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November 14th, 2012 By Andy Brownfield | News | Posted In: Business, City Council, Development, Government, News, University of Cincinnati

U Square Worker Payment Investigation Continues

Committee members want to change way contracts are written to ensure fair wages

u-square-at-the-loop

A City Council committee wants Cincinnati’s leadership to investigate whether workers in a Clifton Heights development project are being paid what they’re supposed to.

The Strategic Growth Committee on Wednesday passed a motion asking the city administration to report back on wage payments to workers on the U Square development. The project includes a parking garage as well as residential and commercial units.

Under Ohio law, workers on projects funded by cities must be paid a prevailing wage, which is equivalent to the wage earned by a union worker on a similar project.

The city only has money invested in the garage, and the state  of Ohio recently ruled that workers on other parts don’t have to be paid prevailing wage.

Council members Wendell Young, Cecil Thomas and Laure Quinlivan produced a video in which they interviewed carpenters who said they were being paid less than the prevailing wage.

At issue is a letter from developer Towne Properties that says the company will pay all workers prevailing wage anyway.

Arn Bortz with Towne Properties said his company cuts a check to subcontractors respecting that agreement, so if workers aren’t being paid the proper amount it’s their fault.

City Solicitor John Curp told members of the Strategic Growth Committee that under city and state law, the subcontractors are not required to pay workers a prevailing wage on parts of the project that are not getting public funding. He said the letter from the developer does not hold the weight as a legal contract.

Young, Thomas, Quinlivan and Councilman P.G. Sittenfeld all expressed the need to overhaul the way the city enters into development contracts to better protect workers.

However, City Manager Milton Dohoney hinted that overzealous requirements for high wages could chase off some development projects.

He said that a project like U Square is tied to the Clifton location because of its proximity to the University of Cincinnati, but the city can’t be too restrictive when it comes to businesses that could expand elsewhere.

Dohoney said the city also doesn’t currently have the manpower to do the kind of aggressive enforcement that the council members were asking for.

Councilman Young countered that he would like to see the city be as aggressive with enforcement as they are with making economic development deals.

“We want to change the rules of the game to make sure everyone is treated equal,” Young said. 

 
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