Hynes is requesting that the Illinois Department of Labor re-examine the legal status of the project in light of new circumstances related to state funding of portions of the initiative.

Last fall, Hynes issued an Executive Order requiring suspension of payments on state grant agreements for the construction of public works until satisfactory assurances are provided that the requisites of the Prevailing Wage Act are met. In June 2001, the Illinois Department of Labor issued a narrow opinion that the Act did not apply to the $40 million Adkins Energy project even though it had received some funds under the Illinois First program. But earlier this month, the Illinois Department of Commerce and Community Affairs requested an additional $2 million payment to Adkins from the Build Illinois Bond Fund.

"We believe the grant funding source changes the status of the initiative to a ‘public works' project, as defined by the Prevailing Wage Act," Hynes said. "Consequently, we are suspending payment of this grant until the contract has been further reviewed."

"The Illinois Prevailing Wage Act clearly states that contractors receiving state money for capital projects must pay prevailing wages," said Hynes. "While I fully support the ethanol industry and the construction of this facility as good for farmers and good for Illinois, I also believe in fair and equitable wages. In no way are the two objectives mutually exclusive."

Jeff Polsean, Business Administrator of the Northwestern Illinois Building & Construction Trades Council supported Hynes' decision to suspend the grant payment. "It has long been our contention that this entire project should have fallen under the provisions of the Prevailing Wage Act. That would have ensured not only fair wages but allowed Illinois workers, as opposed to "out of state" workers, access to these jobs," Polsean said.

Hynes directed his legal counsel to officially request that the Illinois Department of Labor re-examines the applicability of the Prevailing Wage Act to the project, in light of the new Build Illinois grant.

Hynes issued his executive order on suspension of payments last year after members of labor organizations across the state expressed widespread dissatisfaction with the enforcement of prevailing wage laws. Allegations were made that the laws protecting Illinois workers have been evaded or ignored by recipients of public funds.

"The working men and women of Illinois are among the most productive workers in the world said Hynes. We must continue to make every effort to ensure that they receive the levels of compensation and job opportunities that they are entitled to under Illinois law."