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PRIME CONTRACTOR ON NEW YORK FEDERAL RESERVE BANK PROJECT PAYS $420,335 IN BACK WAGES AFTER U.S. DEPARTMENT OF LABOR INVESTIGATION (NY)

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: March 29, 2019
Release Number: 19-0440-NEW

NEW YORK, NY – Tishman Interiors Corp. – the prime contractor for a renovation project at the Federal Reserve Bank of New York – has paid $420,335 in back wages to resolve violations of federal wage laws following a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD found Tishman, which served as the bank’s construction manager on the federally funded project, violated the Davis-Bacon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Copeland Act. The company subcontracted electrical and cable installation work to subcontractors Alan Joel Communications, Crewforce, and Teksystems Management.

Investigators found the bank failed to include DBRA provisions and required wage rates in its contract with Tishman. This omission led to Tishman and the three subcontractors paying their employees at hourly rates lower than the prevailing wages for the work they performed, a DBRA violation. WHD also found all four employers violated the CHWSSA when they failed to pay required prevailing wages for overtime when employees worked more than 40 hours in a workweek. Their failure to prepare and maintain certified payroll records and to sign compliance statements in the payrolls resulted in Copeland Act violations.

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Connections: Discussing the debate over the “prevailing wage” (NY)

Posted by National Alliance for Fair Contracting on

By EVAN DAWSON & MEGAN MACK * APR 1, 2019

Are construction workers paid fairly in New York State? The legislature has been debating the so-called “prevailing wage.” Non-union workers and business leaders have warned that expanding the prevailing wage will cripple businesses that want to expand, while stalling the clean energy industry. Union leaders have joined many Democrats in calling for more wage protections, arguing that the business community always claims the sky is falling when they have to pay people a little bit more.

Our guests debate it:

(Listen to Discussion)

Fair Wages are Good for the Economy, Albany Should Pass an Expanded Prevailing Wage (NY)

Posted by National Alliance for Fair Contracting on

March 28, 2019 | by Kevin Duncan

As the next state budget is being debated in Albany, increasing attention is being paid to the state’s prevailing wage laws. With so much misinformation out there, let’s set the record straight. Paying construction workers a middle class wage is a net positive for New York’s economy.

Specifically, the issue is how construction workers are paid for projects that receive public funds. Since 1897, projects receiving taxpayer funds are required by New York State law to pay fair wages to their workers. The problem is that developers are increasingly exploiting loopholes created by the growth of public-private projects, which blur the lines of what’s considered “public work.”

One recent example is the Chelsea assisted living facility on Long Island. The project received $15 million in public funding, but because that money came through the Brookhaven Industrial Development Agency (IDA), there was no requirement to pay workers a middle-class wage.

Legislation currently making its way through the legislature would close that loophole.

The bill,S 1947(Ramos)/A1261(Bronson), would clearly define “public work” as any large-scale project that is paid for with public funds. By ensuring that projects subsidized with public funds support middle class wages, the law will strengthen the middle class and the state’s economy.

Chances are that you’ve seen folks in the business community argue the opposing viewpoint – but when you look under the surface, those arguments tend to rely on overly simplistic or just plain inaccurate information.

Take the industry-backed argument that paying workers a middle-class wage would force costs to skyrocket and immediately put an end to all development. When a wealthy developer complains that much about paying a fair wage, you have to wonder how little they’re actually paying their workers.

As an academic, I rely on data and evidence to form a judgment. The data show that labor costs for construction projects usually amount to about 23-24 percent of the total project cost. To keep the math simple, let’s say that a prevailing wage law results in a 10 percent raise for construction workers in a given region. At most, that would increase total cost by 2.5 percent. A 2.5 percent cost can be easily offset by the efficiencies gained from paying the highly-trained workers you attract with a prevailing wage. Trained, skilled workers mean higher productivity along with fewer accidents, errors and change orders.

