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PRESS RELEASE

May 2, 2013

Contact: Eric Christen

(858) 431-6337 

Newly Public Documents Reveal Fresno Mayor Ashley Swearengin Had Key Role in Backroom Scheme for Union-Only Project Labor Agreement  on California High-Speed Rail Project 

Time for Mayor Swearengin to Tell Fresno Citizens How and Why She Did It 

 

Fresno - Documents obtained by the public on April 29th from the Fresno Regional Workforce Investment Board show that Fresno Mayor Ashley Swearengin inexplicably played a pivotal role in seeking approval from the Obama Administration for the union Project Labor Agreement on the first segment of California High-Speed Rail.

 

"The backroom wheeling and dealing that led to the union monopoly on California High-Speed Rail construction has remained a mystery up to this point," said Eric Christen, executive director of the Coalition for Fair Employment in Construction. "We were looking in the wrong place. It was apparently the Fresno Mayor and not the California High-Speed Rail Authority that was engineering this sweetheart deal."

 The California High-Speed Rail Authority added a requirement to bid specifications for the five pre-qualified design-build consortiums that construction contractors sign a Project Labor Agreement with the State Building and Construction Trades Council of California as a condition of working on the project. It appeared as Addendum 8, released in late December 2012, and was disguised with the phony label "Community Benefits Agreement." (See the union agreement here.)

 A letter from Fresno Mayor Ashley Swearengin dated June 19, 2012 to U.S. Department of Transportation Secretary Ray LaHood sought approval from the federal agency for the California High-Speed Rail Authority to require contractors to sign a Project Labor Agreement with unions that included language similar to a Project Labor Agreement approved in January 2012 for the Los Angeles County Metropolitan Transportation Authority. (See the Swearengin letter here.)

 Federal approval was needed for the Project Labor Agreement because the Federal Railroad Administration had awarded a $2.55 billion grant - funded by the American Recovery and Reinvestment Act of 2009 (Obama stimulus package) - to the California High-Speed Rail Authority. (See that federal grant information here.)

In an unusually quick response, the head of the Federal Railroad Administration responded with a letter dated June 29, 2012 indicating that under certain conditions the language in the Project Labor Agreement would be acceptable for a state agency getting a federal grant for transportation contracts. (See federal response to Swearengin letter here.)

 "Why is a local elected official dealing with the U.S. Secretary of Transportation to get approval for a state agency to require contractors to sign a union agreement?" said Eric Christen. "This is the most expensive public works project in human history, and the Mayor of Fresno is orchestrating union control of it, without any oversight and accountability of the public."

 Christen theorizes that Mayor Swearengin's letter was part of some sort of deal involving unions. "Because the Fresno Works Consortium was also involved in the development of the Project Labor Agreement, it's possible unions were promising to get the High-Speed Rail Heavy Maintenance Facility in Fresno in exchange for Mayor Swearengin's help in getting the Project Labor Agreement, in a way that would avoid direct involvement of the California High-Speed Rail Authority. It certainly wasn't about local hiring, because the Project Labor Agreement does not and cannot contain such requirements."

 "Only Mayor Swearengin can answer these questions for a public that was completely in the dark about her letter and other behind-the-scenes deals," said Christen. "It's time for Mayor Swearengin to come clean about how and why she cut so many local contractors and their non-union employees out of this project."

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CFEC Crane Logo 2012

PRESS RELEASE

April 18, 2013

Contact: Eric Christen

(858) 431-6337 

 

Construction Coalition Files Lawsuit Against City of San Diego to Get Illegal Labor Agreement on Convention Center Expansion

 

 

SAN DIEGO - The Coalition for Fair Employment in Construction is filing a lawsuit against the City of San Diego for its refusal to provide a Project Labor Agreement for the San Diego Convention Center Expansion as a public record. Alleged signatory parties for the Project Labor Agreement include Clark Construction (part of a joint venture with Hunt Construction) and the San Diego County Building and Construction Trades Council, AFL-CIO.

