Mill owner cheats on jobs, wages in biomass project

[umbertino]

by: Tim Wheeler

July 20 2012

PORT ANGELES, Wash. - Building trades workers were hoping for desperately needed union-wage jobs when Nippon Corporation announced plans to build a $71 million biomass cogeneration plant at their paper mill here two years ago.

Crown Zellerbach once owned the mill, located west of Port Angeles at the base of Ediz Hook. Currently, the mill employs about 200 workers.

The cogeneration plant will replace several old boilers and generators, supplying steam and electric power to the mill. Slashings and other refuse from logging operations will fuel the plant.

Elected officials hailed it as a "green jobs, green energy" project worthy of the $2 million in federal funds and an additional $20 million in tax credits under President Obama's economic stimulus initiative.

Federal funding meant that the Davis-Bacon prevailing wage law would apply. Presumably, building trades workers, suffering double-digit unemployment here, would finally get jobs. Nippon hired J.H. Kelly, a union outfit from Longview, Wash., as one of the contractors, further evidence of Nippon's honorable intentions.

But then Nippon hired Factory Sales and Engineering (FSE) of Covington, La., to build the new boiler for the cogeneration plant. FSE brought in their own crew from Louisiana, Mississippi, and Texas, to do the work. So far, few, if any local workers have been hired.

And what about honoring Davis-Bacon? Lee Whetham, president of the Olympic Peninsula Building and Construction Trades Council, AFL-CIO, said he asked Barry "Hutch" Hutchins, FSE project manager, if FSE intends to honor Davis-Bacon "No, we have no intention of paying the prevailing wage for any of the trades," Hutchins told Whetham.

"He told me that directly to my face," Whetham said. "He said they are going to 'self-perform' and not pay the prevailing wage." Hutchins declined to comment on these allegations when queried by this reporter. Nippon has not returned calls.

According to Sam Woods a member of Local 46 of the International Brotherhood of Electrical Workers (IBEW), and now an activist in Clallam MoveOn, the FSE employees are being paid about $14.50 an hour. The prevailing wage for highly skilled building trades workers in Washington State is three times that.

Whetham informed Clallam County's two state representatives about FSE's brazen defiance of both state and federal prevailing wage laws. He was told that an aide was assigned to look into the matter but he is still waiting for an answer.

"I have been on a fact-finding mission ever since to make a final determination as to whether the workers are being paid the prevailing wage," Whetham said. "Both the federal and state prevailing laws apply but since the state's prevailing wage is higher than the federal, the state has to take the lead on enforcement.

"Everyone knows that wages in the south are cheaper. Contractors from the south move their crews onto a job site here; they pay their workers lower wages; they finish up a job and move on. It does nothing to help the local economy here. The federal government recognizes that this is a depressed area and yet they allow the jobs to go to out-of-state contractors."

So far, only ironworkers have sustained injury from failure of Nippon and FSE to pay the prevailing wage. Yet proving that the wage law has been violated is difficult for the unions unless the state and federal government open an investigation to bring the facts into the light of day.

Kyle Katzmann, a regional leader of IBEW in Bremerton, said it is not an isolated case. He cited several instances of both the federal and Washington State government winking at their own prevailing wage laws knowing they can get "more bang for the buck" if wages are kept low and more projects are completed from the same shrinking pot of taxpayer money.

Instead of approving the grant and loan directly to Nippon, the federal government directed the money to the Washington State Department of Commerce, which then approved the grant and loan to Nippon. Nippon and FSE now argue that the grant and loan are not subject to prevailing wage laws. But critics charge that the government, Nippon, and FSE are all conspiring in a form of legalized money laundering to circumvent the law.

Many residents of the North Olympic Peninsula held their fire when a coalition of environmental groups waged a struggle to block the biomass project. The residents reluctantly accepted the argument that sacrifices in air quality were necessary to increase jobs. But now workers are learning that they are gaining few if any jobs. And the jobs that are won pay cheap wages.

Anger is growing. Residents are discussing some form of mass protest to demand that the promises be kept - jobs that pay a living wage.

http://www.peoplesworld.org/mill-owner-cheats-on-jobs-wages-in-biomass-project/

[cris]

If the local unions worked for $25 an hour they may have gotten the jobs.

$14.50 per hour plus the cost of housing the workers from another state would

probably cost more than that.

Instead they were expecting $43.50 in a depressed market....Now they get

nothing....Nothing is what they deserve....IMO of course.

