Governor’s Independent Task Force Report Found NFI was Awarded $80 Million in Tax Breaks Despite “Potentially Fraudulent” Application for Benefits
Kara DenizEmail: [email protected] Phone: (202) 624-6911
(HAZLET, N.J.) – The Teamsters Union is calling on New Jersey’s Economic Development Authority (EDA) to suspend nearly $80 million in tax breaks given to NFI, L.P., through the Grow NJ tax incentive program. This request follows Monday’s release of the Governor’s Task Force report on EDA Tax Incentives, which affirms union members’ concerns over misrepresentations by the company in its application for tax benefits. In the report, the Task Force found that “. . . at the crux of the matter, NFI’s application contained potential misrepresentations and a potentially fraudulent CEO certification.”
On Thursday, June 13, the Teamsters Union sent Attorney General General Gurbir Grewal and New Jersey Economic Development Authority Ethics Liaison Officer Frederick Cole a letter, requesting that they investigate, prosecute and sanction NFI, L.P., in connection with its application for state benefits. The letter was signed by Fred Potter, Teamsters International Vice President At-Large and Director of the Teamsters Port Division. Copies of the letter were also sent to the Governor’s Task Force on EDA Tax Incentives.
“We raised serious concerns about NFI’s misrepresentations to the state of New Jersey and the company’s long track record of violating labor laws across the country. This Task Force report is further confirmation that NFI is an irresponsible company that lied to get a tax giveaway to the tune of nearly $80 million. This is hard-earned taxpayer money, and NFI is a law-breaker that is not deserving of this benefit,” said Teamsters International Vice President Fred Potter, who is also President of Teamsters Local 469 in Hazlet, N.J. “The EDA has already shown that when there are serious questions regarding the truthfulness of a company’s application, it’s appropriate to suspend the tax break. We are demanding that the EDA take immediate action to suspend NFI’s tax breaks while this matter is investigated by the Attorney General.”
More than 55,000 Teamsters live and pay taxes in New Jersey, working in critical industries, including transportation, logistics and public services. New Jersey Teamsters believe that their state’s limited resources should not be used to benefit irresponsible, law-breaking employers.
NFI, a national third-party logistics provider headquartered in New Jersey, lied in its application for taxpayer funds when it failed to disclose its prior conviction for three counts of wire fraud and failed to disclose pending legal proceedings alleging violations of wage and hour laws to the state’s Economic Development Authority, which administers the Grow NJ program.
The Teamsters’ letter states that NFI’s history of violating workers’ rights should bar it from receiving state financial assistance. The company has violated laws governing hours of labor and minimum wage standards, avoided paying legally required overtime compensation, and illegally misclassified hundreds of port workers in California by claiming they are independent contractors. By misclassifying its employees, the company avoided its responsibility to cover social security, workers’ compensation and other business expenses.
“NFI has a history of violating workers’ rights, from California to Pennsylvania and around the country. Companies that contract with NFI need to be aware of the operational risks that come with doing business with a law-breaking company that is under public scrutiny for its fraudulent behavior,” Potter said.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and on Facebook at www.facebook.com/teamsters.
For more information on the port truck drivers’ and warehouse workers’ campaign, visit www.JusticeForPortDrivers.org, like us at www.facebook.com/Justice4PortDrivers, and follow us on Twitter @PortDriverUnion.