 

"We're going to get that union Project Labor Agreement, expose it to the public, and make every schemer involved with this union sweetheart deal accountable for breaking the law," said Eric Christen, executive director of the Coalition for Fair Employment in Construction.

 

Outgoing Mayor Jerry Sanders, top union boss Lorena Gonzalez (now a candidate for State Assembly), and construction industry officials announced a deal on November 8, 2012 for unions to drop various legal objections to the San Diego Convention Center Expansion, Phase 3.  

 

Union officials had sought a city requirement that all contractors be required to sign a Project Labor Agreement as a condition of work. After 58% of San Diego voters approved a Fair and Open Competition city ordinance (Proposition A) in June 2012 prohibiting the city from entering into contracts requiring companies to sign Project Labor Agreements, a scheme was apparently developed to attempt to evade the will of the voters and get unions a work monopoly anyway.

 

At a hastily-organized press conference at city hall on November 8 featuring a triumphant Lorena Gonzalez, Mayor Sanders acknowledged a Project Labor Agreement in addition to various minor concessions to appease alleged union environmental concerns. The San Diego County Building and Construction Trades Council issued a press release on November 15, 2012 announcing and defending the labor agreement.

 

The City of San Diego (and Clark Construction) has rebuffed repeated requests from the Coalition for Fair Employment in Construction to provide the Project Labor Agreement as a record for public scrutiny.

 

"They're hiding it because it's a violation of Proposition A," said Christen. "This deal is going to be crumbling down, and some local civic leaders will go down with it."

 

For more information, see the web site www.SanDiegoConventionCenterScam.com.   


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CFEC Crane Logo 2012

PRESS RELEASE
February 25, 2013
Contact: Eric Christen
(858) 431-6337 
California High-Speed Rail Project to be Opposed Today at State Capitol

Citizens Opposed to Most Expensive Construction Project in History to Speak at Today's Assembly Transportation Committee Hearing 

Sacramento -Today the California Assembly's Committee on Transportation will be given an update on the California High-Speed Rail project.   
Attending today's hearing will be members of the public and organizations opposed to what they call the most expensive scam in history. Dubbed the "Choo Choo to Nowhere" by its detractors HSR has been on the defensive since voters approved Prop. 1A in 2008 authorizing almost $10 billion in bonds. Among the myriad of problems facing HSR is the fact that it has no accurate ridership projections, no plan as to where it's funding will come from, and is clearly violating Prop 1A itself resulting in a lawsuit against it.

In addition even California's just released Legislative Analyst Report of Governor Jerry Brown's 2013-2014 budget highlights issues with the project, including the need to remove current language in the bill which would allow the California High-Speed Rail Authority (CHSRA) to establish "an unspecified number of additional permanent positions". This abuse of power along with a need to end inefficiencies in the program by reducing financial consulting by $1.3 million which can instead be achieved through current state employees shows that this project is laden with issues but regardless will still be receiving a 33% funding increase through Prop. 1A funds. 

These issues and many more can be read about at www.californiahighspeedrailscam.com.

Today's hearing will begin at 1:30pm and be held in Room 4202 in the State Capitol. The meeting can be listened to by going here.

 

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PRESS RELEASE

January 31, 2013

Contact: Eric Christen

(858) 431-6337 

 

New Website www.CaliforniaHighSpeedRailScam.com Brings Experienced, Pugnacious, Relentless Opposition to the Effort to Terminate California High-Speed Rail 

Union-Only Project Labor Agreement Provokes Professional Response to Train Debacle 

CA - The Coalition for Fair Employment in Construction today announces the launch of its comprehensively-researched opposition website www.CaliforniaHighSpeedRailScam.com, with the tag line "The Debacle to End All Debacles." This website helps build the case to terminate what would be the most expensive construction project in human history.

 
"There are several grassroots organizations in California valiantly challenging the High-Speed Rail Authority's taxpayer-funded public relations machine from various angles," said Eric Christen, executive director of the Coalition for Fair Employment in Construction (CFEC). "We are now bringing their work together in one place, while adding our own expert perspective on construction and labor relations."

