Tennessee workers at VW plant vote to unionize with UAW

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Todd A. Price
Gary Estwick

April 19, 2024

Volkswagen workers in Chattanooga overwhelmingly voted to join the United Auto Workers late Friday, giving the union a decisive foothold in the historically anti-union South.

Nearly three quarters of the workers voted to support the UAW, according to the final results from the National Labor Relations Board. Of the 4,326 workers eligible to vote, more than 3,600 casts ballots over the three-day election.

As the votes were counted Friday night, first a trickle — and later, a wave — of bold, red T-shirts with white lettering peppered the union hall Friday evening at I.B.E.W. Local 175.

Joseph McMullen walked into the hall around 9 p.m. expecting many of his Volkswagen colleagues to have voted to establish a union. But he was not prepared for the overwhelming pro-union support displayed on a projection screen.

“I think that matters,” said McMullen, an Alabama native who works in the quality department. “It sends a message.”

When the news of the final victory was announced, members of the crowd jumped, cheered and hugged. Minutes later, UAW president Shawn Fain arrived to congratulate VW workers.

“Many of the talking heads and the pundits have said to me repeatedly, before we announced, that you can’t win in the South,” Fain told the cheering crowd. “But you all said, ‘Watch this.’ You all moved the mountain.”

The victory came despite strong opposition from a coalition of six Southern governors, including Tennessee Gov. Bill Lee. On Tuesday, Lee penned a letter which urged workers to reject unions.

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Report: Construction Workers Frequently Denied Compensation Coverage (TN)

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Labor brokers are putting workers at risk to avoid paying insurance premiums

By Alejandro Ramirez
Feb 12, 2020

A new report from the Tennessee Bureau of Workers’ Compensation Compliance Program highlights how construction companies and subcontractors are misclassifying workers to avoid paying workers’ compensation. The report details several other practices rampant in the construction industry that deny protections to workers and give noncompliant businesses a financial edge when it comes to securing contracts.

These practices put workers at risk. If workers are injured on the job, for instance, there’s a chance their employers won’t compensate them because they’re listed as independent contractors rather than as employees. Noncompliance also costs the state tax dollars, though the amount of dollars owed is difficult to pin down, especially when employers try to hide information from assessors.

“It’s sort of like an iceberg,” says Amanda Terry, the bureau’s director of compliance. “What we believe that we’re seeing is only 10 percent – the part that’s above the surface.”

The state collects 4.4 percent on workers’ compensation premiums, and the report says that in 2016, insurance carriers may have lost as much as $296 million.

The report says many employers also hire workers through subcontractors known as labor brokers, which frequently misclassify employees. Contractors hire these brokers, who in turn provide workers for a construction site. Many of these brokers have also been accused of wage theft and other compliance issues.

“We find that … when an employer is doing the wrong thing with their workers’ comp, they’re generally doing the wrong thing across the board,” says Terry.

These practices give labor brokers an unfair advantage. Victor White, director at Mid-South Carpenters Regional Council, a union representing carpenters, tells the Scene that a law-abiding contractor “walks in the door at a 20 percent disadvantage” compared to noncompliant businesses when it comes to bidding on contracts.

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Nashville is being built on a pyramid of payroll tax fraud | Opinion (TN)

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According to some estimates, $2.6 billion in payroll tax fraud is lost annually, while Nashville construction projects add up to more than $2 billion.

Victor White, Guest columnist
Dec. 30, 2019

In November, a seldom-covered but far too common crime surfaced in Nashville’s news media: the case of wage theft at a Metro Nashville Public Schools-funded construction site.

A subcontractor working on the project allegedly refused to pay a local group of concrete workers, robbing them of $43,000 in wages for their work at a local school. These laborers have been calling attention to the theft for weeks and finally brought their case to MNPS at a school board meeting.

Members of the Southeastern Carpenters Regional Council were proud to stand with our brothers fighting for fair wages at the meeting, but the problems we face in the construction industry go well beyond one case of wage theft in Nashville.

Fraud is rampant across construction industry

The construction industry today is fundamentally built to allow rampant payroll tax fraud, wage theft, workers’ compensation premium fraud and worker misclassification. At each construction site a general contractor hires a subcontractor to manage different jobs: laying drywall, putting down concrete, or installing plumbing and lighting. Each of those subcontractors hires a labor broker to recruit a team of workers to get the job done. Each subcontractor competes for bids, promising they can get the job done for the least amount of money.

