On June 26th, 2007 the Painters and Tapers Local 77 held the Utah Construction Industry Forum. Union and Non-Union contractors came to express their concerns to the invited guests. The Attorney General for the State of Utah Mark Shurtleff, Senator Ed Mayne, Representative Mike Morley and Representative Tim Cosgrove came to hear from and speak to the attendees.

Contractors and Representatives in attendance at the Industry Forum.

Representative Mike Morley(seated left on dais), Representative Tim Cosgrove(seated middle) and Attorney General for the State of Utah

Mark Shurtleff(at lecturn)

Left to right, Rep. Tim Cosgrove, Brandt Goble(standing), Attorney General Mark Shurtleff and Senator Ed Mayne(standing)

Brandt Goble (standing) moderates the Utah Construction Industry Forum

 The following article from the Wednesday June 27th Deseret News is about the Utah Contruction Industry Forum created by Local 77

Deseret Morning News, Wednesday, June 27, 2007

Unethical contractors in spotlight

Legislators urged to combat abuses such as paying in cash to avoid taxes

By Catherine Smith
Deseret Morning News

A group of independent contractors are urging legislators to take action against what they consider unethical contractors they say are hurting their business.

Some local contractors met Tuesday with the attorney general and several legislators to discuss problems within the construction industry. The problems ranged from companies hiring undocumented workers to employers paying in cash to avoid taxes.

The Painters and Tapers Local 77 of the International Union of Painters and Allied Trades organized the meeting, which was attended by Attorney General Mark Shurtleff; Sen. Ed Mayne, D-West Valley City; Rep. Mike Morley, R-Spanish Fork; and Rep. Tim Cosgrove, D-Murray.

The meeting intended to open dialogue between contractors and legislators by acknowledging the problems in the industry.

"This isn't about making money," said Brandt Goble, field representative for the union and the major force behind Tuesday's meeting. "It's about making the industry better. We really do care about the industry and those who work in it."

Companies throughout the country thrive on hiring undocumented workers and paying employees in cash, evading taxes and other payouts such as workers compensation, Shurtleff and Mayne said. Legitimate companies end up paying for what those companies evade.

"Other (companies) save 30 percent on costs by misfiling" required documents, Shurtleff said. "They then under-bid and get more contracts."

Because so many companies around the country fail to pay and file correctly, local, state and federal governments lose billions of dollars in tax revenue, Shurtleff said.

Shurtleff acknowledged the AG's office has not prosecuted these businesses as it should because it is "woefully undermanned."

One of the major problems with businesses that pay cash is the unfair advantage it allows them, Mayne said. He hopes Tuesday's discussion and subsequent meetings will help level the playing field for honest, independent contractors by providing better legislation against offenders.

"We need to get someone out to enforce the law," he said.

Cosgrove echoed Mayne, saying independent contractors needed to be "protected."

Contractors that attended the meeting voiced their concerns. "It's hurting everybody's incomes," said Pat Lane, a representative of the painter's union. "(Transient workers) are raping this state of its taxes."

Other contractors said companies who pay cash make it difficult for legitimate companies to get employees. Workers paid in cash make more money because no taxes are taken from their pay.

Mayne announced that the Business and Labor Committee Interim Committee meeting July 18 will include testimony concerning the problems discussed Tuesday. He urged contractors and the public to attend.