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Recent News
Craft Spotlight – Brandon HuffmanFebruary 19, 2025 - 3:26 pm
Craft Spotlight – Ron HeimelFebruary 5, 2025 - 5:14 pm
Craft Spotlight – Frank ZagarJanuary 29, 2025 - 2:47 pm
Craft Spotlight – Chris SkidmoreJanuary 22, 2025 - 4:10 pm
Craft Spotlight – Kirk ForemanJanuary 14, 2025 - 4:33 pm
The Carpenter | CMRCC 2024 MagazineDecember 30, 2024 - 2:19 pm
Union Carpenters Support Senator Sherrod Brown at RallyOctober 30, 2024 - 3:56 pm
It’s In Our Hands – 2024 EndorsementsOctober 25, 2024 - 1:26 pm
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Weakening Prevailing Wage Hurts Local Contractors
/0 Comments/in News /by IKORCCA case study from Southern Indiana demonstrates how weakening prevailing wage negatively impacts local contractors and local workers.
Out-of-state contractors benefited after Indiana weakened its prevailing wage law, according to a new Economic Commentary from the Midwest Economic Policy Institute.
Despite an emerging academic consensus that shows state prevailing wage laws have no discernible impact on project costs, lawmakers in Indiana weakened the state’s law – called Common Construction Wage – between 2012 and 2015. In 2013, the threshold for coverage was increased from $250,000 to $350,000, meaning that workers were no longer paid a prevailing wage rate on projects costing between $250,000 and $349,999.
Prior to raising its contract threshold to $350,000, hourly earnings for construction workers in Indiana were similar to all neighboring states except Kentucky. Economic research suggests that out-of-state contractors with lower-paid workers will flood the public construction market after a prevailing wage law is weakened. If true, the greatest threat to Indiana contractors would come from across its southern border in Kentucky, where construction workers earned $5 less per hour on average in July 2012.
Indiana’s southern border with Kentucky is thus a good case study on the local impact of weakening prevailing wages. There are 13 southern Indiana counties that border 14 northern Kentucky counties.
After weakening prevailing wage, employment in the heavy and civil engineering sector declined in Indiana’s southern-most counties but grew across the river in Kentucky border counties. After the Common Construction Wage threshold was raised, southern Indiana’s public works construction sector had an employment loss of 885 workers (21.2 percent). Meanwhile, public works construction employment increased by 770 workers (20.7 percent) in the Kentucky border counties.
The average monthly earnings of employees in heavy and civil engineering construction careers also declined after prevailing wage was weakened in the Indiana counties but increased across the river in the Kentucky counties. After adjusting for inflation, the county-level earnings of public works construction employees declined by $439 per month for the average Hoosier worker. At the same time, average earnings increased by $610 per month for comparable workers across the border in the Kentucky counties.
In this integrated regional economy along the Ohio River, the evidence suggests that out-of-state contractors from Kentucky with lower-paid construction workers were the real beneficiaries of Indiana weakening its prevailing wage law.
After Indiana weakened its prevailing wage law, higher-paid public works construction workers in the state’s 13 southern-most counties were replaced by lower-paid workers across the border in 14 Kentucky counties. The redistribution of jobs and earnings to Kentucky construction workers has an adverse impact on income tax revenues and sales tax revenues in Indiana.
This case study should be a cautionary note to lawmakers in states across the Midwest who are considering weakening their state’s prevailing wage.Prevailing wage is a policy that promotes high-road economic and community development. Weakening prevailing wage only hurts local contractors and workers.
Newburgh Groundbreaking Ceremony
/0 Comments/in News /by IKORCCThanks to everyone who stopped by our Newburgh groundbreaking ceremony today! We had a great turnout. State and local elected officials, reps from Danco Construction LLc, apprentices, journeymen and IKORCC staff attended the event. The building is scheduled to be completed in February 2017.
“Today is a great day for the IKORCC as we break ground on a new facility. The commitment of our members to this organization and their careers makes this dream a reality. This new 12,000 sq. ft. office will be co-located with our Newburgh, IN training center, making it the 6th joint campus for the IKORCC. Our continued growth shows the community we are here to stay and we are here to help those who live here build a career in the trades. By co-locating our administrative functions with training, we are able to provide a one-stop shot to better provide access to our training for both members and contractors.” Mark McGriff, Executive Secretary Treasurer
Naples Business Owner Arrested for $700,000 Workers’ Compensation Fraud Scheme
/0 Comments/in News /by IKORCCNaples Business Owner Arrested for $700,000 Workers’ Compensation Fraud Scheme
Press Release, Florida Department of Financial Services
5-20-16
Florida Chief Financial Officer Jeff Atwater today announced the recent arrest of Raimundo Hernandez-Argueta, owner of Naples construction company Complete Framing Professionals (CFP). Following a joint investigation by the Department of Financial Services’ (DFS) Division of Insurance Fraud and Division of Workers’ Compensation, Hernandez was arrested on fraud charges for allegedly misrepresenting information regarding CFP’s employee operations and payroll when applying for a workers’ compensation policy. By doing so, Hernandez avoided at least $700,000 in workers’ compensation premium payments.
