Contractor: School Board Caved to Union
Low-bidding company for performing arts center claims inclusion of non-union labor prompted rejectionBy JOSELYN KING Staff Writer
WHEELING - The potential use of non-union labor led to the rebidding of a $10 million Ohio County Schools building project, the contractor who submitted the initial low bid is claiming.
"In my opinion, (school officials) caved to pressure from the unions," said John O'Brien, vice president of the Landau Building Co. of Wexford, Pa.
But Ohio County Schools Superintendent George Krelis denies that local union leaders forced the rebidding of construction for the J.B. Chambers Performing Arts Center at Wheeling Park High School. The school district now will bid the arts center as two separate projects - one for the facility construction as a whole, and a second for its theatrical components.
"No, absolutely not," Krelis said of the assertion that union pressures forced the school district's decision. "In our opinion, breaking the project into two sub-sections was better for us. That was our decision."
Delegate Orphy Klempa, D-Ohio, in his role as co-chairman of Project BEST, which represents the interests of local trades groups, also denied the organization played any role in Ohio County Schools' decision.
But Klempa acknowledged knowing that Landau planned to use a non-union electrical subcontractor on the project, and to calling the company to check on the issue.
Klempa commended school officials for their "due diligence" on the issue, and their intent to get more for the money.
"It's been so long since something like this happened, I don't know what our normal course of action is," he said.
"Me personally, I've always been focused on the local worker aspect. I always focus on the people, and look out for the people who live in the community, make a living there and support the quality of life."
Non-Union Contractor
in the Mix
Landau submitted the lowest bid of $8.42 million among six general construction bids opened Sept. 22, according to O'Brien.
The company then had two hours to provide the West Virginia School Building Authority with a list of subcontractors they would use on the project.
That list noted that electrical work on the site would be provided by Veltri Electric of Washington, Pa., a non-union subcontractor who would be paid $1.3 million for the job, O'Brien said. He noted the price charged by Veltri was $300,000 less than that proposed to him by the cheapest union subcontractor, ACJ Electric of Rayland, Ohio.
In West Virginia, contractors who work on publicly funded projects - whether union or non-union - are required to pay prevailing wage rates, as set by the state Department of Labor.
The SBA deemed Veltri qualified for the work, but O'Brien said he immediately began to get calls from Ohio County school officials. They asked him if he could instead use a different union contractor for the work.
"I told them I was unwilling to do that - unless they wanted to pay the extra $300,000," O'Brien said.
He noted his company "is sensitive" to the importance in the Ohio Valley of using union labor.
As such, O'Brien said he offered a compromise to Ohio County school officials by which he would allow Veltri to continue with electrical work within the new building, and then a union subcontractor would be brought in to do "site work" and place electrical lines underground on the property.
School officials didn't agree to this, he said.
"A lot of West Virginia school work is done by non-union contractors," O'Brien said. "Not most, but a lot of it."
The move to rebid the Ohio County project should delay construction of the performing arts center by about six weeks, school officials said. McKinley and Associates, architects for the project, are to have revised bid packages available within a month.
O'Brien said he will rebid the project for Ohio County Schools.
"It will be interesting to see how it goes," he noted.
Use of Non-Union and Out-of-State Contractors in West Virginia
The bids reviewed by the state School Building Authority revealed that the three lowest bids on the Ohio County Schools project came from Western Pennsylvania firms - Landau, at $8.42 million; Nello Construction of Canonsburg, Pa., at $8.6 million; and Tedco Construction of Bridgeville, Pa, at $8.8 million.
Also submitting proposals were local firms JD&E Construction of Wheeling at $8.95 million; Grae-Con Construction of Steuben-ville at $9 million; and Colaianni Constriction of Dillonvale at $9.2 million.
Mark Manchin, executive director of the School Building Authority, said the authority approved of Landau and its subcontractors but that the SBA allows county school boards to make their owns decision regarding the use of contractors.
"In the interim period, we have spoken with Mr. Krelis and (Deputy Superintendent Dianna Vargo), and we recognize their desire to do even better - and at the end of the day, save taxpayers money," he said. "They thought they could do better, and we concurred.
"The problem with subcontractors is not on our end. They thought if they did the bids separately, the bids would be even lower. It's all about funds."
Manchin noted that Ohio County Schools is contributing at least half of the money needed for the $10 million J.B. Chambers Performing Arts Center. The SBA, meanwhile, provided a $5 million matching grant for the project.
