Locals likely to be hired for Costco construction

The retailer responds to union accusations that it planned to bring in mainland workers

Responding to criticism from a local union leader, a senior executive of Costco Wholesale Corp. denied that the company plans to import out-of-state ironworkers to help build the company's proposed store in Kapolei.

Ali Moayeri, Costco's senior vice president of construction, said the Kapolei project is in its infancy and Costco is far from making definite decisions about construction workers.

"We are not even close to having working drawings," he said. "We haven't even put pencil to paper."

Costco used local ironworkers when building its Hawaii Kai store, Moayeri said, and local ironworkers will likely be hired for the Kapolei project.

Moayeri's comments follow allegations made earlier this week by Joseph O'Donnell, business manager of the Ironworkers Union Local 65, who charged that Costco planned to bring in a mainland contractor, with mainland workers, to construct the metal frame that will support the warehouse store.

O'Donnell said Costco had already selected a mainland contractor to construct the building frame, and that no Hawaii contractor had been given a chance to bid on the work.

O'Donnell voiced his complaints at the Wednesday evening meeting of the Makakilo/Kapolei/Honokai Hale Neighborhood Board, where Costco executives presented an update on the project. In response, the board declined to pledge its support for Costco until it addressed the concerns of the union and Kapolei residents who have raised concerns about a possible increase in traffic.

Costco officials did not return phone calls from the Star-Bulletin until yesterday, when Moayeri rebutted O'Donnell's assertions, saying that Costco has yet to make any definite plans.

Moayeri acknowledged that Costco typically uses a mainland firm, Span Construction & Engineering, to construct prefabricated buildings made by Butler Manufacturing Co. Span is an approved Butler contractor, which means it can provide a warranty for its work, Moayeri said.

Costco almost certainly will contract the job to Span, Moayeri said, but Span will act simply as a prime contractor and likely will hire a local subcontractor, and local workers, to do the bulk of the work.

Moayeri acknowledged that Span has in some instances used out-of-town workers on projects it has done for Costco over the 15 years that the two companies have had a relationship.

"Of course they have," he said. "If we can't get a decent number (of ironworkers) locally, then they get their own crew involved." But it's far from certain that that will happen in Kapolei, he said.

Moayeri expressed disappointment that the union had not contacted Costco to discuss the situation before airing concerns with the neighborhood board.

"We'd be more than happy to sit down and talk to them," Moayeri said. "We've done that many, many times" with other projects.

O'Donnell said he hoped to speak to Moayeri and Span executives early next week.