Many subcontractors recruit labor brokers they know will cut corners and trim costs. Sometimes, as in the case of the concrete workers, the subcontractor will fail to pay laborers and outright steal their wages. Other times subcontractors will classify workers as independent contractors, committing payroll tax fraud by avoiding paying taxes on their employees. These schemes cause law-abiding construction employers to suffer as they are underbid by rivals who keep costs down through breaking the law. …

Beyond the rampant fraud that is allowed to continue, the lack of oversight and regulation on construction sites in Nashville led to the largest rise in construction-related deaths over a 2-year period than any time in the last 30 years.

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Governor and lawmakers seek penalties against dishonest construction industry employers (TN)

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Posted: 11:58 AM, Feb 25, 2020
By Ben Hall

NASHVILLE, Tenn. (WTVF) – The state is looking to crack down on dishonest employers in the construction industry.

Governor Bill Lee has proposed a bill (SB 2189) that would penalize employers who misclassify workers as independent contractors to avoid paying workers compensation insurance and then change their company name in order to avoid paying fines after they are caught.

Senator Sara Kyle (D – Memphis) has proposed a bill (SB 2404) that would shut down construction sites when employers do not immediately cooperate with state investigators.

The bills follow a NewsChannel 5 investigation which showed the dark side of Nashville’s building boom.

Some employers cheat workers out of overtime pay and cheat taxpayers out of millions of dollars by not paying for workers’ compensation insurance.

“The dishonest ones, we need to run out of the state of Tennessee,” Senator Kyle said.
Governor Lee’s proposal is sponsored by the Republican leaders of the House and Senate.

“We’re thrilled,” said Victor White with the Carpenter’s Union. “It’s a pure pleasure to see this isn’t partisan. The bills are being submitted from both sides of the aisle.”

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Nashville schools to enact stricter rules after wage theft allegations against subcontractor (TN)

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Published 6:51 p.m. CT
Dec. 10, 2019

Nashville public schools will require thorough documentation of work done on its construction projects after a group of concrete workers recently alleged wage theft against a district subcontractor.

“Going forward, the facilities and construction department will require contractors and all subcontractors have written contracts for work being performed,” said Metro Nashville Public Schools Interim Superintendent Adrienne Battle during a Tuesday night board meeting. “That way, if there is a wage theft claim or payment dispute in the future, there will be more documentation to help get to the bottom of the situation.”

The change comes after allegations that Nashville’s Orion Building Company subcontracted with Joe Haas Construction, which in turn hired the concrete company – RSA Concrete – for cement work at McMurray Middle School.
Workers said the concrete company was never paid $43,000 for work by the subcontractor and are alleging wage theft.

A similar incident occurred during work on a Vanderbilt University building, the group said, and the school placed pressure on the contractor to ensure payment.

Nashville schools has paid its contractual obligations to Orion and district staff have facilitated a meeting to resolve the issue. Battle said another meeting is forthcoming.

“Normally, contractual disputes like this will be settled by mediators or courts, but we are trying to facilitate a productive path forward towards a quick resolution,” Battle said.

Last month, Workers’ Dignity asked the district to ensure contractors require bonds to ensure payment for work at a site. Nashville public schools, Battle said, already requires bonds that ensure payment for work being performed.

The change will require more overall documentation. Workers’ Dignity Interim Co-Director Jack Willey said to the board that he wants the documentation process to be as simple as possible to ensure its effectiveness for all workers.

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Case study links inexperience to injuries in Tennessee construction industry (TN)

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Safety & Health Magazine
May 29, 2019

Knoxville, TN – Nearly half of the construction workers in Tennessee who were injured over a recent two-year period had been on the job less than a year, according to a recent case study report from the Center for Construction Research and Training – as known as CPWR.

Analyzing more than 9,000 statewide workers’ compensation claims for injuries that occurred in 2014 and 2015, researchers at the Construction Industry Research and Policy Center at the University of Tennessee found that 44.5% of the claims were from workers who had less than a year of experience in construction, while 30.1% were from workers who had less than six months of experience.

The biggest takeaway is “the persistence of this injury-tenure relationship across time,” Edward Taylor, study author and CIRPC executive director, told Safety & Health. “We saw in the literature that 100 years ago, a steel company reported that their employees with less than 30 days tenure had an injury rate of 12 times the rest of their employees. Here we are in 2019 and the results of our study show, in construction, 44.5% of injuries occur to employees in their first year.”

