under the law.

“Our partnership with the Office of the Labor Commissioner will help promote and achieve compliance with labor standards to protect and enhance the welfare of workers in Nevada,” said Wage and Hour Division District Director Gene Ramos in Las Vegas. “This agreement will also encourage enhanced law enforcement and greater coordination between agencies.”

The five-year agreement will also facilitate joint outreach presentations, cross-training for investigators and staff, and the referral of potential violations of each entity’s statutes.

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