Loadcraft Industries, Ltd (LCI) received approval of a resolution that will allow housing of temporary employees on company property during Tuesday’s Brownwood City Council meeting.
This resolution will help the company to offer housing to migrant workers which will fill needed positions of skilled welders and in turn will help the company to meet growing orders received from oil related industries.
According to LCI VP of Human Resources James Simmons, Loadcraft has tried to hire local welders by advertising in local and regional newspapers, through the help of temporary services such as Demand Staff and Personnel Services, contacting welding schools, and offering referral bonuses to Loadcraft employees for placement of new hires. Despite these efforts, LCI along with other manufacturing companies in the area are still suffering from a shortage of skilled laborers. Over 40 online help wanted ads have also been placed by LCI in hopes of securing employees; however, with the oil field boom in West Texas, it has been difficult to find workers and LCI has tapped contract labor companies such as ITT, Secured Services and J&L Specialty.
“These trade specific companies were able to supply LCI with over 100 welders but the bill rate per hour ranged from $35-42 per hour plus an additional fee for overtime,” explained Simmons.
“We have tried our first choice, we are Texas bred, Texas born, and we want to hire people here within our own state,” said Loadcraft Chief Operating Officer Reece McIver. “It’s because of the oil boom; it’s very competitive for local people, for people who already live here.”McIver stated that he has had several discussions with other manufacturing plants about swapping work instead of swapping workers, but they are all too busy. “They cannot fabricate parts, much less weld them because many of the factories here are at peak loads as well,” said McIver.
To win competitive contracts with companies such as Nabors Drilling, one of the world’s largest land based drilling companies, LCI must streamline production and pay a fair wage to the line workers. According to Simmons, the average pay for a full time welder at LCI is $17.31/hour plus benefits, time off and a 401K plan.
In order to find skilled welders, LCI is now pursuing the hiring of 100+ welders from Monclova, Mexico under what is called an H2B Visa and replace the more expensive currently employed contract labor workers. Loadcraft received authorization of temporary housing at the council meeting that would consist of two to four HUD code approved manufactured homes on-site. Each home will have a full kitchen, 4-bedrooms, 4 bathrooms, a living area, washer/dryers, and other necessary items, such as bunk beds to house from 8-16 temporary workers. Simmons stated that the company plans to have the workers split 12 hour shifts equally between days and nights so that only half of the workers would be at the homes at a given time.
McIver stated that the housing won’t be limited just to the workers involved in the H2B Visa program.
“We want to hire. These camps are open to people who can come maybe from the northeast or somewhere else that is on hard times,” explained McIver. “My father, who is the president of the company, received a call from somebody from Kentucky or Tennessee where they are having hard times. These camps are open to anyone that needs housing to work here.”
The H2B Visa is a nonimmigrant classification for non-agricultural temporary workers. The visa is issued for up to 3 years; however workers may only stay 10 months at a time and must return home for 2 months in between. They may return again to the jobsite for periods of 10 months at a time.
Simmons stated that not all 100 of these Mexican welders would work in Brownwood; some will be housed and employed in the Brady plant as well. Approximately 40 would work at the old Fenton factory on Hwy 377 South and 3-4 would work at the LCI plant (the old brick factory), located at 1001 Gifford Street in Brownwood. They would be housed in the mobile homes located on the Loadcraft property on Gifford Street. The remainder of the workers would be employed at the Brady plant.
Simmons stated that Loadcraft has participated in this H2B Visa program before in 2007, hiring approximately 26 workers at their Brady plant with great success. Workers through the program are drug tested and have background checks as a requirement of the program. No alcohol is allowed within the company housing and if an employee causes any trouble, they are sent back home to Mexico, said Simmons.
Through the Loadcraft program, the United States Department of Labor has mandated a wage of $18.54/hour (with 1.5 for overtime if required) for these temporary workers. Transportation from the border to the worksite must be also be provided.
McIver stated that LCI is trying to create a solution to their deadlines and delivery schedules, some of which come with penalties.
“It’s a temporary solution to a pretty long-term problem for us right now. Not forever but probably a year or two here in Brownwood. We have got to find a solution that weans us off of this program so that we have workers here that have families, kids in school, around here and things like that, that is what our business needs to be about,” said McIver. “But, in the meantime, when we are faced with a deadline and there’s sometimes financial penalties involved, we’re kind of up against a wall. In 2007 we did this successfully and so we’re quite confident it will be successful in the short run.”
McIver stated that LCI has hired 252 employees since January 1, 2014 between their three plants in Brownwood and Brady. Approximately 120 workers total are currently employed at the two Brownwood plants.
In other matters on Tuesday’s agenda:
*Council approved on first reading an ordinance changing the zoning classification for 2700 Brady Avenue, being Lots 1-3, Block 11, of the Hillcrest Addition, from CN Neighborhood Commercial District to C1 Local Business District.
*Council approved an ordinance on first reading approving the FY 2013/2014 budget amendments.
*Council approved an ordinance on second and third/final readings establishing one-way west-bound traffic along Greenleaf Street from Chandler Street to Adams Street.
*Council amended the ordinance passed on first reading which established no parking along the southeast (Academy of Freedom) side of Avenue D from Austin Avenue to Vincent Street and passed the ordinance on second and third/final readings.
*An ordinance was approved on second and third/final readings to rename the street of Vicksburg Court to Waterstone Drive.
*Approval was granted by the council of a professional services agreement with JRSA Consulting Electrical Engineers in the amount of $16,200 for the electrical design of the soccer complex.
*Authorization was granted by the council of the mayor’s signature on a declaration of abandonment of easement to abandon a 15-foot wide sewer easement across land on Custer Road owned by Brownwood industrial Foundation, Inc., Harris and Waldrop LLC and ST (TX) LP (doing business as Superior Teletec, Inc.).
*Council ratified the action of Brownwood Economic Development Corporation Board to approve an amendment to the Lyric’s Infrastructure Improvement Agreement to extend the funding obligation and increase the funding amount by $4900. This funding increase will pay for additional water line improvements which were not a part of the original request. Since the time of the original request, the Lyric has purchased the former Four Corners building and will need to install a sprinkler system to the additional space. This caused the water line infrastructure to increase in scope according to BEDC Executive Director Emily Crawford.
*Council approved the purchase of the 3200 sq. ft. warehouse located at 710 E. Lee on a lot that is 100’ X 120’ for $100,000, according to City Manager Bobby Rountree, who stated that the property is in very good condition. The warehouse includes office & warehouse space, spray-on insulation, etc. The city owns the entire block except for this property (the old Ice House and the Timmons Buildings) which is located at the east end of Congress near the Train Museum and the new fire station. Rountree explained that the property can be used for retail space or future city uses; however, there are no immediate uses planned for the building.
*City Manager Bobby Rountree reported on the Fisk Street project, as progressing very well. Austin to Lee Street has been milled and black base placed in the roadway. The contractor is currently milling the asphalt surface between Lee and Milton in front of Weakly Watsons and the black base should be in place by the end of the week and the street open for traffic.
*Rountree also reported on the construction of the new fire station. He stated that it is estimated to be finished in approximately 4 to 6 weeks. Delays are due to the completion of the millwork (cabinetry) and stained concrete not meeting specifications. The majority of the stained concrete will be covered with plank laminate wood flooring, said Rountree. He stated that it may take until the end of December or first part of January before final completion.