The Coalition for Fair Employment in Construction has 14 years of high-profile experience pugnaciously and relentlessly fighting construction schemes in California that entangle wasteful government projects with labor union entitlements known as Project Labor Agreements (PLAs). Among its victories is the derailment of a proposed Project Labor Agreement backed by former Governor Gray Davis for the construction of the new University of California campus in Merced.
 
The Request for Proposals for the Madera to Fresno first segment of the Initial Operating Section includes two provisions (Sections 7.11.3 and 10.1)  giving construction trade unions a monopoly on the project by requiring all construction companies to sign a Project Labor Agreement.
 
A  Project Labor Agreement (disguised under the deceptive name "Community Benefits Agreement") negotiated with officials of the State Building and Construction Trades Council was also included in the bid specifications, to ensure that the five prequalified design-build consortiums fully understood the directive to give unions a monopoly on construction.
 
The website so far includes the following sections:
 
1.      Your One-Stop Source for Information about the California High-Speed Rail Debacle - Yes, Your Doubts Are Justified
 
2.      Top-40 Donors to Campaign to Convince California Voters to Borrow $10 Billion to Start Building High-Speed Rail
 
3.      How Much Will This California High-Speed Rail Cost? Making Up Numbers
 
4.      Losing Bidders for High-Speed Rail Design-Build Contract Will Get Up to $2 Million from Taxpayers For Their Trouble
 
5.      Construction Trade Unions Get Costly Monopoly on High-Speed Rail Construction with Project Labor Agreement ("Community Benefits Agreement")
 
6.      Timeline of the California High-Speed Rail: This Train Has Hurtled Down the Track for 20 Years
 
7.      The #11 Campaign Contributor to Proposition 1A in 2008: A Mysterious Organization Called "Californians For A Safe & Reliable High Speed Rail"
 
8.      Fighting Back Against the California High-Speed Rail Authority's Taxpayer-Funded Public Relations Machine
 
9.      Why Lowest Responsible Bidders Don't Necessarily Win Rail Construction Contracts: Explaining Design-Build Procurement and Best Value Criteria In California Law
 
10.  Art Inspired by the High-Speed Rail (parody art sponsored by Activist Artists 4 California)
 
"I'm meeting constantly with Californians who express utter disbelief that this California High-Speed Rail debacle is still chugging along toward its inevitably catastrophic conclusion," said Christen. "This project stinks of failure, waste, and lack of accountability. The typical Californian is intrigued by the idea of high-speed rail but alarmed and disgusted by its disorganized implementation."

PRESS RELEASE January 18, 2013
Contact: Eric Christen
(858) 431-6337

Union Crafted Project Labor Agreement (PLA) Created Behind Closed Doors by City's Contractor and Trade Unions is Clearly a Public Document Group Argues
Coalition Gives Clark One Week To Make PLA Public or Face Legal Action

San Diego, CA - Today the Coalition for Fair Employment in Construction sent letters to Clark Construction's National and Western Region offices demanding that the "agreement" they had signed with the San Diego /Imperial County Trades Union be made public, as mandated by city code.

"Despite the citizens of this city overwhelmingly voting twice to ban PLAs Clark Construction has insulted them with this back room deal crafted by local union bosses." said Eric Christen, Executive Director of the Coalition for Fair Employment in Construction. "To add insult to injury Clark Construction then decided to hide this document that will cover the building of a $600 million public project despite the fact that city code states that documents like this PLA must be made public. It is as remarkable as it is illegal, not to mention tone deaf."

The enclosed letter explains why the PLA must be made public and what the result of not making it public will be.

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January 17, 2013

Dear Mr. Heim,

The UT San Diego reported on Nov. 8, 2012 that "Clark/Hunt, a joint venture of the Clark and Hunt construction groups, confirmed...that it has signed a project labor agreement with local unions" and on November 15, 2012 that this Project Labor Agreement would not be made public until you seek bids from sub-contractors.

