RI AFL-CIO – RI Future

September 2, 2015August 9, 2016

Labor reactions to Raimondo’s Workplace Fraud Unit settlement with Cardoso Construction

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Labor leaders and activists reacted positively to Governor Gina Raimondo‘s announcement yesterday that a “new Workplace Fraud Unit within the Department of Labor and Training‘s (DLT) Workplace Regulation and Safety division recently reached a settlement with a company that admitted to violating worker protection laws. Cardoso Construction LLC agreed to pay more than $730,000 in back wages, interest and penalties. This is the first significant action of this new unit.”

According to the press release, “DLT officials found the violation on a drywall job at the University of Rhode Island. After investigating, they determined that the company should have characterized the workers as ’employees,’ but they were mischaracterized as ‘independent contractors.'”

Cardoso Construction will, “pay a total of $351,812 in back wages to the workers, pay DLT an identical penalty of $351,812, and pay a fine of $27,000 – $1,000 per worker – for violating the state misclassification law.”

In a statement, the RI AFL-CIO wrote, “Big News and a very important step forward with a clear and strong message from Governor Gina Raimondo and DLT Director Scott Jensen that employers perpetuating fraud and deception will not be tolerated in the State of Rhode Island any longer.”

Jesse Strecker, executive director of RI Jobs With Justice, told me, “Seems to be a great step forward as far as I can tell. The DLT has definitely suffered from underfunding in the past, and it’s great to see some more resources being directed to wage and hour violations and miss-classification, all of which are hugely pervasive problems.”

Wage theft allegations have been made against several local restaurants in Rhode Island. Fuerza Laboral has protested outside Gourmet Heaven several times over the last year and protested outside the home of Cafe Atlantic owner Juan Noboa.

In the Governor’s press release, the seriousness of misclassification was outlined:

When employers misclassify employees as independent contractors, they harm workers, hurt other companies that play by the rules, and cheat taxpayers. By misclassifying workers, companies:

• Deny employees access to critical benefits such as Unemployment Insurance (UI), workers’ compensation insurance, overtime pay, and family and medical leave;

• Hurt law-abiding employers who play by the rules but are unfairly under-bid for work; and

• Cheat taxpayers by lowering tax revenues and robbing UI and workers’ compensation funds of much-needed dollars.

To combat this, the Governor has outlined a “four-point action plan”:

1. Using existing funding to create a new Workplace Fraud Unit to focus DLT’s efforts on dishonest companies

2. Coordinating state agency efforts and pooling resources to conduct investigations and bring enforcement actions with maximum impact

3. Enforcing worker protection laws to the fullest extent and spotlighting businesses that cheat

4. Fostering compliance with the law through employer outreach and education

From the Governor’s press release:

“It’s only fair to repay the employees who were underpaid for months on the job, and this agreement will achieve that,” said Raimondo. “Everyone must compete by the same rules on public projects in Rhode Island, and this settlement is sending the clear message that we will be cracking down on abuse.”

“Following the same rules as everyone else is not a barrier to success,” said DLT Director Scott Jensen. “We will continue to protect our community’s investment in our workforce, and we remain committed to helping Rhode Island companies grow their businesses and play by the rules. I also applaud the work of the Joint Task Force on the Underground Economy and Employee Misclassification, who along with the new Workplace Fraud unit, moved this case forward.”

The DLT Director leads this Task Force, which was established in 2014, and consists of DLT, the Office of the Attorney General, Division of Taxation, Department of Business Regulation, Department of Public Safety and Workers’ Compensation Court.

July 31, 2015August 3, 2015

Healthcare workers fight for $15 in Rhode Island

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Over 150 front line medical caregivers rallied on Newport Avenue in Pawtucket yesterday afternoon to demand a minimum wage of $15. The timing and location of the event was carefully considered.

