Harvard was again the target of a "sweatshop" rally Thursday, as nearly 200 carpenters protested a Harvard decision to invest in a luxury apartment complex plagued by charges of unfair labor practices.

Workers decried the decision of the Harvard Management Corporation (HMC) to invest in the $30 million apartment complex in Waltham, known as the Villages at Bear Hill.

Harvard came under fire last month when more than 100 students gathered at University Hall to protest "inhumane" conditions in factories manufacturing Harvard insignia clothing.

Thursday's protest took place outside the Federal Reserve Bank building in Boston, where HMC is headquartered. HMC manages Harvard's endowment and investments, including $664 million in real estate.

A flier circulated by the carpenters alleged that subcontractors for Tocci Corporation, the general contractor for construction of the Bear Hill project, withheld payments from workers until ordered by the Department of Labor to pay them. It also alleged exploitation of undocumented aliens, shoddy work and perjury on the part of Tocci employees.

"It's a disgrace," said Mark Erlich, senior assistant administrator of the New England Regional Council of Carpenters. "These are luxury apartments being rented to wealthy folks."

Erlich said Harvard was "subsidizing sweatshop conditions" through its investment.

Harvard spokesperson Alex Huppe said Harvard was concerned about allegations of improper labor practices.

"We take this very seriously," Huppe said. "We investigate these charges."

But Huppe said the University's hands were tied by its legal arrangement with the contractor. Huppe said that as a limited partner, Harvard had no legal authority over management decisions.

"As a limited partner, all you can do is use the power of suasion," he said. He added that he felt Harvard was being targeted by the carpenters "clear- ly for other reasons."

But Erlich said Harvard's involvement in thematter was "outrageous."

"In America, whoever pays the money can callthe tune," he said.

Erlich said the University has allowed laborpractices to influence its investment decisions inthe past, and pointed to Harvard's divestment inSouth Africa as an example.

"Why are you willing to have guidelines for acountry 10,000 miles away but not for 10 milesaway?" he said.

According to Erlich, the site employed some "18to 20 Hispanic carpenters from Tennessee andKentucky. They drove up here with their families,but [Tocci] didn't pay them."

He said workers were sleeping in their vans andpawning their possessions in order to eat.

Last year, the Department of Labor intercededand ordered $15,000 in back wages paid. Inaddition, the U.S. Occupational Safety and HealthAdministration fined a subcontractor $106,000 forsafety violations.

Huppe said the University had investigated thecharges and believed the disputes had been clearedup. He said this understanding was supported by aletter from the Labor Department.

"Harvard has acted as a good citizen, as acompassionate citizen," Huppe said. But he added,"We are an investor and the success of the projectmatters."

At the protest, the carpenters presented HMCwith its "worst real estate investment of theyear" award, and offered a list of guidelines forfuture investments