Pittsburgh sets minority employment goal for city construction projects (PA)

Posted by National Alliance for Fair Contracting on

AARON AUPPERLEE
Tuesday, May 29, 2018, 2:06 p.m.

Pittsburgh will require contractors working on the city’s biggest projects to ensure at least 12 percent of on-site employees are minorities.

An executive order Mayor Bill Peduto signed Tuesday set the 12-percent goal.
Peduto said the city expects to spend $1.1 billion on construction projects in the next 10 years.

“We realize that we are at the cusp of a boom that is going to happen in the city,” Peduto said at a news conference. “We want to open up that opportunity to everyone because here’s the secret: We’re going to need a heck of a lot more workers.”

The executive order creates what’s known as a project labor agreement for city construction projects totaling more than $500,000.

Contractors must guarantee against strikes, lockouts or other job disruptions. The city’s minority- and women-owned business requirements still apply in addition to the new 12 percent on-site minority employment stipulation. The executive order allows the city to select the lowest responsible bidder on a project, regardless of whether it is union or non-union.

Project labor agreements used to be negotiated on a project-by-project basis, said Grant Gittlen, community and public affairs officer for the mayor. The goals for on-site minority employment varied for each project. Gittlen said the goals have been low in the past.

Peduto’s office worked on the agreement with labor leaders for a year and a half.

Peduto said city Councilmen Corey O’Connor of Squirrel Hill and Dan Lavelle of the Hill District will work to push legislation that will make his executive order part of the city code.

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Using ‘subs of subs,’ contractors able to evade liability in construction worker deaths (TN)

Posted by National Alliance for Fair Contracting on

Mike Reicher, USA TODAY NETWORK – Tennessee
Published 10:00 p.m. CT May 5, 2018

After his brother died falling off the roof of a North Nashville home under construction, Hermenegildo Dominguez heard nothing from the roofing subcontractor. He heard nothing from the general contractor. Nothing from an insurance company.

Typically, workers’ compensation would have covered $10,000 of funeral expenses, but Alfonso Dominguez, 60, was essentially off the books. It would cost $15,000 to fly his body to his hometown of Vera Cruz, Mexico, and bury him.

Only after the Spanish-language news site Nashville Noticias posted about the June 2017 accident on Facebook did Hermenegildo Dominguez get a response. But it wasn’t from the construction companies. Other immigrants throughout Nashville sent him donations.

Today, Dominguez, who cleans construction sites in Nashville, is less concerned about compensation: “What I really want is to get justice,” he said.

Alfonso Dominguez’s death shows how some construction companies can evade liability for accidents, especially in a booming city like Nashville. A labor shortage has led to a fracturing of work sites, where subcontractors can’t complete projects with their normal crews, so they hire small “subs of subs” below them. Workers at the bottom are sent onto scaffolding and roofs without safety equipment or training, or the assurance their families will be taken care of if they fall.

More construction workers died in the Nashville metro area in 2016 and 2017 compared with any two-year stretch in the previous three decades. Most of the 16 deaths were from falls without any harnesses or other protection.

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Register Now – 20th Annual NAFC Conference, August 19-22, 2018 – San Diego, CA

Posted by National Alliance for Fair Contracting on

May 2018

It’s our 2oth Anniversary! Save the date and join NAFC at our next Annual Conference in sunny San Diego, CA. The Conference will be held at the Hilton San Diego Bayfront Hotel, in downtown San Diego. This year’s Conference will be jointly sponsored by the Center for Contract Compliance and will have a national as well as a California specific focus. The NAFC National Conference is attended by participants from across the nation, including representatives from labor organizations, responsible contractors, fair contracting compliance organizations as well as researchers, academics, attorneys and officials from federal, state and local governments.

Stay tuned for further information.

(Visit NAFC’s Conference Page)

(Download Joint Conference Registration Form)

California Supreme Court Adopts Broad New Misclassification Test

Posted by National Alliance for Fair Contracting on

By Ashton Riley © Fisher Phillips
May 2, 2018

In a groundbreaking decision, the California Supreme Court adopted a new legal standard that will make it much more difficult for businesses to classify workers as independent contractors, drastically changing the legal landscape across the state.

The decision will directly affect the trucking and transportation industry because the workers involved in the case were delivery drivers, but it also has the potential to affect nearly every other industry-including the emerging gig economy.

Specifically, the court adopted a new standard for determining whether a company “employs” or is the “employer” for purposes of the California Wage Orders.

Under the new “ABC” test, a worker is considered an employee under the wage orders unless the hiring entity establishes all three of these prongs:

  • The worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact.
  • The worker performs work that is outside the usual course of the hiring entity’s business.
  • The worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity.

