Abuse After the Storm:

A Report on Hurricane Ike Recovery & Worker Exploitation

by the Houston Interfaith Worker Justice Center

HIWJ - 2906 Houston Avenue - Houston, TX 77009

Phone -713.862.8222 Fax - 713.862.8517
www.hiwj.org
 Abuse After the Storm:
A Report on Hurricane Ike Recovery & Worker Exploitation
by the Houston Interfaith Worker Justice Center

Woe to those that deal in fraud.

Those who when they have to receive by measure, from men exact full measure, but when they
have to give by measure, or weight...give less than due. Quran 83:1-3

Hurricane Ike was the third most destructive hurricane to ever hit the United States. On
September 1st 2008, it became a tropical storm west of the Cape Verde islands. By the early
morning hours of September 5th, Ike was a Category 4 hurricane. Stretching some 600 miles in
width, the storm made landfall on September 13th in Galveston at 2:10 a.m., flooding thousands
of homes in coastal areas. Ike stayed strong as it traveled 50 miles inland and damaged
thousands of homes and small business and battered downtown Houston, shattering windows of
several skyscrapers that house some of the world's largest energy companies. In the United
States, 82 people were killed, and 202 are still missing. Damages from Ike in US coastal areas
are estimated at $27 billion.

The estimate for Houston recovery is upwards of $16 billion. The work needed ranges from
debris pick-up and disposal to roofing to complete renovation of destroyed homes, schools and
businesses. Though workers in the construction industry are excited about the opportunity to
secure work in a faltering economy, there is also much anxiety about the exploitation and abuse
that is sure to come along with the work. Even before hurricane Ike hit, worker abuse has been
an enormous problem in our region. Federal, State, County and City government have shown an
incapacity or lack of commitment to enforce laws that protect workers rights. Wage Theft and
workplace abuses are so common among low wage workers that many of them have come to
accept them as part of their lives.

Created in October 2006, the Houston Interfaith Worker Justice Center (HIWJ) is a safe space for
low-wage workers to gather and learn about their rights in the workplace, network for various
social services, file complaints with government agencies, meet with attorneys and connect with
community allies. The Center also mobilizes the religious community on issues and campaigns to
improve wages, benefits, and working conditions for workers.

The biggest issue that low-wage workers face, in Houston and across the US, is Theft of Wages.
More than 90% of the workers that have come to the Center have had their wages stolen from
them. Employers steal from workers in a variety of ways.. Employers exploit workers by not
paying the minimum wage of $6.55 per hour. Many workers are not paid wages for all hours
worked or not paid time and a half for any more than forty hours worked in one week. In
recovery construction, workers are denied prevailing wages due to them when working on
government projects. The most egregious form of Wage Theft is when workers are not paid at
all.
 To give you a picture of workplace abuses in Houston, since June 2007, the Houston Interfaith Worker
Justice Center has documented 246 cases of labor abuses (discrimination, injury, wage theft, verbal
abuse, etc.) involving 648 workers. From June 2007 through November 2008 the total wages reported
stolen were $494,437.91, of which $92,907.19 have been recovered. Workers infrequently report cases
of health and safety violations unless there was wage theft associated or the health and safety concern
resulted in an injury otherwise workers assume there is nothing that can be done. Sadly, health and
safety risks are generally considered as a given.

Unfortunately, workers only report abuses when something major happens or when approached by
agencies working on such issues. Low wage workers have grown accustomed to not being paid in full
for their work, or not receiving personal protection equipment and training on how to use it, or not
receiving medical treatment for injuries in the job. Though workers do not condone or accept the abuse
they know that is the way things are here and here means Houston, here means Texas, here means
the United States. What happens when a Hurricane hits a heavily populated area? We all know it; it
causes death, destruction of property and infrastructure and a long term disruption on the lives of
people living in that region.

What happens when a hurricane hits a region where workers are routinely exploited, where basic labor
laws are ignored on an everyday basis and a culture of abuse and impunity has become part of the way
business are conducted in certain industries? Author Naomi Klein calls it Disaster Capitalism a political
and economic system that takes advantage of the conditions created by major events (like wars,
hurricanes, tsunamis and earthquakes) to advance a corporate agenda of privatization and extreme
profits based upon extreme worker exploitation.