Please be advised: The Construction Manager at Risk (CMAR) Pre-construction Services Agreement you signed with the City (Exhibit I) explains that any documents pertaining to the performance of the contract are public records.

As you know, your contract is authorized under the City's Construction Manager at Risk (CMAR) ordinance. Section 22.3808 (d) of that ordinance states:

All construction manager at risk contracts shall be open book among the City, the construction manager at risk and subcontractors, and shall provide for full disclosure to the City of all documents and information by the construction manager at risk entry, including but not limited to estimates, schedules, records of direct and indirect costs, field and home office overhead calculations, subcontracts, records of payment, and any other data or document deemed by the City to be relevant to the project.

The City obviously deems this agreement to be "relevant" to the project since it was announced at a City press conference in announcing the Building Trades Unions' decision to drop its environmental claims against the convention center expansion.

Therefore we ask that you immediately release a copy of the Project Labor Agreement to the City and to the public.

San Diego Municipal Code Section 22.4401 explains that it is the policy of the City to post construction project contracts online to help citizens evaluate the City's performance in promoting fair and open competition. As a good citizen of our community, we hope you will likewise post your PLA online for easy public review. Should you not release the Project Labor Agreement by January 25th, 2013, legal action will follow.

Eric Christen
Executive Director

CFEC

cc: Robby Moser, President

PRESS RELEASE

January 16, 2013

Contact: Eric Christen

(858) 431-6337 

WEBSITE DEDICATED TO EXPOSING WASTEFUL AND FRAUDULENT NATURE OF SAN DIEGO CONVENTION CENTER EXPANSION

From Rigged Bidding Process Intended to Give Unions Monopoly Building "Agreement" to Unanswered Environmental and Funding Questions Website Covers What Others Have Failed To

 

San Diego, CA- Today the website www.sandiegoconventioncenterscam.com was unveiled.  This website is dedicated to exposing the waste, fraud, and abuse that underlies almost every aspect of this $600 million boondoggle.  The website features groundbreaking exposés on every aspect of this project, most of which have received little if any attention from the media or anyone else in San Diego.  

 

Among the issues covered by the website:SD Convention Center Press Conference

  • Is the convention center expansion really even needed?
  • Who is running this thing?
  • Who will pay for it and how?
  • How did the unions get a monopoly Project Labor Agreement (PLA) on this project? 
  • Are environmental concerns being ignored?
  • Was the bid process that chose the general contractor rigged?
  • And much more

 

"When we began looking into this process we had a certain set of presuppositions regarding what this was really about", said Eric Christen, one of the individuals behind the website. "But what we came away with was an understanding that this process is utterly corrupt through and through and is nothing more than a scam designed to enrich a few while sticking it to the vast majority of citizens, taxpayers, and workers of San Diego.  It is shocking."

 

 The website will be regularly unveiling information intended to keep San Diego citizens and taxpayers up to date on this $600 million scam.

 

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This past Friday I had the opportunity to speak in Fresno at a gathering of the 6th Annual San Joaquin Valley Region Public Contracting / Central Valley High Speed Rail Conference about the Project Labor Agreement that will govern the building of Phase 1 of the $68 billion California High Speed Rail System. At this event I was scheduled to be on a panel of both supporters and opponents of PLAs, each being given a chance to give their perspective to the assembled. The other panelists were Nicole Goehring of the Associated Builders and Contractors Northern California Chapter and John Hutson, the "head" of the Fresno/Kings/Tulare/Madera Counties Building Trades Council.


Little did I know this was going to turn into a union-bosses-gone-wild reality show replete with vulgarity, mental meltdowns, and ugly accusations.

During Mr. Hutson's opening statement he decided it would be appropriate to use my children who were in attendance as the basis for a crude if hard to quite understand anecdote about bulls servicing cows, which you can view here. During his next opportunity to speak he literally melted down in front of those in attendance while telling me to "fu@k off", calling me a "bit*h" and then accusing me of having had a "sex change operation," all before storming out of the room with his four union brothers who hurled a few insults of their own, as you can see for yourselves here.

