This article first appeared in the St. Louis Beacon, Dec. 11, 2012 - Amid the turmoil in St. Louis County over mandates on contractors who seek government contracts, St. Louis Mayor Francis Slay jumped into the fray by issuing an executive order that highlights the city’s expanded workforce requirements for developers who obtain tax breaks.
Slay, who is seeking a fourth term this spring, issued an executive order “effective immediately” that expands the city’s exisiting workforce goals to include all recipients of tax-increment financing – known as TIFs – on all projects of $1 million or more.
Slay said in an interview that the executive order, although announced Wednesday, had been issued Tuesday so that it would be in place in time for Wednesday's tax-increment financing hearing on the proposed $186 million planned development by CORTEX in the Central West End.
CORTEX received TIF approval for the project, which is expected to bring in 1,400 new jobs and add 384,000 square feet of additional lab and office space to the area.
The executive order is "a natural extension of what we've already done,'' the mayor said in the interview. "It's something I've been contemplating."
In his earlier statement, Slay had observed, “The best social service program and the best anti-crime program is a job,.... As we renovate and revitalize our city, it is important that more people have a chance to succeed.”
The city’s workforce goals affected by Slay’s executive order include:
- “Twenty-five percent of labor hours are to be performed by minorities.”
- “Five percent of labor hours are to be performed by women.”
- “Twenty percent of labor hours are to be performed by city residents, although those hours can also be counted toward the first two goals.”
- “Fifteen percent of all hours are to be performed by apprentices enrolled in an approved training program, although those hours can be counted toward the first two goals.”
According to the mayor’s announcement, “The order will be implemented by the St. Louis Development Corporation and the St. Louis Area Agency on Training. The goals will remain in effect until the city completes a disparity study next summer. (A disparity study measures existing workforce capacity and utilization.) The disparity study will set new goals.”
“This is just one step toward expanding opportunities for minority and women workers,” Slay said. “I will ask aldermen to consider legislation to include projects that get other kinds of city subsidies. In addition, I will be encouraging leaders in the private sector and in the suburbs to join us in this important effort.”
State Sen-elect Jamilah Nasheed, D-St. Louis and a Slay ally, said in a statement, “I applaud the efforts of Mayor Slay for supporting and promoting diversity in our workforce by extending the city’s diversity program to major TIF projects.”
The Beacon's earlier story:
Council OKs contractor mandate despite GOP opposition
The St. Louis County Council has approved an ordinance to require contractors on larger county-government jobs to operate federally approved apprenticeship programs.
The measure passed Tuesday night amid some blistering criticism, including a scathing statement before the meeting from Missouri House Speaker Tim Jones, R-Eureka -- who has threatened legislative action to block it.
Council chairman Mike O'Mara's proposal has been portrayed as an effort to ensure that the county hires contractors with strong employee-training programs. O'Mara, D-Florissant, is an official of Plumbers and Pipefitters Local 562.
After the council meeting, O'Mara said that union apprentice programs enhance safety. He also noted that the Hazelwood School District has similar language in its bidding requirements, and that the mandate met minority participation requirements.
The measure passed Tuesday by a 5-2 margin, with the council's two Republicans -- Councilman Greg Quinn, R-Ballwin, and Councilwoman Colleen Wasinger, R-Town and Country -- voting against it.
Jones -- in the midst of a statewide tour to promote his economic proposals -- had attacked the measure in a sharply worded statement issued before the meeting.
Jones contended, in effect, that the proposal gave unions an unfair advantage – and threatened legislative action if county officials enact the measure.
"I am firmly opposed to the proposal requiring contractors on jobs over $25,000 to operate a Department of Labor-approved apprenticeship program,” Jones wrote. “This will block the lion's share of contractors -- including many local minority- and female-owned contracting companies -- from competing for these jobs, virtually guaranteeing they go to only union-affiliated contractors.
“If the County Council proceeds with this action, we will surely have to review this decision at the state legislative level in 2013 to determine what recourse is available to protect the thousands of hard-working small business owners in St. Louis County and across our state,’’ the speaker added.
The new House leader has been outspoken in his views in favor of right-to-work laws, which would curb union rights in the workplace. Amid union protests, the state of Michigan is embroiled in a fast-moving effort by Republican legislative leaders to make the original union stronghold a "right-to-work" state.
Michigan Gov. Rick Snyder, a Republican, signed a "right-to-work" measure into law Tuesday afternoon.
Gov. Jay Nixon has said he will veto any "right-to-work" legislation. Although the GOP has veto-proof majorities in both Missouri chambers, several suburban Republicans were endorsed by labor this year.
Critics cite 'right to work'
Jones didn't mention "right to work" in his complaint about the County Council, but the issue was on the minds of some critics who spoke out before Tuesday's vote.
Paul Munsch of the Associated Builders and Contractors contended during the council's public comment period that the bill "represented heavy-handed union tactics in St. Louis County."
"If you as councilmembers -- and some cases union leaders -- want to go down as creating a precipitating event leading to passage of right-to-work legislation in Missouri, then I suggest you go ahead and pass this bill,” Munsch said. “But I believe it’s doing a disservice to the people you represent, and I recommend you oppose [O’Mara’s bill].”
Yaphett El-Amin, a former Democratic legislator who is the executive director of MOKAN, a group promoting minority contractors, said O'Mara's bill is "creating an unfair advantage for the building and construction trades."
"In our 37-year history, we have seen virtually closed shops to minorities and females within the construction trades," said El-Amin. "It is our belief that people who have not shown a clear and distinct track record of diversity should not be rewarded with 100 percent opportunities for procurement."
That line of argument from El-Amin and several other speakers drew a sharp rebuke from St. Louis County Executive Charlie Dooley, a Democrat.
Before the council vote, Dooley said that "to think that we would do something that would discriminate against anybody in this county is not true."
"Now does that mean we continue to evolve and look at what we do? And do better when we can? We will do that. We'll continue to do that," Dooley said. "But to think or insinuate that this council -- and particularly with my situation, I'm an African-American -- to think I would not think for fairness, I am extremely disappointed in those individuals that would think that.
"I went through this ordinance, I understand that there's some things we need to look at," Dooley added. "But in fairness, as we go forward it would do what it needs to do for this community."