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Investigators later discovered that Hernandez obtained a policy through Florida United Business Association providing coverage for four employees, each with an annual wage of $50,000. Hernandez paid $26,910 for this one-year policy. However, job site inspections documented 108 employees during that time frame and more than $5.5 million in total earnings, grossly lower than what was reported to the company’s insurance carrier.
As a result of his misrepresentations, Hernandez was able to illegally avoid paying more than $700,000 in workers’ compensation premium dues.
Floor Covers volunteer for Indy 500 Festival Parade
/0 Comments/in News /by IKORCCIf you ever get a chance to visit the Indianapolis 500 Festival Parade during the race weekend, you may want to take notice of the carpet installation that is a city block long and on both sides of the main grandstands. For the last 15 years, Superior Carpet and union floor covers have had a long standing tradition of volunteering the installation of the carpet runs. “The guys like being part of the Indy community and part of the 500.” said Roger Berlin President of Superior Carpet. Thank you to Roger and Susie Berlin, Chad Weber, Parker Dillion, Dave “Boo” Dillion, Evan James, Kelsey Biggs, Doug Weber, Levi Setters, Josh Berlin, and Mike Judd for being a vital part of the community.
How to thank this veteran (and others): Support prevailing wage
/0 Comments/in Diversity, News /by IKORCCGilbert Charles, of Pinckney, is a U.S. Army veteran who served in the 1980s and moved to the skilled trades. His son, Matt, has followed in his father’s footsteps as a veteran and now as an apprentice learning how to become an electrician.
By Gilbert Charles
As we near Veterans Day, we will hear from many political leaders how grateful they are for our service. Some will express concern about veterans who return home and their opportunity to find a good job to support their families.
As a U.S. Army vet who served in the 1980s — and as the father of an Army veteran who served in Afghanistan — I always appreciate those thoughts. But I’m also concerned about efforts in the Legislature that would cut the pay of many Michigan veterans working in the construction industry.
I returned to Michigan after my service, and looked around for a good job, one that would let me build on my training, provide fairly for my family, offer decent health care benefits and a path to retirement. I found that job, training in an apprentice program and becoming a journeyman electrician as a member of IBEW Local 252. A portion of my paycheck each week goes to the apprenticeship program, to ensure those veterans and others who come after me get the training they need to do their job well and safely.
That turns out to have been a good investment. Now my son Matt is following in my footsteps. He’s in the Local 252 IBEW-NECA apprenticeship program, earning while he learns, at no cost to taxpayers. We know a lot of veterans in the industry. A recent report by the State of Michigan showed that about 9 percent of veterans are in the construction industry, compared with about 6 percent of state workers overall. And many were attracted to the fair pay and good training made possible by the state’s prevailing wage laws.
It’s exciting to see my son work in major, complex construction jobs at the University of Michigan — jobs that demand the skills I’ve gained over the years. But it’s not clear that good paying jobs in the skilled trades professions will be available to future vets.
A handful of politically powerful special interests want to cut the pay and benefits going to skilled trades workers by eliminating prevailing wage policies, even though research shows taxpayers won’t save a dime.
Prevailing wage policies say that taxpayer-supported jobs have to pay the going rate of pay in the region — usually the union-negotiated wage. Any company can bid, union or nonunion. But they have to pay a fair wage rate. It helps keep out-of-state companies from coming in with cheaper, less skilled workers to do the minimally acceptable job that meets minimum standards.
It’s in the state’s best interest to attract veterans such as Matt into the skilled trades, where there is a shortage of workers today. But without prevailing wage policies, the job will be a lot less attractive — in fact, many skilled-trades workers, including veterans, won’t enter the profession, or will go to another state. (Other Midwest states have prevailing wage policies, it’s mostly low-paying states in the South that don’t). Union apprenticeship programs will also disappear, and taxpayers will have to pay for those programs.
So this November, don’t just thank Matt and I for our service. We know you appreciate that. Take another step. Tell your lawmakers to support good jobs for veterans by supporting prevailing wage laws. That way Michigan veterans can return confident they will be able to get good training and support their families by taking jobs in the skilled trades