Raids flush out more crooked contractors in Connecticut
Posted by NERCC on March 27, 2013 at 10:41 AM

A series of sweeps of construction sites in Connecticut this year has resulted in 27 "Stop Work" orders against contractors for misclassification of workers as "independent contractors." The results continue a disturbing trend in the state's construction industry. In the past year, the Connecticut Department of Labor reports that inspection and review of 108 construction projects and 299 contractors has resulted in 199 "Stop Work" work orders, an alarming rate of cheating.

"Some employers will misclassify workers as independent contractors with the intent of avoiding their obligations under federal and state employment law covering such matters as workers' compensation, unemployment taxes and payroll reporting," said state Labor Commissioner Sharon Palmer. "Unfortunately, when an employer fails to pay for the proper coverage for injuries suffered on the job, and a worker gets hurt, the state's taxpayers ultimately foot the bill."

Avoiding tax obligations gives cheating employers a significant advantage in competitive bidding and negotiated pricing within the construction industry and creates a funding gap for state and federal governments, among other problems.

Media coverage here.

Carpenters highlight thefts at Botany Bay
Posted by NERCC on March 01, 2013 at 09:01 AM

NERCC staff recently spoke to a group of five workers employed at the Botany Bay development in Worcester who were owed more than $25,000 in wages and began making noise about it. Regular bannering was done at the site and last week a rally drew members of Local 107, representatives of the MetroWest Worker's Center, religious leaders and Worcester City Councilor Sarai Rivera.

The event led to pieces in the Worcester Telegram and Gazette and Vocero Hispano, which highlighted the wage theft and the unwillingness of the project developer to do anything but turn a blind eye. The bad publicity may force his hand, though, as regular events are gaining attention and the support of the community.
 

Architects predict strong construction growth
Posted by NERCC on January 29, 2013 at 10:46 AM

The American Institute of Architects is confidently projecting strong growth in nonresidential construction this year and next, with increase of 5% in 2013 and 7.2% in 2014. Commercial construction is expected to lead the way in growth, followed by industrial work, while institutional construction will grow at a slower pace. The AIA is basing its predictions on a comparison of its own "Architecture Billings Index" with forecasts from six different industry groups. The consistency in forecasts leads them to believe they will be very reliable.

State, Feds raid Stamford mega-sites
Posted by NERCC on January 29, 2013 at 10:41 AM

The Connecticut Department of Labor was joined by the US Department of Labor, OSHA and local and state police in raids of at least four construction sites in Stamford last week in an unprecedented effort to crack down on payroll fraud. The Stamford Advocate covered the raids and published a column by Angela Carella calling for developers to clean up their businesses.

The raids targeted three sites being built by Building and Land Technology and another by Greenfield Partners. The sites have all previously been the target of numerous public complaints as well as demonstrations by union carpenters and other trades workers. The Harbor Point project being built by BL&T has also been the site of numerious enforcement actions. More than 34 "Stop Work" orders had been issued at the project prior to last week's raids.

Investigators talked to more than 200 workers, according to media reports, and will sort out possible violations in the coming weeks after reviewing those interviews.
 

Standing up, speaking out in Waltham
Posted by NERCC on January 28, 2013 at 11:18 AM

 A group of union carpenters were joined by senior citizens and others at a crowded meeting in Waltham to discuss the future of a former Polaroid site. The parcel is one of a handful of large projects slated for the Metro-West city. Union carpenters are watching closely to see if they will be the source of good jobs for local people or rampant fraud and profiteering by developers. With persistent action, they hope to ensure the former.

The Polaroid project--to be done in phases--will involve the construction of 180,000 square feet of retail space, 100,000 square feet for a Market Basket and another 100,000 square feet of office space.

Members of Local 275 were joined by members of other UBC locals who live in Waltham. Local 275 Business Manager Kevin Kelley was one of the few speakers at the meeting, expressing his desire for developers to make a commitment to decent standards on the project. The meeting was not open for everyone to speak, so carpenters made their feelings known by holding up and rotating small signs that read "Save The Middle Class"  on one side and "Build Union" on the other.

Members in Waltham plan to be active a other upcoming meetings, to discuss the Polaroid project as well as work at One Moody Street, with an eyee toward cementing Waltham as a strong union city. Members in and around Waltham who are interested in participating can contact Brother Kelley at Local 275's union  hall.

 

 

Contractor: Being union is beneficial to all
Posted by NERCC on January 11, 2013 at 09:01 AM

David Rampone, President of Hart Engineering, a signatory contractor based in Cumberland, Rhode Island isn't shy about being a union contractor. Last year he volunteered to be one of the latest union contractors to do a radio ad on behalf of the New England Regional Council of Carpenters. Now, he's published an opinion piece in the Providence Journal explaining why his business is better with a union partnership. Click through to read it.

The following opinion piece appeared in the January 10 print edition of the Providence Journal-Bulletin.

The benefits of employing unionists

DAVID RAMPONE

Regarding Charles Chieppo’s Dec. 20 column, “Unions are 1 percenters in Mass.,” in which he portrayed the construction industry inaccurately:

As the chief executive of a major Rhode lsland construction firm that does work all over New England, I’ll set the record straight. I am the president of Hart Engineering Corp., a general and process mechanical contractor founded over 70 years ago and based in Cumberland.

While I have read several opinion pieces by “public-relations experts” articulating the “evils” of the unionized construction industry, it needs to be pointed out that these experts have no actual experience in the construction industry and draw their conclusions based purely on anecdotal information provided by those who wish to see the unionized construction industry fail.

For the record, the National Labor Relations Act lets construction companies decide for themselves whether to be affiliated with the industry’s trade unions. It is the only industry that has such a provision. Since its inception, our firm has made the business-driven decision to be affiliated with several trade unions — a decision that has been beneficial to both our company and employees.