This decision not only expands the definition of “employee” under the California Wage Orders, it also imposes an affirmative burden on companies to prove that independent contractors are being properly classified.

As a result of today’s decision, all California businesses with independent contractors will need to conduct a thorough evaluation of such workers to determine whether they are properly classified.

The case is Dynamex Operations West, Inc. v. Superior Court, Cal., No. S222732 (April 30, 2018).

(Read More)

ILR Impact Brief – New York State Prevailing Wage Law: Defining Public Work

Posted by National Alliance for Fair Contracting on

Publication Date 3-8-2018
Fred B. Kotler, Cornell University ILR School

Abstract

New York’s prevailing wage standards require that contractors on state funded construction projects pay their workers no less than wage and benefit levels “prevailing” within the local construction market.

Much has changed since the prevailing wage was enacted by statute in 1897 and written into New York’s Constitution in 1938. “Public works” projects then typically meant construction of public facilities, funded by public money, for public use. Today public resources are leveraged creatively to attract private capital for economic development.

The commingling of the various forms of public support with private funding has blurred the definition or boundaries of “public work.”

Sixteen other states have statutes that more broadly apply the standards to include loans, tax incentives, and other forms of public support to private projects. New York is among ten other states that enable private developers to accept public money without paying prevailing wages and benefits.

This report examines the taxpayer interest in redefining “public work” to include both traditionally funded public works projects and private, economic development projects funded at least in part by public assets.

(Read More)

(Full PDF of Study)

‘We value work:’ Richmond employers recognized for backing living wage

Posted by National Alliance for Fair Contracting on

POSTED 7:49 PM, MARCH 22, 2018, BY CAPITAL NEWS SERVICE

RICHMOND, Va. – Richmond community and business leaders gathered Thursday at the Washington Redskins’ training center to celebrate and discuss efforts to ensure a living wage for workers.

In a room overlooking snow-covered training fields, the introduction of the Richmond Living Wage Certification Program was mostly an hour of food and celebration for those present. Ten businesses and organizations – including Altria, the University of Richmond and the Better Housing Coalition – were recognized for going beyond the $7.25 minimum required by state and federal governments.

“Yes, jobs are important,” Richmond Mayor Levar Stoney told the gathering. “But jobs that are worked full-time and still leave those workers below the poverty line may help a corporate bottom line, but it will not help someone up from the bottom.”

The living wage program, a joint project of Richmond’s Office of Community Wealth Building and the Virginia Interfaith Center for Public Policy, is the first of its kind in the state. Reggie Gordon, director of the wealth building office, stressed the importance of ensuring that workers are compensated enough to lead a full life with economic stability.
“It’s not an overstatement to say that the people employed by the companies recognized today have a better chance to succeed in this community,” Gordon said.

The Richmond initiative uses calculations from institutions including MIT and the Economic Policy Institute to create a three-tier structure. The highest tier includes businesses that pay a minimum of at least $16 an hour (or $14.50 with health-care coverage). Six of the honorees met that “Gold Star” standard. Employers who have pledged to pay a living wage but aren’t able to yet were also acknowledged.

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US Department of Labor Wage and Hour Division Prevailing Wage Seminars

Posted by National Alliance for Fair Contracting on

DESCRIPTION

The Wage and Hour Division (WHD) Prevailing Wage Seminars are three-day compliance trainings designed for regional stakeholders (private contractors, state agencies, unions, federal agencies and workers).

The first two days of the seminar will consist of either courses on the Davis-Bacon Act or the Service Contract Act. The third day will feature courses concerning the Executive Orders and subject matter related to both the Davis-Bacon Act and the Service Contract Act as well as presentations from other agencies such as OSHA, Office of Federal Contract Compliance Programs (OFCCP), Housing and Urban Development (HUD), National Labor Relations Board (NLRB)

We have selected the following locations for our 2018 seminars:

Venues will be announced at a later date. If you would like to receive email updates about our seminars, please sign up for our mailing list here. (In the category “Wage and Hour” select “WHD – Prevailing Wage Seminar Announcements”)

For any questions please contact WHD-PWS@dol.gov 

(Visit DOL’s WHD Website)

The Effect of Prevailing Wage Repeals on Construction Income and Benefits

Posted by National Alliance for Fair Contracting on

Feb. 2018

Journal of Public Works Management and Policy

Ari Fenn, Zhi Li, Gabriel Pleites, Chimedlkham Zorigtbaatar and Peter Philips – University of Utah

While considerable research has examined the effects of prevailing wage law repeals on construction wages, little has been done on the repeals effect on benefits. Based on state-level data from the quinquennial Economic Census for construction from 1972 to 2012, we find that depending on sample and model specification, statewide annual average construction blue-collar income fell by 1.9% to 4.2%. Statewide annual average legally required benefits (social security, workers injury-compensation insurance, and unemployment insurance contributions) for blue- and white-collar construction employees combined fell from 3.8% to 10.1%. Statewide annual average voluntary benefits (primarily health insurance, pension contributions, and apprenticeship training) for blue- and white-collar construction employees combined fell from 11.2% to 16.0%. Because prevailing wage laws govern only blue-collar construction remuneration, blue-collar benefits probably fell more than blue- and white-collar benefits taken together.