For people across Texas Gulf Coast region, hurricane Ike was an event that caused fear, suffering and
loss of lives, property and income; and at the same time it was an occasion for solidarity that many
havent seen before. Hurricanes and big disasters seem to bring out the best of many people, and Ike
did it in our region sadly it also brought out the worst on many employers and subcontractors who see
the recovery efforts as a way to grow their profits by cheating workers of their wages.

Ike brought wind and rain and also a pest that seems to follow hurricanes around: abusive employers
that are part of the disaster recovery and reconstruction industry that seems to look at these disas-
ters as an opportunity to make lots of money by taking advantage of workers and the population af-
fected by the storm. Some major companies based in New York, Texas, Florida, and other Gulf Coast
states, recruited workers all over the region, with promises of well paid jobs, lodging, transportation and
food, only to abandon these workers to the hands of abusive subcontractors, these companies and
even their clients have at least a moral responsibility to the workers that helped them recover after the
storm.

As a nation, we face a crisis of wage theft. Two million workers arent paid the minimum
wage. Three million are mis-classified as independent contractors instead of employees.
Millions more are illegally denied overtime pay. Millions of workers are having wages stolen
each and every year. Workers are confused by the laws and unsure about which agencies
can help them. Employers understand that the consequences of stealing wages are
negligible. Wage stealers have no fear. The general public doesnt understand there is a
crisis. Consequently, one must conclude that the Wage and Hour Division is failing to protect
workers from wage theft because of its woefully inadequate enforcement of the federal wage
and hour laws. - Kim Bobo, Founder and Executive Director, Interfaith Worker Justice.
At congressional Hearing on Wage Theft . July 15th 2008
Ike uncovered an economic structure based upon the vulnerability of workers and political and
government institutions without the will or the mechanisms to protect workers and guarantee their
rights.

Ike exposed the current incapacity of local government (city and county) to respond to the needs of
workers when their rights are denied. The bottom line is that many of the abusive employers that
came after Ike got away with major violations of Federal and state law because the local, state and
federal government dont have either the will or the capacity to safeguard the rights and well being of
workers that have been crucial to help get our region back on its feet. Some of these abusive employ-
ers already have a record of committing the same abuses after Katrina; but they keep doing it be-
cause they know there wont be consequences to their immoral and illegal behavior.

While Ike has been very costly to many of us who live and work in this region and to tax payers all
over the country; there are companies and subcontractors making lots of money out of the situation
created after the storm. One thing is to get contracts and do good job repairing buildings and cleaning
up debris, another is to increase your profits by stealing wages and denying workers their overtime,
safety equipment or even food and shelter.

Hurricane Ikes destruction and demand for debris removal, demolition, clean-up and reconstruction
work brought new employment opportunities, it also exposed widespread labor abuses that plague low
-income communities and the systems that perpetuate such abuse. It is crucial to emphasize that such
abuse did not just suddenly appear with the large hurricane clean-up contracts, but in fact the contin-
ued reality for workers at the bottom of our socioeconomic system.

It is essential to study/consider the impact of wage theft on workers lives. For an upper middle class
family moms missing paycheck might mean a few extras are put on hold, but largely the family is able
to absorb the blow without it deeply deteriorating basic quality of life standards. For an impoverished
family, however, moms missing paycheck means the rent cant be paid, or food, medical needs,
transportation are sacrificed in order to avoid homelessness. Again, these affects of wage theft on
family stability are worsened in the documented post-hurricane recovery work for two main reasons:

1. Just as workers are employed to repair roofs, gut flooded buildings, and remove debris, their
own homes are similarly affected. Low-income families are commonly thrown out of their
apartment complexes with little warning when repairs need to be done. Workers frequently
come home to moldy rooms, leaky roofs, and other health and safety risks that they may or
may not be able to afford to repair.