According to 2016 national data from the Bureau of Labor Statistics, 24% of construction workers are injured during their first year on the job. Likewise, the report notes that the findings are comparable to data in states with similar populations. In Washington, over the same two years, 47.5% of injuries occurred among construction workers who had less than a year on the job, while 37.1% of the injured had been on a job six months or less. In Ohio, those percentages were 45.6 and 33.6, respectively.

Injuries to the lower back, finger, shoulder and hand were most common – accounting for 55.8% of the top 10 body parts injured.

Taylor and his colleagues recommend that employers put additional emphasis on the onboarding of new employees, along with pairing up new workers with an experienced, trusted mentor. “It’s especially important that [workers] learn to recognize hazards as part of that educational process,” he said.

In addition, wearing personal protective equipment can help reduce the number of eye and hand injuries, along with cuts. “Those might be easily preventable,” Taylor said.

(See Article)

New Memphis program encourages more students to pursue careers in construction (TN)

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BY LAURA FAITH KEBEDE
MAY 14, 2019

About 200 more Memphis students will be able to work toward certification in construction jobs next year thanks to a two-year state grant and an additional curriculum announced Tuesday.

The after-school program, known as Pre-Apprenticeship Certificate Training, or PACT, is Gov. Bill Lee’s latest push to train more high school students to enter careers straight out of high school in areas such as masonry, carpentry, landscaping, painting, plumbing, and construction technology.

“I’ve long known that there is a shortage of those skilled workers because we have left that part of education out of our public school system for decades,” said Lee, who ran a similar training program out of his family business in Williamson County.

“They have giftings and skills that college kids don’t, and yet we do very little to direct paths for them in successful careers,” he added.

The program is meant to help bridge the gap between young people looking for work and companies that can’t fill construction jobs. Memphis has the nation’s highest rate of youth not working or in school. As more building developments spring up, some companies have even turned down projects because they don’t have enough workers, according to local media reports. Memphis was named one of the fastest growing markets in construction in 2017 by the Associated General Contractors of America.

“Understanding what this program is about really gives me as the president of a company in the building industry a huge sigh of relief,” said Jennifer Ransom of The Ransomed Group.

About 100 students at five high schools this year were certified in skills required for construction jobs, but Shelby County Schools hopes to dramatically increase that number through the new program, said Tanika Lester, the district’s manager of college and career technical education programs. About 2,400 students earned certifications across more than a dozen other career fields this year – more than double the district’s goal, Lester said.

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TENNESSEE DRYWALL WORKERS WIN UNPAID OVERTIME IN DOL SETTLEMENT (TN)

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EMPLOYEES MISCLASSIFIED AS INDEPENDENT CONTRACTORS SHORTED ON WAGES, WORKERS COMPENSATION, SAFE WORKPLACES

November 21, 2018, 1:15PM. By Anne Wallace

Hermitage, TN – On October 19, 2018, the U.S. Department of Labor announced that Tennessee contractor, Vasquez Drywall, had agreed to pay $103,300 in back wages to workers misclassified as independent contractors and a $2,424 civil penalty. Employment misclassification is rampant in the construction industry in Tennessee and throughout the country. The practice deprives employees of overtime pay, workers compensation insurance and basic workplace safety protections. Undocumented construction workers are particularly at risk because they are unlikely to bring lawsuits or seek other enforcement action to preserve their rights.

VASQUEZ DRYWALL — PART OF A BIGGER PROBLEM

DOL Wage and Hour Division investigators found that Vazquez Drywall violated the Fair Labor Standards Act’s (FLSA) overtime requirements by inaccurately classifying employees as independent contractors and paying them piece rates or flat salaries regardless of whether they worked more than 40 hours a week. The Division also found the employer failed to keep accurate payroll records for these workers. “Even if employees are paid piece rates, or on salaries,” noted Wage and Hour Division District Director Nettie Lewis, “they are typically still due overtime when they work more than 40 hours in a week.”

Since the wage order and fine were the products of a settlement, the details of what actually occurred and how many workers were affected remain unclear. What is clear, however, is that underpayment is a chronic problem in the Tennessee construction industry.

