Multiple enforcement agencies in Massachusetts today announced that five subcontractors employed by Pulte on sites in Eastern Massachusetts have been ordered to pay workers more than $400,000 in owed wages and make payments totaling $141,000 to cover unpaid taxes.

The order is the result of investigations that began after workers complained to Representatives of the New England Regional Council of Carpenters that they had been unpaid for extended periods of time. Workers went on strike at several Pulte locations and filed complaints with the state.

"The investigation fined five separate subcontractors, but the real culprit is Pulte Homes, a multi-billion dollar national homebuilder," said Mark Erlich, Executive Secretary-Treasurer of the New England Regional Council of Carpenters. "Those subs are interchangeable and were just doing Pulte's bidding. Cheating is Pulte's business model and, unfortunately, that approach is far too common in the residential construction industry."

Subcontractors that were part of the order include:
--AM Construction Services and its President, Adimar Demoura, age 32 of Framingham, allegedly failed to pay four workers a total of $15,331.50 for framing work done on private residential projects in Braintree and Plymouth. They were also fined $22,500 in penalties.
--Five Stars Construction and its President, Alexandre Miranda, age 40 of Trumbull, Connecticut, allegedly failed to pay two workers a total of $30,700 for framing work done on a private condominium project in Natick. They were also fined $30,000 in penalties.
--Nunes Brothers Construction and its President, Tiago Aguiar M. Nunes, age 28 of Brooklyn, New York, allegedly failed to pay 23 workers a total of $99,086.75 for framing work done on private condominium and single-family homes projects in Braintree, Plymouth, Natick, and Northbridge. They were also fined $112,500 in penalties.
--Seven Seas Group and its President, Jackson Croscup, age 55 of Fall River, allegedly failed to pay five workers a total of $10,333 for framing work done on a private condominium project in Natick. They were also fined $20,075 in penalties.
--Two Brothers Construction and its President, Wellington DeLima Borges, age 41 of East Natick, allegedly failed to pay six workers a total of $34,751.50 for framing work done on a private home development project in Plymouth. They were also fined $34,500 in penalties.

Investigating the complaints were Attorney General Martha Coakley’s Office (AGO), the Executive Office of Labor and Workforce Development (EOLWD), and the Joint Enforcement Task Force on the Underground Economy and Employee Misclassification (JTF). The JTF was established by Governor Deval Patrick through Executive Order #499 in March 2008 to coordinate multiple state agencies’ efforts to stamp out fraudulent employment activities by enforcing the state’s labor, licensing, and tax laws.

“All workers in the Commonwealth deserve to be paid for the wages they have earned, including their overtime,” said Attorney General Coakley. “We will continue to work together and take appropriate action to stop these unlawful business practices, level the playing field for companies and protect workers.”

“The Commonwealth is committed to insuring that all businesses carry both workers’ compensation and unemployment insurance coverage,” said Secretary of Labor and Workforce Development Joanne F. Goldstein. “We will not tolerate employers or developers who proceed without this coverage, which puts employees at risk and employers who play by the rules at a competitive disadvantage. The Joint Task Force will continue to take all necessary action to protect legitimate employers, employees and the taxpayers of the Commonwealth.”

The MetroWest Daily News today ran a front page, above the fold piece about carpenters that have gone unpaid for work they did on multiple Pulte sites in Massachusetts. The issue was the topic of a story in the Quincy Patriot Ledger last Saturday.

A group of more than 30 nonunion carpenters have filed wage complaint forms with the Massachusetts Attorney General's office seeking to recover months of wages they are owed for work they did on Pulte sites in Braintree, Natick, Northbridge and Plymouth. They may also be owed wages for work done on a Pulte site in Wakefield, Rhode Island.

Despite protests at the Braintree and Natick sites and last week's column in the Patriot Ledger, the company continues to claim in today's story that they are "unaware of any complaints filed with any state or federal agencies."

As one of the largest home-builders in the United States, with developments in 28 states, it's hard to believe Pulte doesn't know what's happening on their own sites. The company acts as a general contractor on many of their projects, directly hiring subcontractors.

A company spin-meister told the MetroWest Daily News that "PulteGroup considers a number of factors when selecting subcontractors to build its homes. Each project is unique and contracts are awarded on merit to the companies that are the best fit for the job."

Unfortunately, workers going unpaid on Pulte jobs does not appear to be a "unique" condition. It looks more like something the company has decided is the "best fit" for their current projects in New England.

Carpenters in New England aren't the only ones unhappy with Pulte. Last week eight people were arrested during a peaceful demonstration at Pulte's annual shareholders meeting in Detroit. They were there to question the job creation and economic benefit to the community of $900 million in tax benefits Pulte earned last year when a tax law was changed largely benefiting a small number of large, national home builders.

Here in New England, Pulte is the latest in a series of contractors whose projects have become the subject of protests and wage claims as a result of nonunion workers not being paid and going on strike. The following is a video chronicling some of NERCCs activity regarding the issue.

NERCC Organizers are putting the heat on Pulte Homes, one of the nation's largest home builders, after more than 30 nonunion carpenters came forward reporting they hadn't been paid their for months worth of work.

Demonstrations have been held at Jonathan's Landing in Braintree and South Natick Hills in Natick and the workers have filed wage complaint forms with the Massachusetts Attorney General's Office. Most of the workers are owed nine week of wages and overtime, totaling $3,500-$4,000 each, from work they did in Braintree, Natick and another site in Wakefield, Rhode Island.

Multiple subcontractors have worked and been dismissed from the Pulte sites, each employing the same group of carpenters. Pulte acts as the general contractor on many of their projects, directly hiring and paying subcontractors.

It is unclear whether Pulte paid the subcontractors who did not pay the carpenters. But what is clear is that these are projects being built and sold by Pulte, who boasts "Pulte Homes' culture is wrapped around a strong sense of family and a small company atmosphere."

The Quincy Patriot-Ledger ran a story on the issue today.