Dennis L. Rousseau – 12/3/06

This page was last updated on December 3, 2006.

A race to the bottom; Dennis Rousseau; Beaver County Times; December 3, 2006.

An editor’s note asserts, “The writer is council representative for the Greater Pennsylvania Regional Council of Carpenters.”

Though I critiqued only one of them, Mr. Rousseau’s previous three letters during the past year were of the “Mike Veon is great” variety.

Below is a detailed critique of the letter.

“Contractors in today’s construction industry have a wide variety of meanings for the word ‘responsible.’

“Many contractors whom I have come across over the years truly believe they are ‘responsible’ just because they are creating jobs - but they are not.

“To them, responsibility doesn’t include a benefit package, appropriate wages or paying taxes. Pennsylvania is losing millions of dollars a year in unpaid/underpaid taxes, unpaid workers compensation premiums and unpaid unemployment compensation taxes.”

[RWC] I believe you’ll find “appropriate wages” is unionspeak for union negotiated wages.

What does being a “responsible” contractor have to do with offering “a benefit package?” It’s up to the business owner to determine the form of compensation. Sometimes the compensation is all wages, and sometimes it includes other benefits. Neither is more or less “responsible” than the other.

Given his previous letters and his membership in labor union management, forgive me if doubt Mr. Rousseau’s concern for “unpaid/underpaid taxes, unpaid workers compensation premiums and unpaid unemployment compensation taxes.”

“The construction industry is the second-largest underground economy in the United States next to the sale and use of illegal drugs. This is truly embarrassing in an industry that provides a living for millions of Americans every year.

“Contractors who treat workers as independent contractors (better known as ‘1099s’) do this for one reason - it’s a financial windfall for them.”

[RWC] Who wants to bet “independent contractors” just happen to be nonunion?

“I believe every contractor should make a profit, but at what cost to legitimate contractors and taxpaying citizens. A contractor can save as much as 30 percent per worker by classifying that worker as an independent contractor. This means not paying the proper taxes, worker’s compensation premium, unemployment compensation, overtime, etc.”

[RWC] I believe you’ll find “legitimate contractors” is unionspeak for union contractors.

“There are ways to prevent this from happening, but it takes guts on the part of the taxing body and a solicitor who believes in doing the right thing. Responsible contractor language is very easy to insert in bid specifications and has never, to my knowledge, been refused by a court.

“Responsible contractor language has to cover not only the general contractor but all tiers of subcontractors. It is an easy solution that helps legitimize a great industry. Contractors need to be held accountable to more than just their customers’ satisfaction.

“This industry is in a race to the bottom. If someone doesn’t wake up, I see the bottom approaching fast.”

[RWC] What is it with labor union management? They seem to have a compulsion to bash the very people for whom they allegedly want to work.

Does anyone want to bet “responsible contractor language” is a replacement for “prevailing wage” language?

Does anyone want to bet there’s a better solution to Mr. Rousseau’s alleged problem except it wouldn’t be a windfall for labor union management?