Currently we employ more than100 union tradesmen and women on dozens of jobs, large and small, throughout New England. These employees receive a fair wage, full health-care benefits and pension contributions — a package that lets them provide their families with a respectable standard of living. And in light of the negative attention cast on public-sector unions in these times, note that unionized construction workers are not guaranteed employment. In fact, Rhode Island unionized construction workers average about 1,500 hours worked a year. They do not receive vacation time, sick days or holiday pay, nor do they receive any benefits if they do not work the required number of hours a year — usually between 1,200 and 1,400, depending on the trade union involved.

Beyond my own company, the performance of Rhode Island’s trade unions and union contractors speaks for itself. There are more than 200 local contractors with union agreements in the Rhode Island area, and there have been more than 50 all-union project labor agreements (PLAs) worth billions of dollars completed in this area, including most of the state’s highest-profile projects. Most of these PLAs have been in the private sector.

These agreements symbolize the marketplace at work. Owners, construction managers and contractors enter into these agreements for one reason only: It is in their best interest to do so. And why? The trade unions in partnership with their contractors invest millions of dollars annually recruiting, training and retraining their workers to provide the safest, most skilled workforce in our industry. In today’s world, owners want their projects completed safely, on time, under budget and to the highest level of quality possible. That is why owners from small firms to Fortune 500 companies enter into project labor agreements.

While there are far fewer PLAs in the public sector than in the private sector, they are becoming more prevalent. However, before any public entity in Rhode Island can implement a PLA, it must complete an independent “objective and reasoned” study that recommends their use.

The trade unions’ record of providing contractors and owners with a safe and productive workforce is unmatched in our industry. Those who oppose them assert that using nonunionized workers would provide the owner with great savings. Unfortunately, those savings are usually the result of substandard wages, failure to provide health-care benefits to employees, or misclassifying employees to pay them a lower wage.

For 70 years we have provided our clients with the safest, most capable and productive work force in the industry, and our employees with a fair wage and benefits for them and their families. We are proud of what we have been able to achieve with our union partners.

David Rampone is president of Hart Engineering Corp., in Cumberland.  

The Carpenters Union gets the job done!
Posted by NERCC on December 18, 2012 at 11:52 AM

First they helped it win approval, now they're helping it become a reality. Union carpenters in Bridgeport are now building the Fairchild Wheeler Multi-Magnet School, a combination of facilities and programs that are bringing excitement and hope to a troubled area. The building will be LEED Gold Certified and offer Aeronautics, Information Technology and Zoological/Ecological programs underwritten by corporate sponsors. The 340,000 square foot building is the largest school project in Connecticut's history and is employing hundreds of local trades workers.

 

See more of this project and others in NERCC's Project Portfolio.

 

 

Misclassification crackdown, publicity
Posted by NERCC on December 07, 2012 at 11:12 AM

Misclassification has been a serious problem in the construction industry for years, and something against which the Carpenters union has led the fight locally, regionally and nationally. Union efforts resulted first in greater understanding and awareness among elected officials and now regularly lead to enforcement and publicity on the issue that is either directly a result of union action or an indirect result of efforts initiated by the union.

Two items broke this week that reinforce that point. In Worcester, Telegram and Gazette columnist Clive McFarlane wrote about efforts by NERCC Organizer Manny Gines to chase down employers who cheat by misclassifying workers as independent contractors or cheat them out of their wages.

McFarlane's column ties into an announcement earlier in the week by the Executive Office of Labor in Massachusetts that more they had found more than 2,300 workers misclassified by just three employers. Though the three companies were not involved in the construction industry, the eye-popping $11 million in unreported wages and millions of dollars the state should have received for unemployment insurance payments generated new stories that put the issue in front of the general public.

Construction shows job growth, but slow
Posted by NERCC on November 08, 2012 at 02:05 PM

News from the US Department of Labor on construction employment was slightly positive in October with the addition of 17,000 jobs in preliminary data. Jobs in the construction industry increased for the fifth consecutive month, reaching 5.53 million. The trend that could continue following rebuilding efforts tied to Hurricane Sandy.

The industry still has a ways to go to reach employment levels enjoyed before the recession. Seasonally-adjusted employment numbers showed more than 7.7 million construction jobs through much of 2006, but then heavy, steady job losses in the industry from October of 2008 through February of 2010s. Since then, employment numbers in the industry have varied month-to-month between 5.45 and 5.56 million jobs.

The Department of Labor's Bureau of Labor Statistics' website has an interesting graph and table tracking seasonally adjusted jobs in the construction industry, starting in January 2002.

Mass Senate race comes to the Carpenters Center
Posted by NERCC on October 12, 2012 at 10:41 AM

 

United States Senate candidate Elizabeth Warren visited the Carpenters Center recently to speak with members about issues of specific interest to union carpenters. She took questions from members and spoke individually with members before and after the event. Thank you to Elizabeth Warren for coming by and thank you to every member who cared enough to come out and get involved.

New England Carpenters Give Scott Brown A Failing Grade On Creating Jobs, Supporting Working Families
Posted by NERCC on September 13, 2012 at 02:54 PM

In new report card, Republican Scott Brown fails to support new jobs and Massachusetts’ middle-class

Today, the New England Regional Council of Carpenters issued a report card on Senator Scott Brown’s failing efforts to support job-creating programs and middle-class families across the Commonwealth. Senator Brown received an F on today’s report card for opposing numerous jobs bills that would have supported thousands of good-paying jobs in Massachusetts, opposing the extension of essential unemployment benefits, and failing to fight for fair wages for working men and women.

 

"Try as he may, Scott Brown cannot run away from his votes along national Republican Party lines,” said Mark Erlich, Executive Secretary-Treasurer of the New England Council of Carpenters. “Whether it's unemployment benefits, jobs bills, or standing up for fair wages, Scott Brown is not on the side of working families right here in Massachusetts. The attempts to re-make his image cannot mask his record. He sides with huge corporations and Wall Street instead of the thousands of Massachusetts families still looking for jobs.”