[ayrnay22]

If the local unions worked for $25 an hour they may have gotten the jobs.

$14.50 per hour plus the cost of housing the workers from another state would

probably cost more than that.

Instead they were expecting $43.50 in a depressed market....Now they get

nothing....Nothing is what they deserve....IMO of course.

I guess they should make less so the company out of state can fill there pockets with the profits that's what happens with non union companies the employees get paid less to increase the net profit of the job if a project is bid for x amount and u can man it with cheap labor u get a cheap product at completion and eventually it cost u more to correct the problems that could have been avoided using union labor just because of greed

[cris]

While I dont agree Unions make a better product.

They do almost always cost more.

Standard practice for Govt projects goes to the lowest bidder.

In the economic climate we are in, If Unions cant compete,

they wont get the work. They can have less, or they can have

nothing.

Reduce the cost, get the work. Nothing hard to understand

there....Unions have had a free ride to break the bank, looks

like that time is over.

[Frogee]

I guess they should make less so the company out of state can fill there pockets with the profits that's what happens with non union companies the employees get paid less to increase the net profit of the job if a project is bid for x amount and u can man it with cheap labor u get a cheap product at completion and eventually it cost u more to correct the problems that could have been avoided using union labor just because of greed

You talk about greed......I would say 3 times or more of a fair wage for work done is greedy. The stories of unions and their graft and greed are legendary. Paying school teachers to sit in rooms with each other, because they cannot be fired an incompetency. Bringing in sleeping bags to auto plants to earn overtime. Don't compare what some businesses do to try to stay alive with greed

[ayrnay22]

U don't have to agree that union labor is always better because its not but your right the lowest bid gets the job so if the bid was say 20 million and equipment and materials were half the budget and labor was say 25% or 5 million what a non union general contractor usually does is hires cheap labor that only costs 3 million so they can make a larger profit and by doing so the quality of work will be sub par I only know this because in my trade sheetmetal I've seen first hand the quality and time it takes myself and others to do the same job as a non union company do and I'm not back at that job later fixing mistakes and I usually finish ahead of schedule but I've seen plenty of jobs were we go in and fix undersized or improperly installed heating systems done by hack non union companies I've worked in Washington,Wyoming,Montana,Idaho,Massachusetts,conneticut,Rhode island, maine, and new Hampshire and all of theses states have different wages that reflect the cost of living with Massachusetts being the highest 42.00 an hour and Idaho the least at 23.00 an hour but maybe I'm over paid and underqualified

You talk about greed......I would say 3 times or more of a fair wage for work done is greedy. The stories of unions and their graft and greed are legendary. Paying school teachers to sit in rooms with each other, because they cannot be fired an incompetency. Bringing in sleeping bags to auto plants to earn overtime. Don't compare what some businesses do to try to stay alive with greed

Those are usually goverment unions such as firefighters and cops making triple time to do detail work I'm in the skilled trades sheetmetal workers and the quality is better u have to do a five year apprenticeship and be licensed were a non union shop has no training and usually are unlicensed

[ayrnay22]

To chris we negotiate contracts for wage increases with shops and building trades every 4 or 5 years and usually when the economy is in the toilet we take pay cuts or the work force gets reduced so I have to find other work such as changing oil for 7.50 an hour or painting I understand peoples hate for union labor but without it u wouldn't have the 40 hour work week paid holidays or time and a half on weekends or overtime maybe we should go back to sweat shops for kids and 16 hour days at 3 dollars an hour

[cris]

Ayrnay.....while I respect someone with skill, that works hard

like it sounds that you do.....I dont like the Union administration.

Why wasnt this particular contract negotiated, the article

doesnt say.

As I stated before, a wage of 25 rather than 43.50 might have

been enough to seal the deal. Now the Union workers get nothing,

and are out doing those min. wage jobs.

It makes no sense.

[ayrnay22]

Davis Bacon or prevailing wage jobs are required to pay u because they are federally funded so even if the jobs are outsourced to Mississippi or lousiana workers they still get the prevailing wage or should be what the non union company does is takes the federal money and pays there workers 14.50 an hour and puts 30 an hour in there pocket at the expense of washington state tax payers which is illegal but if they had hired locally then the money would have benefited the local workers I worked at Idaho national laboratories last summer for a non union company out of California I was paid prevailing wage 26.60 an hour the foreman on the job was only paid 15 when I told him he was suppose to make 26.60 he called the owner of his company and complanied and they had to pay him the back wages so I know it can happen and that I find greedy

[Average Bear]

Just my opinion, being in the south with "traditionally lower pay" 43.50 an hour is contractor pay, not employees. I have made that kind of money doing so, carrying my own expenses,insurance etc. To be employed at that kind of wage with benefits would be a BLESSING, not a right given by a labor union! JMO

[lightfighter]

While I dont agree Unions make a better product.

