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Local union allege labor issues at new Rockets' arena

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Labor allegations at new basketball arena

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LEAD-IN BY HOST SOPHIA: This summer, local union officials alleged labor compliance issues existed with the $150 million dollar basketball arena under construction in downtown Houston. On August 1st, Ann Sieber and Jackson Allers brought us the full story about the future home of the Houston Rockets.

STORY: [Ambient construction sounds.]

Construction is in full swing at the $150 million basketball arena downtown, but union officials for the Texas Carpenters and Millwrights Regional Council are upset at the organization responsible for guiding the project, the Harris County Houston Sports Authority.

At issue are union allegations that a subcontractor, Capform Inc, is underpaying workers by mis-classifying them on their payroll sheets.

The general manager overseeing the project, Hunt Construction Group, has not appointed an outside compliance officer to monitor these issues.

Hunt was hired by the city to build the stadium, and Hunt hired Capform for the concrete work. But it's Hunt who is also the compliance watchdog

Terry Darling, director of organizing for the carpenters union, feels that this is a conflict of interest

"...In our opinion, this is the fox guarding the hen house. We cannot have the management of the company controlling the purse strings doing the monitoring of the workers and their wages."

The Harris County Houston Sports Authority is the publicly authorized body responsible for getting the stadium built.

KPFT news asked sports authority CEO Oliver Luck about the potential conflict of interest:

Allers: "Do you find it to be a conflict of interest or is it normal practice in these situations that the general contractor is also the compliant officer?"
Luck: "I don't think it's a conflict of interest, in this case the general contractor Hunt is also our construction manager. In some cases you'll have jobs where they are two separate entities."

Why is the union so worried about who is overseeing compliance? Because they think Capform is underpaying the workers, and nobody seems to be catching the discrepancies.

Juan del Campo, a local union representative, took KPFT News on a tour of the arena construction site:

"...That man is operating that jackhammer very skillfully so he's a skilled journeyman laborer. And he should be getting paid $14.53 an hour. That's why you need a compliance officer to come and talk to that man while he's doing his duties and ask him directly what is he being paid and what is his job classification."

The carpenters union says that that Capform has eliminated a class of worker and, when KPFT looked at the 600-plus-page payroll, no one was being paid for doing labor journeyman work.

Journeyman are paid for operating such things as scissor-lifts and air hammers. Who is doing the work?

Capform spokesperson, Jim Renaud:

Renaud: "...We are not using anyone that fits into that category of a laborer journeyman, we're not using that category
Sieber: "...And so if we saw people on the job doing the work of the journeyman, they would be?..."
Renaud: "...Probably a carpenter helper."

But carpenter helpers are only paid $11.59 an hour, while journeyman make $14.53 an hour.

That's why the union contends that the workers doing the journeymen work are being underpaid by almost 3 dollars an hour. With more than 200,000 man hours clocked so far, this could amount to a serious underpayment.

That, the union says, is why this project needs an outside compliance officer.

Both Hunt Construction and the sports authority says they are looking into the issue of non-compliance and the possibility of hiring an outside compliance officer.

KPFT News will bring you updates as they occur.

This is Jackson Allers and Ann Walton Sieber reporting with KPFT News.

E-mail Jackson Allers and Ann Walton Sieber at jacksona@earthlink.net

This story was broadcast on August 1, 2002.