November 14th, 2012
By Andy Brownfield |
Politics/Issues |
Posted In: Business, City Council, Development, Government, News, University of Cincinnati
U Square Worker Payment Investigation Continues
Committee members want to change way contracts are written to ensure fair wages
A City Council committee wants Cincinnati’s leadership to investigate whether workers in a Clifton Heights development project are being paid what they’re supposed to.
The Strategic Growth Committee on Wednesday passed a motion
asking the city administration to report back on wage payments to workers on
the U Square development. The project includes a parking garage as well as
residential and commercial units.
Under Ohio law, workers on projects funded by cities must be paid
a prevailing wage, which is equivalent to the wage earned by a union worker on
a similar project.
The city only has money invested in the garage, and the state of Ohio recently ruled that
workers on other parts don’t have to be paid prevailing wage.
Council members Wendell Young, Cecil Thomas and Laure Quinlivan
produced a video in which they interviewed carpenters who said they were being
paid less than the prevailing wage.
At issue is a letter from developer Towne Properties that says
the company will pay all workers prevailing wage anyway.
Arn Bortz with Towne
Properties said his company cuts a check to subcontractors respecting that
agreement, so if workers aren’t being paid the proper amount it’s their fault.
City Solicitor John Curp told members of the Strategic Growth
Committee that under city and state law, the subcontractors are not required to
pay workers a prevailing wage on parts of the project that are not getting
public funding. He said the letter from the developer does not hold the weight
as a legal contract.
Young, Thomas, Quinlivan and Councilman P.G. Sittenfeld all
expressed the need to overhaul the way the city enters into development
contracts to better protect workers.
However, City Manager Milton Dohoney hinted that overzealous
requirements for high wages could chase off some development projects.
He said that a project like U Square is tied to the Clifton
location because of its proximity to the University of Cincinnati, but the city
can’t be too restrictive when it comes to businesses that could expand
elsewhere.
Dohoney said the city also doesn’t currently have the manpower to
do the kind of aggressive enforcement that the council members were asking for.
Councilman Young countered that he would like to see the city be
as aggressive with enforcement as they are with making economic development
deals.
“We want to change the rules of the game to make sure everyone is
treated equal,” Young said.
