Wackenhut Workers at Tennessee's Holston Army Ammunition Plant Awarded $2.5 Million...

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Fri Dec 7, 2007 12:21pm EST

Wackenhut Workers at Tennessee's Holston Army Ammunition Plant Awarded $2.5
Million in Back Pay: Federal Government Foots the Bill

WASHINGTON, Dec. 7 /PRNewswire-USNewswire/ -- Checks, ranging from $200 to
$50,000, were distributed to 280 employees at the Holston Army Ammunition
Plant this week. Two years after plant workers filed a formal complaint, the
Department of Labor awarded the Wackenhut Services Inc. fire and security
workers $2.5 million in back pay. According to DOL findings, from 1999 to
April 2007 Wackenhut violated the McNamara-O'Hara Service Contract Act, which
requires federal contractors to provide pay and benefits commensurable to
those found prevailing in the locality. 

While the final settlement was less than the workers claim, this is the
largest SCA settlement for Wackenhut workers to date -- about ten times the
previous high. This past June the Army stated, "The money is owed by
Wackenhut. Wackenhut should have known all along (the SCA wages applied) based
on the original (contract) solicitation." But, Wackenhut claims that federal
acquisition procurement regulations allow it to bill the Army for this back
pay.  

"It is shocking that a company with such lucrative government contracts like
Wackenhut lacks the necessary organization, experience, accounting and
operational controls to pay their employees what is due to them according to
federal contracting law," said Valarie Long, SEIU Property Services Division
Director. "Now the US Army has to make up for almost a decade of shortchanging
the workers."

Among those who promoted the cause of the shortchanged workers, demanding DOL
action, were Senator Edward Kennedy (D-MA) and Congressman George Miller
(D-CA). Also, Senator Ron Wyden (D-OR) and Senator Byron Dorgan (D-ND) made
public their concerns about security issues at Holston.

Wackenhut is owned by the London-based security conglomerate G4S. G4S, the
largest company trading on the London stock exchange, is under fire from
international human rights groups and trade unions for the company's practices
in southern Africa and elsewhere. This past July, Wackenhut was the subject of
a congressional hearing conducted by Edolphus Towns (D-NY), chair of the
Subcommittee on Government Management, Organization, and Procurement. 

More about Wackenhut Services Inc. and the campaign to improve conditions for
security workers can be found on the website http://www.eyeonwackenhut.org/.

SEIU, the fastest-growing union in North America, with 1.9 million members in
the United States, Canada, and Puerto Rico, is also the largest union of
security officers in the nation. 


SOURCE  Service Employees International Union

Elissa Strauss of SEIU, elissa.strauss@gmail.com, +1-917-463-3075
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