More than 100 workers at a Scottsdale construction framing company haven't been paid in several weeks, and that has Latino community advocates concerned that some employers are taking advantage of workers.
Veemac Framing Corp., a subcontractor for some of the Valley's top home builders, acknowledged that it has not paid the workers, who are owed three to five weeks of back pay.
Company officials blamed a financial dispute with two home builders and a third company that is hindering its cash flow. Veemac said it would pay the workers as soon as the dispute is worked out.
"We don't want to see this become contagious," said Alfredo Gutiérrez, a talk show host at Radio Campesina and former state legislator, who has taken up the workers' cause. "If you're in business, you're in business. Your first obligation is to pay your workers."
John Vergopia, Veemac's chairman and chief executive officer, referred questions to a company attorney.
The attorney, Greg Eagleburger, said the company plans to pay the workers as soon as it negotiates payment from two of its customers, U.S. Home and Richmond American Homes.
"It's only a delay," he said. "As soon as we are paid by our customers, we will continue to pay our workers, who we feel are the best."
The firm does subcontracting for some of the Valley's largest home builders, including Toll Brothers and U.S. Home, which is owned by Lennar Corp.
Several Veemac workers said they don't plan to return to the company and just want their money.
"We worked for promises," said Arturo Botello, a foreman who said he is owed five weeks of back pay. "They kept telling us they would pay us, so we kept showing up."
Others said they were unsure whether they would continue working, although most said they had stopped working for the company two weeks ago.
Botello added that he was not reimbursed for gas he put in company trucks nor for water and ice he bought his crews.
Another worker, Luis Cuellar, said Vergopia kept telling workers that they were highly paid, talented workers and the company didn't want to lose them.
"He was just telling us that to keep us working," said Cuellar, who worked for the company for only one month but is owed three weeks of pay.
The unpaid workers, most of whom have work permits and are authorized to work here, began showing up at radio station La Campesina last week. The station has become an advocate for many Latino residents and has helped workers in similar situations. It referred the Veemac workers to the non-profit group that it works with.
More than 100 workers have filled out wage-claim forms, said Yesica Maldonado, executive director of the non-profit of La Union del Pueblo Entero. Most intend to file wage claims today, she said.
During a meeting with Vergopia and Eagleburger on Tuesday at Veemac's Scottsdale office, Gutiérrez accused the company of fraud.
"If the workers are not paid by today, your fraudulent scheme will end," he told Vergopia and Eagleburger. "We will use every legal and non-violent means to make sure workers are paid or you go to jail."
Vergopia pointed out that his workers earn above the industry average for the area and receive health insurance.
But many of the workers are facing financial hardships such as evictions and credit problems, the workers' representatives said.
Under state law, employers are required to pay employees at least twice a month. But the State Labor Department has no ability to levy penalties if employers don't comply. It can only refer cases to prosecuting agencies.
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http://www.azcentral.com/community/scottsdale/articles/0621biz-nopay0621.html
Veemac Framing Corp., a subcontractor for some of the Valley's top home builders, acknowledged that it has not paid the workers, who are owed three to five weeks of back pay.
Company officials blamed a financial dispute with two home builders and a third company that is hindering its cash flow. Veemac said it would pay the workers as soon as the dispute is worked out.
"We don't want to see this become contagious," said Alfredo Gutiérrez, a talk show host at Radio Campesina and former state legislator, who has taken up the workers' cause. "If you're in business, you're in business. Your first obligation is to pay your workers."
John Vergopia, Veemac's chairman and chief executive officer, referred questions to a company attorney.
The attorney, Greg Eagleburger, said the company plans to pay the workers as soon as it negotiates payment from two of its customers, U.S. Home and Richmond American Homes.
"It's only a delay," he said. "As soon as we are paid by our customers, we will continue to pay our workers, who we feel are the best."
The firm does subcontracting for some of the Valley's largest home builders, including Toll Brothers and U.S. Home, which is owned by Lennar Corp.
Several Veemac workers said they don't plan to return to the company and just want their money.
"We worked for promises," said Arturo Botello, a foreman who said he is owed five weeks of back pay. "They kept telling us they would pay us, so we kept showing up."
Others said they were unsure whether they would continue working, although most said they had stopped working for the company two weeks ago.
Botello added that he was not reimbursed for gas he put in company trucks nor for water and ice he bought his crews.
Another worker, Luis Cuellar, said Vergopia kept telling workers that they were highly paid, talented workers and the company didn't want to lose them.
"He was just telling us that to keep us working," said Cuellar, who worked for the company for only one month but is owed three weeks of pay.
The unpaid workers, most of whom have work permits and are authorized to work here, began showing up at radio station La Campesina last week. The station has become an advocate for many Latino residents and has helped workers in similar situations. It referred the Veemac workers to the non-profit group that it works with.
More than 100 workers have filled out wage-claim forms, said Yesica Maldonado, executive director of the non-profit of La Union del Pueblo Entero. Most intend to file wage claims today, she said.
During a meeting with Vergopia and Eagleburger on Tuesday at Veemac's Scottsdale office, Gutiérrez accused the company of fraud.
"If the workers are not paid by today, your fraudulent scheme will end," he told Vergopia and Eagleburger. "We will use every legal and non-violent means to make sure workers are paid or you go to jail."
Vergopia pointed out that his workers earn above the industry average for the area and receive health insurance.
But many of the workers are facing financial hardships such as evictions and credit problems, the workers' representatives said.
Under state law, employers are required to pay employees at least twice a month. But the State Labor Department has no ability to levy penalties if employers don't comply. It can only refer cases to prosecuting agencies.
Contact the reporter at (602) 444-8831 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .
http://www.azcentral.com/community/scottsdale/articles/0621biz-nopay0621.html
