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Bending to Schwarzenegger Administration Threats and Strong-armed Tactics, State Panel Approves Shoddy Worker Training Program

**News Release for Friday, July 29, 2005**

(San Diego, CA) - Last night, the California Apprenticeship Council voted to allow an apprenticeship committee backed by Gov. Arnold Schwarzenegger's administration to expand their low-quality training program that benefits some of governor's biggest donors—builders and contractors. The seven-to-six vote came after administration representative John Rea, Chief Deputy Director of the Department of Industrial Relations, threatened a labor appointee with loss of his apprenticeship program's tax exempt status.

The 14-member California Apprenticeship Council (CAC) decided on a case involving the Sacramento-based Plumbing, Heating and Cooling Contractors Plumbers Unilateral Apprentice Committee (PHCC PUAC) at their meeting in San Diego. PHCC PUAC has been accused of providing cheap labor to builders and contractors with "apprentice" workers who are paid less than half the prevailing wage, yet get little of the mandated training from the program, which receives taxpayer money to train them. PHCC PUAC will now be allowed to operate in Northern California, though their facility is an empty warehouse without plumbing.

"This decision puts consumers and workers in danger," said Ted Reed, Executive Director of the California State Pipe Trades Council, the principal challenger in the case against PHCC PUAC.

The Pipe Trades Council, which runs the leading plumber and pipe fitter apprenticeship training programs in the state, spending $18 million per year to train over 3,500 apprentices at 27 training facilities statewide, asserted that PHCC PUAC was running a rogue apprentice program that cut sweetheart deals for anti-union contractors and a raw deal for apprentice plumbers and pipe fitters who receive apprenticeship wages but are thrust into work environments without proper training. At the hearing, the Pipe Trades Council pointed out that it was particularly egregious considering that PHCC PUAC receives taxpayer money to run their program.

"Once again this Governor has taken the side of his biggest donors and contributors at the expense of all Californians," continued Reed. "Now many Californians who work on homes, hospitals, schools and office buildings won't be trained to do their job. By supporting a shoddy program with a reputation for exploiting apprentices and skipping worker safety training, this administration put all Californians at risk and wasted taxpayer dollars on a program with an abysmal record."

Non-union apprentice programs have been a source of contention in California for years. On state and federal projects, contractors must pay the prevailing wage with just one exception: apprentices. Apprentices, who typically start out at 40 percent of the prevailing wage in exchange for on-the-job and classroom training, are a favorite way for non-union contractors to cheat. Non-union contractors like those affiliated with PHCC PUAC take advantage of the reduced apprentice wages by packing their work crews with so-called apprentices, who aren't receiving training and who get little to no supervision from qualified journeymen. Even so, PHCC has reclassified many of its apprentices as "trainees" when its contractors did not want to pay even the apprentice wage rate.

In legal proceedings, the State Pipe Trades Council pointed to PHCC PUAC's own marketing materials that offer builders and developers a loophole in the state-mandated wages. In its internet advertising, PHCC PUAC has said that "the use of an apprentice allows a contractor to lower its labor costs by having a registered apprentice on the job."

The State Pipe Trades Council also presented evidence to show that PHCC PUAC employs crews made up entirely of apprentices without qualified journeymen to oversee the training or quality of the work. In a legitimate operation, apprentices make up a small minority of any work crew so journeymen can ensure quality control while apprentices learn on the job. Records show that PHCC PUAC also has an abysmal graduation rate at 20.7%.

Unions such as the State Pipe Trades Council invest part of every member's paycheck into their programs, have state-of-the-art facilities that allow apprentices to learn in a controlled environment and enjoy a solid record for producing new generations of skilled workers. Non-union training programs, like PHCC PUAC, have a reputation for too few instructors, training in meager classrooms without tools and cheating Californians who sign up for a career-building education with them.

State Montoya funds, named after a former state senator, reimburse organizations like the California State Pipe Trades Council and PHCC PUAC for a portion of their training costs.

"Their record shows they are taking the state's money, but not providing training for California's workers," said Reed. "The administration is allowing a contractor to run a substandard apprentice program, wasting taxpayer dollars and putting the economy, consumers and workers at risk."

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