New York, NY - This week, hard-pressed construction
workers who have for years borne the brunt of widespread industry abuses, will
be calling on the largest and most powerful lenders in the country to adopt new
standards that could, if accepted, finally rein in bad contractors.
The unprecedented Washington, D.C. forum bringing
together Laborer's Union of North America [LiUNA], with Mass Mutual,
Cornerstone and other members of the construction lending industry on March 31,
will closely look at the JDS Development project at 626 First Avenue in
Manhattan, as an example of why change is needed.
Crucial financing provided by Mass Mutual, Cornerstone
and other lenders allow high-end developers, including JDS Development, to pull
off massive, multi-million-dollar construction projects. At the same time,
however, those same developers share a long history of employing
sub-contractors accused of some of the most heinous worker violations on record
- everything from wage theft to sexual harassment on the job.
One such contractor - the Thomas Auringer family of
companies - is facing a class action lawsuit by low-wage employees here in New York City, alleging systematic
violation of minimum wage and overtime laws.
"We think that once people recognize that the issues
go a lot deeper than union versus non-union, they will be spurred into
action," Erin Hutson, LiUNA director of corporate affairs, told
LaborPress.
Abused workers who have allegedly suffered at the hands
unscrupulous contractors have already appealed to the City of New York, elected
officials and the public, to back industry changes. But this is the first time
they will have an opportunity to directly call on the biggest lenders in the
industry for help.
"Most people still haven't heard about what's going
on," Hutson added. "Our hope is that through education, there will be
support for new industry standards."
According to supporters, the model for new responsible
lending — one that protects workers from wage theft, fraud and other NLRB
[National Labor Relations Board] violations — consists of a single page, and
could be written directly into new loan agreements immediately.
Nevertheless, to be truly effective, support from the
biggest players in the lending construction industry including Mass Mutual and
Cornerstone, is needed in order to preclude unscrupulous contractors from
trying to secure loans from non-participating lenders.
"We have to start at the top, or else contractors
will just go down the block," Hutson said.
Source: LaborPress
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