Members will be rallying at an assisted living facility in Hanover, New Hampshire on Friday to kickoff a public education campaign in the area about Kal-Vin/GNPB/Northrock Construction. Kal-Vin, one of the names used by the collection of companies run out of the same office, is doing work at Kendal at Hanover, an assisted living facility owned and operated by the Kendal Corporation of Pennsylvania. Bannering by members will continue at the facility daily for several weeks.
Members will meet in front of the facility at 8am on Friday, July 31. The facility is located at Hanover-80 Lyme Road, in Hanover. Directions are as follows:
From Southeast or Northwest of Hanover:
Take I-89 to the Lebanon-Hanover/Dartmouth College exit (#18).
Turn onto Route 120 North and follow it until the road branches (at the light). Stay on Route 120 (straight ahead) all the way to the intersection with Route 10. Take a right onto Route 10 North and follow it for approximately 2 miles. Kendal at Hanover will be on your left.
From Southwest of Hanover:
Take I-91 to that Norwich, VT/ Hanover, NH-Dartmouth College exit (#13). Turn right and cross the bridge into Hanover, which will bring you to the Dartmouth Green. Go left at the far corner of the Green (across from the Hopkins Center) onto Route 10 North. Follow Route 10 North for approximately 2.5 miles from the Green. Kendal at Hanover will be on your left.
If you have any questions or problems please call Marty Coyle or Frank SantaFe.
Thursday, July 30, 2009
Monday, July 27, 2009
More workers' comp fraud, cheating workers on OT...
From the Massachusetts Attorney General's Office. Full release here.
BOSTON - A Winchester construction and demolition company was arraigned and pled guilty in Charlestown District Court on July 22, 2009, in connection with failing to properly pay their employees, failing to pay the proper premium for its workers’ compensation insurance policy, and failing to provide true and accurate payroll records. P & R Partners Construction Inc. (P & R) pled guilty to charges of Workers’ Compensation Fraud, Failure to Pay Overtime, and Payroll Records violations. In addition, the company’s owners and officers, Elienai Coelho, age 30, of Stoneham, and Rodrigo Silva, age 29, of Medford, admitted to sufficient facts for Failing to Pay Overtime and Failing to Provide True and Accurate Payroll Records. After the plea was entered, District Court Judge Mark H. Summerville ordered Coelho, Silva and P & R to pay over $54,000 in restitution to 51 former employees, $50,000 in restitution to the insurance company, and a $30,000 fine to the Commonwealth. Judge Summerville also placed Coelho and Silva on probation for a period of one year.
Lincoln School project leaves something to be desired regarding apprentice training
New Bedford Standard Times
Jack Spillane
July 26, 2009
When the national economy goes into the kind of coma it's in now, New Bedford, of course, goes on life support.
And the kind of good-paying jobs that used to be present at construction sites become like defibrillator paddles in an emergency room. There's no shortage of out-for-the-count bodies who want their turn at those paddles.
Which brings me to the situation at the work site for the new Lincoln Elementary School in the North End.
The carpenters union, the contractor and the city of New Bedford have all been competing for the best deal on the Lincoln jobs since the bids for the $20 million project were opened back in April.
But they've yet to come to an agreement that will guarantee that local men and women can obtain all the benefits possible from those defibrillator paddles, er ... job opportunities.
Yes, the Lincoln is a prevailing-wage job site, and yes, the Lang administration — after some earlier failures on hiring local people for other city projects — has succeeded in reserving 90 percent of the Lincoln jobs for locals.
But once again, the city failed to live up to its Responsible Employer Ordinance and didn't require the winning bidder, CTA Construction Inc. of South Boston, to demonstrate that it could run apprenticeship programs at Lincoln. Those programs would train unskilled city residents for a future share of local carpentry, iron work and manual labor available at construction jobs.
Attorney General Martha Coakley's office earlier this month called out the city for not complying with its own employer ordinance and ordered it to call CTA back in. She now wants CTA, or whatever contractor finishes the project, to demonstrate it has the required apprenticeship programs. Otherwise, it has ordered New Bedford to give the jobs to one of the other bidders that does run apprenticeships.
