Carpenters union accuses hospital contractor of labor violations during Iowa City protest

IOWA CITY, Iowa — Union carpenters rallied outside the University of Iowa Stead Family Children’s Hospital on Friday, accusing a contractor working on a renovation project of undercutting local wage standards and violating labor laws.

The North Central States Regional Council of Carpenters organized the protest against Momchilovich Drywall and Paint, which is currently remodeling the hospital’s neonatal intensive care unit (NICU). Protesters said the company is misclassifying its workers as independent contractors instead of employees — allowing it to avoid paying unemployment taxes, workers’ compensation, and providing benefits like health insurance and pensions.

Royce Peterson, a business representative for Carpenters Local 1260 in Iowa City, said workers approached the union with concerns about their employment status.

“We’ve had workers from Momchilovich Drywall and Paint come to us and tell us they’re not getting paid properly,” Peterson said. “Nine times out of ten, they don’t even realize they’re being misclassified. And when that happens, there’s no workers’ comp, no unemployment insurance, no benefits. It’s just wages — and that’s not right.”

The union said the protest was timed to follow the United Brotherhood of Carpenters’ national “Tax Fraud Days of Action” campaign, which aims to highlight employer practices that deny workers fair compensation and cost governments millions in unpaid taxes.

“When taxpayer dollars are being spent at a hospital to build a job, the people who pay those taxes should be working on those jobs — and they should be treated right,” Peterson said.

Union members said that the protest was aimed at the contractor’s business practices and not the hospital itself. Peterson said many workers and union members have personal connections to the hospital and its patients.

“We stand strong with the children here fighting for their lives,” Peterson said. “We’re not here to disrupt care — we’re here to bring light to Momchilovich’s practices.”

Protesters carried signs and chanted in front of the hospital Friday morning. Some called for state and federal lawmakers to tighten enforcement of labor standards in publicly funded construction projects.

The union said it will continue to hold demonstrations until companies adhere to proper wage laws and employee protections. Momchilovich Drywall and Paint did not respond to a request for comment Friday.