'Responsible bidding' underscores responsibility on both sides

We appreciate the opportunity to respond to the March 20 Daily Herald article, "Elgin fears union, apprenticeship requirements limit bids it gets."

The premise of the article - that the city's job bidding requirements are "deleterious" - requires additional critical detail and clarity to help assuage any city of Elgin concerns and reinforce the city's current bidding process.

The Illinois Prevailing Wage law ensures that workers on any construction/maintenance jobs are paid fair wages established by the Department of Labor for that area, which deters unscrupulous contractors from performing work at a much lower labor rate.

It keeps a level playing field for all work and also ensures that city construction projects are staffed by the most skilled and efficient men and women. A recent University of Illinois study found that repealing Illinois' prevailing wage law would cost the state a 3,300 net loss of jobs, a $365 million decline in construction worker earnings, an annual contraction of more than $1 billion in the state's gross domestic product and a combined $160 million lost in state, local and federal tax revenues.

Prevailing wage laws also support construction apprenticeship programs.

Being a union contractor means abiding by all state laws, such as paying payroll tax, unemployment and workers' compensation. The employees are also working for the contractor; that is, not being intentionally misclassified as a subcontractor or as a 1099 worker. Employment misclassification is widespread in Illinois. According to the Illinois Department of Employment Security, "Employers wrongly classified nearly 20,000 of their workers as independent contractors rather than full-time employees in 2013, skipping out on more than $250 million in wages and contributions to funds that support laid-off and injured workers."

Cheating the system ultimately affects us all, from state services to community businesses to individual taxpayers.

Many union contractors are small businesses employing fewer than 10 people, and these small businesses provide employees with health care and a retirement program that is funded by contractors and the members.

"Responsible bidder" is a checklist - a vetting process ensuring that the work requested is completed by the most qualified contractors … rather than a couple of guys who pull up in an out-of-state van and are long gone when something goes wrong.

It also ensures single-source liability. The contractor will stand behind this work most times with a warranty on the labor, and the flooring manufacturer will warranty its product since it was installed by a certified installer.

Peace of mind, indeed! Responsible bidder ensures that contractors also maintain an apprentice program, requiring installers to have gone through an approved apprentice program by the U.S. Department of Labor's Bureau of Apprenticeship and Training.

Apprentice programs continually train new installers, providing the workforce with the most productive and knowledgeable workers.

Flooring certifications and installation methods are ever-changing, and apprentice programs ensure that journeymen and apprentices are trained in these latest methods and certifications.

When jobs are broken up into "smaller pieces," as suggested in the article, the possibility of untrained and uncertified labor increases greatly.

The bid bond is a guarantee preventing a dishonest contractor from skipping town without finishing the job. A bid bond also ensures the financial stability of the contractor, providing assurances to the city that the job will be completed without the selected bidder running into cash flow problems. When there is a botched installation or jobs have to be rebid and redone, the cost might soar to almost 10 times the original installation quote!

Responsible bidding equates to responsibilities on both sides that encompass more than a submitted competitive bid.

It involves peace of mind, quality workmanship and professionalism, standing behind the work performed, supporting living wages and training programs, and strengthening a community. Responsible bidders stand behind this objective, and we believe this is in the city of Elgin's best interests as well.

Frank T. Libby is president/executive secretary-treasurer of the Chicago Regional Council of Carpenters.