The Lang administration says it cares about the apprenticeship program and training local people for future jobs. But it also cares about making its September 2010 deadline for opening the school.
It seems to be looking for a way to keep CTA — which union officials say has a horrible reputation as a labor-friendly employer — staying on the job even though the company has not traditionally always used subcontractors with apprentice programs.
"They were the low bidder. We're going to have to try to work with them," said Mayor Scott Lang.
That doesn't sit right with Ron Rheaume, the Fall River business manager for Local 1305 of the New England Regional Council of Carpenters.
He said that in order to comply with the rules of its ordinance, the city can't use a contractor on the Lincoln school that did not have an apprenticeship program to begin with and that an attempt by Simmons Concrete, a New Bedford CTA subcontractor, to start an apprenticeship program now is too late.
Rheaume asked why a supposedly labor-friendly city is dealing with what he calls an anti-union shop.
"There should be trades there working, the carpenters, the laborers, the iron workers," he said.
On the one hand, the mayor said he has confidence in school business manager Larry Oliveira and purchasing agent Debra Travers, who awarded the contract to CTA, the lowest bidder by just $160,000. But on the other hand, he said CTA should be working with the carpenters' union because the unions have the best contacts with subcontractors who have apprenticeship programs.
CTA has not returned phone calls on the issue.
Meanwhile, a longtime critic of the city's contracts, John "Buddy" Andrade, has begun working with CTA's principal subcontractor, Simmons Concrete, to start an apprenticeship program.
Rheaume said he's worried that the nonunion subcontractor will use Andrade's program to misclassify higher-paid carpenters as lower-paid laborers. He's requested payroll records in an effort to prove it and force CTA out of the job.
"This is not a joke. That's what they're turning this into: a joke," he said, contending that contractors who avoid union shops have brought wages and working conditions crashing in the construction industry.
For his part, Andrade said the attorney general has proved what he has been saying for 11 years: The city of New Bedford is not complying with its REO. "This is a big victory for the community, especially the young workers who are looking for that (training) opportunity."
Lang, who has received union support in his mayoral campaigns, said that if he were CTA, he would work with the unions. They have the most experience running apprenticeship programs. But with CTA locked in a three-year struggle with the carpenters over unionization of their shop, there doesn't seem much chance of that.
Meanwhile, this whole struggle to run apprenticeship programs leaves me wondering when it became so difficult for a union to find work on government jobs in an old-time union city like New Bedford.
It's a new world out there. And a new economy.
And it's not labor-friendly.
To comment on this article on the New Bedford Standard Times' website, click here.
Many news sites allow readers to post comments about a story. Reader comments may appear beneath the story with a form for submitting more comments. Members are encouraged to use this feature and express their feelings about stories they read online concerning union and construction issues. Remember these are public forums, so be direct, but respectful of others. Site editors do reserve the right to remove comments they find objectionable.
Jack Spillane
July 26, 2009
When the national economy goes into the kind of coma it's in now, New Bedford, of course, goes on life support.
And the kind of good-paying jobs that used to be present at construction sites become like defibrillator paddles in an emergency room. There's no shortage of out-for-the-count bodies who want their turn at those paddles.
Which brings me to the situation at the work site for the new Lincoln Elementary School in the North End.
The carpenters union, the contractor and the city of New Bedford have all been competing for the best deal on the Lincoln jobs since the bids for the $20 million project were opened back in April.
But they've yet to come to an agreement that will guarantee that local men and women can obtain all the benefits possible from those defibrillator paddles, er ... job opportunities.
Yes, the Lincoln is a prevailing-wage job site, and yes, the Lang administration — after some earlier failures on hiring local people for other city projects — has succeeded in reserving 90 percent of the Lincoln jobs for locals.
But once again, the city failed to live up to its Responsible Employer Ordinance and didn't require the winning bidder, CTA Construction Inc. of South Boston, to demonstrate that it could run apprenticeship programs at Lincoln. Those programs would train unskilled city residents for a future share of local carpentry, iron work and manual labor available at construction jobs.