2. Workers brought from out of town. They are typically promised work for over 3 months as
well as housing and a living stipend, so prepare to relocate for the short-term, maintaining living
space in their home town, but banking on the earnings they have been promised. When
housing and food are not provided as promised, and/or wages are not paid, workers are forced
to get creative in order to survive and to avoid sleeping on the streets (which is largely
unavoidable in many cases). The struggle to meet ones own basic needs makes it difficult for
workers to continue demanding their pay and agreed upon benefits.
Here are a few stories of workers that contacted Houston Interfaith Worker Justice after and while
experiencing human rights violations on the job while doing hurricane clean-up work: (Dollar amounts
are as of November 20, 2008)

Timberwood Carpentry/ Global Restoration Group

This is the largest case we have seen so far. Timberwood Carpentry who recruited approximately
1,000 workers (we have documented unpaid wages and contact information for 160 workers) from the
Gulf Coast region (Florida, Mississippi, Louisiana, Georgia, Texas, Alabama, and the Carolinas) to do
clean-up work in Port Arthur, Galveston and Houston under the direction of Global Restoration Group,
offering transportation, lodging, food and months of work. When the workers assigned to Port Arthur
arrived at the hotel where they were to stay the company had not secured the rooms promised, so the
workers were made to sleep outside on the concrete or, for the lucky few, in their cars. Then,
conveniently, after weeks of work without pay, the workers were kicked out of their hotels and brought
to Houston, supposedly to be paid. Despite the workers completion of this vital labor, Timberwood
continues to withhold due wages ($35,770.50 of the $121,681.00 unpaid wages have been recovered),
and continues to turn an insulting indifference to workers basic needs including healthcare for skin
infections, eye infections and kidney infections (one worker reports urinating blood) contracted while
working in contaminated buildings without necessary safety equipment. These workers are White,
Black, Latino, Afrolatino, documented and undocumented, but all low-income, and all fed up with the
abuse!

Southeast Abatement Services

We got a call from an ally in Galveston that thousands of workers were marched from their worksites
gutting and cleaning the University of Texas Medical Branch (UTMB) buildings to a central location to
eat and rest for precisely thirty minutes each day at midday. We went down to check it out, leave some
health and safety information and ask workers to help us distribute our phone number in case their
family and friends had trouble at work. Workers started calling reporting they were not getting paid, and
soon we learned the buses that were transporting the workers from the hotel (where workers slept 10
to 12 to a room) to the worksite were not mechanically sound, had bad breaks (and ran over a workers
feet), had no insurance, and their drivers did not have licenses. Additionally, workers were not paid the
promised $20.00 per diem. Among the 11 workers we met with, they are due $7,146.00 in unpaid
wages.

TLC Engineering
Three workers called to report non-payment of promised gas mileage, and falling wages. They are
currently working as monitors for TLC Engineering (contracted by Beck Disaster Relief) documenting
debris removal projects in the Greater Houston Metropolitan Area, and typically drive 30-50 miles per
day. While workers were originally paid $0.58 per mile, workers suspect the company figured it could
cut some corners and get away with it, so now no one is receiving the promised mileage pay. Workers
cancelled a meeting with us out of fear losing their much-needed jobs.

Ruben Alaniz
Fourteen Houston-based workers did roof repair with San Antonio-based contractor Ruben Alaniz for
four days at the Brentwood Apartments at 510 That Way in Lake Jackson. The agreement was for
$100/day, but when the work was completed, despite the apartments paying their contractor, and the
contractor paying Mr. Alaniz, the workers were not paid. Instead, Mr. Alaniz began to bargain with the
workers, offering $300.00 to be split between all fourteen of them, or nothing at all. They declined.
Jadip Construction/ Salton Companies
Toni is a strong woman. She finally found our phone number after calling every non-profit 2-1-1
had referred her to. Tonis husband and son, as well as four other men with four separate fami-
lies had been working for Salton Companies (contracted by Jadip Construction) as a part of the
FEMA Blue Roof Project, and not only had they not been paid, they had also recently been kicked
out of the hotel where the company had put them up. Workers were promised $0.15 per square
foot of roofing (FEMA pays $3.00 per square foot) for their work 7 days per week for over a month.
Collectively, they are owed $3,134.70, however, once we obtain records of their hours, we will as-
certain whether this is under minimum wage. Weve visited with the families (7 kids total) on two
occasions at two different motels, and they are currently just scrapping by. One worker fell $1.00
short of the bill for his hotel room, and is now looking for a shelter to stay in until he can get
enough money to buy a bus ticket back to New Orleans where he is from.