"On our end, we watch out for the state taxpayers' money," he said.
The $10 million project includes the center itself and also work to re-route part of Park Road near the high school, which already has been completed.
Manchin agreed that it's not all that uncommon for non-union contractors to do work on school facilities.
"It's all about low bidders, regardless of whether the low bidder is union or non-union," he continued. "There are two critical components we look at - whether they will pay prevailing wage, and who is the low bidder.
"We are advocates for union and West Virginian work, but it doesn't become an overriding factor in our discussions. Non-union contractors have the same rights and privileges of the union contractor."
Manchin did note the SBA prefers that state contractors be used on school projects.
"We want to see West Virginia contractors working here," he said.
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WVChica
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10-15-09 10:43 PM
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Face it - Wheeling was built long ago as a Union town, and whether or not you believe in it or not, the unions here bear no resemblance to the Sopranos or any other kind of mob mentioned earlier. The electrical union gave their own money for this project, they have a vested interest in the project. Let's not give Landau anymore fuel for his fire - let's show him we are a community that takes care of our own, we will not cowtail to your lame attempts to spread your hatred amuck in our community. We are the people that have to look at this facility for the many years to come, after you have left, Landau, and we want it to be quality for many generations to come!!!
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WVChica
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10-15-09 10:38 PM
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Regardless of your feelings on unions and politics, the Contractor has succeeded in his goal of throwing his trash to the local Wheeling newspaper, a community he has no ties, and watching as Wheeling people throw their hate and nasty comments back and forth. Do you really think he had any other goal in mind? He could care less about this project or this town. There are however, many local people who could be employed by this project, who are Ohio County tax payers, who buy the Sarris candy bars when Ohio County students sell them, and whose children either attend now or will attend Wheeling Park High School. These people may currently be laid off due to the economic conditions currenlty facing all of us. Imagine their joy to be able to provide for their family (maybe some of the only work they have done this year), work at their alma mater, or be part of the construction on a fabulous facility where their daughter may one day take stage and sing.
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EllisWyatt
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10-14-09 6:50 PM
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How are those union jobs working out for USWA, UAW, UMW and Textile workers?
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walksabout
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10-13-09 11:53 PM
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captain- what you say is true. still, I would rather have a self servige union between me and a rogue employer than stand alone. One non union job I worked, the general forman laid me off and hired his 17 year old grandson to replace me as a high pressure tube welder- doing xray 97%. no clue how that worked.
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walksabout
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10-13-09 11:32 PM
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wvhoopie-Less than 7% of Americans are in unions. next time you are on the job, tell the employer you want to stop recieving benefits and you really want to work a 12 hour day at 1/5 th the wage your co workers make for the same work. That is how union vs non union stacks up in the serious money ranges.
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walksabout
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10-13-09 11:23 PM
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one problem with unions and general acceptance is this. soda fountain unions are not essential when considering the members are jerks making minimum and tips. The real unions are the crafts where you can't be a goofy laborer to top out and draw journeyman wages. You test each job and are run off if you aren't in the cream of crop cut. Hiring union first always saves money long term.
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walksabout
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10-13-09 11:19 PM
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the main question has been overlooked. The school system is the baoss and customer. the contractor is begging for a project and a payday. The contractor has no business telling the school how to operate or who will perform work. the contract language and contract law will keep the work between the lines. Now. Why can't a contractor just once work for free as contribution to education ?
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Captain
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10-13-09 9:12 PM
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7% figure sounds about right... for the whole of Americans. In this area though, I suspect it's a greater figure. Unions served workers very well. That was decades ago, now unions serve themselves.
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BurlEFolger
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10-13-09 8:18 PM
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I just hope it gets built soon. This project is being built for the "snobs of Wheeling" who can't stand to go to Marshall CO. to see the symphony. Once this is built (by taxpayer dollers) the snobs will close the Capitol and move the symphony up on the hill and they won't have to come to downtown to rub elbows with each other.
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wvhoopie
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10-13-09 7:16 PM
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Less than 7% of Americans are in unions. Oh my the big scary unions. You people are nuts.
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wvhoopie
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10-13-09 7:14 PM
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Oh Ellis, that big scary rat must get under your skin. LOL
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EllisWyatt
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10-13-09 5:28 PM
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"Breaking the project into two sections was better for us". Codespeak for "worse for taxpayers and better for the unions". A good thing they did it, else Tony Soprano's goons would have shown up with a giant inflatable rat and a picket line.