Attorney General Martha Coakley's office earlier this month called out the city for not complying with its own employer ordinance and ordered it to call CTA back in. She now wants CTA, or whatever contractor finishes the project, to demonstrate it has the required apprenticeship programs. Otherwise, it has ordered New Bedford to give the jobs to one of the other bidders that does run apprenticeships.
The Lang administration says it cares about the apprenticeship program and training local people for future jobs. But it also cares about making its September 2010 deadline for opening the school.
It seems to be looking for a way to keep CTA — which union officials say has a horrible reputation as a labor-friendly employer — staying on the job even though the company has not traditionally always used subcontractors with apprentice programs.
"They were the low bidder. We're going to have to try to work with them," said Mayor Scott Lang.
That doesn't sit right with Ron Rheaume, the Fall River business manager for Local 1305 of the New England Regional Council of Carpenters.
He said that in order to comply with the rules of its ordinance, the city can't use a contractor on the Lincoln school that did not have an apprenticeship program to begin with and that an attempt by Simmons Concrete, a New Bedford CTA subcontractor, to start an apprenticeship program now is too late.
Rheaume asked why a supposedly labor-friendly city is dealing with what he calls an anti-union shop.
"There should be trades there working, the carpenters, the laborers, the iron workers," he said.
On the one hand, the mayor said he has confidence in school business manager Larry Oliveira and purchasing agent Debra Travers, who awarded the contract to CTA, the lowest bidder by just $160,000. But on the other hand, he said CTA should be working with the carpenters' union because the unions have the best contacts with subcontractors who have apprenticeship programs.
CTA has not returned phone calls on the issue.
Meanwhile, a longtime critic of the city's contracts, John "Buddy" Andrade, has begun working with CTA's principal subcontractor, Simmons Concrete, to start an apprenticeship program.
Rheaume said he's worried that the nonunion subcontractor will use Andrade's program to misclassify higher-paid carpenters as lower-paid laborers. He's requested payroll records in an effort to prove it and force CTA out of the job.
"This is not a joke. That's what they're turning this into: a joke," he said, contending that contractors who avoid union shops have brought wages and working conditions crashing in the construction industry.
For his part, Andrade said the attorney general has proved what he has been saying for 11 years: The city of New Bedford is not complying with its REO. "This is a big victory for the community, especially the young workers who are looking for that (training) opportunity."
Lang, who has received union support in his mayoral campaigns, said that if he were CTA, he would work with the unions. They have the most experience running apprenticeship programs. But with CTA locked in a three-year struggle with the carpenters over unionization of their shop, there doesn't seem much chance of that.
Meanwhile, this whole struggle to run apprenticeship programs leaves me wondering when it became so difficult for a union to find work on government jobs in an old-time union city like New Bedford.
It's a new world out there. And a new economy.
And it's not labor-friendly.
To comment on this article on the New Bedford Standard Times' website, click here.
Many news sites allow readers to post comments about a story. Reader comments may appear beneath the story with a form for submitting more comments. Members are encouraged to use this feature and express their feelings about stories they read online concerning union and construction issues. Remember these are public forums, so be direct, but respectful of others. Site editors do reserve the right to remove comments they find objectionable.
Thursday, July 16, 2009
City must enforce Responsible Employer Ordinance
The Massachusetts Attorney General’s office ruled that the city of New Bedford must enforce its Responsible Employer Ordinance in response to a bid protest filed by the New England Regional Council of Carpenters. The NERCC filed a bid protest at the Lincoln Elementary School project, charging that the winning bidder, CTA Construction, did not have the required registered apprenticeship training program and had not demonstrated that the subcontractors they would hire had them either.
The AG’s office told the city that it should provide a “reasonable period of time” for all the general contractor’s who submitted bids for the construction project to supply documentation of their apprenticeship programs. Once this information is provided, the city can evaluate which contractor will be awarded the project. The contract must be rebid if none of the contractors can meet the apprenticeship requirement.