Bonel Building Corporation

Two groups of workers who worked for the same company, Bonel, at the same apartment com-
plex, contacted us with cases of wage theft. Some were contracted in Houston and others were
brought from Miami to do roofing, gutting, and remodeling work at the Providence Uptown
apartments on McCue St. in Houston. The workers hired in Miami were originally provided housing
at a Super 8 hotel, but when they refused to continue working without pay, Bonel kicked them out
of the hotel, so the Miami workers slept on the streets for a few days while continuing to demand
their overdue pay until they could arrange a place to stay with workers based in Houston. This first
group of 13 workers was able to recover the full $7,904.00 of unpaid wages with the Worker
Centers help. Of the second group of workers we have met with two so far who together are owed
$4,770.00 for their labor. One is staying with a cousin in Houston and the other is from Houston,
but facing major financial problems.

These stories echo and testify to the same trends of worker abuse documented in New Orleans
after Hurricane Katrina. Employers intentionally create and take advantage of workers vulnerability
to increase their profit. Workers are vulnerable from the start because of the lack of oversight and
enforcement of labor laws. Employers increase that vulnerability by bringing workers in from out of
town and creating conditions of dependency promising housing, food, and transportation.

Another pattern these cases illustrate is the complex structure of cleaning, demolition and
remodeling industries, designed to subcontract out liability along with responsibility. The workers
under Ruben Alanizs direction, for example, dont know who the contractor over Mr. Alaniz is, so
our investigation and demands cannot be directed up the employment chain.
 CALL TO ACTION!!
Government action can and should assure that every worker receives fair pay, works in a safe
environment and has his or her rights respected. As responsible citizens we must stand with workers to
fight injustices. The Houston Interfaith Worker Justice Center calls upon:

Congress to strengthen and expand the U.S. Department of Labor, especially the Wage and Hour
Division and the Occupational Safety and Health Administration, to protect workers and prosecute
companies that routinely violate the law. The Department of Labor to expand its education and
enforcement activities in the Gulf Coast without robbing other regions of needed staff.
The State to make the Texas Workforce Commission more effective and to enforce the Texas Pay
Day Law. Houston is the 4th largest city in the country and should have a local office. It should not
take six months for the agency to respond to claims.
The City of Houston and Harris County to create Wage Theft Task Forces and local policy/legislation
that would penalize employers for stealing from workers. All law-enforcement officers should receive
training how to deal with cases of wage theft.
Local Elected Officials to hold Town Hall meetings on Wage Theft and to have conversations with
workers and their advocates about remedies to the problem
The Business community and Chambers of Commerce to identify High Road employers, best
practices, compliance, etc. Membership should be denied and revoked from employers who show a
precedence of stealing from their workers.
Community organizations and service providers to train staff to identify when clients have been
victims of wage theft and refer them to the Center. Support them in their struggles to win Justice on
the Job.
Labor Unions to organize and build membership in Houston, regardless of the immigration status of
the worker.
Workers to denounce unjust working conditions and encourage neighbors and family to do the same.
Know your rights. Organize and fight for change.
The Religious Community of Houston to join the Interfaith Committee for Worker justice.
Call Pancho at 713.862.8222 for more information. Accompany workers on delegations to employers
to call on higher moral standards for employers. Pray so that Houston is a city where justice shines.

These are steps that we can take together to rebuild Houston and the surrounding coastal areas.
Disasters are natural disruptions in the region, how and whom they impact is determined by
economic, political and social structures. A city on a swamp needs to reach the high ground to
become a city on a hill! It is not what we say, it is what we do. Each of us has the potential to do our
part to improve our community and become a city that values work and all workers.

To volunteer, give or join a working group of the Houston Interfaith Worker Justice Center,
please call 713.862.8222 or email agorham@hiwj.org.