In June 2018, workers brought a federal lawsuit against two subcontractors involved in the construction of a new J.W. Marriott in downtown Nashville. The lawsuit claims that Mr. Drywall and First Class Interiors violated the FLSA by failing to pay workers the federal minimum wage or overtime pay for hours in excess of the normal 40-hour work week. It alleges that the company “willfully filed fraudulent information returns [with the IRS] classifying the plaintiffs as independent contractors rather than employees.”

In 2013 the Nashville Post reported that “[b]ased on estimates the [Tennessee Department of Labor and Workforce Development] provided, there are between 21,990 and 36,680 misclassified and unreported construction industry workers in Tennessee. Misclassified and unreported workers are estimated to range from 11 percent to 22 percent of all workers in the construction industry statewide.”

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Historic community benefits agreement reached! (TN)

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September 4, 2018
Stand Up Nashville

Stand Up Nashville is very proud to announce that after several months of intense negotiations with Nashville Soccer Holdings (NSH), we have reached a landmark agreement that sets a new standard for development, including the following commitments:

Affordable Housing

  • 20% of all housing units built at the development site will be set aside as Affordable and Workforce Housing.
  • A commitment to 3 bedroom units that reflect the need for family housing in our city.

Wage Floor

  • NSH agrees to directly hire stadium workers (ushers, ticket takers, box office janitorial, custodial, maintenance, field maintenance employees) and pay them at least $15.50 an hour.
  • The establishment of a first-of-its kind targeted hiring program in Nashville with dedicated staff that will connect individuals with barriers to employment to future job opportunities at the stadium.

Community Services & Amenities

  • 4,000 sq ft will go to a childcare facility, which will operate on a sliding scale.
  • 4,000 sq ft will go to establishing micro-unit retail spaces for artisans and local small businesses at a reduced rental rate.
  • NSH will host annual coaching clinics for Metro School and other youth soccer coaches and donate soccer equipment to these programs.

Jobs and Workforce Development

  • Mandatory safety training for all construction workers and supervisors.
  • Leveling the playing field for responsible contractors that provide safe, thriving careers for their employees.
  • Construction careers for individuals with barriers to employment, especially from Promise Zones.
  • Inclusion of minority contractors.

Community Advisory Committee

  • A Joint Committee will be established with community representation. This Committee will oversee the implementation of the CBA, monitor successes, ensure compliance with the terms of the CBA, and produce an annual public report.

SUN remains steadfast in this fight and recommits ourselves to ensuring development benefits all Nashvillians. “For many Nashvillans, this marks the end of hopelessness and the beginning of a new and better Nashville. Housing our residents and improving conditions for workers is the responsibility of the people, the electorate, and developers,” said Odessa Kelly, Co-Chair of Stand Up Nashville. “We call on our elected representatives to ensure safe and just working conditions for the hardworking men and women who build this city. No developer should get such huge taxpayer subsidies and not be held to a high standard of providing a safe and dignified job to workers in our city.”

(Visit SUN’s website)

Using ‘subs of subs,’ contractors able to evade liability in construction worker deaths (TN)

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Mike Reicher, USA TODAY NETWORK – Tennessee
Published 10:00 p.m. CT May 5, 2018

After his brother died falling off the roof of a North Nashville home under construction, Hermenegildo Dominguez heard nothing from the roofing subcontractor. He heard nothing from the general contractor. Nothing from an insurance company.

Typically, workers’ compensation would have covered $10,000 of funeral expenses, but Alfonso Dominguez, 60, was essentially off the books. It would cost $15,000 to fly his body to his hometown of Vera Cruz, Mexico, and bury him.

Only after the Spanish-language news site Nashville Noticias posted about the June 2017 accident on Facebook did Hermenegildo Dominguez get a response. But it wasn’t from the construction companies. Other immigrants throughout Nashville sent him donations.

Today, Dominguez, who cleans construction sites in Nashville, is less concerned about compensation: “What I really want is to get justice,” he said.

Alfonso Dominguez’s death shows how some construction companies can evade liability for accidents, especially in a booming city like Nashville. A labor shortage has led to a fracturing of work sites, where subcontractors can’t complete projects with their normal crews, so they hire small “subs of subs” below them. Workers at the bottom are sent onto scaffolding and roofs without safety equipment or training, or the assurance their families will be taken care of if they fall.

More construction workers died in the Nashville metro area in 2016 and 2017 compared with any two-year stretch in the previous three decades. Most of the 16 deaths were from falls without any harnesses or other protection.

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