NERCC Organizers have been working to shine a light on CTA, specifically their history of hiring substandard subcontractors. Organizers have discovered a multitude of CTA projects with repeated prevailing wage violations and numerous labor law violations, including failure to file true and accurate payroll records, misclassification of independent contractors, and cash under-the-table payment to workers.
There are many CTA subcontractors that have been cited by the Attorney General’s office. Two recent stories published on NERCCBlog.com include Phat’s Hardwood Floor and Garcia Drywall.
To check out the New Bedford Standard Times’ coverage of the Lincoln Elementary school project, click here.
Many news sites allow readers to post comments about a story. Reader comments may appear beneath the story with a form for submitting more comments. Members are encouraged to use this feature and express their feelings about stories they read online concerning union and construction issues. Remember these are public forums, so be direct, but respectful of others. Site editors do reserve the right to remove comments they find objectionable.
The AG’s office told the city that it should provide a “reasonable period of time” for all the general contractor’s who submitted bids for the construction project to supply documentation of their apprenticeship programs. Once this information is provided, the city can evaluate which contractor will be awarded the project. The contract must be rebid if none of the contractors can meet the apprenticeship requirement.
NERCC Organizers have been working to shine a light on CTA, specifically their history of hiring substandard subcontractors. Organizers have discovered a multitude of CTA projects with repeated prevailing wage violations and numerous labor law violations, including failure to file true and accurate payroll records, misclassification of independent contractors, and cash under-the-table payment to workers.
There are many CTA subcontractors that have been cited by the Attorney General’s office. Two recent stories published on NERCCBlog.com include Phat’s Hardwood Floor and Garcia Drywall.
To check out the New Bedford Standard Times’ coverage of the Lincoln Elementary school project, click here.
Many news sites allow readers to post comments about a story. Reader comments may appear beneath the story with a form for submitting more comments. Members are encouraged to use this feature and express their feelings about stories they read online concerning union and construction issues. Remember these are public forums, so be direct, but respectful of others. Site editors do reserve the right to remove comments they find objectionable.
Company underpays workers’ comp, charged with fraud
Paul McKunes, from Holliston, MA, and his business M&M Equipment Services, Inc. were arraigned in Middlesex Superior Court on charges they allegedly provided inaccurate payroll information to their insurer and payroll administrator to secure a lower workers’ compensation insurance premium and to avoid paying the full amount of unemployment insurance and state income tax. The charges include Unemployment Fraud (10 counts), Failure to Withhold State Income Tax (31 counts), Workers’ Compensation Fraud (3 counts), and Larceny Over $250 (3 counts).
The Insurance Fraud Bureau of Massachusetts (IFB) referred the case to the Attorney General’s Office in September 2008 after an investigation into the company’s payroll and an insurance claim filed by an M&M employee who was allegedly not on the company payroll. According to authorities, McKunes and M&M purchased workers’ compensation insurance from Atlantic Charter Insurance Company (Atlantic) for the policy years from September 2002 to September 2005. Authorities allege that in an effort to obtain a lower workers’ compensation premium, McKunes and M&M underreported its actual payroll by not reporting payments to undisclosed employees and not reporting overtime compensation.
Gross payroll (whether by cash or check) is an integral component in the calculation of a workers’ compensation policy premium. According to authorities, this matter was referred to IFB for investigation after an auditor from Atlantic discovered corporate tax returns filed by McKunes and M&M for nearly $400,000 in payments to subcontractors, which were not disclosed in the premium audit. As a result of this alleged premium avoidance scheme, McKunes and M&M underpaid its workers’ compensation insurer a total of $51,850 in premium payments.
Authorities further allege that by underreporting its payroll to its payroll administrator during the relevant dates, McKunes and M&M underpaid the Executive Office of Labor and Workforce Development’s Division of Unemployment Assistance (EOLWD\DUA) in the amount of $23,769 of unpaid assessments and failed to withhold over $40,405 in state income taxes to the Department of Revenue (DOR).
McKunes and his company were both entered pleas of not guilty. McKunes was released on personal recognizance. They are due back in court on August 20, 2009, for a pre-trial conference.
