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Home My WebLink AboutMINUTES - 07071987 - IO.2 � a BOARD OF SUPERVISORS FROM: Internal Operations Committee Contra June 22, 1987 @ . Costa DATE: County SUBJECT: EMPLOYMENT PRACTICES OF B E & K SPECIFIC REQUEST(S) OR RECOMMENDATION(_S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1) Request the Director of Personnel to continue to refine the data provided by B E & K and provide our Committee on August 24, 1987 with a more complete analysis of the data including a comparison of com- bined employer cost of salary and benefits taking into account the fact that B E & K does not provide vacation, sick leave or pension benefits to employees and the additional cost to the employee from the fact that dependent' s health coverage is not paid by the employer. 2) Request the Director of Personnel to obtain salary and benefits for nonunion employers in the county and compare those figures with comparable data from B E & K and present our committee with the results of his comparison on August 24, 1987. 3 ) Request County Counsel to describe how the Board of Supervisors can give some preference to the use of American-made products in construc- tion done for the County. If changes in statutes are required ask County Counsel to outline in general terms what changes would be required and report to our Committee on August 24, 1987. BACKGROUND: On - April 21, 1987 the Board, upon the recommendation of our Committee, authorized us to continue to gather information regarding the employment practices of B E & K, general contractor for the USS-POSCO modernization project in Pittsburg. On June 22, 1987 our Committee met with representatives from Congressman Miller ' s office, Senator Boatwright' s office, Assemblyman Campbell' s office, B E & K, USS-POSCO, the Associated Builders and Contractors, the Central Labor Council, several labor organizations and county staff. We received a preliminary report from the Director of Personnel based on a brief analysis of salary and benefit data submitted by B E & K. The Director of Personnel' s initial review indicates that the health plan offered to B E & K' s employees is employer paid for the employee but dependent coverage is available at $112 a month cost to the employee. It was described as a fairly standard cost-containment policy in that it includes second opinion requirements for elective surgery, co-payments and a $500 deductible per person per year. CONTINUED ON ATTACHMENT: _ YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER . 4?* Fkodn'�&On\_'SIGNATURE s : N cy C. F'ah7deri p^7 T ort ACTION OF BOARD ON July / , 198 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT If IV AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. cc: County Administrator ATTESTED July 7, 1987 Personnel Director County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382/7-83 B ,DEPUTY a Unskilled workers at B E & K start at a minimum of $7. 20 per hour. This increases to a maximum of $16. 00 per hour for skilled workers. Precisely comparable data are not readily available because data for USS-POSCO and local unionized industry are averages at various levels. B E & K does pay overtime but makes no provision for paid vacation, sick leave or pension benefits. The Director of Personnel noted that an accurate comparison with nonunion employees will require some time to collect. John Gibson, representing USS-POSCO noted that USS-POSCO had four goals with their modernization project: 1) To remain in business they have to upgrade and modernize their plant. 2) To preserve the existing 1100 jobs into the next century. 3 ) To improve the environment by purchasing the best available equipment. 4) To maintain their tax base in the community. Mr. Gibson noted that when the contract was awarded in December, 1986 USS-POSCO had three goals in mind: 1) To finish the job on time. 2) To finish the job within budget. 3 ) To complete the job in the most efficient manner possible. The contract which was awarded to B E & K required the contractor to hire locally, to provide training to employees to upgrade their skills and to provide a reasonable benefit package. Scott Robertson, Director of Communications for B E & K noted that B E & K has an extensive training program underway to upgrade the skills of the employees they hire so that when they leave the area they will leave behind a trained work force who will find it easier to obtain a paying job. At this point B E & K has hired 321 individuals, 75% - 800 of whom are local in that they live within 100 miles of the job site. Mr. Robertson noted that 420 of B E & K' s subcontractors are unionized and all but one of the subcontractors are from California. In answer to a question from Supervisor Torlakson Mr. Robertson indicated that employment by B E & K will peak at 800 and that the job will be completed by the end of 1988. Art Carter, speaking on behalf of the Central Labor Council, disputed that B E & K has hired local residents. He maintained that when the job is over the workers will move to other areas to find jobs. Mr. Carter' asked B E & K what their safety record is under OSHA. Mr. Paul Liles, General Counsel for B E & K indicated he was not sure but could supply that infor- mation. Generally, B E & K believes they have a good safety record. Again in response to a question from Mr. Carter about B E & K' s affirmative action program Mr. Robertson indicated they could obtain that information. Mr. Carter asked how many employees were at each wage level. Mr. Robertson indicated his guess that 75% are not at the lowest category. He also noted that this is proprietary information which B E & K does not wish to release unless such information is required of all contractors. Mr. Lonnie Reid of the Associated Builders and Contractors noted that unions have priced themselves out of the market locally because competition is national and international. Steve Roberti, President of the Central Labor Council noted that construc- tion workers are not transient. Most workers work and live in this county. Mr. Roberti disagreed with Mr. Cisterman that the health plan offered is comparable to industry standards. Mr. Roberti questioned why an employee would pay for dependent care when the county hospital is available at little or no cost. He also maintained that the wage rates paid by B E & K are not comparable. He suggested that the lack of paid vacation, sick leave and pension show that benefits are not comparable. It was noted that the salary ranges offered for B E & K were apparently absolute high and low ranges while the figures for USS-POSCO and local industry were average at each level and were, therefore not entirely comparable without further analysis. Mr. Michael Munoz of the Carpenters Union noted that they had surveyed the cars coming through the B E & K gate at USS-POSCO and disputed B E & K' s contention that 750 - 800 of the employees were local. They observed of 280 workers, 122 out-of-state license plates and 158 California. Of the California license plates, which they checked through DMV, 52 showed an address which Mr. Munoz described as being more than 100 miles from the job site. Earl MacIntyre of USS-POSCO disputed this information on the basis that they had made their own survey of license plates and their results showed 45 out-of-state plates and 109 California plates. Based on all of these charges and counter charges and the lack of compara- ble data our Committee has concluded that it is essential that objective data be gathered which is comparable and will either confirm or dispel the questions which have been raised. We are therefore making the above recommendations. Specifically in relation to the last recommendation Supervisor Fanden noted her dismay that Contra Costa County had to build the main detention facili- ty in Martinez with imported steel and that the Antioch Bridge was built with imported steel all apparently because the County cannot apply a "buy-American" preference to the awarding of such bids. As a result Supervisor Fanden asked that County Counsel provide an explanation as to why this was the case and what would be needed to change the rules on awarding such bids. County Counsel indicated that it would require changes in federal law. cc: County Administrator County Counsel Director of Personnel Congressman Miller (Pleasant Hill Office) Congressman Dellums Senator Boatwright (Concord Office) Senator Petris Assemblyman Baker Assemblyman Bates Assemblyman Campbell (Richmond Office) Assemblyman Isenberg Paul Liles, B E & K Scott Robertson, B E & K Earl MacIntyre, USS-POSCO Lonnie Reid, Associated Builders & Contractors Steve Roberti, Central Labor Council