O’Fallon council may stop rat contractors

By Mary Ann O'Toole Holley

A Labor Tribune Special Correspondent

O’Fallon officials are listening to residents who have spoken out against the substandard wages, poor construction practices and hiring of illegal immigrants apparent at the O’Fallon Lake’s apartment project.

A proposed ordinance in the city is intended to prevent future O’Fallon Lakes type projects from being built within the city limits.

“This is just saying we want a level playing field here,” O’Fallon Mayor Donna Morrow said. “Now, we will be prepared if another project like O’Fallon Lakes comes into the city.”

The ordinance, expected to be approved at the Jan. 26 Board of Aldermen meeting, will ensure that prevailing wages are paid, workers compensation and unemployment insurance is provided and that contractors and subcontractors verify the U.S. citizenship or lawful status of workers employed on projects using public funds.

The contractor and its subcontractors must also be in compliance with federal law requiring an accredited apprenticeship program, and the contractor must produce proof of compliance within 72 hours of submission of any publicly-funded project. The ordinance also says that all contractors bidding on city-based projects are encouraged, to the extent possible, to employ residents of the city of O’Fallon.

“I compliment you all on moving forward on this prevailing wage issue,” said Tom Heinsz, the Carpenters’ District Council Director of Organizing. “It’s a mess. Out-of-state workers are working daylight to dark, seven days a week. When they were out there on Thanksgiving, my phone went crazy.”

The O’Fallon Lakes project gained public attention after a huge rally by hundreds of union tradesmen, public officials and community supporters marched on the project to protest violation of prevailing wage and other laws.

It also had an effect on the undocumented immigrants working on the project, Heinsz said.

“That following Monday, only 12 guys did carpenter work on that project,” Heinsz said addressing the board. “The rest went home and decided they’d take an early Christmas break. I’ll tell you, someone who has been working 24/7 doesn’t take an early Christmas break. They left because they had no papers.”

O'Fallon City Administrator Bob Lowery, Jr. said concerns about a prevailing wage ordinance grew after the issue at O’Fallon Lakes was brought to their attention by unions.

He said city officials are concerned that skilled workers are not being used on this project funded last year when the Missouri Housing and Development Corporation and the Industrial Development Authority of St. Charles County sold $14.6 million in local Industrial Development Authority revenue bonds to finance the project.

“We have a qualified workforce here locally and are disappointed that those people weren't called upon for these jobs,” Lowery said. “Our number one concern is quality of the building. I guess it comes back to that you get what you pay for.”

Lowery said the city would maintain vigilance with building inspections on the project, but does have concerns about the use of illegal immigrants to perform work.

“It's not right and secondly, these folks are being exploited. If these things are true —that they are not being paid adequate wages, it's wrong,” Lowery said. “Historically they'll share 10 or 15 to a room or apartment, working from early in the a.m. to late at night, with no weekends off. They were even working Thanksgiving Day. We're worried about the exploitation issues. I've heard the arguments that they do this voluntarily, and are not forced, but I take issue with that.”

Though Heinsz disputes Gundaker's involvement in the project, Mike Hejna, president of Gundaker Commercial Group, said they are a minority shareholder, controlled by the lender that took the project, which means they get to voice some opinions, he said.

“The amount of compensation at O'Fallon Lakes is certainly in a similar ballpark to any trade issue. Heck, the (downtown baseball) stadium is an out-of-town contractor,” Hejna said.

Heinsz said Hejna fails to say that although the Cardinals stadium is being built by an out-of-town general contractor, that contractor is using 100 percent local tradesmen.Heinsz noted that the job is also 100 percent union, unlike Gundaker’s project, which uses scab, out-of-town workers.

Heinsz said approval of the city’s proposed ordinance would allow legitimate contractors to compete. Most carpenter bids on the O’Fallon Lakes project came in at about $2.9 million, but the contractor from Texas had a bid of $1 million, Heinsz said.

“You all know a legitimate man who pays taxes, insurance and worker’s compensation can’t compete with that,” Heinsz said. “Your ordinance will make business people in this community more competitive.”

Alderman Bob Patek said he served on the Board of Aldermen when the O’Fallon Lake’s project was given approval.

EVERYONE

‘SNOWBALLED’

“I can tell you, I was taken advantage of,” Patek said. “If you smell anything funny out there, with any jobs like this being proposed, please let me know.”

Heinsz told the board everyone was “snowballed” with the project, but if government officials become aware of what’s going on in St. Charles County, they can react accordingly.

“Our contractors build homes and apartments that are affordable,” Heinsz said. “To say this community is unable to build affordable homes and apartments is wrong, and to say they have to go with out of state for contractors is a slap in the face to local contractors. With this job, we’re talking $6 million minimum that will go to Texas and further south. It’s a tremendous amount of money that should have stayed here.”

Bricklayers’ Local 1 Business Representative Steve Bailey said the same thing happened in Wentzville at Peine Road and Hwy. 61 in the Gundaker’s Peine Lake’s Apartment development where some workers admitted they were paid in cash every Friday.

“They get no benefits, pay no taxes and then leave the country,” Bailey said.

Alderman Jimmy Mitchell said he hopes the new ordinance is one more step in making O’Fallon a fair city.

“I was here when the proposal for the job came through. I wasn’t snowed; I was ignorant,” said Alderman Jeffrey Kuehn.

Kuehn said he designed schools for many years, and has never worked on a school district building that wasn’t constructed paying prevailing wages.

“I thought all jobs using public funding paid prevailing wages, but after this, I learned I was wrong,” Kuehn said. “I can vouch that your men (union workers) can build an affordable product.”

Courtesy of the St. Louis Labor Tribune

Dated:  January 19, 2006