PRESS RELEASE

January 11, 2013

Contact: Eric Christen

(858) 431-6337 

 Union Monopoly Agreement for California High Speed Rail Project to be Debated Today 

CFEC's Eric Christen on Panel Discussing Taxpayer and Worker Rip Off

 

Fresno, CA - CFEC's Eric Christen has been invited to speak today at 1:30pm in Fresno at the 6th Annual Central Valley High Speed Rail Conference to debate the issue of a Project Labor Agreement (PLA) on the California High Speed Rail Project.  As CFEC and others have been warning taxpayers, owners, and workers about for years, the California High Speed Rail Project will in fact have a union-only Project Labor Agreement (PLA).

The State of California is set to begin spending $5.85 billion to acquire land and build the "initial operating segment" of the California High-Speed Rail. In early 2013, the California High-Speed Rail Authority will award several contracts for this first segment through an alternative bidding procedure called design-build. Five entities that are conglomerates of major engineering and heavy construction infrastructure corporations have qualified to bid under this procedure with "a goal" to have 30 percent of the work go to small businesses.  It has now been revealed, despite promises to the contrary, that a union-crafted PLA has been agreed to between the unions and each of the five bidders meaning no matter who wins the bid any subcontractor who wishes to work on this project will have to sign a PLA in order to work.

"We have warned for years that this back room deal would be cut at some level and now we have been proven right." said Eric Christen, Executive Director of the Coalition for Fair Employment in Construction. "Not content with having every independent state entity that has looked at this boondoggle admit that everything from ridership forecasts to funding sources are flawed, now they had to go pay off union bosses with this PLA scheme just so they can buy off another special interest."  

Christen penned an op-ed that ran this past weekend in the Sacramento Bee that specifically highlighted the many problems this project, based on a 19th Century mode of transportation, is having and why all Californians should be opposed to this $68 billion scam.

The panel will debate the issue of PLAs at 1:30pm in the Sequoia Ballroom at the Downtown Fresno Radisson Hotel & Convention Center. The address is 2233 Ventura Street, Fresno.

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With $68 billion at stake you would think that news media all over the world would be searching high and low for the union crafted monopoly agreement that the California High Speed Rail Authority was only recently forced to admit, thanks to our efforts, even exists.  You would be wrong.  Instead it is CFEC and our allies that have discovered the actual PLA in all of its predictable and unoriginal glory.

Working with CFEC, Labor Issues Solutions' Kevin Dayton has dissected the "agreement" and found it to be a standard boilerplate PLA that will predictably add another layer of bureaucracy to this $68 billion boondoggle. At the same time it will place an impediment in the way of any contractor, especially small, women and minority owned companies (who are overwhelmingly union-free), that will be hard to overcome.

 Please read this entire analysis and be prepared to be both outraged and disgusted that a special interest could have so much influence over how billions of tax dollars from North Carolinians, Texans, and of course, Californians, could be wasted like this.  

 Stay tuned as CFEC is now fully dedicated to seeing that this choo choo to nowhere is exposed and opposed every step of the way.  

As we have been predicting for some time now Big Labor special interests appear to have gotten their pound of flesh as it pertains to California's latest boondoggle known as the California High Speed Rail Project.  

Last week CFEC's Eric Christen, Associated Builders and Contractors (ABC) of Northern California's Nicole Goehring, and  Richard Markuson of the Eric Christen speaking at the CA High Speed Rail Meeting 12-6-12 Western Electrical Contractor Association (WECA) and Plumbing Heating and Cooling Contractor's of California (CAPHCC), all spoke at the California High Speed Rail Authority's Board of Directors meeting held at Sacramento City Hall.  After comments from each of the speakers about how the "Community Benefits Agreement" or "CBA" they were voting on is more than likely just another name for a PLA, the speakers were called out by Board President Dan Richard and informed that PLAs are just super and have all kinds of support in the "minority contracting community."

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