 

Today, the New England Carpenters gave Senator Brown an “F” for failing to stand up for working families. The grade was based on the following key votes: 

 

 

Class	Score
American Jobs Act -       Would have cut payroll taxes for 140,000 MA firms -       Supported 11,100 MA jobs	Yes     No X   [Roll Call Vote 160, 10/11/11]
Rebuild American Jobs Act -       Would invest $850 million in MA infrastructure including roads, bridges highway -       Would not add to the deficit.	Yes      No X   [Roll Call Vote 195, 11/3/11]
Extending Unemployment Benefits -       8 votes to extended unemployment benefits to tens of thousands of MA residents who were out of work	Yes      No X   [HR 4213 otes 48, 194, 200, 204, 209, 215; HR 4851 votes 116, 117, 3/10/10 through 7/21/10]
Prevailing Wage Protections -       Effort to ensure construction workers are paid fair wages on federal transportation projects	Yes      No X   [S. 223 vote 11, 2/3/11]
To Confirm President Obama’s NRLB Nominee -       To nominate Craig Becker to the NRLB	Yes      No X   [Roll Call Vote 22, 2/9/10]

 

Recession hit construction industry hard
Posted by NERCC on September 03, 2012 at 11:19 AM

Over Labor Day weekend, the Worcester Telegram & Gazette ran a story about the impact of the recession on the construction industry. While the story mentions that “over the last six years, the construction industry in Massachusetts has lost almost a third of its jobs” it also talks about the success of two Local 107 apprentices, who joined the Carpenters Union in the middle of the recession and have worked steady since. Read the entire article online here. For a PDF version, click here. 

 

MA Construction Unions support Warren's 'Rebuild Now' plan
Posted by NERCC on August 09, 2012 at 09:20 AM

The New England Regional Council of Carpenters, along with the Massachusetts Building Trades Council and the Massachusetts AFL-CIO, officially announced their support of Democratic U.S. Senate candidate Elizabeth Warren's "Rebuild Now" infrastructure investment plan.

Mark Erlich, Executive Secretary-Treasurer of the New England Regional Council of Carpenters, and Frank Callahan, president of the Massachusetts Building Trades Council ,told reporters that the industry needs a boost and that a plan like Warren's has the potential to put its members back to work.

Read more online here.

Economy continues to fluctuate
Posted by NERCC on July 23, 2012 at 12:01 PM

The Boston Globe reports on economic concerns in Massachusetts, where a net reduction in jobs occurred for the first time since November. Though the unemployment rate is fairly steady, concerns are mounting that the slow recovery could be slipping away. NERCC's Mark Erlich is quoted.

Worcester passes new REO
Posted by NERCC on June 22, 2012 at 09:36 AM

The Worcester City Council this week voted to move forward with a newly proposed Responsible Employer Ordinance for public construction in the city by a 9-1 vote. The result comes after an anti-union contractor association and corporate-backed "research" group threatened long, expensive litigation if the ordinance was passed.

The City of Worcester has had a Responsible Employer Ordinance in place since 2005, but the City Manager had suspended portions of it recently out of concern that the entire ordinance would be eliminated on legal challenge. Councilors worked with various groups to re-write portions of the ordinance--most significantly to retain the language requiring contractors to participate in apprentice training programs--to put it on safer legal ground.

The Merit Construction Alliance, which represents nonunion contractors, has been using the Worcester Regional Research Bureau to back its opposition to standards for public construction in the city. According to GoLocalWorcester.com, the Worcester Regional Research Bureau is "privately funded by a host of corporate sponsors." Their top sponsors consist mostly of banks, law firms and insurance companies. When a City Councilor asked for clarification on who the group was and what function it serves, the head of the organization claimed she was somehow being "attacked" and blamed unions. In arguing that the newly drafted REO wouldn't stand up to legal scrutiny, the group's own work seemed to be less than convincing.

Union carpenters were very active in pushing for passage of the revised REO, participating in rallies, attending hearings and lining up support from Council members. Supporters also got a boost from Susan Mailman, the president of Coghlin Electrical Contractors, who wrote a convincing opinion piece in the Worcester Telegram and Gazette detailing why opposition to the REO was built on false assumptions.
 

National talk host digs into Stamford
Posted by NERCC on June 15, 2012 at 10:39 AM

National television talk show host Cenk Uygur this week hosted NERCC Representative Tim Sullivan on his show "The Young Turks" to talk about events at Stamford's Harbor Point development. The two talked about how the project is undermining area standards for carpenters' wages and benefits and how instead of local citizens voting on the project, votes were cast by a single lawyer representing a handful of corporations. That's right, corporations voting, not citizens.

 

Union carpenters, pension $ put to work in Providence
Posted by NERCC on June 07, 2012 at 01:01 PM

Rhode Island Governor Lincoln Chaffee and Providence Mayor Angel Taveras were among those on hand today for a ceremonial groundbreaking for The Highlands on the East Side in Pro. The project is a renovation of senior housing that will become an assisted living facility. The project is being financed by the New England Carpenters Pension Fund and led by union general contractor CWC. It will provide an eventual monetary return to the Fund while providing immediate employment opportunities to union carpenters, economic activity for Providence and badly needed housing for an aging population.

The building is owned by Halkeen Management if Norwood, Massachusetts and will eventually provide 64 unites of housing, including Alzheimer's and Dementia apartments in a variety of layouts.

The Carpenters Pension Fund is investing in the project as part of their diversified investment portfolio.

The groundbreaking was covered briefly by Providence Channel 10.

 

Rego uncovers potential mess at FRHA
Posted by NERCC on May 30, 2012 at 11:39 AM

Local 1305 member Dan Rego, who is a NERCC Organizer and Fall River City Councilor, is shaking things up in the Southeastern Massachusetts city. A few weeks ago, he raised concerns over issues with work being done by the Fall River Housing Authority. Since then, the sparks have started flying.

