Infrastructure Investment Must Create Good Jobs for All

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Center for American Progress
April 22, 2019 at 9:03 AM

Advancing a large-scale plan to rebuild America’s crumbling roads and bridges is at the top of many federal lawmakers’ 2019 agenda…

Equally important, lawmakers must ensure that any major infrastructure investment also helps secure the nation’s long-term prosperity. This means that the jobs supported by the plan must pay fair wages, provide good benefits and a voice on the job, and offer American workers from all walks of life a pathway to the middle class.

Over the past century, pro-worker lawmakers have sought to uphold the basic guarantee that government spending will create good jobs. This has been accomplished through a variety of measures-such as prevailing-wage and benefits laws that ensure workers receive fair compensation, as well as protections to prevent discrimination, support equal pay, and ensure that workers are able to exercise their right to form unions. Yet it is far from guaranteed that the jobs created through the infrastructure plan will be good ones.

…

Without adequate job quality protections, jobs funded through any new infrastructure investments could be of low quality, pay substandard wages, provide too few opportunities for advancement-particularly for women, people of color, and other historically disadvantaged communities-and do little to correct the decades long problem of stagnating U.S. wages.

Weak job standards not only harm American workers but also put responsible businesses that pay fair wages and respect employees at a competitive disadvantage. Moreover, research finds that when corporations receiving government contracts pay poverty wages or violate workplace laws, they often deliver poor-quality products to taxpayers and require taxpayers to bear hidden costs through federal and state governments’ provision of services to supplement workers’ incomes, such as Medicaid, nutrition assistance, and refundable tax credits.

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BUILDING A FIGHT FOR BETTER WAGES IN SEATTLE (WA)

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Steve Leigh reports from Seattle on a solidarity rally organized by rank-and-file building trades workers who are fighting to win their fair share.

Steve Leigh
June 6, 2018

SEATTLE IS in a building boom, but most building trades workers can’t afford to live in the city.

That was the message that 150 members and allies of CORE 46, the Caucus of Rank-and-File Electrical Workers in International Brotherhood of Electrical Workers (IBEW) Local 46, delivered at a rally on May 31.

The level of construction activity in Seattle is three times what it was in 2011. Contractors and developers are making money hand over fist. CORE 46 has been fighting for decent union contracts and against an unresponsive union leadership since a poor contract was settlement three years ago. In one section of IBEW Local 46, union leaders imposed an inferior contract after members had voted it down several times. Another section of the local is organizing to make sure the same doesn’t happen to them.

In order to step up the fight, CORE 46 organized a “Cross Trades Rally” of all the construction trades in downtown Seattle. The theme was solidarity between all the trades, and with workers in general.

One sheet metal worker explained, “Even with the building boom, the contractors in Seattle are demanding a wage freeze in our next contract. Outside the city, they’re demanding a 30 percent wage cut.”

Others noted that even workers in trades that are being offered a raise won’t get enough to keep up with the rising cost of living.

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Senate unanimously OKs wage theft bill (MA)

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UPDATED: 06/22/2018 06:35:35 AM EDT

By Katie Lannan
State House News Service

BOSTON — The Massachusetts Senate voted unanimously Thursday to approve legislation offering new protections to combat what senators characterized as a $700 million problem.

The bill (S 2327) targets the practice of wage theft, through which workers are denied the compensation owed to them by employers.

Despite the Senate’s support for the bill, Minority Leader Bruce Tarr warned it contained a “poison pill” that would make it “legally indefensible” and could keep it from becoming law.

Types of wage theft include failure to pay overtime, minimum wage violations, illegal deductions and working off-the clock, said Sen. Jason Lewis, who co-chairs the Labor and Workforce Development Committee.

“The practice of wage theft comes in many different forms, but they all have the common denominator of hurting workers, their families, and our communities,” said Sen. Sal DiDomenico, the bill’s lead sponsor.

Lewis told of one man, the father of an infant, who worked more than 50 hours a week for a construction subcontractor and was not receiving a paycheck. When the man approached his employer about the lack of pay, he was fired.

According to DiDomenico’s office, 350,000 Massachusetts workers lose an estimated $700 million annually to wage theft.

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Blackstone’s Infrastructure Business Adopts Responsible Contractor Policy to Promote Fair Wages and Benefits for Workers on Infrastructure Projects

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Press Releases
SEP 05, 2017

New York, September 5, 2017 – Blackstone (NYSE:BX) today announced that its dedicated infrastructure business has adopted a Responsible Contractor Policy that includes an agreement to cooperate with the North America’s Building Trades Unions (“NABTU”) to include “responsible contractors” in the bidding and selection process for its investments. Through this policy, Blackstone will promote fair benefits, wages, working conditions, and training opportunities for construction workers on projects for Blackstone’s dedicated infrastructure business.

In May, Blackstone announced the launch of its dedicated infrastructure investment vehicle with an anchor $20 billion commitment by the Public Investment Fund of Saudi Arabia. Blackstone anticipates that, over time, the program will have $40 billion in total equity commitments in a permanent capital vehicle, including $20 billion to be raised from other investors. Overall, through the equity in this vehicle and additional debt financing, Blackstone expects to invest in more than $100 billion of infrastructure projects, principally in the United States.

Sean Klimczak, Senior Managing Director and Global Head of Blackstone’s Infrastructure business, said: “Rebuilding our country’s aging infrastructure will create badly needed jobs with good wages and benefits for construction workers throughout the United States. At Blackstone, we have a strong track record of responsible engagement with workers, their labor union representatives, and the communities in which we invest. We are proud to partner with the NABTU in this effort because we believe a fairly compensated and well-trained workforce is critical to producing high-quality infrastructure projects that help drive local economic growth.”

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Northampton adopts ‘Fair Employment City’ status with unanimous council vote (MA)

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By Mary Serreze
on February 03, 2017 at 1:30 AM

NORTHAMPTON — The nine-member City Council took a public stand against wage theft, worker misclassification, and poor working conditions as it unanimously approved a resolution declaring Northampton a “fair employment city.”

It was one of several labor-related actions taken before a roomful of advocates packed into Council Chambers at 212 Main Street on Thursday night. The crowd broke into applause at the conclusion of the roll-call vote.

“This has been a long, complicated, and nuanced process, unifying lots of varying agendas and priorities,” said City Council president Bill Dwight.

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The resolution declares in part that “decent working conditions and fair wages for workers is an essential part of investment in local economies and sustainable employment practices.”

It takes aim at the misclassification of employees as independent contractors, saying the practice denies workers critical benefits and protections to which they are entitled.

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