(Download Full PDF Here)

My Turn: Armand E. Sabitoni: Morgan attacks construction workers

Posted by National Alliance for Fair Contracting on

By Armand E. Sabitoni
Posted Apr 10, 2018 at 5:49 PM

There is no greater investment than ensuring our children have the foundation built for future success. As Rhode Island’s school buildings get older and unhealthier each year, the time is now to invest in new school infrastructure. Building new schools and making necessary technology updates are vital to Rhode Island’s economic recovery and also stimulate job growth.

Construction workers are the backbone of a strong economy and play a critical role in school infrastructure investment. Skilled men and women go to work each day, in sometimes difficult conditions to put food on the table for their families. Tirelessly, they pour blood and sweat safely and efficiently building our roads, bridges, schools, water and energy systems.

Unfortunately, on her March 30 Commentary piece (“Fix more R.I. schools for less money”), Rhode Island House Minority Leader, Patricia Morgan, sadly insinuates that all construction workers are overpaid and should take a pay cut to build our schools.

Morgan proposes that the state exempt school construction from the state’s prevailing wage law, falsely thinking this will save money. Some elected officials have tried this charade in other states, attacking the livelihood of blue-collar workers they claim to represent.

Prevailing wage laws are bipartisan and have Republican roots back to 1931, when Sen. James Davis, R-Pa., and Rep. Robert L. Bacon, R-N.Y., helped to pass the Davis-Bacon Act federally and most states passed local prevailing wage laws quickly thereafter. Nationally, Republicans and Democrats, consistently support prevailing wage laws as necessary to protect family-supporting, blue-collar construction jobs.

Prevailing wage laws guarantee a minimum floor for wages, leveling the playing field for construction contractors bidding public work. Data based on what skilled workers earn in a local area are used to set the prevailing wage rate.

All construction workers, union and non-union, are paid a set wage and benefit rate determined by market surveys for work performed in their classification. These laws protect the local skilled workforce in Rhode Island from out-of-state contractors who might otherwise attempt to underbid their competition with low-wage out-of-state workers. Strong prevailing wage laws generate millions in local economic spending activity.

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Sherry Buchanan: Leave prevailing wage alone

Posted by National Alliance for Fair Contracting on

OpEd Sherry Buchanon
4/9/18

Once again, Republicans are trying to repeal Missouri’s prevailing wage. This law protects standards for decent wages, guarantees a fair bidding process, and demands safety and quality for public projects. The Kansas City Star recently called repeal efforts “the political lunacy of advocating for middle-class wage cuts during an era of stagnation and rising inequality.”

Prevailing wage protections started in 1931 when the Davis-Bacon Act was signed by Republican President Herbert Hoover. The act came about after two congressmen teamed up to protect their states from contractors who were bringing in low-paid labor from Alabama to do work on taxpayer-funded projects. Not only did the congressmen object to displacing local labor, they also recognized that these migrant workers would not be long-term taxpayers, consumers and constituents. They recognized that paying the lowest wages was not good overall economics.

Missouri’s prevailing wage law requires workers, union or nonunion, to be paid set wages on taxpayer-funded projects such as schools, jails and bridges. Wage rates are determined county-by-county from voluntary annual wage reports submitted by contractors who work in those counties. Those who pay union rates and those who do not are included in the average. So essentially, the “prevailing wage” in each county is the local going rate for various types of labor.

Because trade unions have successfully bargained for higher compensation, and because union-skilled labor is preferred by many local private and public builders, local wages are higher than they might otherwise be.

…

I want public policy that protects workers’ ability to make living wages so they can pay taxes and be vigorous consumers, helping our businesses and economy to prosper in ways that are good for everyone, not just the rich. I want public policy that supports a fair bidding process for contractors and rewards contractors willing to do quality work. I want public policy that guarantees safe construction of schools, roads, county jails and bridges. I want policy that supports spending local taxes to pay local workers who, in turn, spend locally.

(Read More)