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Home My WebLink AboutMINUTES - 09011987 - IO.1 TO: BOARD OF SUPERVISORS FROM: INTERNAL OPERATIONS COMMITTEE C,.,��,,, r , }}t August 24,' 1987 Cl)sta DATE; CO Employment Practices of USS-POSCO, Its GeneralIR `/J* SUBJECT: Contractor, B.E.&K. , and the Policy of "Buy America" SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION _ RECOMMENDATIONS: 1. Request the Director of Personnel to report to our Committee September 28 at 9: 30 A.M. on any further refinements he has been able to make in the data presented to. our Committee August 24. 2 . Request the .District Attorney and Health Services Director to report to our Committee September 28 at 9:30 A.M. on alleged safety violations which have occurred at USS-POSCO consistent with Supervisor Torlakson' s memos which the Board adopted on July 28, 1987 . 3 . Request the County Administrator to ask USS-POSCO for written clarification of what changes they anticipate in their workforce at the conclusion of the current construction program and report the results of this request to our Committee on September 28 at 9:30 A.M. 4 . Request the County Administrator to write to Congressman Miller, Senator Wilson, Senator Cranston, and other appropriate Bay Area members of Congress, and this County' s State legislative delegation, asking that they meet with our Committee on September 28 to discuss federal policies which currently appear to prevent this County from insuring that construction materials used for major new projects, like the West County Justice Center, the additional lanes on the existing Benicia Bridge, and the construction of a second Benicia Bridge, are manufactured in the United States. 5 . Request the County Administrator to ask the Building Inspector, County architect, and/or engineer, to meet with our Committee on September 28 at 9: 30 A.M. and report to us on what State law and regulations are regarding weld inspections and what industry standards are in this regard. 6. Request the Director ' of Personnel and Executive Director, Private Industry Council, to report to the Internal Operations Committee on September 28, 1987, at 9: 30 A.M. , on information regarding the impact of unemployed or "stranded" CONTINUED ON ATTACHMENT: YES SIGNATURE: _��// RECOMMENDATION OF COUNTY ADMINISTRATOR X RECOMMENDATION OF BOARD COMMITTEE _p CMM OTHER bw SIGNATURE s : N ncy C. Fanden p Tom Torlakson ACTION OF BOWON September 1 , 1987 APPROVED AS RECOMMENDED k OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT III } 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. County Administrator cc: Personnel Director ATTESTED County Counsel PHIL BATCHELOR. CLERK OF THE BOARD OF Building Inspector SUPERVISORS AND COUNTY ADMINISTRATOR Steve Roberti , Central Labor Council Earl MacIntyre, USS-POSCO M382/1 / jn Quick, Assoc. Builders & Contractors BY _,DEPUTY I Page 2 6. (continued) out-of-state construction workers on our homeless population and our General Assistance population. 7 . Request the Director of Personnel and the Health Services Director to report to our Committee on September 28, 1987, at 9: 30 A.M. on their analysis of B. E. & K. ' s health plan in terms of the extent to which it is comparable to other health plans offered by the private sector, and on the results of their meeting with the Associated Builders and Contractors regarding the types of health plans they offer their employees and the comparison of those plans with the one offered by B. E. & K. 8 . Refer to the Internal Operations Committee the issue of whether it is feasible to prepare and adopt an ordinance addressing the issue of local hiring and/or payment of prevailing wages by private sector contractors. BACKGROUND: Our Committee met again on August 24 with representatives of USS-POSCO, several labor unions, and the Associated Builders and Contractors in our ongoing effort to determine whether the employment practices of B.E.& K. on the USS-POSCO construction program are having, or are likely to have, a negative impact on county government. We were very distressed to receive a letter dated August 24 indicating that B.E. & K. (AMK International) would not be able to attend our August 24 meeting. Our Committee believes there are serious deficiencies in the benefit package offered by B.E.& K. , particularly in terms of health insurance and the lack of a pension plan. These deficiencies have the potential to impact the County' s health and welfare systems since many of the employees will be unable to afford health coverage for their dependents or to pay the deductible for their own health coverage. The lack of pension benefits, of course, hold the potential for long-term problems by forcing individuals onto welfare when they retire. The low wages being paid by B.E.& K. mean that many of the out-of-state employees may have to apply for welfare when the modernization work is completed if they don' t have the savings to return to their homes elsewhere in the country. Many of the questions asked by our Personnel Department have gone unanswered by B.E.& K. , other than to say the data either isn' t available, or is confidential. Another issue was raised at our August 24 meeting. In response to questions from our Committee, Earl MacIntyre of USS-POSCO said the number of employees at USS-POSCO after the modernization work is completed will be approximately the same as it is now ( 1000) , although there will be some reassignment of workers since much of the portion of the plant which is being modernized will be automated. However, Steve Roberti of the Central Labor Council was at a meeting with USS-POSCO' s President, E. A. Roskovensky, on March 30, 1987, at which time Mr. Roskovensky was quoted as saying there would be 1/3 fewer workers. We believe this discrepancy needs to be explained; hence, our recommendation #3 above. Page 3 We would also like the Building Inspector to describe to our Committee what industry standards are for weld inspections and what state law and regulations are in this regard. Several union representatives at our August 24 meeting maintain that B.E.& K. is not requiring adequate inspection of welds and that individuals doing welding are not properly trained. USS-POSCO says they are complying with state law and the union representatives say there are no legal requirements or standards for weld inspection. Since this is a potential safety issue, we feel we must examine this issue as well. In discussing the whole USS-POSCO joint venture with its Korean partners, Supervisor Fanden reminded those present of the fact that the Antioch (Nejedly) Bridge was built with foreign-produced steel, as was the Main Detention Facility in Martinez. In response to our report to the Board on July 7, County Counsel has researched whether the Board of Supervisors can give a preference to American-made products in construction done for the County. County Counsel has issued an opinion indicating that based on court decisions and Attorney General opinions neither the state nor local governments can give any preference to American-made products in construction contracts nor can the Board require the use of American-made products in such contracts. The problem is that federal law preempts state and local action in this area on the basis that only the federal government may conduct foreign policy, including foreign trade policy. It would be necessary for Congress to provide express statutory authority for such preferences in order for such preferences to be held to be Constitutional. Even then, such statutory authority would be superseded by any treaties the United States may have entered into that forbid such discrimination. Our Committee would like to discuss this dilemma with our Congressional delegation and would like to include other members of Congress from the Bay Area in our meeting. PPP- And the Board adjourns to meet on September 3 , 1987 , at 9 :30 a .m, with representatives of religious organizations in the Board Chambers , County Administration Building , Martinez . Sunne Wright McPeak, Chair ATTEST: Phil Batchelor, County Administrator and Clerk of the /Board of Supervisors By S�C�—i 'e '' r I Jea ne 0. Maglio,. DePutY e