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(See PDF of Full Study)

Say yes to more prevailing wage: Requiring higher pay for laborers in all public works is good for New York’s middle class (NY)

Posted by National Alliance for Fair Contracting on

By KEVIN DUNCAN
NEW YORK DAILY NEWS
MAR 20, 2019

Over a century ago, New York State established its first prevailing wage law. It was based on the common-sense principle that workers who build something for the public good be paid a fair wage for their work. It’s a deal that’s paid off for New York and for countless families who’ve been lifted into the middle class through hard work and sweat equity.

Prevailing wage laws require construction workers who do major jobs for state or local government to be paid at rates that are set through negotiations between businesses and laborers.

The problem today is that more and more big projects are being funded as public-private partnerships, blurring the line of what’s considered “public work.” Construction projects are being built throughout the state, subsidized with public funds, that are able to evade requirements to pay a decent wage to their workers.

Take the Trump Ferry Point Golf Course in the Bronx. New York City taxpayers spent over $120 million to build a golf course on the site. Trump was then selected to operate the course, and as part of that deal, built a $10 million clubhouse.

Because this part of the project was not clearly defined as “public work,” the billionaire developer was able to do so without wage requirements, keeping the extra profit for himself.

That’s why we need legislation to clearly define public work – and a bill currently under consideration in the state Legislature does just that. Supportive language was just included in one-house budget resolutions, and the governor has signaled his support as well.

A clear definition of public work will create a bright line test so there’s no more ambiguity. Under the proposed law, a project will be considered public work if: the construction is paid for in whole or in part with public funds, or the construction is performed in contemplation of a public entity leasing a portion of the space in the resulting development.

This would relieve the state of the great administrative burden of trying to determine whether or not various projects are public work. Furthermore, it would grant the Department of Labor additional enforcement abilities to better ensure that public funds are used appropriately.

(Read More)

Opinion: New York’s Renewable Projects Need Prevailing Wages (NY)

Posted by National Alliance for Fair Contracting on

By Maritza Silva-Farrell
April 9, 2019

The climate crisis is underway, and it’s clear that we need to take dramatic action to reduce our state’s greenhouse-gas emissions and reliance on fossil fuels. We need an economy-wide transition to renewable sources of energy, from powering our buildings with renewables like solar and wind to running our public transportation on electric vehicles. There’s no time for debate-according to the UN’s IPCC report, we need to face the climate crisis now, or condemn our planet and the people on it to a dire future, particularly frontline communities who are already experiencing the direct impacts of climate change.

The transition to clean energy will require a massive investment in renewable jobs. We’ll need workers to build and install solar panels and wind turbines, retrofit buildings for energy efficiency and create green public transit systems. As we direct our state’s resources into renewable infrastructure, it’s critical that we invest in the workers who build it.

The Climate and Community Protection Act sets an enforceable mandate to transition New York’s economy off of fossil fuels, and includes provisions for prevailing-wage standards for the workers employed by state-supported projects related to the transition. Researchers show that the Climate and Community Protection Act would create and sustain 150,000 jobs over the first decade of implementation, and these jobs must pay good, family-sustaining wages.

Green-energy projects are a critical part of our state’s economic future. There are already over 156,000 New Yorkers employed in the clean-energy sector. As we invest in solutions to the climate crisis, more and more New Yorkers will find jobs installing solar panels or weatherizing buildings. Including prevailing wage standards in our state’s climate legislation makes the bill not just about the environment, but about economic justice. Workers protecting our communities from the worst impacts of climate change should make a fair day’s pay for their work.

While there are other proposals on the table to address some parts of the climate crisis, none of them take into account the need for good labor standards for the workers who are building the transition.

By attaching prevailing wages to renewable energy projects, we’re investing in the long-term health of our communities and green economic growth. The creation of good union jobs will yield greater economic mobility for workers and their families. With the Climate and Community Protection Act we have an opportunity to do just that and bring more investment into our state. This bill, if passed, is expected to generate $138 billion in cumulative income for New York’s economy. Let’s make sure that the benefits of this investment go to workers and the communities that have been impacted the most by the climate crisis.

