Minority contractors, Milwaukee will miss settlement deadline (UPDATE)

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Minority contractors and the city of Milwaukee won’t meet their Friday deadline to settle a lawsuit over hiring practices. But they aren’t giving up.

The Hispanic Chamber of Commerce of Wisconsin sued the city in in May, and the American Indian Chamber of Commerce of Wisconsin signed on as a plaintiff soon after.

U.S. District Judge Lynn Adelman is hearing the case and granted the stay for settlement talks in January.

Margaret Daun, assistant city attorney for Milwaukee, said the parties intend to ask for more time to continue settlement talks.

Brian Pierson, an attorney with Milwaukee-based Godfrey & Kahn SC who represents the American Indian chamber, confirmed talks haven’t ended but wouldn’t say how much extra time is needed.

Neither would comment on what stands in the way of a settlement.

The chambers claim changes to the city’s minority hiring practices last year harmed their members’ businesses.

The city sets aside 25 percent of its construction contract dollars for minority businesses, which used to compete in the same pool regardless of race or gender.

But ordinance 370, which took effect Jan. 1, 2012, set aside 5.57 percent of those minority contract dollars for companies owned by blacks, 0.07 percent for companies owned by Asians and 7.31 percent for companies owned by women. Any minority-owned business can compete for the remaining 12.05 percent of construction contract dollars.

The change was based on a disparity study commissioned by the city, which found that Hispanic- and American Indian-owned construction companies didn’t need as much of a boost as other minority businesses.

Hispanic and American Indian contractors, however, claim they’re scrambling to make up business they lost when the city excluded them from competition, according to court documents, and have asked a federal judge to declare ordinance 370 invalid. The chambers claim the ordinance violates both the state and U.S. constitutions.

— Beth Kevit