Complaint Review: Air Force and Boeing

AIR FORCE ALLOWS BOEING TO RIP-OFF LOCAL HIRES AT DYESS AFB, TEXAS

To Whom It May Concern:

If you have received this letter you are, most likely, one of the following:

You are an employee, or former employee, of the BOEING B-1B FIELD REPAIR ACTIVITY AT DYESS AFB, TEXAS.

*You are a person of influence, or someone who knows a person of influence, who may be able to help the current, future, and former BOEING employees to receive fair and just treatment.

*You are a Government or Boeing official who should know about the ABUSIVE hiring and wage practices of the BOEING B-1B Field Repair Activity.

*You are a member of the media.

*You are an Abilene City Leader.

*The treatment of the locally hired employees at the Boeing Field Repair Activity is a good example of why people with families are moving away from Abilene. It is very difficult to make enough to support a family in this city, especially with a hiring manager like Robert Stephenson.

BOEING IS STARTING LOCALLY HIRED PEOPLE AT 40%, OR MORE, BELOW WHAT THE AIR FORCE REQUIRES OTHER CONTRACTORS ON DYESS TO PAY FOR SIMILAR JOBS!

RECENT JOB POSTINGS ON TEXAS WORKFORCE COMMISSION WEB SITE:

Employer: BOEING
426 3RD ST
DYESS AFB, TX 79607
Phone: 915/695-3740
Hrs/Wk: 40
Job Title: AIRCRAFT ELECTRICAL TECHNICIAN
Job Posting No: TX0959438
Job Site: Dyess AFB
Salary: 10.50
Pay Unit: Hour

Job Description: Fax Resume or generic application to BOB STEPHENSON at 915-695-3745. Must have H/S OR GED. Must also have 12 Mo. experience working with electrical components.

Employer: BOEING
426 3RD ST
DYESS AFB, TX 79607
Phone: 915/695-3740
Job Title: AIRCRAFT MECHANIC
Job Posting No: TX0959437
Job Site: Dyess AFB
Salary: 10.50
Pay Unit: Hour

Job Description: Fax Resume or generic application to BOB STEPHENSON at 915-695-3745. Must have H/S OR GED. Must also have 12 Mo. experience working on airplane hydraulics.

For more than fifteen years there has been an FRA (Field Repair Activity) for the B-1B Bomber located on Dyess Air Force Base in Abilene Texas. This repair center is located in facilities provided by the Air Force at NO COST to Boeing. (Rockwell operated this facility until Boeing bought them out several years ago). The purpose of this facility is to provide repair and modification SERVICES to the B-1B Bomber. Most of the work currently being done involves repair/overhaul of some of the electrical, electronic, and hydraulic units used on the B-1B.

Over the years, local Abilene people have been hired to augment the personnel who transferred in from California and other locations. These local hires have been paid less than the PREVAILING wages as set forth by the Department of Labor Wage Determinations. The SERVICE CONTRACT ACT OF 1965 requires these wage determinations for service contracts.

* "The Service Contract Act applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services in the United States through the use of service employees."

http://www.dol.gov/esa/regs/compliance/
whd/web/SCA_FAQ.htm

* "The SCA was specifically designed to prevent the channeling of government service contract business to those whose competition is based on paying the lowest wages."

http://www.oalj.dol.gov/public/dba/
decsn/95sc045a.htm

* "...the Service Contract Act was enacted in 1965 for the purpose of providing wage and safety protection to employees working under service contracts with the United States government, where the contract amount exceeds $2,500 and the contract is performed within the United States."

http://www.oalj.dol.gov/public/dba/
refrnc/dbadeskbook_Apr02rev.htm#MIA

* "Every service employee performing any of the Government contract work under a service contract in excess of $2,500 must be paid not less than the monetary wages, and must be furnished fringe benefits, which the Secretary of Labor has determined to be prevailing in the locality for the classification in which the employee is working or the wage rates and fringe benefits (including any accrued or prospective wage rates and fringe benefits) contained in a predecessor contractor's collective bargaining agreement. The wage rates and fringe benefits required are specified in the SCA wage determination included in the contract."

http://www.dol.gov/esa/regs/compliance/
whd/web/SCA_FAQ.htm

The Air Force decided that Rockwell, and then Boeing, should not be subject to the SCA and, therefore, ** DID NOT INCLUDE THE SCA CLAUSES OR WAGE DETERMINATIONS IN THE CONTRACTS **. This has enabled the Site Manager, ROBERT E. STEPHENSON, to pay whatever people are willing, or desperate enough, to accept. Boeing apparently "rubber stamps" his salary offers even though most offers are way below Boeings own salary references for this area (Often way below the 10th percentile, and that is for people with 20+ years of experience * NOT * inexperienced people).

