LAS VEGAS, Nev. -- Unions that represent carpenters are calling on Nevada lawmakers to pass a bill to fight fraud and wage theft in the construction industry.
Assembly Bill 227 would require everyone working on construction projects that require a general contractor to be employees of the company or its subcontractors, thus discouraging the practice of hiring workers "under the table" and paying them cash.
Frank Hawk, vice president and chief operating officer for the Southwest Regional Council of Carpenters, said unscrupulous companies use the method to get out of paying for general liability insurance or worker's comp, Social Security and unemployment taxes.
"There needs to be a crackdown on these employers that do not play by the rules," Hawk contended. "It's a growing problem, to where you're seeing it more and more often, mainly in the residential markets."
Today, advocates are launching a campaign to combat tax fraud in the construction industry nationwide.
They complain the practice takes away tax dollars from the state and allows companies to cheat, and thus massively undercut legitimate contractors.
Assembly Bill 227 has already passed the State Assembly and now awaits a vote in the Nevada Senate.
Adam Duininck, director of government affairs for the North Central States Regional Council of Carpenters, said unscrupulous contractors often prey on vulnerable workers, including immigrants who speak little English and can't advocate for themselves.
"It's important for them to be treated with dignity at their workplace," Duininck asserted. "And if you're selling your work by the hour, your labor by the hour, you deserve to be paid well."
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The National Labor Relations Board recently issued a rule change that may have wide-ranging impacts for workers and businesses.
The update to the joint employer rule would require parent companies to negotiate collective bargaining agreements with employees even when using a staffing agency or subcontractor.
It also means franchisors and franchisees can both be held liable for unfair labor practices.
This replaces a Trump-era rule change that made it easier for companies to avoid a finding of joint-employer status.
Brian Petruska - general counsel with the mid-Atlantic regional organizing coalition of the Laborer's International Union of North America - said the rule change is a win for workers.
"It means that the employees' right to organize still is meaningful," said Petruska, "even in this modern world we live in with layers and layers of LLCs and corporations who are now defining the workspace."
The rule change now faces legal challenges including from the U.S. Chamber of Commerce, which filed suit against the board in federal court.
In a statement on its website, the Chamber says the rule change will "create chaos and more legal confusion that will harm both employers and workers."
The NLRB rule establishes that two or more entities may be considered joint employers of a group of employees when more than one entity possesses the authority to control employees' essential terms and conditions of employment.
The board says this change is more in line with established common-law agency principles.
Petruska said he sees opposition to the updated rule coming from a number of industries including restaurants, construction and hotels.
He also said the franchise business model will no longer insulate the parent company from labor issues.
"Now," said Petruska, "the fact that they have that control may cause them to be embroiled in local labor disputes that the franchisees are having with their employees."
The new rule will go into effect next February.
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States such as Minnesota have seen a tidal wave of union organizing amid public support to improve pay and workplace conditions.
However, labor leaders acknowledge the slow growth of membership, prompting questions about the movement's future.
The Bureau of Labor Statistics says nationwide, the number of union jobs last year increased by nearly 2%, but the actual membership rate declined to 10.1%.
In a recent University of Minnesota panel discussion, Bernie Burnham -- president of the Minnesota AFL-CIO -- said the dynamics of organizing have changed, including smaller groups of employees pursuing contracts.
"Like in retail, there are a lot of places that use self-checkout," said Burnham. "So there are less workers in these stores and they're not going the traditional route, the old-school route of joining these bigger bodies that are the bigger unions."
Despite the differences, she suggests there's a lot of energy among the newer voices.
The experts added that corporations are taking a harder line on organizing and that under most laws, it's hard to enforce "anti-union" messaging.
Minnesota recently bolstered its laws, but some panelists noted most workers today don't come from a union household and could use more education and awareness.
Kathy Megarry, vice president for human resources and labor relations with the Metropolitan Airports Commission, suggested there are workers who want to see more value in the dues that are required.
"I have seen unions make actual political changes in terms of how they service their members," said Megarry, "put more money towards organizing, less money to servicing their members. That's a strategy. But then when you do not service your members well, I've seen that hurt some unions, not all."
She said that can be a hindrance for workers who sympathize with the cause but aren't ready to sign up for a union.
Meanwhile, the panelists said they see hope for more diversity within organized labor amid a shift from older white males leading organizing efforts.
They said having more women and people of color taking charge can potentially help with recruitment.
Disclosure: Minnesota AFL-CIO contributes to our fund for reporting on Budget Policy & Priorities, Civil Rights, Livable Wages/Working Families, Social Justice. If you would like to help support news in the public interest,
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Pennsylvania needs more economic opportunities and a new report from the Keystone Research Center showed federal investments in climate and infrastructure projects would help grow a skilled construction workforce.
Diana Polson, senior policy analyst at the center, said the report revealed federal money would create thousands of trade jobs through expanding union construction apprenticeships leading to quality careers, as electricians, operating engineers, carpenters, and laborers.
"In Pennsylvania, for example, these apprenticeships train workers for jobs that pay more than most college-educated workers earn, and 61% more than the average worker in Pennsylvania," Polson pointed out. "Significantly, this training comes without any student debt."
Polson added Gov. Josh Shapiro wants to use 3% of the federal funds from recently signed climate and infrastructure laws to expand workforce development and apprenticeships. Shapiro's 2023-24 budget includes $6 million for the effort.
Polson noted President Joe Biden's Good Jobs Initiative seeks to embed job quality and equity incentives into the federal funding, to make sure apprenticeship and pre-apprenticeships benefit underserved communities. She called it a huge win all around, for the state, climate, for those communities, and taxpayers.
"We had shared this in the report, research has shown that for every dollar invested in apprenticeship $35 is returned to the government in higher tax collections, or reduced expenditures on public assistance or unemployment over the career of an apprentice," Polson emphasized. "These are huge returns on investments."
Keystone Research Center said the resources will lead to high-wage union construction careers. The center is holding a webinar today at 1 p.m. on construction apprenticeship programs in coal country, in Pennsylvania, Ohio, West Virginia, and Kentucky.
Disclosure: The Keystone Research Center contributes to our fund for reporting on Budget Policy and Priorities, and Livable Wages/Working Families. If you would like to help support news in the public interest,
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