Home Back Issues September 2011 Carpenters union attacks wage fraud

Carpenters union attacks wage fraud

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Articles - September 2011
Wednesday, August 24, 2011
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0911_UndergroundFight_02
Juan Sanchez hands his business card to a non-union carpenter on the job. The carpenters union often helps non-union workers to pursue workplace grievances and back wages.
// Photo by Anthony Pidgeon

Union officials say the exploitation of undocumented Latino labor to cut building costs has become increasingly commonplace amid the desperation. The union that has taken the most aggressive stance on the issue locally has been the carpenters union, using tactics that are not popular with some other unions. The carpenters union was founded in 1881 and has about 520,000 members nationally with 4,600 in Oregon and 19,600 in the Northwest.

Sanchez and his union colleagues have labor disputes with a half dozen local contractors for allegedly shepherding undocumented workers to job sites, cheating workers out of their pay, refusing to pay overtime, threatening those who complain, and running various schemes to evade taxes, win bids through payroll fraud and collect undue unemployment checks. One Oregon contractor they recently targeted, Stephen Nagy, pleaded guilty on July 29 to antitrust and racketeering charges for rigging the bid process for a $24 million Pearl District construction process, fraudulently altering pay stubs and ripping off the state for more than $100,000 in unemployment funds. One of Nagy’s companies, ASM Drywall, was forced by the Bureau of Labor and Industries in June to pay $36,519 in back wages to 40 workers with Hispanic surnames, plus $89,280 in penalty wages and $36,720 for civil penalties. Nagy has been banned from the construction industry in Oregon for 20 years.

Both the criminal prosecution and the back wages judgment against Nagy resulted from underground investigations by local members of the carpenters union. According to a key affidavit filed in the Nagy case, an undercover union member serving as a confidential informant collaborated with an investigator from the Department of Justice to document the wrongdoing. The informant even set up a company with Nagy to bilk the government for $45 an hour in labor while paying workers $15 per hour in cash.

The Nagy investigation followed the 2008 conviction of a Marion County labor broker named Maurilio Vega for racketeering and ducking $8 million in taxes. Vega received $25 million in checks from drywall contractors and paid crews of mostly undocumented Latino workers in cash, to launder money and enable contractors to evade taxes and save on workers’ compensation and labor costs.



 

Comments   

 
Donny1020
0 #1 ReallyDonny1020 2011-09-06 13:11:18
No doubt that some of the work that the Carpenters perform is of value but it needs to be pointed out that:
the carpenters not only shut down one Local in Portland but all Locals throughout Oregon, Washington, Montana, etc.. There was a claim of finical mismanagement with our Portland Local but these charges were never substantiated and were simply an excuse to throw Pete Savage out of office. If those charges were true why did the Carpenters fail to turn the information over to the Department of Labor as required by law?

As for paying workers in cash, if one looks at the PNWRCC's LM2 reports you will not find one of people hired to protest listed as required by law. These employees of the Regional Council are required under the Landgrum Griffen Act to be report, the only way around that is to pay them in cash.

Over the past five years the Regional Council has been the only labor group cited by the Department of Labor for failing to pay their employees minimum wage and overtime. The Regional Council also settled out of court with Hoffman Construction for unlawful coercion and intimidation. The Carpenters also settled out of court with another Northwest developer in Tacoma Washington for more than $10 million for illegal intimidation and coercion. This is money that came directly out of the members pockets to pay for the mistakes of hired staff such as Tweedy,Little, Prindle, and Matta.

The Regional Council routinely cuts sweetheart deals behind the backs of the membership with employers allowing employers to circumvent the standard area agreement. The majority of these workers are Latino and looked on as second class members in the Regional Council.

Most recently the Carpenters, and their partners the Operators, developed a scheme in conjunction with high profile employers to break the Longshore Union's strike in Longview Washington. The Carpenters and Operators are planing to use this favor to Kewit/General to out maneuver and minimize the Cement Finisher and the Laborer in next years negotiations with the AGC. The Carpenters master plan is eliminate all other groups leaving the Carpenter as the exclusive organization in the construction field.

The members no longer have a say, we no longer have the right to vote on Business Representatives and when we turned down our contract, Doug Tweedy and John Little were at this meeting, we were told that our vote didn't mean anything and that "leadership" would be telling us what's best from now on.

So this is the real story, you won't get the truth from the staff because truth is no longer in their vocabulary.
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freddie
0 #2 Give us a break UBC HYPOCRITSfreddie 2011-09-07 08:58:37
Most of us in the carpenters union are not working and you mention in this article about your passion.Where is your passion for the membership? Why do you guys give deals different to our agreement to other cheater employers that hurt our signatory companies? Why have you abandoned your employers and your membership? We are tired of guys like Sanchez acting like he actually cares when all he cares about is taking orders and keeping his job. We are tired of guys like Matta saying he is passionate about cheaters and crooks when off the record he would cut a deal with them in a heartbeat. We are tired and our numbers are growing. Even though our union, which really isn't a union anymore, has taken the democracy away from us we have options. The option many of us have been talking about is the option that our brother's and sister's in New York and Jersey have done, start are own carpenters union. We are not proud union carpenters anymore and we are ashamed of our leadership. This article makes us sick.
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Short Nailer
0 #3 Carpenter Union a jokeShort Nailer 2011-09-07 10:06:29
Interesting comments above. The Carpenters union will gladly hold out their hand for my union dues and they have no work, dont promote themselves and are just "pre-vail" [blocked]es. Always want a prevail job..... pathetic.

Dont forget Eric Franklin.... clueless in Seattle. The article is typical "media" BS just look behind the scenes and connect the dots. They should interview carpenters who aren't suck-asses !!!
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Squished Like A Pancake
0 #4 Wage and Hour SteamrollerSquished Like A Pancake 2011-09-19 13:45:12
Not pertaining to the union or prevailing wage, there appears to be a lack of supervision into the investigative practices of the W&H Division. In my opinion, employers are guilty until proven innocent. If it is a small business, especially in these troubled times, most likely cannot afford to hire an attorney to prove the company is innocent. As a state agency, the bureau employees are public servants. Yeah, right. Again, in my opinion, W&H employees are on a money-hungry power trip and are rude, ruthless, and out of control. One, and only one, person employed there was civil and actually listened. This person told me, in regard to the investigations unit authority to issue a formal complaint, "(they) are supposed to have investigated the claim first." , There is more, MUCH more. Once again,it is my opinion th system has run-amok.
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