Update: Following publication of the story below, an Amazon spokesperson told WHAV the new center has operational for more than four months and all construction contractors were paid in full by Amazon for the work they performed.
“As part of any construction project, we work with contractors who complete specialized work. It’s the responsibility of these contractors and the subcontractors that work for them to ensure their employees are paid in full. We’ve urged those involved in this matter to meet their obligation to these employees and will continue to do so.”
Amazon said it does not intend to work with the company in the future.
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A company that installed conveyor belts at the new Amazon distribution center in North Andover will pay nearly $400,000 in state fines for failing to pay employees on-time, failing to pay required overtime and other payroll-related offenses.
Attorney General Andrea Joy Campbell’s Fair Labor Division said it issued $396,000 in citations against B&B Conveyors. The citations include restitution for workers and civil penalties.
“Amazon is one of the highest-grossing companies in the world and has been given tax incentives to spur development and create jobs for workers in the Merrimack Valley,” said Campbell. “Sadly, the workers that help build their warehouse remain unpaid.”
B&B Conveyors is a Florida-based corporation sub-contracted by Honeywell Intelligrated Systems to install conveyor belts at the newly built Amazon warehouse in North Andover. Campbell’s office said B&B employees were brought to Massachusetts from Florida and other states for jobs. As part of the employment relocation, employees were promised an allowance known as a “per diem” to cover the cost of housing.
The matter was referred by Laborers’ Union Local 175, which does not represent the workers but covers North Andover and the surrounding area. Local 175 reported workers were going weeks without being paid. In some cases, workers alleged their “per diems” were missing from their pay and, in other cases, workers said they were being paid only their “per diems” and not wages for hours worked.
Laborers’ Local 175 Business Manager Mike Gagliardi said “Amazon brought in out-of-state contractors to build their facility so they can skirt the strong worker protection laws we have in Massachusetts and as a result, their workers ended up being the victims of wage theft. Amazon is ultimately responsible for all their contractors.”
The state found that as many as 76 B&B workers were routinely denied paychecks. To date, these employees have still not received all of their earned wages, including overtime wages despite the attorney general’s actions to help employees receive wages they are owed.
“I am grateful to Laborers’ Local 175 for their support of these workers, and we will collectively continue to push for these workers to get paid the wages they are entitled to,” Campbell said in a statement.
The lead contractor on the Amazon project is Whiting Turner, which sub-contracted North Carolina-based Honeywell Intelligrated, which in turn sub-contracted B&B Conveyors. The developer on the site is Hillwood, a multinational real estate development company based in Dallas, Texas.