Maritza Silva-Farrell is the executive director of ALIGN, the Alliance for a Greater New York

(See Article)

Connections: Discussing the debate over the “prevailing wage”(NY)

Posted by National Alliance for Fair Contracting on

By EVAN DAWSON & MEGAN MACK
4/1/19

Are construction workers paid fairly in New York State? The legislature has been debating the so-called “prevailing wage.” Non-union workers and business leaders have warned that expanding the prevailing wage will cripple businesses that want to expand, while stalling the clean energy industry. Union leaders have joined many Democrats in calling for more wage protections, arguing that the business community always claims the sky is falling when they have to pay people a little bit more.

Our guests debate it:

  • Brian Sampson, president of the New York State chapter of Associated Builders and Contractors
  • Dan Maloney, president of the Rochester & Genesee Valley Area Labor Federation
  • Dave Young, president of the Rochester Building and Construction Trades Council

(Listen to Discussion)

2019 Budget Fails to Close the “Public Works” Loophole (NY)

Posted by National Alliance for Fair Contracting on

Opponents of commonsense reform mislead with false cost figures

For Immediate Release
April 1, 2019

Last night, state leaders reached a budget agreement for fiscal year 2019 which unfortunately fails to include the proper definition of public works. Properly defining public works is a commonsense reform to apply anti-corruption protections and family-supporting prevailing wages to all construction projects which receive public assistance.

To protect taxpayers from wasteful spending and corruption, New York requires competitive and transparent public bidding by contractors on all public works construction projects. Unfortunately, a loophole in state law allows millions of taxpayer dollars to be spent without the anti-corruption and transparency demanded of traditional public work projects. Increasingly, economic development projects across the state fall through this loophole, allowing public money to bypass these safeguards as it goes to private interests. Closing the loophole by properly defining public work to include all projects supported with public money will provide much needed accountability and transparency in government spending.

The measure’s opponents successfully muddied the water by spreading misinformation to suggest it would result in “huge” increases in construction project costs. The truth is that defining public works would reward workers and taxpayers, not the wealthy and irresponsible contractors exploiting our flawed system. As per economists Frank Manzo, Alex Lantsberg, and Kevin Duncan, “the overwhelming majority of peer-reviewed research conducted over the last 15 years forms the consensus view that construction costs are not affected by prevailing wages.” Sixteen other states across the country apply a more comprehensive definition of public work, which apply middle-class prevailing wages. Unsurprisingly, the doomsday scenario of huge cost increases and less development, which opponents claim would befall New York, has not materialized in these other states.

While today’s state budget was a missed opportunity, the New York Foundation for Fair Contracting looks forward to when all taxpayer-funded construction goes to the lowest responsible bidders, not the most politically well-connected contractors. The NYFFC is a non-profit established to level the playing field in public works construction for the benefit of taxpayers, responsible contractors, and workers.

(Read More)

Union workers and day laborers join forces in push for prevailing wage (NY)

Posted by National Alliance for Fair Contracting on

By DENIS SLATTERY
NEW YORK DAILY NEWS
MAR 27, 2019

Albany – An unlikely coalition of activists, union workers and day laborers joined forces Wednesday to call on New York lawmakers to grant raises to construction workers on publicly subsidized projects.

Hundreds of construction workers, decked out in orange and yellow, filled the state Capitol Building, shouting “End corporate welfare, pass public works!”

The workers want so-called prevailing wage rules, requiring all publicly funded construction projects pay at least the average wage paid on all projects completed in that area, to be expanded to all projects that use even a portion of public funds.

Gov. Cuomo and both chambers of the state Legislature have backed the measure, but whether it will be included in the final budget, due by April 1, remains unclear.

“The Legislature has a simple decision to make: do blue-collar workers deserve an honest day’s pay for an honest day’s work, or do developers deserve to grow their bottom-lines using our tax dollars?” Michael Hellstrom, the assistant business manager of the Mason Tenders District Council of Greater New York said. “This is about ensuring our tax dollars are no longer used to line the pockets of out-of-state contractors who exploit workers and drive wages down. The clock is ticking and construction workers need to know what the Legislature’s decision will be.”

