A message to the membership:

Local 665 to fight "Underground Economy"

in San Francisco's Parking Industry

 

  

 

 Local 665 is embarking on a campaign to identify work locations in the parking industry which harbor any practice encompassing what agencies of the State of California call the Underground Economy.

The phenomenon of the Underground Economy in the parking industry includes practices which resemble any and all of the following:

  • Complete cash payment for wages
  • Off the books payment for overtime and other house
  • Employer-initiated failure to itemize and account for deductions of worker's compensation, unemployment insurance, state payroll tax, disability insurance and other statutory requirements.
  • Employer-initiated "bonuses" which "skim" from established reconciliation procedures for mandated parking taxes and other fees.
  • Employer involvement in "kick-back" schemes to landlords and property owners which have the same effect of "skimming" mandated parking taxes and other fees.

                                          Why you should care

Many members know about questionable practices, like those listed above.  Some of these illegal practices have recently become more prevalent in this industry.  These practices are taking place at both union and non-union locations.

Some of the practices have been in place for years, and include collusion by both workers and management.

"Skimming" and "cash pay" practices have a direct effect on your wages and benefits.

Auditors charged with monitoring compliance with your health and benefits trusts have a difficult time uncovering "underground" monies changing hands.  In turn this shortchanges premium payments into your pension and health plan trusts, causing rates to increase.

Increase  in benefits premium rates have the effect of denying wage and other improvements.  It also causes delay or denial of benefits to workers. 

Underground Economy schemes also affect the city you work in.  These schemes affect all workers, and their families.

Tens of millions of the dollars collected each year in the parking industry are earmarked to provide improvements for senior services, maintain public transportation, and to fund salaries for first responders in the police and fire departments.

Underground Economy schemes in the parking industry critically shortchange the elderly, directly effect overcrowding on Muni bus lines, and cause response time delays for emergency services you may need.

Investigations and arrests

Within the last five months, a parking operator in San Francisco was arrested by Federal agents.  The owner of the parking company was charged with tax fraud and other Underground Economy activities.  However, it is now clear that other fraudulent schemes continue to flourish in the parking industry.

At this writing, criminal investigations in this industry continue, and will remain on-going.

Today, official reference to the parking industry by elected officials and law enforcement agencies is a collective "enough is enough"

To quote the President of the San Francisco Board of Supervisors at a recent hearing to review the parking industry; "Either this industry polices and cleans up its act, or someone else will do it for them".

What your Union is doing

Over the coming weeks and months, business agents and auditors will be visiting worksite.  Without interrupting your work, they will ask a few questions about practices at your worksite.  Please cooperate with these individuals.  They are there to protect the wages and conditions which benefit you and your fellow workers.

Information about activities on non-union parking locations will also be actively solicited and cataloged.

As information about illegal activity becomes available, it will be quickly forwarded to the investigating government agencies.  some agencies may ask for testimony from workers, and we strongly ask for your cooperation.  When the Union is allowed, by the investigating agencies, to report on progress in fighting the Underground Economy, we will forward it to you.

Fighting the Underground Economy is a crucial step in protecting your wages, benefits and conditions in the parking industry.

If you need to get in touch with anyone at Local Union 665, please contact us at 650-991-2102 main office in Daly City, or at our San Jose office 408-487-0590

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