Can’t Find the Exit Off the “Low-Road”: GOP's Key Anti-Union Witness Underpaid Workers, Violated Wage Laws
House Republicans held a forum last month to slam the Obama administration's alliance with organized labor, charging, among other things, that government favoritism toward the labor movement was unfairly preventing non-union companies from getting contracts. But GOP lawmakers declined to mention that a key witness at the event, the CEO of a Pennsylvania construction firm had, in fact, agreed to be temporarily barred from receiving government contracts after being found to have violated state wage laws by underpaying workers.
Stephen Worth, who runs Worth & Company, appeared in late January alongside Steve Forbes and Elaine Chao as a witness at a Capitol Hill forum entitled "A Culture of Favoritism: The Obama Administration's Labor Agenda." The event, organized by Rep. John Kline (R-MN), the ranking Republican on the House Education and Labor committee, was designed to showcase, as the GOP put it, how "Washington Democrats have sought to reward political allies" in the labor movement, "at the expense of working Americans."
Worth lamented that "my employees currently are being cut out of jobs in their own backyard," thanks to Pennsylvania contracts that require that projects be awarded only to union contractors. He was, of course, referring to the use of Project Labor Agreements on public construction projects in Pennsylvania. Of course, PLAs do not, and by law they cannot, mandate the use of “union-only” contractors. Worth even acknowledged that PLAs do not actually work that way.
The bigger issue here is the fact that Stephen Worth is not the exception when it comes to the “low-road” business model in the construction industry. He is the rule! Last year, according to a settlement agreement entered into by the state of Pennsylvania and Worth and Company, Inc., Worth & Company admitted to violations of the state's Prevailing Wage Act by failing to maintain accurate wage records; by repeatedly employing too many lower-paid apprentices, rather than more highly paid workers; and by paying apprentices less per hour than the prevailing rate due, among other violations. The state found that Worth & Company's actions "were willful and with a knowing disregard of the rights of its workers."
This poster boy for “low-road” construction ultimately agreed to pay $138,525.10 to the underpaid workers, and agreed that his firm would be barred from receiving any new state contracts subject to the wage law until November 2010
The hearings weren't the first time that Worth – a proud member of the Associated Builders and Contractors, the high priests of “low-road” construction advocacy -- has offered support to a Republican cause. During the 2008 presidential campaign, Worth & Company played host to a John McCain town-hall event, at which Senator McCain called the firm "a great American success story."
A great American success story, huh? I would suspect that there are plenty of workers in Pennsylvania who would beg to differ.