LCA contractors fined $2.9M over Detroit hires (MI)

Posted by National Alliance for Fair Contracting on

Louis Aguilar, The Detroit News
Published 11:38 p.m. ET Aug. 23, 2017
Updated 8:29 a.m. ET Aug. 24, 2017

Dozens of the contractors building Little Caesars Arena have been fined a total of $2.9 million as of March for frequently not hiring at least 51 percent of Detroiters at the ongoing construction site, according to the latest data collected by the city.

And that total is expected to be even higher during the push to complete construction of the $862.9 million sports and entertainment complex by early September, based on the monthly data compiled by the city agency monitoring the workforce agreements on construction sites, said Portia Roberson, director of the city’s Office of Human Rights.

An average of 27 percent of total hours worked at the arena site were performed by Detroit residents from April 2015 to March 2017, the latest monthly data available. It’s been two years, August 2015, since at least 51 percent of hours worked at the site was done by Detroit residents, data shows. The percentage of hours worked is the measure the city uses to determine how many residents the individual contractors have working at the site.

In March alone, the city cited 53 of the contractors with fines ranging from $137,613 to a unit of Motor City Electric to 26 cents to John Papalas & Co. Motor City Electric is a large electrical contractor and the Papalas firm specializes in industrial painting and sheeting services. The other 32 contracting units on site were not fined, according to city records. Several large contractors, it should be noted, have multiple units working at the site.

Currently, crews are working three shifts each week day and Saturdays, with more than 1,100 workers on the site on weekdays, said a spokesman for Olympia Development of Michigan, the firm overseeing the construction.

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G.O.P. Expands Labor Battle to Laws Setting State Construction Wages

Posted by National Alliance for Fair Contracting on

By MONICA DAVEY | 

A bill that would end prescribed wages on public construction projects in Indiana awaits the signature of Gov. Mike Pence. And Henry Burks, a union electrician who lives near Indianapolis, is bracing.

Mr. Burks, 57, is putting off plans to build a patio at his house. He is delaying painting and landscaping, too. And he said he is worried about how to continue helping his grown children with college costs if his income drops, as he firmly expects.

“This is going to inhibit me from taking care of my family,” Mr. Burks, who makes about $60,000 a year, said the other day as he took a break from installing conduit inside a corn processing plant in Lafayette. “Our wages will go down. The contractors we work for won’t get as many jobs. Maybe I’ll have to find work outside of Indiana.”