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EllisWyatt
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10-13-09 5:26 PM
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The labor unions spent upwards of $200 million trying to defeat W. in 2004. In 2008, they spent at least $300 million to defeat McCain. Unions represent about 8% of private sector workers, and their power has declined considerably. That said, they do have enough money and influence to control Democratic politicians at all levels. Do you really believe that unions spent $300 million on Democrats because they are such nice guys? No, they spent the money in return for influence. Their payoff is the "Free Choice" bill. They can't convince people to sign up for their union so now they want to throw out the secret ballot they fought so hard to get. All of the jobs go to Right To Work states. A union organizer was once chased out of a Nucor plant by a pipe wielding work crew! Local union bosses are desperate to maintain their flow of dues. How else to fund a mansion that is carried on the books as a "training center"? Or a golf course called "a conference cente
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Elwood
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10-13-09 3:54 PM
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Architects for the project are where the problems started. I love the comment, "- and at the end of the day, save taxpayers money," Look for the union label.....and grab your ankles
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richardwhee
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10-13-09 1:20 PM
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I am glad to see that others are waking up to the facts that unions are self perpetuating and the union bosses are the only ones who retire in good financial shape. They feather their own nest at the expense of workers. The problem-- the workers do not realize what is going on.
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JamesT
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10-13-09 12:23 PM
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ANY bonded work includes safety codes. Historically unions have " skirted " regs to assure the union bosses live like corporate execs. It continully happens and Quido and Knuckles protect their assets. Many contracts are mob contracts and if you like staying healthy, you'll go union. Remember Tony Boyle, Jimmy Hoffa, Bugsy Segal? How about these local union bosses in the tri state retiring as millionaires? " lefty " Palm out of the USW in Pittsburgh retired as a millionaire. Weirton's Mark Glyptis built a huge home recently in Imperial,Pa while the old Weirton Steel is on life support and he is paid by the company!! Unions are Big Business and you union members support Big Business, don't you?
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CenterWheeling
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10-13-09 11:55 AM
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Both construction and electrical work are dangerous, highly-skilled professions. Workers deserve good insurance and protection in case of an accident. I like to know that someone is looking out for the interests of the workers...and that 'someone' is often the union!
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JamesT
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10-13-09 10:36 AM
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So, now the tax payers will lose money due to the union wages, possible strikes, paying off union bosses and like most union contracts, will run over budget and completion times. nice to know West Virginia is still controlled by The Sapranos. In my nearly thirty years with the government, I have yet to find one single union contractor come under budget or on time. A shame that so many local people need jobs yet they go to out of state union corrupt Ole Boy kickbacks. The right To Work States employ everyone worthy of a job and does not hoard the jobs for the union pukes only!! Remember to elect people who are looking out for you and not the mob run labor unions discriminating against the average worker.
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daviddenholm
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10-13-09 10:27 AM
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The question of how a contractor could pay the prevailing wage and still bid $300,000 less is a legitimate one. Generally, on new construction wages are about 30 percent of total costs so an efficient, well run company can pay the prevailing wage and still bid less. But, it goes deeper than that. Construction union contracts often contain work rules designed to make things inefficient so that more people get employed. They could get away with this sort of nonsense when almost all construction workers were union members but those days are long gone. In 2008 only about 25 percent of West Virginia construction workers were union members.
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mernie
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10-13-09 9:47 AM
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What a crock! This is America at its worst! Powerful unions, teachers and trades. Collusion, you bet.
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Melvin
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10-13-09 8:30 AM
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reasoh: Shame on you. Don't you dare bring the Kroger's union into this. Those employees have a right to talk endlessly with their fellow employees while ignoring customers waiting at the counter for "customer service".
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Melvin
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10-13-09 8:28 AM
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Manchine double-speak: "We are advocates for the union..." "Non-union contractors have the same rights and privileges..."
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bassman
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10-13-09 8:20 AM
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catlover, stick to loving your cat, maybe some day you will find real love, if you know what I mean!!
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reasoh
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10-13-09 8:18 AM
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Krogers? Ask some of their customers about that great Union workmanship that you mention.
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MeanStreak
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10-13-09 8:17 AM
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In my opinion I think that Unions have become one facet in the demise of our country and economic status. IT IS THE ALL ABOUT ME FACTOR!!!!
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