foolmenot.comIn April 2005, almost two years into a protracted dispute between an electrical contractor and the local electrical worker's union on the construction site of the district's new high school, Lakeview Superintendent Cindy Ruble received the state's final judgment. The International Brotherhood of Electrical Workers Local 445 — after almost two years of pickets, board meeting appearances, Freedom of Information Act requests and, finally, a prevailing wage complaint filed with Michigan's Department of Labor and Economic Growth — received word, too.
Buist Electric Inc., the Byron Center-based, non-union shop chosen by Lakeview's board for its low bids and strong project record, had underpaid one employee by $10.56 on the company's $3.9 million contracted work. "I get a bit wound up when I think about the amount of time we spent, ... Buist spent and the Department of Labor spent putting together information and investigating the allegations," Ruble wrote in a memo to school board members after the wage complaint results were announced.
More than 400 pages of documents obtained by the Enquirer in a Freedom of Information Act request provide a rare glimpse of the inner workings of school construction projects, where districts are squeezed between the oft-competing interests of local, unionized labor and non-local, non-unionized labor. And in an increasingly lucrative business — Michigan voters approved upwards of $710 million in school construction and renovation bonds last year — the Lakeview dispute highlights how much unions are willing to press the issue to obtain a piece of the pie.
Cindy Ruble, who was hired as Lakeview's superintendent in the summer of 2003, underwent baptism by fire. Almost immediately after taking over for Bob Spencer, she was thrown headlong into the dispute between Buist and Local 445 — working phones, making assurances, writing letters and communicating to board members about pickets at the high school site. Although she and Steve Claywell, business manager of Local 445, today stress there is no ill will between them, Ruble said the two years of construction headaches wore her down, especially toward the end. "I got tired during the process, and I think Steve did, too," she said.
Still, Ruble said, she has no regrets about taking a low bid from Buist, "an excellent, excellent contractor." "Does it feel good to hire a contractor that's not local labor?" she asked. "Well, you can't make decisions based on what your heart says. When you get a financial report that's strong ... and you can save the taxpayers significant resources, you have to put the heart away and make the decision with the head." Ruble said about 75 percent of the high school construction was done by union labor, and the Lakeview board has shown a willingness to go with local unionized firms if bids are close.
Notwithstanding the 30 hours Ruble estimates she spent dealing with the dispute, the high school came in under budget and nationally recognized. American School & University magazine awarded Lakeview High School a Citation Award for its "well-planned use of space to create new and useful areas" in its November 2007 Architecture Portfolio. The school's cost per square foot was $126.50 — under the national school median of $152 and under the $166 required to qualify for the state of Michigan's credit rating.
Steve Claywell is a son of the city. He is a graduate of Battle Creek Central High School and talks passionately of his duty to help local electrical workers in times of need. He said he sees himself as a watchdog of electrical contractors regardless of their union or non-union status. His extensive hours of work with board appearances, letters, pickets, Freedom of Information Act requests and prevailing wage complaints at Lakeview, he said, were a way to protect workers.
"I believe that a violation is a violation," Claywell said, referring to the fact the immediate, tangible result of his efforts was one check to one worker for $10.56. "I used the legal process to make sure that (Buist) did things fairly. "Even if there hadn't have been a violation, to ensure that somebody is abiding by the law, I don't believe you can put a value on it," he said. "We have police officers who are out there every day, 365 days a year, and they may go 100 days without pulling over a speeder, but knowing that they're out there making a difference ... they know their job is worth it."
Claywell said he did not find any irregularities in Buist's payroll when he reviewed the records, and that he did not still believe there was a back-room deal between the school district and Buist. "I am very vocal that Cindy and I share a good relationship," Claywell said. "She did cooperate with me and, at times, went over and beyond my expectations, and I do appreciate that."
Buist, meanwhile, which called Local 445's tactics "economic terrorism" in a letter to the DLEG in May 2005, said the electrical union's intent was to discredit them. Buist was not required to let Claywell view its payroll documents, but chose to do so in the interest of transparency, said Vice President Brent Brinks in a written statement. "Unfortunately for Michigan taxpayers, the IBEW's grievance against our company cost the state of Michigan thousands of dollars to investigate and additional costs to Lakeview School District to gather and produce information," he said. Brinks said the $10.56 infraction was "clearly a minor technical error that was not representative of our pay practices."