Rego spoke at a Housing Authority meeting and reported on conversations he had with workers on several FRHA projects in the city, some of which were receiving federal funding. Several workers had reported being misclassified as independent contractors, not being paid the legally mandated prevailing wage or not being paid at all. Rego told the Board that he had referred all of the allegations and evidence to proper state authorities.

 The Housing Authority went into immediate executive session, during which they appointed their own independent investigator. The story quickly hit the Fall River Herald News. The paper then followed up with a vicious attack on Rego, questioning not only his motives, but actions by Rego and the union in the past to protect industry standards. This in a city where legal violations on public construction projects are not unheard of.

This week, Rego spoke out in his own defense in the paper, reminding readers that his knowledge of and experience in the construction industry are a benefit to the city and its residents.

Please take a moment to read Rego's "Letter to the Editor" and consider weighing in with a respectful comment on the Herald News site.

 

CT DOL issues 13 "Stop Work" orders
Posted by NERCC on May 17, 2012 at 11:30 AM

The Connecticut Department of Labor issued “Stop Work” orders against 13 construction companies in recent weeks for misclassifying workers as “independent contractors.” The orders were issued in multiple communities where contractors were found to have misclassified workers for the purpose of avoiding their obligations to carry workers’ compensation and paying federal and state unemployment taxes, including unemployment.

One of the "Stop Work" orders was issued against NLP Contractors at the New London Plaza. Union carpenters have been protesting at the site, where renovations are being done and where North Carolina-based SandovalConstruction has already been issued a "Stop Work " order. (earlier post)

The Hartford Courant, New London Day, Republican American,  Danbury Patch and Greenwich Patch reported on the story. Sites where contractors issued "Stop Work" orders were issued were located in Danbury, Greenwich, New London, Preston, Naugatuck and Simsbury.

“Stop Work” orders result in the halting of all activity at a cited company’s worksite, as well as a $300 civil penalty for each day the company does not carry workers’ compensation coverage as required by law.

According to a release on the "Stop Work" orders by the Department of Labor: “in the past 12 months the agency has inspected 167 construction projects and reviewed the records of 688 contractors. A total of 281 “Stop Work” orders have been issued during this time, with 116 identified as being issued to out‐of‐state contractors. Since October 2007, a total of 735 “Stop Work” orders have been issued with $285,000 collected in civil penalties for the misclassification of workers. Additionally, referrals have been made to the Department of Revenue Services and the Labor Department’s Tax Division audit unit for further investigation.”
 

This blog post was updated form a previous post on 5/16 to include links to additional media coverage and information about the New London Plaza site.

Rego targets possible problems in FRHA
Posted by NERCC on May 15, 2012 at 11:30 AM

Dan Rego, a union carpenter and organizer who successfully ran for City Council in Fall River, is starting to shake things up in the Southeastern Massachusetts City. At a Monday night hearing for the Fall River Housing Authority, Rego raised questions about the agency's awarding of construction contracts and the payment and treatment of workers.

The Fall River Herald News reported on Rego's questions in today's paper. The Housing Authority cut off Rego's statement and went into Executive Session, ultimately voting to begin an independet investigation of the allegations, according to the paper. Rego has already discussed improprieties he has found on FRHA sites with Fall River Mayor William Flanagan as well as the offices of Attorney General Martha Coakley,  Inspector General Gregory Sullivan and State Auditor Suzanne Bump.

Rego told the Housing Authority that he has found issues with projects that are valued at less than $10,000, which are done with very little oversight.

Northeast Interiors ordered to pay $30k+ for violations
Posted by NERCC on May 14, 2012 at 02:14 PM

Braintree, Massachusetts-based Northeast Interiors has been ordered by the state to pay $20,000 in fines and make restitution of almost $16,000 to twelve employees. The company cheated workers on three projects in Arlington, Swampscott and Salem.

Civil citations were issued against Northeast Interiors and owner Kevin Fish for failure to pay prevailing wages for work performed ($5,000), failure to submit true and accurate certified payroll records ($7,500) and failure to keep true and accurate payroll records ($7,500). Violations occured when the company was doing work at Arlington Menotomy Manner, Swampscott Thomson Building and Salem Rainbow Terrace.

The case was handled by the Fair Labor Division of the Office of Attorney General Martha Coakley. Workers who feel their employer has paid them less than what they are owed, in violation of previaling wage laws or other wage and hour laws (ie, overtime) may contact the New England Regional Council of Carpenters for assitance or may file a complaint directly with the Attorney General's Office using this page.

Carpenters demonstrate against Sandoval
Posted by NERCC on April 12, 2012 at 12:17 PM

Carpenters in Connecticut have been protesting at the new London Plaza Hotel (formerly the Radisson Hotel) against Sandoval Construction of North Carolina. The company does not meet area standards for wages and benefits. It was also issued a Stop Work Order by the Connecticut Department of Labor last week for not having proper workers' compensation coverage.

The New London Patch posted a story, photos and video of the event.

 

NERCC calls for harsher penalties for those not buying workers' comp
Posted by NERCC on April 12, 2012 at 08:34 AM

The New England Regional Council of Carpenters and other industry groups are calling on the Massachusetts legislature to make it a felony for employers to fail to purchase workers compensation insurance for their employees. Senate Bill 915, sponsored by Senator Katherine Clark (D-Melrose) and Majority Whip Ronald Mariano (D-Quincy) also has the backing of Attorney General Martha Coakley.

Operating without workers' compesnation insurance is currently a misdemeanor, punishable by upt oa year in prison or a find of up to $1,500. The new law would make the felongy punishapble by up to five years in state prison, two-and-a-half years in jail or a fine of up to $10,000.

NERCC Political Director Steve Joyce said that although union carpenters are always covered by workers' compensation insurance, they are still hurt by those who cheat.

"In an industry where work most often goes to whoever submits the lowest price, any contractor who does not purchase workers' compensation coverage has a competitive advantage right from the start over contractors who follow the law and have coverage," he said. "That negatively impacts any carpenter that works for a legitmate contractor. We're not looking to hurt all employers, we value the role they play in creating jobs. We just want everyone to comply with the law when they do it."