**NOT ONLY DOES BOEING GET AWAY WITH PAYING LESS THAN PREVAILING WAGES, THEY GET THE USE OF FREE GOVERNMENT FACILITIES AS WELL. WHAT A SWEET DEAL! **

Did the Air Force do this as a cost cutting measure? Does this enable Boeing to pay employees whatever they want and, as a result, bid lower on the contracts and save the Air Force some money? Or, does Boeing simply pocket the savings for themselves while charging the Government as if they were under the SCA and being required to pay prevailing wages? Are non-SCA contracts easier and cheaper for the Air Force\Boeing to administer? These are some of the questions that need to be answered by an independent party.

People have accepted Mr. Stephenson's low wages out of desperation or a lack of knowledge regarding prevailing wages (don't know what they are worth). Some people were "sucked in" by being hired as "Temps" and told that they would get a substantial pay increase when they went from temporary to permanent status. This, they found out several months later, was a LIE! The pay increase never occurred at all or was a measly 50 cents an hour!

Many, perhaps most, of these people have been VETERANS. Two of these veterans, a twenty year retired Air Force man and a DISABLED VETERAN, have been terminated within the last year. Less qualified people and even "Temps" (in the case of the disabled Vet) were kept. These two people complained to loud and to often about the low wages. Of course, that had nothing to do with the decision to let them go! Does this tell you why the writer of this letter chooses to remain anonymous?

There are at least seven HYDRAULICS REPAIR TECHNICIANS that are currently being paid less than $15 an hour (some as low as $10.50). According to WAGE DETERMINATION NO: 94-2517 REV (21) AREA: TX, NORTHWEST TEXAS :
PNEUDRAULIC (Hydraulic) SYSTEMS MECHANICS should make a * MINIMUM * of $17.49 an hour.

* That means they are being underpaid by a LEAST * $5,179.20 * a year! That's a total of $36,254.40 for one year, just for these seven technicians! (This example assumes the technicians are all making $15 an hour. Some are well below that, at $10.50 or $11.00 an hour.)

* If a hydraulics technician starts at $10.50 an hour that person is being underpaid by at least $14,539.20 a year! That is a lot of money for someone in a low-income bracket! Maybe that is why some of the technicians are getting some form of government welfare and have had severe financial problems up to and including bankruptcy!

* Some people have been here for several years. If they could collect backpay, based on DOL Wage Determinations, SOME WOULD PROBABLY BE OWED AS MUCH AS $40,000.00 IN BACKPAY!

* Many people have come and gone over the years. If they, and current underpaid employees, could all collect backpay, the total would probably exceed $250,000.00 (that is a very conservative estimate)!

THAT IS A NICE COST SAVINGS FOR BOEING AND/OR THE AIR FORCE!

This cost savings has NOT been available to numerous other contractors on Dyess that have been subject to the SCA minimum wages. It is very unfair to make these other contractors pay $17+ an hour and let Boeing get away with starting people at $10.50 an hour. A few of the companies that have been required to pay SCA wages are:

Lockheed Martin
BOEING AEROSPACE OPERATIONS (B-1B flight simulator)
Lear Siegler Services, Inc.
Yulista Management Services Inc.
Bionetics Corporation
NLX Corporation

* AND NOW THE HYDRAULICS OVERHAUL CONTRACT IS COMING UP FOR COMPETITIVE BID.

See Presolicitation Notice Number: F34601-02-R-0217 and F34601-02-R-0220 http://vsearch2.eps.gov/servlet/SearchServlet

ARINC ( http://www.arinc.com/ ) will be bidding against Boeing. If ARINC wins, will it be on the basis of offering even lower wages than Boeing? Or will Boeing win, thereby maintaining it's FRANCHISE ON RIPPING-OFF ABILENE LOCAL HIRES ?! That is exactly the type of bidding that the SCA is supposed to prevent.

Here are a few of the other contract numbers we are currently working
on in addition to the Hydraulics Contract:
F33657-96-C-2075
F41608-99-D-0032
F04606-99-M-0265
F34601-02-D-0157

WHAT IS A SERVICE?

