General Dynamics IT Call Center Workers Underpaid, Union Says

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By Jon Steingart

General Dynamics Information Technology underpays workers it employs at Medicare and Medicaid call centers, the Communications Workers of America says in a complaint filed with the Labor Department.

GDIT employs about 10,000 workers at 11 call centers under a contract with the Centers for Medicare and Medicaid Services, the union says. The CWA filed the complaint under the Service Contract Act, which requires contractors to pay prevailing wages that vary by position classification.

“CWA estimates that thousands of low-wage workers employed by General Dynamics Information Technology stand to recover over $100 million in back wages,” the union wrote in a letter accompanying the complaint, which was reviewed by Bloomberg Law Feb. 1. The workers should be classified at higher pay rates than the entry level at which many of them are categorized, according to the complaint, which the union said it filed Jan. 25 with the Labor Department’s Wage and Hour Division.

The Labor Department enforces prevailing wage rates on federal contracts.

The complaint focuses on a call center in Hattiesburg, Miss., where as many as 2,000 workers would see a raise if they were classified correctly, the union says. It suggests workers at other call centers on the contract may be misclassified.

“General Dynamics Information Technology takes seriously our obligations under the Fair Labor Standards Act and Service Contract Act,” spokesman Mark Meudt said in a statement emailed to Bloomberg Law Feb. 1. “Similar to other federal contractors, the company is subject to routine compliance reviews by the Department of Labor. As with any notice received, we will engage with the relevant parties, including our employees and the Department of Labor.”

The CWA doesn’t represent GDIT call center employees and isn’t empowered to act on their behalf, Meudt said. The company values its people and the work they perform, he added.

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