Even the Associated Industries of Massachusetts (AIM), a group that lobbies for businesses, support the bill. In a story by the State House News Service, John Regan, AIM's Executive Vice President described the current situation as unfair to too many.

"Their faliure to have that insurance in place means that if workers working for them get injured, the rest of the employer commnity pays the bill" and that making failure to have coverage a felony "reflects the seriousness of the issue, and conveys how important it is that coverage be in place."

According to the SHNS story, the Massachusetts Department of Industrial Accidents has reported more than 1,000 cses costing the worekrs compensation fund $26 million in the last five years becuase their employer didn't have worers' compensation coverage. In recent years the department has routinely issued Stop Work Orders against more than 3,000 employer found to be operating without workers' compensation coverage.

NYTimes gets only part of Stamford story
Posted by NERCC on February 24, 2012 at 09:26 AM

"Stamford Plan Hits a Speedbump" is the headline of a piece in the national version of the New York Times today. And while the reporter seems to go out of her way to heap praise on the Harbor Point project being developed by Carl Kuehner's Building and Land Technology (BLT), the headline and the substance of the article probably make Kuehner wish the article had never been published. It's become a familiar feeling for him lately.

The Times article is about a dispute between Keuhner's BLT and Stamford's Downtown Special Services District (DSSD), which acts as a guide and clearinghouse for downtown development. The group participated in a grueling process to develop guidelines that B&LT is attempting to ignore with a planned 124-room hotel. The DSSD is digging in its heels and getting strong support from within Stamford, because, despite the Times focus on this single issue, Kuehner and Harbor Point have come under fire repeatedly in recent months for behavior that indicates a consistent, disdainful attitutde toward standards, rules and anyone that attempts to defend them.

The Harbor Point site has been the subject of repeated demonstrations by union carpenters calling attention to the presence of subcontractors on site who do not pay area standard wages and benefits for carpenters on all of their projects.

Local residents became upset and demanded answers from B&LT and Stamford City officials when a previously existing boathouse was demolished in defiance of an agreement to maintain a full service boatyard at the site. Mayor Michael Pavia seemed curiously ignorant of the situation until asked by reporters. The Zoning Board later ordered BLT to stop demolition work.

Not long after, an article in the Stamford Advocate headlined "Developer Shows Signs of Disregarding Rules" detailed a number of instances where the Kuehner and BLT acted as if they were entitled to do just about whatever they wanted at Harbor Point, including trying to restrict the public from using public playgrounds and parking spaces, illegally blocking streets and building without permits.

In recent weeks, union claims about improper treatment of workers were borne out when the Department of Labor issued Stop Work Orders against 8 subcontractors working at Harbor Point for violating wage, hour or insurance laws. Three of the companies were charged with returning to work in defiance of previous Stop Work Orders without permission from the DOL.

The issue is not new to BLT or the construction industry. Subcontractors on other BLT projects had been the subject of at least eight Stop Work Orders for misclassifying workers and other violations. One subcontractor, Heritage Drywall, was ordered to pay more than $100,000 in owed wages and penalties on a BLT project. A reporter permitted to do a "ride along" with the DOL on the Harbor Point visit put it in a greater context of an industry spiraling out of control and costing honest businesses and taxpayers more than they know.

Despite the current "speed bumps," the Harbor Point project and a companion hotel will undoubtedly be completed in some fashion and will benefit the City. But Stamford and its residents might suggest a few flashing yellow or red lights for those dealing with Kuehner and BLT in the future.

 

Stop work orders issued at Harbor Point, media depicts industry mess
Posted by NERCC on February 17, 2012 at 10:55 AM

The Connecticut Department of Labor's Wages & Workplace Standards Division, has issued "Stop Work Orders" against eight contractors working on the Harbor Point project in Stamford, continuing a string of bad practices and bad press for the city and the project's developer, Carl Kuehner's Building and Land Technology (BLT).

The Stamford Advocate has run a significant story on the orders, as well as an excellent piece detailing the Department of Labor's efforts to confront extensive problems in the construction industry. Both are well worth reading and sharing.

Avilik Inc., Flagg World, M&M Construction, Pillar Construction, T.F. Andrews, Brothers Contracting, Continental Tile and Kitchen Classics were the companies cited for various violations of wage, hour, insurance or tax laws by the Department of Labor's Stop Fraud Unit. None of the companies are based in Connecticut. Some are only as close as New York, some have come from as far away as Maryland, according to the Advocate.

Three of those companies--Brothers Contracting, Continental Tile and Kitchen Classics--are being charged with violating a previous stop work order by going back to work without clearence by the DOL.

The project has come under intense criticism in Stamford, where citizens feel the developer and oher companies based in Harbor Point has been given too much control with little or no oversight. Union carpenters have started an online petition calling for Stamford Mayor Michael Pavia to step in and give residents more of a voice. Please read and consider signing the petition here.

Durham Carpenters to be paid
Posted by NERCC on February 09, 2012 at 09:02 AM

Carpenters who were cheated of tens of thousands of dollars in wages reached a settlement with Capstone Development and Cottage Builders yesterday to receive their pay. The companies are the owners and developers of the “Cottage of Durham,” an upscale housing project where the carpenters were employed. It will serve students attending the University of New Hampshire.

The carpenters solicited help in getting their pay after their employer, Builders Construction Services of Alabama, refused to pay them and then fired them and evicted them from company-provided housing when they asked for their wages.

The Carpenters union and local church, student and community groups supported the carpenters, holding a high profile march and demonstration last week. The event garnered significant local and regional media attention (link) that put Capstone under a public spotlight and raised questions about other troubles the Alabama-based company has had with college housing projects, including one in Connecticut.

