title(“Fraud In Oakland’s Garbage Sweatshop”)


layout-grid-mode:line”> As
the strike ground on, investigation revealed that workers were cheated on wages for years,
while city councilmembers received thousands of dollars in campaign contributions. To make
matters worse, David Duong, owner of the struck California Waste Solutions, hired
strikebreakers and attempted to resume operations, while city officials made excuses or
turned away in a city where labor boasts of its political clout.

 Finally,
after five weeks, the strike was resolved when workers were able to embarrass outgoing
Mayor Elihu Harris and other city councilmembers into intervening to put pressure on
Duong. But the conflict left unresolved the question of why, in a city which has just
adopted a living wage ordinance, a similar contract provision could go unenforced and
unmonitored for seven years.

 CWS
operates from a huge concrete building stretching for a city block along Pine Street in
West Oakland, from 10th to 11th Streets. Fifty-six workers sort recycled trash at the
facility. In addition the company runs a dozen trucks through Oakland picking up discarded
plastic, paper, metal, and glass.

 The
upheaval at California Waste Solutions began this spring, when its workers, almost
entirely immigrants from Mexico, decided to organize a union. "We were very unhappy
about the wages," explains Santos Valladares, a leader among the sorters.
"Almost everyone here makes $6.00 an hour. Just a handful are paid a little
more."

 Workers
also complained about conditions on the garbage line. There is no adequate eye protection
against dust and grit from the recycled materials, they say, or ventilation to remove the
stink of the refuse. Although the company provides gloves, workers still get cut. On the
picketline, Francisco Hernandez showed a deep gash in one of his fingers. "When a
glass bottle got stuck on the line, it cut right through my glove when I tried to get it
loose," he said. Other workers showed similar cuts, abrasions, and eye inflamations
they said were due to their job.

 Early
in 1998, Santos and his coworkers signed union cards with Local 6 of the International
Longshore and Warehouse Union, and petitioned for a representation election. According to
Valladares and other workers, however, Duong promised that the company would raise wages
if they voted against the union. Local 6 organizer Alfredo Flotte adds that rumors of an
immigration raid were spread as well.

 David
Duong refused to be interviewed and calls to the company office were not returned.

 When
the election was held in May, the union lost. Afterwards, says union member Ruben Antonio
Rivas, Duong took workers to lunch at a local restaurant as a reward.

 CWS
workers wanted more than a free lunch, however. They began to pressure Duong to fulfill
his promises of a wage increase. Then Oakland passed the living wage ordinance this
summer, requiring city contractors to pay their employees $8.00/hour, in addition to
funding health benefits. "We went to him again. He said it didn’t apply to us,"
Rivas recalled. In frustration, workers finally walked out on strike on August 21.

 What
workers didn’t know at the time, however, was that Duong had signed a contract with the
city in 1992, which obligated him to not only pay $8.00/hour for all work performed for
the city, but to provide medical and other benefits as well.

 Not
only that, but the city had basically set Duong up in business, giving him a loan of
$350,000 "for the express purpose of purchasing vehicles … to be utilized in the
exclusive performance of this agreement." Oakland’s curbside recycling program, set
up in 1992 just before he was given his contract, gave Duong a third of Oakland as a
territory for collecting trash and sorting it for recycling.

 Duong
took the loan, bought the trucks, began collecting recycled trash, and started what became
a thriving and growing concern. But he never implemented the wage and benefit guarantees
for CWS workers.   Once the strike
started, it drew immediate attention from city

layout-grid-mode:line”> Negotiations
began on a contract and strike settlement. After a couple of days, however, they stalled
over wages and benefits. The union wanted a substantial wage increase for the workers, and
the company offered only a 50¢ increase, to $6.50/hour.

 While
bargaining ground to a standstill, the company began hiring strikebreakers to drive its
trucks. "We were very upset when we saw Duong hiring almost entirely African-American
workers to break the strike. He hardly hired anyone from the African-American community
before that," said Local 6 business agent Roberto Flotte. "To us, that’s racial
politics."

 Strikers
countered by picketing three huge shipping containers in the Port of Oakland, filled with
plastic trash, as they were about to be loaded on a container-ship bound for Asia. When
dockworkers, who also belong to the ILWU, threatened to walk off the ship, port
authorities told Duong to take his containers elsewhere.

 Union
negotiators were floored when they finally received a copy of the CWS contract with the
city, and discovered that it required CWS to "pay each person employed for the
performance of work pursuant to the contract" according to a set schedule of salaries
and benefits. That schedule specifies a wage of $8.00 for sorters, and further mandates
$2.60/hour for medical benefits, from 5 to 41cents/hour for pensions, five holidays, five
sickdays, from two to four weeks of vacation a year, and overtime rates after eight hours
in a day or 40 hours in a week.

