August 23, 2003

Contact: Senator Cal Kawamoto (586-6970)

Senator Carol Fukunaga (586-6890)

Rep. Ken Ito (586-8470)

 

Legislators Ask Congressional Delegation

to Delay Military's Housing Privatization

State Senators Cal Kawamoto (Dist. 18, Waipahu-Pearl City) and Carol Fukunaga (Dist. 11, McCully-Punchbowl) and Representative Ken Ito (Dist. 48, Kaneohe) are asking U.S. Senator Daniel K. Inouye and members of Hawaii's Congressional Delegation to delay or rescind the awarding of privatized military housing contracts until questions over labor issues have been resolved.

The legislators are calling attention to a recent request for proposals issued by Chaney, Brooks & Company for the maintenance of 2,000 Navy homes. Chaney, Brooks was retained by Fluor Hawaii LLC, the primary developer, to manage this billion-dollar-plus housing program.

Chaney, Brooks is arguing that this privatized housing work is not subject to government control and that it does not have to comply with Davis Bacon, prevailing wage provisions, and other labor laws. The legislators, joined by local contractors and union officials, are countering that contractors must meet all federal and state labor standards.

Stated Senator Kawamoto, "I've already spoken to Senators Inouye and Akaka and Congressman Abercrombie, and all are emphatic in their belief that these privatization contracts are subject to federal and state labor laws.

"If the private housing management companies are permitted to circumvent existing statutes, we believe it will have a major negative impact on the ability of local construction companies to compete, as well as harm unionized workers. There may even be a trickle-down effect on such matters as health insurance, workers compensation, and other hard-won worker benefits.

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"We're hoping our Congressional Delegation can exert the necessary influence to ensure that all parties operate on a level playing field and that no one is allowed to flout our laws."

Attached:

(1) Original letter from legislators to Chaney, Brooks seeking clarification.

(2) Chaney's reply.

(3) Letter to Congressional Delegation, requesting action.

(4) Followup Letter to Senator Daniel K. Inouye