“We’re happy that these carpenters are finally going to be paid,” said Joe Donahue a representative of the Carpenters Union in New Hampshire. “Wage theft is a real problem in the construction industry right now. It drives down industry standards and drives qualified people out of the industry. Capstone and other developers and general contractors need to be held accountable for the subcontractors they hire. They should implement better controls and have severe penalties for members of their building teams who break the law.”
 

 

Stamford developer still in hot water
Posted by NERCC on February 01, 2012 at 10:38 AM

Despite trying to pack the hall with its own supporters, a Stamford developer still faced a tough room last night in a Zoning Board meeting to discuss its future plans and ongoing zoning violations (also here) at their Harbor Point project. Building and Land Technology (BLT) has come under fire for its choice of subcontractors, labor violations on its projects and contributing to industry-wide issues targeted by enforcement agencies.

The seriousness of the issues at Harbor Point is compounded by the seeming lack of interest and/or ability of Stamford Mayor Michael Pavia.

Carpenters to support unpaid workers in Durham
Posted by NERCC on February 01, 2012 at 10:24 AM

Union carpenters will join with church, student and community groups to hold a news conference today at 3pm at the Community Church of Durham (NH) at 17 Main Street to release information about serious violations of state and federal law--including non-payment of wages--at the "Cottages of Durham." The "Cottages of Durham" is a new student housing development for students of the University of New Hampshire. It is being developed by Capstone Development/The Cottages of Durham.

Please read this and consider visiting the Cottages of Durham Facebook page and politely ask them to do right by these workers.

Construction workers at the Cottages of Durham describe multiple and flagrant violations of state and federal labor law.

These workers say that they worked long hours for many weeks without pay. When they complained about nonpayment of their wages, they were terminated and evicted from their housing.

Union carpenters stand in solidarity with these exploited workers and demand that Cottages of Durham/Capstone Development promptly pay these workers what they are owed in wages and overtime.

Area Standards Demonstration: Continental Contractors/Radisson
Posted by NERCC on January 31, 2012 at 12:40 PM

Carpenters in Boston will be holding an area standards demonstration on Thursday, February 1 from 11a-1p against Continental Construction. The company, which has been hired for renovation work at the Radisson Hotel does not meet area standards for carpenters' wages and benefits on all of its projects. The demonstration will take place at the Boston Radisson, located at 200 Stuart Street.

Area Standards Demonstration: Baystate/Marriott
Posted by NERCC on January 31, 2012 at 10:07 AM

Carpenters in Boston will be holding an area standards demonstration on Tuesday, January 31 from 3-5pm against Baystate Services, Inc. The demonstration will take place at the Marriott Copley Place on Huntington Avenue.

More information about Baystate and Marriott Copley Place.

Pulte subs ordered to pay more than $500k
Posted by NERCC on January 18, 2012 at 02:43 PM

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.”

Murphy winning favor among CT Carpenters
Posted by NERCC on January 12, 2012 at 10:39 AM

As he campaigns to move from the United States House of Representatives to the Senate this year, Connecticut's Chris Murphy has been renewing and strengthening his relationship with union carpenters. Murphy was recently endorsed by the Working Families Party and hit the streets to push for more infrastructure fudning.

Murphy recently attended an event in New Milford with union carpenters other trades workers and construction employers highlight the need to fund repairs to the structurally deficient Veteran's Bridge and other neglected structures. The project would provide an economic boost through job creation. It would also start to tackle major infrastructure deficiencies that are dangerous, stifle growth and lead to more costly repairs later.

Funding to repair the Veteran's Bridge in New Milford is in place, but proposed cuts could lead to eliminating commitments to many projects, including the Veteran's Bridge, according to an article by the Danbury News-Times.

Local 24 Carpenter and Representative Chris Bachant is quoted in the article supporting Murphy's efforts to fudn more infrastruture construction, especially if local workers can made the beneficiaries.

Chris Bachant, a Waterford resident and union carpenter who was one of several dozen people to attend the event, said "things are very tough right now" in the construction industry.

"It's fantastic what Murphy is promoting," Bachant said. "But I think we need to go one step further and make sure that local people are hired for these jobs."

A recent bridge construction project near his home, Bachant said, was awarded to a company from Minnesota.

The entire story can be read here.

Obama bringing construction industry good news tonight?
Posted by NERCC on September 08, 2011 at 12:00 AM

The Boston Globe on Obama's speech tonight.

"Obama is likely to offer a package of ideas that would affect people in their daily lives -- tax relief, unemployment insurance, spending to support construction jobs, aid to states to keep people in their jobs."
.....
"White House officials said Obama would formally send his plan -- coined by the administration as the American Jobs Act -- to Congress next week."
.....
"In one upbeat sign for those looking for a Washington compromise, Boehner and House Majority Leader Eric Cantor have told Obama they see potential areas of agreement on jobs -- for example, infrastructure, which Obama has pushed repeatedly. Cantor also signaled to reporters Wednesday that he might support a payroll tax cut."

Globe goes beyond construction employment numbers
Posted by NERCC on August 17, 2011 at 12:00 AM

The Boston Globe this weekend ran a piece that scratched just a bit beyond the surface of unemployment in the construction industry. Local 56 Pile Driver Barry Beaudoin and Local 40 Carpenter Vionet Montano were interviewed for the article, as was NERCC Executive Secretary-Treasurer Mark Erlich.

More construction jobs coming to Boston
Posted by NERCC on August 05, 2011 at 12:00 AM

Construction will begin next week on "The Victor" an 11-story residential building near the Boston Garden that is being developed by the Simpson Housing, a Denver-based company. Suffolk Construction is the Construction Manager on the project.

Scheduled for occupancy in early 2013, the $140 million project will be home to 286 luxury apartments, 138 parking spaces and 17,000 square feet of retail space on the first floor. The project has been "on the books" for four years, according to a story by Brendan Lynch in the Boston Herald. Casey Ross, of the Boston Globe, also has details on The Victor and other potential developments in the neighborhood.

The Globe also features an array of projects in and around Boston that could be starting soon, though some are in the very early stages of planning or seeking funding.