They do almost always cost more.

Standard practice for Govt projects goes to the lowest bidder.

In the economic climate we are in, If Unions cant compete,

they wont get the work. They can have less, or they can have

nothing.

Reduce the cost, get the work. Nothing hard to understand

there....Unions have had a free ride to break the bank, looks

like that time is over.

Totally agree !! Was in a milwright union and the fleecing of the apprentice is absurd! The brief time they provided me work was horrible regarding wages and dues. The dues absorbed most of my earnings. The final straw was when they wanted me to attend Mandatory training that I had to pay for and provide my own housing and meals for a week. If I didn't attend, I would be released

[ayrnay22]

Lightfighter that's just your experience with that local not all locals are the same it isn't fair to label all unions in a negative light in local 103 in Wyoming I had similiar issues with dues and training but when u go to meetings u vote for changes so next time u don't have to come out of pocket for training dues are usually higher when membership is lower in Montana it was 85 a month because there are only 650 members in Massachusetts I pay 35 a month because membership is 1800 and yes benefits are a blessing not a right but you have to negotiate were they are allocated health care annuity pension or in the envelope etc...

[lightfighter]

Lightfighter that's just your experience with that local not all locals are the same it isn't fair to label all unions in a negative light in local 103 in Wyoming I had similiar issues with dues and training but when u go to meetings u vote for changes so next time u don't have to come out of pocket for training dues are usually higher when membership is lower in Montana it was 85 a month because there are only 650 members in Massachusetts I pay 35 a month because membership is 1800 and yes benefits are a blessing not a right but you have to negotiate were they are allocated health care annuity pension or in the envelope etc...

Ayrnay22, you are correct. My anger towards that union needs to stay towards them and not reflect on other Unions. Thank you for that, truly.

I really thought it was going to be great for my Family, but was wrong. For other readers, please do not let my experience project a negative blanket on all Unions..

[ayrnay22]

My cousin was in the millwrights here in mass and went thru a similar experience so I know how u feel he quit after 2 years because of lack of work and travel out of his pocket for jobs he did get he's now an electrician

[Maggie123]

Ayrnay22, you are correct. My anger towards that union needs to stay towards them and not reflect on other Unions. Thank you for that, truly.

I really thought it was going to be great for my Family, but was wrong. For other readers, please do not let my experience project a negative blanket on all Unions..

My cousin was in the millwrights here in mass and went thru a similar experience so I know how u feel he quit after 2 years because of lack of work and travel out of his pocket for jobs he did get he's now an electrician

LightFighter and 'Ayrnay22 You Are Both Right!

The Unions Are Supposed to protect the workers... Just more Dam Greed!

They were formed to protect the hard working individules of this country and protect their rights. This hasn't been true for quite a while. Maybe they will see their purpose again. Not holding much hope...

They got corrupted right along with our corrupted government. I honestly don't know the answer other than to vote the best way I can...

Ron Paul would certainly shake them up. JMHO

[jonjon]

Imported automobiles that exhibit greater quality at less cost seems to imply the greed of the union worker matches that of the company or possibly exceeds it.

A union doesn’t have to be involved for the employee base to demonstrate great skills.

A lazy and slothful work force has been what the unions have produced forcing industry to look elsewhere for affordable solutions to compete on the world market.

Having gangster mentality backing doesn’t benefit you when all the jobs move across the pond. The unions along with excessive government regulations is what encourages industry to go packing.

[pragerbabe]

Can I get all liberal readers to reread the original post. Now insert "illiegal immigrant" where you see non union workers from the south. Now do you know how "WE" feel and how our jobs are being outsourced to people from the south who do not contribute to the local economy. By the way, I know they "buy" goods and services. Come to Texas, most of the shops and fleamarkets they shop are supplied with items brought accross the border.

And about the Unions, my husband was lucky enough to get a well paying job for a company that moved from up north. They "offer" union dues as we are an ""at will" state and do not require it. He was basically told he would have to join if he didn't want to spend the extra money on tires each month. After 9 months with the company he has found that the Union people do not pull their weight and he said it will be worth it to get out of the union even if he has to carry extra spare tires.