The Jobs Fly Past Minority Builders : Riot-repair contracts must be dealt out fairly

The rush to rebuild looted and burned-out buildings in Central and South Los Angeles is leaving many minority contractors and riot-zone residents on the sidelines while non-minorities get most of the lucrative contracts and jobs. Unless this trend is reversed, racial tensions could be aggravated here.

Lack of access to property owners is a primary cause of the exclusion. Many building owners in South Los Angeles are absentee landlords who manage their properties from outside the area; often their tenants--for example, the store operators--are African-American, Latino or Korean. When the owners decide to rebuild, they tend to do what is easiest: They rely on an informal network that often excludes minorities, rehiring contractors who have done work for them in the past.

But as Los Angeles rebuilds economically and psychologically, property owners must do more. They should consult a directory of minority contractors compiled by Los Angeles’ Community Redevelopment Agency or the state’s Century Freeway Affirmative Action Project, and funnel some of their work to minority professionals and laborers.

Lack of access to major insurers is another barrier to job-site integration. Insurers fund the reconstruction. Insurance firms are expected to pay out $775 million to cover riot damage to thousands of buildings. Any companies that make referrals should include experienced minority contractors on their lists.

State Insurance Commissioner John Garamendi will meet Friday with representatives of 10 leading insurance companies, contractors associations, building industry groups, surety associations and claims adjusters. Garamendi does not have the power to order anyone to use a minority contractor, but he can use his office as a bully pulpit to facilitate a dialogue and encourage integration as the city rebuilds.

Mayor Tom Bradley is also using his moral suasion to encourage the use of minority contractors and residents of the riot zones on jobs. The city’s Board of Public Works awarded a multimillion-dollar contract to five contracting companies--four owned by minorities--to demolish about 80 buildings. But the majority of jobs are in the private sector. To that end, Peter V. Ueberroth, the mayor’s choice to lead the rebuilding effort, should use his clout to encourage the employment of minority contractors.

When minority contractors get jobs, they tend to hire minority members as subcontractors and laborers. Their successes can build an economic base that translates into more jobs, less poverty, a greater sense of ownership--and a better future for all Los Angeles.