Encouraging signs in Boston
Posted by NERCC on July 11, 2011 at 12:00 AM

The Boston Globe reports that construction could be experiencing a slight bounce.

Developers across the Boston area are moving forward with a number of large construction projects that were stalled by the recession, creating thousands of jobs and ending one of the state’s most prolonged building slumps.
~~~~
But the impact on jobs will not be immediate, as many developers still must clear other obstacles before starting construction. And while some projects are moving forward, many others remain stalled or are barely inching forward, leaving union leaders skeptical that the recovery will proceed fast enough to help the long-term unemployed.

“I’ve been at a number of groundbreakings where pictures are taken and the right things get said, but then nothing happens,’’ said Mark Erlich, executive secretary of the New England Regional Council of Carpenters. “The iceberg is melting, but icebergs melt slowly.’’

Materials costs going up
Posted by NERCC on February 23, 2011 at 12:00 AM

Contractor survey says increase in materials costs may offset financial gains from improvement in industry this year.

Construction lending on the rise
Posted by NERCC on February 23, 2011 at 12:00 AM

The Wall Street Journal (subscription required) reports a significant increase in construction lending by major institutions, which is getting stalled projects back underway.

An influx of fresh capital into U.S. commercial real estate is bringing some long-stalled development projects back to life and launching new construction of apartments, office buildings and shopping centers.

The moves show that the industry, in a deep slump just a year ago, has entered recovery mode—at least in the nation's largest and healthiest markets. Analysts say the improved economy is giving rise to pockets of demand for new commercial space, while low yields on other investments prompt investors to seek higher returns in real estate.

The nascent turnaround comes even though many U.S. banks still are slogging through billions of dollars in bad commercial-real-estate loans, a big cause of bank failures. Still, some of the largest U.S. banks are tiptoeing back into commercial real estate.

J.P. Morgan Chase & Co. financed as much construction lending in the first six weeks of 2011 as the nation's second-largest bank by assets did in all of last year.

Follow up from Fox 5 in Georgia
Posted by NERCC on February 22, 2011 at 12:00 AM

The Local Fox affiliate in Georgia that ran a piece about illegal immigrants being hired to work on public school projects in that state has run a follow-up. The second piece focuses on a group of more than 50 workers who were not paid for work they performed for a masonry contractor.

I-Team: Hiring Illegal Immigrants Pt. 2: MyFoxATLANTA.com

Schools, GCs play "hear no evil, see no evil..."
Posted by NERCC on February 17, 2011 at 12:00 AM

I-Team: Hiring Illegal Immigrants: MyFoxATLANTA.com

A Fox station in Georgia--and Georgia workers--take up some of the same issues NERCC has been working on. In this case it is immigrant workers building public schools without any attempt to verify their status. This is despite laws in Georgia requiring the use of the federal e-verify system.

The workers are not hired by the general contractor or even a subcontractor. They're brought in by a subcontractor to a subcontractor and are each paid as so-called "independent contractors" themselves.

When the reporter confronts the general contractor--the one who celebrates their winning low bid and will brag about the project's completion at the end--they shrug and claim to not know and not be responsible. The subcontractor doesn't respond to requests for information.

So who's responsible for the project and the laws being broken on them in the name of lowering the project cost? Whether it's the employment of undocumented workers or the classification of workers to cheat the government out of revenue and the workers out of basic protections, there are crimes being committed. The victims of the crimes are:
--The people in the industry who play by the rules and, therefore, can't compete.
--Workers who can't get jobs because they won't give up their protections and can't afford to work for what illegal immigrants do.
--Entire communities, which must struggle with budget crisis's exacerbated by cheating employers.

Bad news, good news
Posted by NERCC on February 14, 2011 at 12:00 AM

Banker and Tradesman details the January construction jobs numbers released by the Associated General Contractors and they are not good.

Unemployment in the industry nationwide rose from December to January, to 22.5%, with the loss of 32,000 jobs. The story noted that:

"...the industry's job losses came from the nonresidential construction sector, which lost 35,300 jobs between December and January, while the residential sector added 3,500 jobs. Nonresidential specialty trade contractors were hardest hit, losing 21,000 jobs. Heavy and civil engineering construction lost 7,000 jobs."

On the other hand, the Wall Street Journal has surveyed economists who now think 2011 looks better than previously thought.(subscription required). According to the survey of 51 economists, growth in the 4th quarter gross domestic product is expected to rise by 3.5% compared to last year, up from last month's estimates of 3.3%.

They rate the risk of returning to a recession at 12%, down from 22%.

The industry comes together
Posted by NERCC on February 09, 2011 at 12:00 AM

As cities, towns and states continue to feel the pinch from lean budgets, some are getting wise to the fact that cracking down on tax cheats could provide some relief. And businesses are jumping on board with an eye toward maintaining fairness in competition.

ConstructionCitizen.com leads us to a an article about just such a coalition in California.

ConstructionCitizen.com looks to be a valuable resource for those in the construction industry looking to stay up-to-date on the latest labor-management-owner efforts to promote honesty, fairness and training in the construction industry. Their website lists the following description:

We are owners, contractors and craftspeople who share the mission to advance a socially responsible, sustainable, value added construction industry.

As owners, we value social responsibility and sustainability as strategically important for our projects, for our image in our communities and for the long term success and return on investment of our businesses.

As contractors and subcontractors, we value the competitive advantage and business growth we can gain by supporting a constantly improving and sustainable workforce as a foundation for delivering superior value and quality to our clients.

As craftspeople, we value developing our skills and a long term career path that is rewarding and satisfying and with which we can be productive and respected as members of one of our nation's most vital industries.

Check them out.

AGC, contractors optimisitc for 2011
Posted by NERCC on January 31, 2011 at 12:00 AM

The Quincy Patriot Ledger yesterday published a story about prospects for the construction industry in 2011, featuring optimistic views by contractors.