Local union representatives insist that the Buist project is just the tip of the iceberg when it comes to prevailing wage violations. Prevailing wage, mandated by the state, ensures workers on certain public projects are paid on par with local surveys of pay scales on jobs governed by collective bargaining agreements.
Supporters say that prevailing wage makes sure workers are able to maintain quality of life. Detractors say the policy raises costs for taxpayers by surveying only artificially high union wages. "This is bigger than Buist or Lakeview," said Hugh Coward, president of the Southwest Michigan Building and Construction Trades Council. Coward said prevailing wage infractions were rampant in Michigan — even during the construction of Pennfield and Harper Creek high schools. Some violations don't become public, he said, because they are settled by third parties before going to the state.
"When the materials are the same and the law says that prevailing wages have to be the same, how does (a non-union company) get down to 20 percent (lower than) the next-lowest bid?" Coward said. "They cheat their workers." Skanska USA Building Inc.'s Steve Orlando, project manager for Pennfield High School, confirmed that one contractor on the job had to clarify its worker classifications. Another contractor, he said, was currently pursuing adjudication outside the confines of the state complaint process.
Jim Robinson, facilities director at Harper Creek Community Schools, said there were no major issues during the high school construction because most of the work was done by union labor. Jack Finn, an administrator with the DLEG's Wage and Hour Division, confirmed prevailing wage complaints filed with the state and awards to workers had increased since third-party claims started in the summer of 2003. Complaints rose from 150 in 2003 to 243 in 2007. In the same period, money awarded to workers jumped from $53,000 to $285,000.
Finn said the division did not keep track of how many complaints were found to be without merit. Dan Argentati, director of the Livonia-based Michigan Fair Contracting Center, consulted with all three Battle Creek school districts during their recent construction projects to ensure prevailing wage was being paid. Argentati said the MFCC is an independent organization, but does receive funding from construction firms operating with collective bargaining agreements. He confirmed prevailing wage violations were common, but said there was a mix of willing subversion and plain ignorance on the part of offending contractors.
"Sometimes it's just a matter of inexperience or a company coming from a different market into one they don't know too well," Argentati said, "but sometimes, you see the same contractors over and over again." But some feel the Lakeview episode shows unions are abusing the process in order to bully their competitors. "This is an prime example of the heavy-handed tactics that unions employ to intimidate and eliminate their competition, and that's why it's so hard to get people to talk about (labor issues)," said County Commissioner Jase Bolger, R-Marshall.
Even as the Michigan economy languishes, school construction is booming. Voters in 32 school districts approved $709.8 million in school construction and renovation projects last year, according to the Michigan Department of Treasury. In just six years, the balance in the Michigan School Bond Qualification and Loan Program — which houses a portion of total school construction debt so that districts can receive the state's credit rating — has nearly doubled. Hugh Coward said this growth reinforces the need for local unions to market themselves and fight incursions from non-union interlopers.
"Steve (Claywell) used one of the tools we have," Coward said of the prevailing wage complaint. "We need accountable information to create a level playing field or we are going to lose market share." Claywell said his work boils down to a simple desire to secure work for laborers who contribute to the local tax base and who volunteer their time in local events like the International Festival of Lights. "There's nothing personal here at all," he said. "We all have jobs to do, and my job is to try to make sure that my members have an opportunity to work." To that end, Claywell said Local 445 will work with Lakeview to help pass the district's estimated $52 million elementary school bond project that is slated to appear on an August ballot.
Claywell also will coordinate local bids for the Battle Creek Public Schools' $68.9 million construction and renovation project, which will break ground starting in April. School officials, construction managers and union representatives agreed that — no matter how contentious or tenuous it gets — navigating a sometimes-uneasy alliance during construction projects is essential. "It's imperative that you bring everybody to the table," said Skanska's Steve Orlando. "You have to have strong relationships with union and non-union in order for things to go smoothly." "We're in the business of representing workers — union and non-union," Coward said. "We'll do that however we gotta do it."
Ryan Holland can be reached at 966-0690 or rholland@battlecr.gannett.com.