Undocumented employment in NYC construction industry has driven wages down 5% since 2003

[w¡n9Nµ7 §£@¥€r 123]

DEC 6, 2007

MIDTOWN - As the building boom continues —the city’s on pace to hit a record $27.5 billion next year in construction spending — more of the industry’s work has gone off-the-books, according to the Fiscal Policy Institute.

“For workers in the underground economy, it might as well be the 19th century — no rights, no safeguards, no social safety net,” James Parrott, the institute’s deputy director, told union leaders at a breakfast held yesterday by the Concrete Alliance, Inc., a nonprofit group of union workers and contractors. “They don’t have access to workers compensation, to unemployment insurance.”

The city stands to lose at least $550 million in 2008 in unpaid payroll taxes for social security, Medicare, workers’ comp and disability, as well as personal income taxes and health care costs, according to a report the Institute prepared.

While official government payroll data indicates there are 125,000 construction workers, the number of construction workers in the city is closer to 225,000, Parrott said. He estimates 50,000 are illegal.

“That doesn’t mean they are all undocumented workers, it means their employers are acting illegally,” said Parrott, who believes one-third of these workers are undocumented. “The underground economy is not primarily an immigrant problem, it’s a problem by businesses cutting corners and government letting them get away with it.”

The data will help Louis Coletti, president of the Building Trade Employers Association, with the labor management agenda he’s putting together for the upcoming election. It includes procurement reform, apprenticeship requirements on public contracts and extending policies imposed on union jobs — such as requiring diversity — to non-union jobs.

“You see these women who protest the mistreatment of horses in the carriage industry at Central Park, yet these women buy condos built by exploited workers,” said Jim Conway, of Local 14 operating engineers. “We need to change the way people in New York think about the construction industry.”

Affordable housing and outer-borough market-rate housing construction are the prime areas where the underground economy has taken root. The underground economy is driving down wages, Parrott added. Average construction payroll wages fell 5 percent since 2003, while citywide average wages increased by 9 percent.

http://ny.metro.us/metro/local/article/Off...ooms/10996.html

[Peikko 1,575]

Bloody illegals, if it wasn't for them, the construction worker would be very well paid indeed. I've a good mind to shoot them all.

[w¡n9Nµ7 §£@¥€r 123]

Bloody illegals, if it wasn't for them, the construction worker would be very well paid indeed. I've a good mind to shoot them all.

A 5% decrease in nominal wages from 03 to 07 translates to a 15% (approx) decrease in real wages. That's significant.

[Peikko 1,575]

The illegals are only there because the construction industry is happy to run itself in this way, the illegals are a symptom of the problem, and not the cause. Regardless, no one is going to want the unions to have any power either.

Can I shoot the union leaders instead?

[Jengles 0]

let's see one of my ex's worked in nyc contruction. He was getting paid $12/hr as a general laborer, basically an unskilled worker. The union guys doing the same thing $25.00/hr. You do the math.

As a business owner which one would you hire?? and he is here legally

[Peikko 1,575]

Rather abutting my point than any other. The construction industry is happy to have low paid workers. The unions want fair pay for a days work but if the industry can circumnavigate the rules, they will. The policy of the construction industry drives wages down, not the availablity of illegal employees.

Darn Unions, always messing things up.

[Ban Hammer 14,571]

Rather abutting my point than any other. The construction industry is happy to have low paid workers. The unions want fair pay for a days work but if the industry can circumnavigate the rules, they will. The policy of the construction industry drives wages down, not the availablity of illegal employees.

Darn Unions, always messing things up.

i wonder if they paid union dues.

[peejay 327]

The illegals are only there because the construction industry is happy to run itself in this way, the illegals are a symptom of the problem, and not the cause. Regardless, no one is going to want the unions to have any power either.

Can I shoot the union leaders instead?

Why not shoot the politicians, employers, and illegal alien cheerleaders that reward, encourage, and enable this madness?

[Peikko 1,575]

Shoot them all, unless they have a legal gun permit, then they're safe. Guns for the good, death penalty for the wicked, hurrah!

[Hilarious Clinton 452]

Bloody illegals, if it wasn't for them, the construction worker would be very well paid indeed. I've a good mind to shoot them all.

A 5% decrease in nominal wages from 03 to 07 translates to a 15% (approx) decrease in real wages. That's significant.

They just want a better life

[peejay 327]

Bloody illegals, if it wasn't for them, the construction worker would be very well paid indeed. I've a good mind to shoot them all.

A 5% decrease in nominal wages from 03 to 07 translates to a 15% (approx) decrease in real wages. That's significant.

They just want a better life

I figured out a long time ago that it isn't about raising them up to our standards, but it is about lowering us down to their standards.

And at the same time the people that are enriching themselves at everybody's expense are having quite a laugh at the fools that are letting it happen. Whatever?

[Peikko 1,575]

Yeah, so shouting at the illegal immigrants themselves achieves what exactly? If you want to fix the problem of low wages then berate the politicians and employers who are content to pay crappy wages. Of course increasing the costs is going to increase the price of the finished goods which is fair, but may price some industries out of the market unless you can persuade consumers to pay a fair price for the goods they buy. Which isn't easy apparently so:

Back to shouting 'illegals are evil' as that at least accomplishes the 'feel good' factor.

Ok, politicians don't pay wages, but you get my drift.

[Trumplestiltskin 5,791]

Shoot them all, unless they have a legal gun permit, then they're safe. Guns for the good, death penalty for the wicked, hurrah!

When in doubt, shoot.

[peejay 327]

Yeah, so shouting at the illegal immigrants themselves achieves what exactly? If you want to fix the problem of low wages then berate the politicians and employers who are content to pay crappy wages. Of course increasing the costs is going to increase the price of the finished goods which is fair, but may price some industries out of the market unless you can persuade consumers to pay a fair price for the goods they buy. Which isn't easy apparently so:

Back to shouting 'illegals are evil' as that at least accomplishes the 'feel good' factor.

Ok, politicians don't pay wages, but you get my drift.

When have you ever done that or written to your elected representatives that are responsible for this mess?

I have! I do a lot more than post on VJ and add commentary to my posts.

All I ever see you do is make excuses, cheer on the illegal aliens, and nitpick any proposal to solve the problem with minute analysis.

When have you ever ventured a solution instead of endless streams of criticism and a multitude of reason not to do anything?

As the old saying goes...folks are either part of the solution or part of the problem. Which is it?

BTW...I never said illegal aliens are evil. They don't have a right to be here, shouldn't be here, and should be dealt with using laws that have been on the books for years. I grew up and lived in a USA most of my life that didn't need massive illegal immigration to survive. Most countries of the world don't and seem to survive quite well without it. It's not needed, wanted, or desired by a vast majority of Americans. Why does it flourish unabated then?

Riddle me that...Batman!

[Peikko 1,575]

Well there's the thing, you have made assumptions about my opinions based on the fact that I don't support idiotic laws that cost more to implement than the cost of the problem that they are meant to fix.

As for what I do or don't do when not on VJ? Well you can carry on making your assumptions. It doesn't change the arguments as to whether something is a good idea or not and you will not draw me on it.