Among those quoted were Lee Kennedy, CEO of Lee Kennedy Co:

“The public (projects) have been carrying the ball for the last two years, but people seem to be more confident on the private side,” CEO Lee Kennedy said. “We’re expecting there is going to be job improvement, and we think that’ll translate into some additional office space.”

State-by-state job numbers
Posted by NERCC on January 31, 2011 at 12:00 AM

While AGC contractors are cautiously optimistic about job growth in the construction industry for the coming year, the last year has been one of mixed results in New England. According to numbers presented by the AGC from the Bureau of Labor Statistics, seasonally adjusted, three of the six New England states experienced modest job growth in the construction industry. Two states saw continued job loss, while Vermont remained largely unchanged.

By adding 800 jobs, New Hampshire's 3.6% increase in construction jobs put it 5th in the country. Massachusetts and Maine were 12th and 13th respectively. Rhode Island saw the loss of 1,200 construction jobs, making its performance 44th in the nation.

Here are the percentage job gains/losses for the New England states in the 12 months ending December 2010. The full table of 50 states is available here.

Connecticut: -4.9%
Maine: +0.8%
Massachusetts: +1.2%
New Hampshire +3.6%
Rhode Island: -7.1%
Vermont: 0%

2011 Construction Forecasts Mixed
Posted by NERCC on January 03, 2011 at 12:00 AM

2011 construction forecasts mixed
As the calendar turned from 2010 to 2011 over the weekend, reporters and columnists covering the Boston area construction market began making their predictions for what the new year will hold. The consensus? There was none. Opinons ranged from essentially a repeat of 2010 to a prediction of a significant turnaround. The good news--if it can be called that--is that nobody seemed to think things would get worse.

Scott VanVoorhis paints the rosiest picture, in Banker and Tradesman, under a headline that says "2011 Should Be A Breeze." (subscription required) Vanvoorhis points to a potential doubling of the size of the Boston Convention and Exhibition Center as well as a probable resolution to the fight over legalizing casino gambling in Massachusetts. Unfortunately, neither is likely to generate many--if any--work hours for carpenters in 2011.

More likely to generate actual work this year, according to VanVoorhis, are older projects that have been shelved in recent years. Plans for multi-unit housing projects could be rolled out as rental properties rather than condos and increased overall economic improvements could lead to more office build-outs in 2011 and the return of some dormant plans for new office towers in 2012.

Another piece in Banker and Tradesman, (subscription required) however, cites mixed results from surveys that indicate modest growth, simliar to what was seen in 2010 for most segments.

The Boston Herald says the industry will get a boost from area colleges and universities. Northerastern University, Berklee College of Music, Wentworth Institute of Technology and Boston College all have plans to build significant projects his year. The building boom among the colleges and universities is due in part to endowments that have significantly recovered and constant competition to upgrade facilities.

The Boston Globe strikes a cautiously optimistic tone, calling for a gradual increase in activity throughout 2011, citing large projects by Liberty Mutual and Novartis AG. They also point to a continued move toward rental property building in and around Boston.

Reason for optimism?
Posted by NERCC on September 20, 2010 at 12:00 AM

An article in the Boston Business Journal last week indicated that an increased volume of filings with the Boston Redevelopment Authority is fueling some hope for increased building in the future.

BRA approval is necessary for most project approvals within the City. The agency expects to review 57 proposals before the end of 2010, about what it reviewed in 2007 and up from significantly from the 23 it reviewed last year, according to the BBJ.

While not all projects presented to the BRA end up being built, the significant increase may indicate developers are feeling more comfortable about moving their projects forward.

Prompt Pay bill passes in Mass
Posted by NERCC on August 19, 2010 at 12:00 AM

Massachusetts made it easier for construction subcontractors to collect payments for work completed this week when it passed into law a “prompt payment” bill. Under the law, schedules will be set for the timely billing and payment of money to subcontractors. If the schedule is not met, bills submitted by subcontractors will be considered conditionally approved.

The law will cover all private construction projects valued at more than $3 million. Public projects are already subject to such requirements.

The New England Regional Council of Carpenters was joined by the Building and Construction Trades and subcontractor associations in lobbying for the bill’s passage to protect smaller companies who struggle to keep cash flow going when payments for work are withheld.

Massachusetts is the 33rd state to enact such a law.

McCarron visits the Carpenters Center
Posted by NERCC on August 04, 2010 at 12:00 AM

UBC General President Douglas McCarron was in Boston today with General Secretary-Treasurer Andy Silins and ITC Director Bill Irwin to meet with AGC member contractors from throughout New England. McCarron and Operating Engineers General President Vincent Giblin have been regularly meeting with AGC members around the country to talk about the National Construction Alliance.

While he was here, we got a chance to ask the General President a few questions about the NCA, the UBC and the future of the construction industry.

Construction activity at UMass campuses
Posted by NERCC on July 26, 2010 at 12:00 AM

The Boston Globe did a story over the weekend about the aggressive building program at the University of Massachusetts, state-wide. While projects all over the state are stalled or canceled--including a major Harvard development--UMass is going full steam ahead.

NERCC's Mark Erlich is quoted in the piece.

Mass trying to kickstart development
Posted by NERCC on May 06, 2010 at 12:00 AM

From today's Boston Globe.

Governor Deval Patrick will spend up to $200 million in state funds this year to get 50 building projects around Massachusetts off the ground, hoping the money will lead to thousands of jobs for the moribund construction sector and significant additional economic activity.

The money, a mix of already budgeted and new funding, will support construction of hundreds of new homes, stores, and offices.

Among the projects are a 17-acre shopping complex in New Bedford, a new medical office building in Hingham for South Shore Hospital, and an expansion of offices at MathWorks, a Natick software maker.

Patrick’s chief economic development aide, Gregory Bialecki, predicted the government aid will result in an additional $1 billion in spending by private developers.

A map and short list of projects that have already gotten underway are available at the website for the Executive Office of Housing and Economic Development.