 On
July 15, 1997, Duong even signed a second, five-year agreement with the city which
contained the same salary provisions for sorters. "But they’ve been paying almost all
the sorters $6/hour," said Local 6 organizer Alfredo Flotte. "The company isn’t
paying $2.60/hour for its medical plan, and many workers say they’ve been required to work
overtime at regular hourly rates."

 For
each worker employed under city contract at $6.00/hour, the $2/hour underpayment amounts
to $4,000 per year considering wages alone–a potential backpay liablility of $28,000 per
person since the original 1992 agreement was signed. Underpayment of medical insurance,
overtime and other benefits would raise that bill much higher.

 The
city agency in charge of enforcing the contract, Oakland’s Public Works Agency, seemed
inexplicably unconcerned over the flagrant violation. Terry Roberts, the agency’s
director, was unable to describe the process used for enforcing it, or explain why no
monitoring took place for seven years. "It didn’t happen the way it should," he
commented laconically.

 Roberts
told the city council that he had requested payroll information from Duong, and begun
working with Mark Wald, a city attorney, to determine possible penalties for
non-compliance. But in a council meeting called at the peak of the strike, strikers and
their supporters in the audience sat agape as Roberts put forward a formula, not to
enforce the contract and recover money owed to both the city and the workers, but to
reduce it drastically.

 Roberts
proposed a formula for calculating Duong’s backpay liability which would save the company
hundreds of thousands of dollars. Inside the sorting facility, he claimed, trash from
Oakland is mixed together with that collected in other local cities, including Sacramento,
Alameda and Clayton. The workers sort all the trash together. While it might seem that all
of them are therefore working on garbage collected under the city contract, Roberts
suggested that since other trash is included, workers only need to be paid $8/hour for
that proportion of the work done directly on city trash. If only 20 percentof the trash is
from Oakland, he guessed, instead of $2/hour backpay owed to every worker, Duong’s
liability might be as little as 40¢.

 Roberts’s
lackadaisical attitude toward enforcement and the collection of penalties was compounded
by statements by the mayor. Mayor Elihu Harris also tried to minimize Duong’s potential
backpay liability. "I understand that it’s only the equivalent of about 10
workers" who are working directly under the city contract, he stated in an interview.

 In
addition, both the mayor and councilmember Reid seemed unconcerned by the hiring of
strikebreakers. "He’s caught between a rock and a hard place," Harris said.
"If he doesn’t pick up the trash, he might lose the contract."

 Reid
declared that Duong "has a business he has to run." He accused the union of
making unreasonable wage demands. California Waste Solutions, he said, "is just a
small, family-owned business trying to survive in a competitive market."

 Striking
drivers said Mayor Harris even told them in a private meeting that the union’s demands
were unreasonable. "He said that if the company accepted what the union was
proposing, they’d close within six months," recalled one driver, who was afraid to be
publicly identified.

 City
solicitude on behalf of Duong became more understandable when it became public that he had
been a conduit for substantial campaign contributions to the campaigns of city officials.
Since 1994, David Duong and his family contributed over $25,000 to city election
campaigns, with the Mayor (at $6050) and Councilmember Reid (at $5250) the largest
beneficiaries.

 City
hall connections went beyond contributions. Reid revealed in an interview that he is
godfather to one of Duong’s children. Reid, the mayor and Duong all traveled together to
Vietnam on a city trade mission. Furthermore, Greg Kos, an aide to former city
councilmember Sheila Jordan (now newly elected County Superintendent of Schools), works at
the CWS west Oakland site.

 Speaking
before a September 1 city council meeting, ILWU Organizing Director Peter Olney accused
municipal officials of misplaced priorities. "The demands of these workers for a
decent wage which can support their families are completely just," he told
councilmembers. "They’re only asking for what the city itself requires. Elected
officials should have enforced the city’s own contract years ago, rather than finding
reasons today why the company shouldn’t have to live up to its obligations."

 Pressure
mounted as city residents complained that trash wasn’t being picked up, despite the
company’s effort to continue operations with strikebreakers, and neighbors complained
about noise and pollution from the facility. Public embarassment of the mayor and Reid
eventually made it impossible for them to continue supporting Duong’s hard-line effort to
break the strike.

 Finally,
on September 29, the Oakland City Council told Duong he was in danger of losing his city
contract entirely. Councilmember Ignacio De La Fuente then brokered a settlement, and
Duong agreed to a contract including wage raises and better protection against the health
and safety dangers involved in sorting through discarded trash.

 "This
is a big victory for the strikers," said Roberto Flotte, business agent for Local 6.
He pointed to provisions in the new agreement which will give all CWS workers at least a
$1/hour increase. The entry-level wage will rise immediately from below $6.00 to
$7.00/hour, and then go up 30 cents/hour every year for the next five years.

layout-grid-mode:line”>The CWS strike was the second instance in
which an immigrant workforce subjected to sweatshop conditions voted against union
representation in an election administered by the National Labor Relations Board, and then
spontaneously struck after conditions failed to improve afterwards.

layout-grid-mode:line”>