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Old 11-16-2012, 04:29 PM   #1
John Shiels
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Default Feds win $788K in back pay for Nissan plant contractors

November 16, 2012 at 1:25 am
Feds win $788K in back pay for Nissan plant contractors

By David Shepardson
Detroit News Washington Bureau
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Washington The Labor Department said Thursday it recovered $787,548 in back wages for 124 employees who performed work on a federally funded project at a Nissan Motor Co. plant in Smyrna, Tenn.

The Labor Department said five contractors violated provisions of the Davis-Bacon and Related Acts as well as the Contract Work Hours and Safety Standards Act, which resulted in the workers being underpaid and not receiving fringe benefits to which they were entitled.

A spokesman for Nissan, David Reuter, said the company requires its suppliers to follow the law. "Nissan requires that all of its suppliers follow applicable state and national labor laws, including the Davis-Bacon and Related Acts. When we learned that the Department of Labor was investigating these contractors, we worked with the Department to ensure our suppliers complied with the regulations," Reuter said.

Labor investigators found that Complete Automation of Lake Orion misclassified 48 employees as independent contractors and failed to include them on the company's certified payroll. As a result, employees were paid less than required prevailing wage rates and fringe benefits.

The department said Complete Automation violated another federal law when overtime compensation was paid at a lower rate to the workers because of their misclassification.

Complete Automation said on its website it has worked for a number of large companies including General Motors Co., Ford Motor Co., Chrysler Group LLC, Delphi Corp., Honda Motor Co. and Toyota Motor Corp.

The company said in a statement it works to follow the law. It notes it did not pay any penalties or fines, just the back wages.

"Complete Automation strives to comply at all times with all applicable laws and regulations as they relate to their many projects around the world. Job classifications are not always clearly defined by the DOL and therefore wage determinations are not always easy for employers to make," the company said in a statement.

The Labor Department didn't specify the project, but Nissan won $1.4 billion in Energy Department loans in 2010 to build an advanced battery manufacturing facility in Smyrna and to retool the automaker's existing Smyrna factory so it can build electric automobiles.

The company had planned to have a public grand opening on Friday, but canceled it.

The employer has paid the workers a total of $512,724 in back wages.

The department also said Jesco Inc. of Fulton, Miss., improperly classified 34 workers as plumbers rather than pipefitters, resulting in those employees receiving less than the required wages and incorrectly paying overtime compensation based on lower rates.

Jesco also required some workers to pay for lodging, which resulted in them receiving less than the prevailing wage and fringe benefits.

The company has paid the workers a total of $234,701 in back wages. T.W. Frierson Contractor Inc. of Nashville improperly classified 36 sheet metal and ironworkers as laborers and the paid the workers a total of $34,033 in back wages.

Electronics Automation Corp. of Columbus, Ohio, has paid five millwrights $5,455 in back wages and Custom Window Covering of Antioch, Tenn., has paid one employee $635 in back wages.

dshepardson@detnews.com

(202) 662-8735



From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2CQJU3KM0

Japan ever give a US company a single dime?
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Old 11-16-2012, 04:32 PM   #2
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So your issue is with our government for giving them the money or theirs for not giving us any?
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Old 11-16-2012, 04:45 PM   #3
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So your issue is with our government for giving them the money or theirs for not giving us any?
As long as Japan trades unfairly why would I want them to get a dime from my country?
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Old 11-16-2012, 04:47 PM   #4
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As long as Japan trades unfairly why would I want them to get a dime from my country?
See now you know how we feel about the UAW
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Old 11-16-2012, 04:50 PM   #5
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Interesting how all those workers willingly worked for the wages they received, but that isn't good enough for Uncle Sam.

Why can't buyers and sellers of labor contract for those services without government intervention?
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Old 11-16-2012, 04:53 PM   #6
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Interesting how all those workers willingly worked for the wages they received, but that isn't good enough for Uncle Sam.

Why can't buyers and sellers of labor contract for those services without government intervention?
Simple they took the money (1.4 BILLION) subject to federal laws.
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Old 11-16-2012, 04:54 PM   #7
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See now you know how we feel about the UAW


It's just the regime punishing non union aoto companies.......
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Old 11-16-2012, 04:54 PM   #8
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See now you know how we feel about the UAW
please explain how they are the same?
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Old 11-16-2012, 04:57 PM   #9
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Well John, I'm not sure what point you are trying to make here, but you certainly made a pretty compelling case as to why unions aren't necessary. Non-union workers have the best and biggest representation there is against unfair labor practices, and there's no monthly dues....the U.S. Dept. of Labor.
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Old 11-16-2012, 05:02 PM   #10
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please explain how they are the same?
You would dismiss it but I will try.

They make unreasonable requests in pay and benefits that can never be met and force the manufacturer to pass the cost on to us. It lowers the qaulity of the product and increases the cost even more for us down the line in repairs. They are why GM went **** up. Our vettes are exhibit A. They go fast and are pretty, but the quality is just a tad north of a yugo.


I know of people sleeping on the job as part of their contract with the UAW and when a non union worker was in doing some work they got all pissy with him because he woke the sleepers/union fellas up. I ain't lying.

I have proof of this practice in KC.
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Old 11-16-2012, 05:08 PM   #11
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You would dismiss it but I will try.

They make unreasonable requests in pay and benefits that can never be met and force the manufacturer to pass the cost on to us. It lowers the qaulity of the product and increases the cost even more for us down the line in repairs. They are why GM went **** up. Our vettes are exhibit A. They go fast and are pretty, but the quality is just a tad north of a yugo.


