Union disputes Elgin's choice of contractor

"Scabby the Rat," a giant inflatable signaling union protest, has been hanging out in front of Elgin's city hall, and doesn't look to be leaving anytime soon.

The 12-foot rat, holding a sign that reads "shame on Elgin for using rat contractor," was placed last week along Douglas Avenue by International Union of Operating Engineers Local 150. The underlying issue is the contractor, Beneficial Reuse Management, doesn't pay prevailing wages, Local 150 spokesman Ed Maher said.

"The city is using taxpayer dollars to use a contractor that undercuts the local standard of living," he said.

Elgin Corporation Counsel Bill Cogley said the city looked into it and believes the work done by Beneficial - removing and disposing lime residue from water treatment - does not fall under the state's Prevailing Wage Act. The law applies to construction or maintenance of "fixed" public works, such as buildings, roads and water and sewer mains, Cogley said.

Beneficial Reuse Management did not return requests for comment. The city hired the company in 2015.

Local 150 enlisted the help of the Indiana Illinois Iowa Foundation for Fair Contracting, a nonprofit group that sent a letter to the city around September and met with city officials before Thanksgiving. Kara Principe, counsel for the foundation, said the city is interpreting the law too literally.

Principe pointed to language in the law saying it includes "any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented." She cited a 2013 Illinois Supreme Court decision that found the law applied to the operation and maintenance of the water and sewer system in Bement, Illinois. The law also covers material testing, she said.

After being contacted by the foundation, Elgin's legal department spoke twice with representatives of the Illinois Department of Labor, who informally agreed with the city's assessment, Cogley said.

Principe said the foundation was unsuccessful in verifying that. Plus, what matters are written opinions, only issued when a complaint is filed, she said.

Department of Labor spokesman Ben Noble declined to comment on any phone conversations. "Should a formal complaint be filed on this particular case, the department would conduct a thorough investigation and hear from all interested parties. Only after a full review will we issue an official determination," Noble said.

Maher and Principe said their organizations are still determining whether to proceed with a complaint to the department of labor.

"Of course, if the department of labor makes a finding, we'll abide by that determination," Cogley said. "I'm always willing to talk further with interested parties about this."

Beneficial Reuse Management has a contract with Elgin through 2022 and has been paid just under $2 million per year, city officials said.

Maher declined to say why Local 150 got involved nearly three years into the contract. "That is when we committed manpower and resources to this particular project," he said.

Local 150 has more than 23,000 members from southwestern Iowa to northwest Indiana, including more than 100 in Elgin, Maher said.

Scabby, who even has a "Where is Scabby" Facebook page, was created in the Chicago area around 1990. Scabby has been adopted by unions across the country, and courts have affirmed his first amendment rights as long as he doesn't impede traffic, Maher said.

It's difficult to predict how long Scabby will stay in Elgin, Maher said. "We've had campaigns in the past with Scabby present in excess of a year, others where it lasted a few hours," he said.