Northwest labor press., May 19, 2006, Page 12, Image 12

...BOLI appeals wage case
(From Page 1)
law applies only if a public agency con-
tracts directly with a construction con-
tractor or if the public agency actually
owns the project at its conclusion.
PDC contributed about 40 percent of
the Tin Roof project’s $3.4 million total
cost to renovate an old bakery on Mar-
tin Luther King Jr. Blvd. into the head-
quarters for Henry V, a private corpo-
rate events planning company. The area
is an urban renewal district. PDC
money came in the form of a $1.2 mil-
lion low-interest loan, plus a grant.
The court case focused on whether
PDC had “contracted for” a public
works project and whether the project
was in the public interest.
Multnomah County Circuit Court
Judge Henry Kantor ruled that PDC
didn’t control construction of the proj-
ect so, therefore, it wasn’t a prevailing
wage job.
BOLI, represented in court by the
Oregon Department of Justice, is ap-
pealing the decision.
Gardner told the Northwest Labor
Press that while the appeal is pending,
Kantor’s ruling will not be binding on
his interpretation of prevailing wage
rates in other cases.
Gardner said the appeal is part of an
overall plan he has to help clarify the
application of the law when it comes to
public-private development projects.
“Our ultimate goal remains the
same,” Gardner said. “We want clarity
regarding prevailing wage rates on pub-
lic-private projects for BOLI, public
agencies, workers and developers. Be-
cause the lower court did not issue a
written opinion, and given the fact that
the case rests on the meaning of the
words ‘contracted for’ by a public
agency, an appellate court’s written
opinion on the proper interpretation of
the law is critical to getting clarity.”
Gardner also wants the appellate
court to review the “carried on by” lan-
guage in the prevailing wage law. He is
looking for a public agency or a devel-
oper to work with BOLI on a stipulated
hypothetical “set of facts” to which he
would issue a declaratory ruling to be
reviewed by the Oregon Court of Ap-
peals based on revisions made by the
2005 Legislature.
“We really need resolution as
quickly as possible and this could save
months or even years,” he said.
The fact that PDC would sue over
the creation of family-wage jobs was
puzzling to some union officials.
Bob Shiprack, executive director of
the Oregon State Building and Con-
struction Trades Council, pointed to the
results of a recent community outreach
survey conducted by PDC whereby cit-
izens ranked “increasing family-wage
jobs” as PDC’s top priority.
The survey listed 14 PDC programs
and how citizens felt each should be
funded. Number one on the list was to
“increase family wage jobs by provid-
ing economic development loans and
support to businesses willing to expand/
stay within the city.”
“It shows how arrogant PDC can be
— using taxpayer dollars to sue another
public agency over an issue (family-
wage jobs) the public says should be its
top priority,” Shiprack told the Execu-
tive Board of the Oregon AFL-CIO.
“This is not a union issue. It’s a basic
workers’ issue.”
Gardner said he is in the process of
adopting administrative rules based
upon areas of consensus reached by the
Task Force on Public-Private Partner-
ships. The task force, which has been
meeting for the past eight months, in-
cluded contractors, developers, lenders,
bureaucrats and union officials. There
wasn’t full consensus on when to apply
prevailing wage rates, Gardner said,
“but I think the group came closer to an
answer.”
Gardner said he will adopt a rule
clarifying BOLI’s policy to issue sepa-
rate rates on mixed-use (commercial
and residential) development projects,
and also to continue segregating the
public and private portions of a project
whenever possible.
Primary election results
It’s Kulongoski vs. Saxton in November
Gov. Ted Kulongoski was the winner in the Democ-
ratic primary election for governor. At press time, he had
55 percent of the vote against challengers Jim Hill and
Peter Sorenson.
He will face Republican challenger Ron Saxton, an
anti-public employee candidate who defeated Kevin
Mannix by an unofficial margin of 43 percent to 30 per-
cent in the Republican primary. In 2002, Mannix de-
feated Saxton in the primary, but then was defeated nar-
rowly by Kulongoski in the general election.
A third candidate, Ben Westlund of Bend, Oregon, is
still gathering signatures to qualify for the November
general election as a independent.
In other statewide races, labor-endorsed Gene Hall-
man finished third in a three-person race for an open seat
on the Oregon Supreme Court. Former labor commis-
sioner Jack Roberts will be in a runoff with Virginia Lin-
der in November.
Labor-endorsed Susan Castillo was easily re-elected
superintendent of public instruction.
Statewide turnout in the mail ballot election was at a
near-record low of only 35 percent.
In contested primary races for the Legislature, State
Rep. Diane Rosenbaum won her race in House District
42, and Tina Kotek won her election in District 44. Both
are Democrats. Rosenbaum, a member of Communica-
tions Workers of America, doesn’t have an opponent in
the general election.
Democrat Mary Botkin, a lobbyist for Oregon Coun-
cil 75 of the American Federation of State, County and
Municipal Employees, fell short in a five-person race in
House District 46. The winner was Ben Cannon.
The following are unofficial reports of labor-endorsed
candidates either winning outright in the primary or mov-
ing on for a November runoff:
Diane Linn was unseated as the chair of the Board of
County Commissioners for Multnomah County by new-
comer Ted Wheeler. The margin of victory was 69.64
percent to 23.13 percent. Both candidates campaigned
with labor endorsements.
State Rep. Gary Hansen, a member of Plumbers and
Fitters Local 290, lost in his bid for an open seat on the
Multnomah County Commission. Jeff Cogan and Lew
Frederick were the top vote-getters and will face off in
November.
State Rep. Steve March, a member of the American
Federation of Teachers, lost to Lavonne Griffin-Valade
in their race for Multnomah County auditor.
Dan Saltzman was re-elected to the Portland City
Council. He was opposed by Amanda Fritz, a member of
the Oregon Nurses Association. Both candidates had
support from various unions.
Labor-endorsed City Commissioner Erik Sten out-
polled Ginny Burdick and five other challengers for re-
election to the Portland City Council. Sten took 50.52
percent of the vote to barely avoid a runoff.
In Washington County, Kevin Luby was defeated in
his race for Circuit Court judge. He was endorsed by the
Northwest Oregon Labor Council.
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PAGE 12
NORTHWEST LABOR PRESS
MAY 19, 2006