"22.1003-5 Some examples of contracts covered. The following examples, while not definitive or exclusive, illustrate some of the types of services that have been found to be covered by the Act (see 29 CFR 4.130 for additional examples): "

*MAINTENANCE AND REPAIR OF ALL TYPES OF EQUIPMENT, FOR EXAMPLE, AIRCRAFT, ENGINES, ELECTRICAL MOTORS, VEHICLES, AND ELECTRONIC, OFFICE AND RELATED BUSINESS AND CONSTRUCTION EQUIPMENT.

*ELECTRONIC EQUIPMENT MAINTENANCE and operation and engineering support services.
Packing, crating, and storage.
Custodial, janitorial, housekeeping, and guard services.
Food service and lodging.
Snow, trash, and garbage removal.
Laundry, dry-cleaning, linen-supply, and clothing alteration and repair services.
Certain specialized services requiring specific skills, such as drafting, illustrating, graphic arts, stenographic reporting, or mortuary services.
Motor pool operation, parking, taxicab, and ambulance services.
Aerial spraying and aerial reconnaissance for fire detection.
Operation, maintenance, or logistics support of a Federal facility.
Data collection, processing and analysis services.
Some support services at installations, including grounds maintenance and landscaping.

Subpart 22.10- Service Contract Act of 1965, as Amended

http://www.arnet.gov/far/current/
html/Subpart_22_10.html

Contacts:
COL MICHAEL MILLER System Program Director
ASC/YD, Bldg 556 2690 Loop Rd. W Wright Patterson AFB, OH 45433-7148
DSN 785-3281 or 937-255-3281 asc.yd.director@wpafb.af.mil

LTCOL FRED GEBHART System Support Manager
OC-ALC/LAB 3001 Staff Drive Tinker AFB, OK 73145-3006
DSN 336-2001 or 405-736-2001 gebhart.fred@b1b.tinker.af.mil

Boeing B1 and B2 Program Director: SCOTT WHITE Bldg 71, Long Beach, Ca
Mail Stop: C071-0210 Phone: (562) 496-8787 (Building 71, Second Floor)
Fax: (562) 496-9544 (Building 71, Second Floor) Email: scott.l.white@boeing.com

Boeing Field Repair Activity Manager:
ROBERT E. STEPHENSON
426 3rd Street,
Room 149 P.O. BOX 9577 Dyess AFB, TX 79607
Phone: 915/695-3740
Fax: 915/695-3745 Email: robert.e.stephenson@boeing.com

This letter was mailed to the below list, as well as others not listed.
Senate & House members from California, Oklahoma, South Dakota, Texas and Washington

(D - CA) Barbara Boxer (202) 224-3553 http://boxer.senate.gov
(D - SD) Thomas Daschle (202) 224-2321 http://daschle.senate.gov/webform.html
(R - TX) Phil Gramm (202) 224-2934 phil_gramm@gramm.senate.gov
(R - OK) Don Nickles (202) 224-5754 senator@nickles.senate.gov
(D - WA) Maria Cantwell (202) 224-3441 http://cantwell.senate.gov/index.html
(D - CA) Diane Feinstein (202) 224-3841 senator@feinstein.senate.gov
(D - SD) Tim Johnson(202) 224-5842 tim@johnson.senate.gov
(R - TX) Kay Bailey Hutchison (202) 224-5922 http://hutchison.senate.gov/
(R - OK) James Inhofe (202) 224-4721 http://inhofe.senate.gov/webform.html
(D - WA) Patty Murray (202) 224-2621 http://murray.senate.gov/

ABILENE CITY LEADERS
Grady Barr, Mayor Phone: (915) 676-6205
E-mail: barrg@abilenetx.com

Norm Archibald Place 1 Home: (915) 677-4614
E-mail: narchiba@hendrickhealth.org

Kris Southward Place 2 Phone: (915) 677-1231
E-mail: msscpas@aol.com

Kay Alexander Place 6 Home Phone: (915) 695-4441
Email: kay.alexander@heart.org

Jimmy McNeil Place 5 Home Phone: (915) 672-7484
Anthony Williams Place 3 Home: 915-674-2335
E-mail: williamsa@acu.edu

John Hill Place 4 Home Phone: (915) 677-4428
Email: john@teleform.com

Dwayne
Abilene, Texas