Northwest labor press., February 19, 2010, Page 3, Image 3

Feb. 19, 2010:NWLP
2/16/10
9:46 AM
Page 3
Oregon AG seeks labor’s
help cracking down on
underground economy
Oregon Attorney General John
Kroger is cracking down on the under-
ground economy in Oregon, and he
wants union reps who work in the field
to help be his eyes and ears.
“You are going to be much more
aware than we are of companies that are
working off the books, that aren’t play-
ing by the rules, who aren’t paying
taxes; companies that aren’t properly
paying workers’compensation,” Kroger
told a luncheon audience at last month’s
Oregon Labor Law Conference.
Last year, the Department of Justice
put a Marion County drywall contrac-
tor behind bars for five years for bilk-
ing the state out of approximately $8
million in unpaid taxes. The contractor
was involved in a fraud scheme in
which he paid workers in cash under the
table to avoid paying taxes and work-
ers’ compensation insurance. This al-
lowed him to bid lower for projects than
legitimate companies that paid taxes.
“The company made about $25 mil-
lion (since 2001), all of it off the
books,” Kroger said. “This one case
alone cost Oregon $8 million in taxes
that were not collected.”
White collar cases typically are han-
dled differently than street crimes,
Kroger said, with white collar crimi-
nals getting much lighter sentences. “In
the past, an employer would be
stripped of his license, and that’s about
it,” he said.
Not anymore.
“This is unprecedented,” Kroger
said of the five-year prison sentence.
“And we’re eager to do more. These are
very important cases to do to protect
taxpayers and to protect workers.”
Kroger said he will fight for a level
playing field for honest companies to
compete.
Kroger has designated senior assis-
tant attorney general Andrew Campbell
to handle future cases. “But we need
people to bring these cases to us. They
don’t have to be wrapped up in a box
with a bow, but if you think there is a
company that is operating off the
Deal will exempt Canada
from ‘Buy America’ clause
in United States stimulus act
J OHN K ROGER
books, we want to know about it. If we
don’t hear about it, we won’t be able to
do anything.”
Anyone with information about
such operations can contact the De-
partment of Justice at 503-378-4400.
Or, give the information to Bob
Shiprack, executive secretary of the
Oregon State Building and Construc-
tion Trades Council, and he will for-
ward it to the Justice Department.
Shiprack can be reached at 503-788-
7153.
Work Stoppages: The number of major work stoppages in 2009 was the lowest since 1947,
according to the Bureau of National Affairs. There were only five work stoppages of over
1,000 workers in 2009, two in the private sector and three in the public sector.
The United States and Canada have
arranged a deal to exempt Canadian
companies from Buy American provi-
sions in the roughly $800 billion Amer-
ican Recovery and Reinvestment Act
(ARRA).
The Calgary Herald reported Feb.
4 that President Barak Obama will fi-
nalize the deal under an executive or-
der. The newspaper said the agreement
as structured allows the United States
“to treat sectors of the Canadian econ-
omy as American by claiming chains
are so integrated they cannot be sepa-
rated.”
The Buy American provisions con-
tained in ARRA prohibit foreign-pro-
duced iron, steel and other manufac-
tured goods from being used in
projects paid for through stimulus
funding. Under the law, all those
goods must be sourced through the
United States.
According to the Calgary Herald,
the new deal grants Canadian ex-
porters access to procurement markets
in the 37 U.S. states covered under the
World Trade Organization’s govern-
ment procurement agreement.
Oregon and Washington are among
those states.
In return, Canada’s provinces will
open up their procurement markets,
roughly valued at $22 billion.
The agreement is most likely to
benefit Canadian companies involved
in repairs, infrastructure, and con-
struction. Certain Canadian sectors
such as health care, education and cor-
rectional facilities are off limits to U.S.
corporations.
At this point, the agreement only
covers contracts granted under the
U.S. stimulus package. Canadian offi-
cials, however, are continuing to push
for a permanent exemption for all Buy
American provisions, most of which
are contained in a jobs bill currently
working its way through Congress.
The U.S. is Canada’s largest trad-
ing partner, accounting for about
three-quarters of exports.
F LOOR C OVERING
A PPRENTICESHIP
C OMMITTEE
will be accepting applications for
apprenticeship training placement
on the following dates:
March 2, March 9,
March 16, and March 23
between the hours of
8 a.m. to 11 a.m.
Applicants must be at least 17
years old. Must apply in person
and have a copy of either a high
school diploma or GED, and a
driver’s license.
Apply at:
Oregon & Washington
Floor Covering Joint
Apprenticeship & Training Office
11105 NE Sandy Blvd.
Portland, Ore.
Questions? Call
Training Coordinator
John Lawson at 503-282-5783
(International Standard Serial Number 0894-444X)
Established in 1900 at Portland, Oregon
as a voice of the labor movement.
4275 NE Halsey St., P.O. Box 13150,
Portland, Ore. 97213
Telephone: (503) 288-3311
Editor: Michael Gutwig
Staff: Don McIntosh, Cheri Rice
Published on a semi-monthly basis on the first and third Fridays of
each month by the Oregon Labor Press Publishing Co. Inc., a non-
profit corporation owned by 20 unions and councils including the
Oregon AFL-CIO. Serving more than 120 union organizations in Ore-
gon and SW Washington. Subscriptions $13.75 per year for union
members.
Group rates available to trade union organizations.
PERIODICALS POSTAGE PAID
AT PORTLAND, OREGON.
CHANGE OF ADDRESS NOTICE: Three weeks are required for a
change of address. When ordering a change, please give your old
and new addresses and the name and number of your local union.
POSTMASTER: Send address changes to
NORTHWEST LABOR PRESS, P.O. BOX 13150,
PORTLAND, OR 97213-0150
FEBRUARY 19, 2010
NORTHWEST LABOR PRESS
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