New Haven Register (New Haven, CT)

Union: Tax cheats raise costs for all

- By Mary E. O’Leary

NEW HAVEN — The rat came back.

Local 326 of the Carpenter’s Union brought its 10foot inflatable rat to Wooster Square Park in a teeming rainstorm as it spoke of companies that allegedly fail to pay workers’ compensati­on insurance and incorrectl­y classify workers as independen­t contractor­s.

It was the local contributi­on to the National Day of Reckoning organized by the 500,000 carpenters in the United Brotherhoo­d of Carpenters, which covers employees in the United States and Canada.

The rat often pops up at work sites targeted by the union when stop-work orders are issued over alleged wage issues.

Ernest Pagan, an organizer and business representa­tive of Local 326, said such actions by companies amount to tax fraud when workers are not compensate­d correctly.

“When they don’t pay, we have to pay more,” Pagan said of taxpayers covering the cost of public services shortchang­ed by tax cheats.

More than 50 workers in rain gear listened to speakers, including state Attorney General William Tong, describe the issue.

Tong estimated they get complaints about wage issues on a daily basis.

“There are people out there who are committing tax fraud by paying people under the table, by paying people off the books,” he said.

Tong said companies that do this are “stealing” from their workers by not compensati­ng them fairly, by not paying into worker’s compensati­on to cover any injuries or into Social Security.

“This is not about labor. It is not about unions. It is about families,” Tong said.

New Haven Mayor Justin Elicker said the city struggles when people cheat the tax system. “There are so many people out there that are not paying their fair share,” he said.

“We in New Haven stand for a government that provides people the opportunit­y to thrive and we need to work in so many different ways together to make sure that people have that opportunit­y,” Elicker said.

He said the city has started a constructi­on training pipeline to get New Haven workers trained for the building trades.

The rally was held adjacent to Rosa’s Table, which was built in the park as a tribute to the family of U.S. Rep. Rosa L. DeLauro, D-3, who now is chairwoman of the Appropriat­ions Committee in the House of Representa­tives.

Alder Ellen Cupo, D-8, made a pitch for New Haven residents to get the constructi­on jobs that come to New Haven, given the large amount of building work under way.

The city has the most leverage when constructi­on takes place on property it owns; less so on private property.

Lou Mangini, senior staff member in DeLauro’s local office, read remarks by the congresswo­man.

DeLauro said that according to the Economic Policy Institute, wage theft is a $50 billion annual problem with only some $2 billion recovered in 2015 and 2016.

DeLauro said additional money has been approved for the Department of Labor’s Wage and Hour Division to hire more inspectors, while there are also more funds for the Occupation­al Safety and Health Administra­tion.

She told the gathering that the Biden administra­tion is committed to enforcing the Fair Labor Standards Act.

“In the face of stagnating wages, wage theft and misclassif­ication, we need to rewrite the rules to level the playing field for working people and middle class families,” DeLauro wrote.

Guy Smith Jr., who runs Center Line Interiors of Milford, said he became a union company after 10 years because it was too difficult to compete against contractor­s who allegedly cheated by only paying workers’ compensati­on for a small portion of their workforce.

He said they also would demand 6-day workweeks with no overtime. Smith said his bids took these costs into account, pushing his realistic constructi­on estimates out of the competitio­n.

Smith said in the last year he has found much union work for his employees.

 ?? Mary E. O’Leary / For Hearst Connecticu­t Media ?? Local 326 of the Carpenter’s Union brought its 10-foot inflatable rat to Wooster Square Park in a teeming rainstorm Thursday as it spoke of companies who fail to pay workers’ compensati­on insurance and misclassif­y workers as independen­t contractor­s.
Mary E. O’Leary / For Hearst Connecticu­t Media Local 326 of the Carpenter’s Union brought its 10-foot inflatable rat to Wooster Square Park in a teeming rainstorm Thursday as it spoke of companies who fail to pay workers’ compensati­on insurance and misclassif­y workers as independen­t contractor­s.
 ??  ?? Local 326 of the Carpenter’s Union rally in Wooster Square Park in a teeming rainstorm Thursday as it called out companies that fail to pay workers’ compensati­on insurance and misclassif­y workers as independen­t contractor­s.
Local 326 of the Carpenter’s Union rally in Wooster Square Park in a teeming rainstorm Thursday as it called out companies that fail to pay workers’ compensati­on insurance and misclassif­y workers as independen­t contractor­s.
 ??  ?? From left, New Haven Mayor Justin Elicker, Guy Smith Jr. and Matt Capese wait to speak at Wooster Square Park.
From left, New Haven Mayor Justin Elicker, Guy Smith Jr. and Matt Capese wait to speak at Wooster Square Park.

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