The Insurance Fraud Bureau of Massachusetts (IFB) referred the case to the Attorney General’s Office in September 2008 after an investigation into the company’s payroll and an insurance claim filed by an M&M employee who was allegedly not on the company payroll. According to authorities, McKunes and M&M purchased workers’ compensation insurance from Atlantic Charter Insurance Company (Atlantic) for the policy years from September 2002 to September 2005. Authorities allege that in an effort to obtain a lower workers’ compensation premium, McKunes and M&M underreported its actual payroll by not reporting payments to undisclosed employees and not reporting overtime compensation.
Gross payroll (whether by cash or check) is an integral component in the calculation of a workers’ compensation policy premium. According to authorities, this matter was referred to IFB for investigation after an auditor from Atlantic discovered corporate tax returns filed by McKunes and M&M for nearly $400,000 in payments to subcontractors, which were not disclosed in the premium audit. As a result of this alleged premium avoidance scheme, McKunes and M&M underpaid its workers’ compensation insurer a total of $51,850 in premium payments.
Authorities further allege that by underreporting its payroll to its payroll administrator during the relevant dates, McKunes and M&M underpaid the Executive Office of Labor and Workforce Development’s Division of Unemployment Assistance (EOLWD\DUA) in the amount of $23,769 of unpaid assessments and failed to withhold over $40,405 in state income taxes to the Department of Revenue (DOR).
McKunes and his company were both entered pleas of not guilty. McKunes was released on personal recognizance. They are due back in court on August 20, 2009, for a pre-trial conference.
Tuesday, July 7, 2009
More on Hilda Solis
The Secretary of Labor has continued a commitment to working people and unions. The New York Times ran a piece on her yesterday with some illuminating comments on her past, present and future plans.
She has promised a vigorous campaign to combat workplace violations, after government auditors found that the Bush Labor Department sometimes did not follow up on complaints of minimum wage, overtime and child labor violations. She said she planned to hire 250 more investigators and conduct a nationwide outreach program so that workers knew their rights and employers knew their obligations.
"There are so many people I knew when I was growing up who were not even paid the minimum wage," Ms. Solis said. "People wouldn’t know where to go to lodge a complaint. And if you didn’t speak good English, forget it."
Her goal of restoring morale and efficiency to the 17,000-employee department would not be easy, she said, partly because so many dedicated people had quit in recent years.
Hendry Street video posted
A video of renovation work done by union carpenter apprentices on homes on Hendry Street in Dorchester has been posted at NERCCBuildingNewEngland.com
Monday, July 6, 2009
NY misclassification chase showing results
Over the July 4th holiday, the Rochester, New York Democrat and Chronicle published a piece by Neil Gilberg, a member of the New York state Workers Compensation Board. Gilberg points to the progress the state has made in lowering rates for workers’ compensation insurance, largely due to the state’s crackdown on misclassification of employees as independent contractors.
There is reason to believe New England businesses and workers will see some of the same benefits in the next few years. Less than a year after New York established an inter-agency task force to work on worker misclassification, Massachusetts did the same. Efforts are now also underway in Connecticut, New Hampshire, Maine and Vermont to reduce the practice whereby employers illegally lower their business costs by misclassifying workers.
The Massachusetts Joint Task Force on the Underground Economy recently released its first annual report, detailing more than $1.4 million collected in owed taxes. They also pointed to an expected surge in compliance due to "word of mouth": and media coverage of "Stop Work" orders issued against companies that do not have proper workers compensation insurance.
There is reason to believe New England businesses and workers will see some of the same benefits in the next few years. Less than a year after New York established an inter-agency task force to work on worker misclassification, Massachusetts did the same. Efforts are now also underway in Connecticut, New Hampshire, Maine and Vermont to reduce the practice whereby employers illegally lower their business costs by misclassifying workers.
The Massachusetts Joint Task Force on the Underground Economy recently released its first annual report, detailing more than $1.4 million collected in owed taxes. They also pointed to an expected surge in compliance due to "word of mouth": and media coverage of "Stop Work" orders issued against companies that do not have proper workers compensation insurance.
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