Articles

Judge Takes Control of Prison Jobs Program

By Stefanie Knapp, Daily Journal Staff Writer, February 18, 2004

Responding to complaints that state inmates in prison jobs program were not paid fairly or even at all, a San Diego Superior Court judge Tuesday assumed control over the program.

Judge William C. Pate signed a stipulated injunction Tuesday that requires James L'Etoile, the director of the Department of Corrections joint venture program, to report to Pate on the status of compliance for two years.

The injunction arises out of a taxpayer complaint filed against the state by Cristina Vasquez, international vice present of the Union of Needletrades, Industrial & Textile Employees.

The inmates were hired under a program established by a state initiative in 1990 that allowed private businesses to employ prisoners, so long as they pay prevailing wages. In addition, 80 percent of the wages would be deducted to pay for restitution and prisoner room and board.

Vasquez alleged that Noreen Blonien, assistant director of the program from its beginning in 1991 to January 2003, allowed garment maker CMT Blues to underpay prison workers. Blonien's job was to oversee the program.

Vasquez contended that the situation created unfair competition that favored CMT Blues, housed at the Richard J. Donovan Correctional Facility in San Diego, over companies that were paying full wages.

"She was upset because the whole point of prevailing wages is to give no special advantages to nonunion inmates," Robert Berke, the Santa Monica attorney who represented Vasquez, said.

Thomas Clifton of the Walnut Creek firm Archer Norris, who represented the state, said Tuesday that his client had procedures in place or under development for many months so the program would comply with the laws.

"We were working on this, anyway, so it's just a culmination of the efforts that were already under way," Clifton said.

Clifton said the injunction made no finding of fact in regard to the case on trial.

Berke said Tuesday that, in 2002, prisoner employees were awarded $851,000 after they filed a lawsuit against CMT Blues, alleged that they were paid nothing for 60 days and then only minimum wage.

In January 2003, the 4th District Court of Appeal in San Diego sent Vasquez's case back to Pate to be tried, finding that the Department of Corrections is responsible for the businesses' compliance with the labor laws. After the second day of trial, Jan. 21 this year, the parties agreed to an injunction, Berke said.

Berke charged that two other businesses, Pub Brewing and Western Manufacturing, also violated labor laws. Pub Brewing, also at the Donovan Correctional Facility, did not pay any of its workers for six months.

Western Manufacturing, located at Calipatria State Prison, northeast of San Diego, classified its workers as assembly fabricators and paid minimum wage instead of the prevailing wage that welders, drafters, forklift operators and other skilled workers should have received, Berke said.

He alleged that the alleged violations by the three businesses cost taxpayers between $3.5 million and $4 million.

The injunction requires that L'Etoile investigate those businesses and recover back pay owed to the workers if appropriate.

"We're happy that finally there's a wind of change in this program, which had progressive ideas but have been administered in a completely poor manner," Berke said.

In addition to L'Etoile reporting to Pate, the businesses also will have to provide detailed job descriptions, including skills and machines used, under terms of the injunction. The businesses will have to post a wage bond for every inmate that they hire, and the employers have to tell the inmates that they can't be retaliating against.

The inmates also must be made aware of their rights under the state Labor Code.

Seven businesses participate in the program, with 145 inmates employed, according to Susan Jacobson, managing consultant for the program.

Berke estimated that 1,600 inmates have worked for companies in the program. Interested businesses can apply to set up shop in any of the 32 state facilities, according to the program's Web site.

CMT Blues no longer participates in the program. An arbitration hearing is scheduled in June with the Department of Corrections regarding who should pay the award in the class action, Berke said.