Original Source: http://www.ibew.org/stories/03journal/030708/p16.htm

From July/August 2003 IBEW Journal

IBEW California Locals Win Major Legal Victory Over Shady Contractor

LIS Electric Violated Prevailing Wage Law: Immigrants and other Workers Awarded $168,000

     In California, IBEW Locals 6 and 595 won a big court victory on behalf of a group of immigrants and other electrical workers cheated out of their wages by an unscrupulous, nonunion contractor.

     IBEW Locals 595 and 6 brought the case against LIS Electric Inc. on behalf of 17 workers, many of whom were immigrants with little or no knowledge of English when they began working for LIS. The local unions were instrumental in helping workers organize, move the lawsuit forward and ultimately achieve victory

     In April 2003, San Francisco Superior Court awarded $168,000 to former employees of LIS after ruling that the San Francisco-based contractor violated prevailing wage laws. The court also issued an injunction prohibiting LIS from engaging in such practices in the future.

     "I cannot describe how happy I am today," said Vehid Husejnovic, a former LIS employee, who was organized into the IBEW and is now a member of Local 595. "When I came to the U.S. six years ago, I spoke no English and LIS took advantage of me and many other people. I am so proud that the IBEW was able to fight for our rights and win through the U.S. justice system." Husejnovic, a Bosnian emigrant, was among the workers awarded payment for lost wages and benefits.

     The court ruled that LIS and its owner, Vladimir Litvak, knowingly paid lower wages than were due under the law on state public works construction projects throughout the San Francisco Bay Area from 1997 to 2000. Further, LIS intentionally submitted false certified payroll records to cover up its swindle.

     "Workers who do not have a union are subject to the worst excesses of corrupt contractors," said Local 595 Business Manager Victor Uno. "Working with Local 6, as well as our local Labor Management Cooperation Committee (LMCC), we were able to support workers who did not realize they had rights. Their determination to fight Litvak encouraged all of us, and this was a tremendous victory."

     A number of the "exploited employees were immigrants recently arrived in this country," said Local 6 Business Manager John O’Rourke. "It took a lot of courage for these workers to take the witness stand and speak out for their rights."

     In effect, LIS stole money from its workers by reducing the wages it was obligated to pay them on public works projects. LIS also took a credit for more than $25,000 in pension contributions that it did not actually make and for health benefit costs that it did not actually incur. By defrauding its workers, LIS engaged in unlawful business practices contrary to California’s Unfair Competition Law.

     "This is one of the most egregious cases we have ever seen," said Gary Canepa, director of Mission 2000, a joint IBEW-NECA (National Electrical Contractors Association) partnership that serves as a prevailing wage industry watchdog in 12 Northern California counties. "In addition to the prevailing wage violations, LIS also paid employees for fewer hours than they worked and failed to pay overtime. Employees were illegally charged an in-house administrative fee for overseeing employee health and pension benefit plans. Finally, LIS bounced payroll checks issued with insufficient funds to cover employee checks."

     "Legitimate contractors cannot compete with those who cheat," Business Manager Uno said. "This victory sends out an important message to all contractors: Abide by the law or there will be consequences. And we are telling workers that the IBEW will fight for your rights."

     For another story on how the IBEW in 2000 successfully stepped in to fight for and help organize hundreds of immigrant workers exploited by USA-IT through the J-1 visa program, see "From Shadow to Light: Courage, Organizing and International Solidarity Power IBEW Fight Against Exploitation of Immigrant Workers," IBEW Journal, January/February, 2002. Exploited workers in that case were also from former Iron Curtain countries in Eastern Europe.

     The San Francisco court decided resoundingly in favor of the LIS Electric workers, said attorney Scott Kronland, of the law firm Altshuler, Berzon, Nussbaum, Rubin & Demain, which represented the workers. "In our brief we outlined seven ways that LIS and its owner, Vladimir Litvak, were violating the law … and we won all seven," Kronland said. "It was crucial that the workers agreed to testify in court, which is extremely difficult for people not born in this country. In their countries, it has not always been a good idea to complain to the government, and it took a lot of courage for them to come forward. All 17 witnesses had to undergo hostile questioning—all 17 were accused of lying. It was complete vindication for all of them when we won the case."

     "The unions did us a good turn," said Bill Young, a former LIS employee who has since joined IBEW Local 332, San Jose, California.

     The IBEW "stood up for us and fought for us and I’m grateful for what they did for me and my family."

     Local 595 and Local 6 represent IBEW members in Alameda and San Francisco counties, respectively. Local 595 is based in Dublin and Local 6 in San Francisco.