Manuel Castro, the executive director of New Immigrant Community Empowerment, said the measure would provide protections to both union and non-union workers.

“I think it’s important to show unity on these issues because for a long time we’ve known that contractors, by using a variety of different schemes, like subcontractors or brokers, they look for cheap labor and don’t pay workers a living wage.

Sixteen states have already passed similar legislation.

(Read More)

The case for prevailing wage (NY)

Posted by National Alliance for Fair Contracting on

Foes say it adds costs to projects, but New York should strengthen this mandate


Patrick Purcell
February 19, 2019 12:00 AM

New York cannot afford to continue subsidizing a developers’ paradise with little to no public responsibilities tied to these taxpayer dollars.

This is a reality that Gov. Andrew Cuomo understands well. His inclusion of prevailing wage requirements on publicly subsidized projects in his budget proposal is a testament to that.

On the other side, there are forces with little interest in understanding just why prevailing wage requirements are so critical to the economic health and development of New York. An analyst for the Empire Center for Public Policy was quoted in a recent article stating, “New York’s prevailing wage mandate is an archaic law that needlessly adds 25% to the cost of construction in the city.” He said that outside of New York, the law increases project costs by 13%.

Now, these claims aren’t completely wrong. New York does have legislation that is archaic-legislation that gives private developers a loophole to take public subsidies for their projects with no responsibility to taxpayers in return. Countless projects across the state have received subsidies with zero wage requirements attached them. Just one example is Fresh Direct in the Bronx.

…

Those opposed to prevailing-wage legislation based on mistaken beliefs about increased construction costs also fail to take into account that the cost of living in New York is high. When developers come to New York-and especially when they building on taxpayers’ dime-they should have to pay their workers livable wages.

Counter to the idea that prevailing-wage mandates needlessly add to the cost of construction are the actual facts.

Fact: Prevailing wages would boost the economy upstate and downstate.

Fact: Mandating wage standards and taxpayer benefits would generate an additional $3.5 million to $6.9 million in annual sales tax revenue.

Cuomo sees the bigger picture. He recognizes that prevailing wage requirements are critical to get the best return on investment for taxpayer dollars and create jobs that serve New Yorkers rather than exploit them as many developers would do if it were up to them. Without these mandates and a clearer definition of public works, developers will continue to capitalize on loopholes in definitions of private projects and a lack of accountability to workers and taxpayers alike.

It’s up to Albany to do what is right for New York and pass public-works legislation before April 1. Tick tock.

Patrick Purcell is executive director of the New York State Laborers’ Union, which represents more than 40,000 construction workers

(Read More)

Council bill aims to impose prevailing wage on all city-subsidized projects (NY)

Posted by National Alliance for Fair Contracting on

Wage and safety bills would incentivize union labor, but critics fear higher price tag.

By Jeff Coltin
JANUARY 8, 2019


New York City Councilman Ben Kallos is reintroducing a stalled bill that would require all construction workers to get paid the prevailing wage on any projects getting city subsidies.

Under state law, any project built under a government contract must pay workers the prevailing wage. Kallos’ bill would cast a much wider net, mandating the prevailing wage for not just direct government contracts, but for any projects getting grants, bond financing, tax abatements or any other sort of support valued over $1 million from the New York City government.

“The same rules should apply when the city is doing the work directly or when they’re subsidizing somebody else to do the work,” the Manhattan lawmaker told City & State.

…

Critics like the Real Estate Board of New York, which represents developers, have spent heavily in the past to oppose efforts to expand the prevailing wage requirements, claiming higher labor costs would discourage private developers from building affordable housing.

Kallos countered that paying workers less than prevailing wage actually makes the affordable housing crisis worse by creating demand for housing at deeper levels of affordability.

“I’m disappointed to learn even the construction workers can’t afford the affordable housing that they are building,” he said.

(Read More)