Company debarred from federal contracts for three years
OAKLAND, Calif. — An investigation by the U.S. Department of Labor’s Wage and Hour Division resulted in the restoration of $1,979,779 in 401(k) pension benefits to 515 drivers working on U.S. Postal Service contracts for Lange Trucking Inc. because of violations of the McNamara-O’Hara Service Contract Act. The company, along with its President, William A. Langenhuizen; Vice President, William H. Langenhuizen; Secretary Treasurer, Antoinette Langenhuizen; Vice President, Robert Langehuizen; and Vice President of Finance, Lisa Kulak, have been debarred from eligibility for further service contracts with any U.S. government agency for three years for their failure to pay drivers required fringe benefits.“Contractors that do business with the federal government have an obligation to abide by the law and pay their employees the required contractual rates and benefits,” said U.S. Secretary of Labor Thomas E. Perez. “Restoring the pension benefits of these workers and debarring this employer illustrate the department’s commitment to vigorous enforcement of government contracting laws and helps level the playing field for law-abiding employers.”
Wage and Hour investigators found that Lange Trucking failed to fully fund the drivers’ 401(k) plan, resulting in a violation of the SCA. Wage and Hour has investigated the company several times in the past. Lange Trucking paid $500,000 of the unpaid benefits while Hoovestol Inc., which is based in Eagan, Minn., acquired the company subsequent to the violations and voluntarily agreed to fund the remaining $1.48 million in benefits. Hoovestol, which cooperated fully with the Wage and Hour Division during its investigation, has also: corrected record-keeping procedures, overhauled the plan to ensure timely payments into the plan going forward, posted wage determinations at the work site and made information about the contracts accessible to employees.
The SCA 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. The SCA requires that contractors and subcontractors performing services on covered federal contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality.
The investigation was conducted by the division’s district office in San Francisco. The consent findings were filed by the department’s Regional Office of the Solicitor in San Francisco. For more information about the SCA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its San Francisco office at 415-625-7720. Information is also available at www.dol.gov/whd/.
Hoovestol taking over and switching driver shifts is not a good thing! Drivers will now be running hours they are not use to and routes they don’t know. Hoovestol needs to leave their driver routes alone so we can continue good service to the post office.
Wonder if the employees got interest on that money that was used by Lange.
Lange Trucking had the contract routes between LA,San Fran and Seattle for 35 years and the APWU MVS is only interested in keeping the local runs they have had since the beginning as management has tried unsuccessfully several times over the last years to shut down MVS and loses every time in arbitration.
ROFLMAO !! Only an idiot would even hint PO employees could / would handle the work even close to contracting.
So Glad that Hoovestol took over Lange’s routes as their vans were rickety,and had holes on the floor and were unsafe and should have been taken off the road.
I wonder how much these HCR trucking companies make from us. Their drivers get all the benefits like us and also get a U.S. Postal Service gas card.. Hmmm.. I’m certain our career employees can do it cheaper. The APWU and the OIG should study it.. Privatizing doesn’t always mean cheaper and more efficient way of doing business.. But what experience really does Donuthole have. He spent his entire adult working life with us.. Now we have non-career MHA’S as 204b’s.. This organization is sinking FAST!!! Lazy fucking kids now bossing us that don’t have a clue about anything and have access to everybody’s personal information. I really wish I could afford to retire.. Ugh!!! Hopefully 2 more years
I wonder who in postal mgmt. has a relative in this company, and/or received kickbacks for the contract ?