I know of people sleeping on the job as part of their contract with the UAW and when a non union worker was in doing some work they got all pissy with him because he woke the sleepers/union fellas up. I ain't lying.

I have proof of this practice in KC.
OK I'll take you opinion but Japan plays into it where?
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Old 11-16-2012, 05:09 PM   #12
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Simple they took the money (1.4 BILLION) subject to federal laws.
1) Govt. shouldn't be handing out loans in the first place. If private lenders don't want the risk, then the loan should not be made.....this includes student loans, btw.

2) There is nothing in the article that says that Nissan knew or should have known about the improper payments

3) What happened sounds like a common practice in the construction trades when dealing with "prevailing wage" nonsense. The city of Houston has those rules in place for any construction it bids out. What contractors do is what the contractors here do, they hide or misclassify employees to avoid paying the salaries .gov feels they should be paid. Houston (and probably other government agencies} hire people to watch contractors work, seeing what each person is doing. Then, at lunch time, or other random times, the employees are quizzed about who they are and what they are being paid to do. The government minder then makes his/her own determination about what the guy actually should be paid to do. Did the guy use a wrench to tighten a pipe? Bam! He's no longer a helper, he is a plumber, entitled to prevailing wage plumber's pay, even if he isn't a plumber, only a helper.

I have no interest in bidding on government jobs for precisely this reason. I just want to perform work and get paid with the minimum amount of red tape.

Last edited by bill_daniels; 11-16-2012 at 05:25 PM.
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Old 11-16-2012, 05:11 PM   #13
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As long as Japan trades unfairly why would I want them to get a dime from my country?
That is fine but would you want them to pack up and leave which would put a number of americans out of work?
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Old 11-16-2012, 05:23 PM   #14
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OK I'll take you opinion but Japan plays into it where?
You seriously don't get the connection?
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Old 11-17-2012, 09:29 AM   #15
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That is fine but would you want them to pack up and leave which would put a number of americans out of work?
let them go there would be more American companies to do the work. Face it Japan sucks and has a long record of excluding US insurance and construct firms not just goods manufactured in the US or any where in the world.

Politicians who allow this suck.
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Old 11-17-2012, 10:13 AM   #16
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OK I'll take you opinion but Japan plays into it where?
They both move the goalposts to wherever is convenient for them.
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Old 11-17-2012, 10:27 AM   #17
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Great!!!! Another $1.4 billion down the sheitter.
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Old 11-17-2012, 10:59 AM   #18
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Originally Posted by John Shiels View Post
November 16, 2012 at 1:25 am
Feds win $788K in back pay for Nissan plant contractors

By David Shepardson
Detroit News Washington Bureau

***

The department also said Jesco Inc. of Fulton, Miss., improperly classified 34 workers as plumbers rather than pipefitters, resulting in those employees receiving less than the required wages and incorrectly paying overtime compensation based on lower rates.

Jesco also required some workers to pay for lodging, which resulted in them receiving less than the prevailing wage and fringe benefits.

The company has paid the workers a total of $234,701 in back wages. T.W. Frierson Contractor Inc. of Nashville improperly classified 36 sheet metal and ironworkers as laborers and the paid the workers a total of $34,033 in back wages.

Electronics Automation Corp. of Columbus, Ohio, has paid five millwrights $5,455 in back wages and Custom Window Covering of Antioch, Tenn., has paid one employee $635 in back wages.

dshepardson@detnews.com

(202) 662-8735



From The Detroit News: http://www.detroitnews.com/article/2...#ixzz2CQJU3KM0

Japan ever give a US company a single dime?
Quote:
Originally Posted by bill_daniels View Post
Interesting how all those workers willingly worked for the wages they received, but that isn't good enough for Uncle Sam.

Why can't buyers and sellers of labor contract for those services without government intervention?
Unless the Trade Unions (and Union Tradesmen) screwed their Brotherhood (unlikely, but possible), the Contractors & Workers who violated the classification for these Trades were non-Union. That means the work performed was non-Union, and it is an example of how government influence like Davis-Bacon screws the Union worker.

The contracts were awarded under Davis-Bacon Act rules, and non-Union labor won the award with prevailing wage requirements. Prevailing wage does not mean Union labor wages & benefits, it means prevailing wage without consideration of benefits & training expenses. In this example the Davis Bacon Act (and other government intrusion into business) guaranteed the loss of this work to non-Union labor.

Other government intrusion? Search the sited Contractors and find they are all WBE businesses (set-aside credits for WBE per government equality programs). There may be some MBE Contractors in the labor cheats as well.

Union labor won nothing in this contracting & Davis Bacon Act example. Union labor did not get the jobs, Union labor did not win over non-Union labor to become members of their ranks, Union labor failed to receive any pay or benefits from the government, and Union labor ended up paying for the non-Union labor's parity in this settlement through higher taxes.

If the workers who got screwed were left with the wage parity unfunded by the government they might actually recognize the benefit of membership in a skilled Trade Union, but with big-brother government protecting their interests non-Union labor needs no Brotherhood (other than government sponsored & enforced Socialism, the ideology of the Democrat Party that their Union Leadership blindly funds every election).

.
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Old 11-17-2012, 12:57 PM   #19
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Perfect example of why you don't make deals with the devil...or the government. Same difference.
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