It was the 50th anniversary of Medicare and Medicaid. The location, near Slater Park, is around the corner from two healthcare providers, ARC of Blackstone Valley, which provides services to adults with developmental disabilities and the Pawtucket Center, a Genesis Heath Care skilled nursing facility.

The rally was also just two miles from the Massachusetts border, where home care workers recently won a minimum wage of $15 to be phased in over the next few years. Rhode Island does not pay nearly as much.

SEIU 1199, representing the healthcare workers, released figures showing that at Pawtucket Skilled Nursing & Rehab, the starting rate is $11.75. 63 percent of workers make less than $15. At ARC of Blackstone Valley many direct care staffers earn $10.75 and 94 percent earn less than $15. Meanwhile, two miles up the street, a caregiver could find a job paying $15.

I spoke with two women whose adult, disabled children are cared for at ARC of Blackstone Valley. Both attested to the excellent care their families receive and to the need for paying better wages. The caregivers at ARC are like family, said Pat, whose daughter Rachel has many special care requirements.

Two women who work as personal care attendants in Massachusetts also addressed the rally. Deborah Hahn said, “…if Massachusetts PCAs can win $15, if New York fast food workers can win $15, you can too.”

This event is seen as part of the “expanding #fightfor15 movement” which has been defying expectations and scoring significant wins in recent weeks. The healthcare workers were joined at the rally by a host of labor and community groups, including the AFL-CIO, Unite Here! 217, Jobs with Justice, Fuerza Laboral, NEARI, Teamsters 251, UNAP, UFCW 328, and the RI Progressive Democrats. State Representatives David Bennett, Mary Duffy Messier and Scott Slater were also on hand.

July 25, 2015

How a hotel developer divided organized labor in Rhode Island

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Michael Sabitoni, business manager for the RI Laborers’ District Council, was perhaps a bit misleading when he rhetorically asked RI NPR reporter Ian Donnis, “Why pick on this one — we didn’t even build yet — when I got 50 percent unemployment in the Building Trades?”

Sabitoni was referring to Unite Here Local 217’s efforts to delay the construction of a proposed hotel on Fountain Street. Building a new hotel would provide much needed jobs to the building trades. The proposed hotel is to be paid for and built by The Procaccianti Group (TPG), a company that runs two hotels in downtown Providence: the Renaissance and the Hilton.

Unite Here Local 217 has been in a fight with TPG for a union, fair wages and a contract for over three years. These two hotels pay the lowest wages, demand the most work, and treat employees worse than any other hotels in Providence.

In short, TPG’s treatment of labor in Providence has been nothing short of disgraceful, and at times has been monstrous.

Short of a strike, one of the most powerful weapon a union has is a boycott. Unite Here Local 217 has called for a boycott of TPG hotels until such a time as TPG begins to sit down and work out a contract with hotel workers that ensures decent wages, decent working conditions and respect.

Geroge Nee, president of the RI AFL-CIO, knows the power of boycotts. In a story Nee tells often, he famously came to Rhode Island in 1971 to help organize a successful lettuce boycott for the United Farm Workers of America.

Boycotts are difficult to enforce. With a boycott you’re asking all those in support of workers to change their buying habits. Sometimes you’re even asking workers, businesses and supporters to suffer economic privation as they avoid purchasing needed commodities.

Boycotts depend on worker solidarity.

Union busters know that strikes and boycotts can be broken as soon as workers become hungry enough. Tactics include waiting out the workers, or playing one set of workers against another. Few people are going to honor a boycott when their kids can’t be fed and their mortgage can’t be paid.

When Sabitoni said to WPRI‘s Dan McGowan, “We cannot wait any longer. We need jobs and we need them now,” he was basically admitting that for his people, the boycott is over. They were too hungry to wait anymore.

Solidarity, like a chain, is only as strong as it’s weakest link.

[I reached out to Nee and Sabotoni for comment, and haven’t heard back from either of them yet, but this post will be updated if they chose to respond.]