Construction industry, unions duel over state prevailing wage bill (NH)

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NH Senate measure targets all state public works projects

BY BOB SANDERS – Published: February 13, 2019

A measure under consideration in the NH Senate would require contractors on state public works projects to pay the prevailing wage to workers, but it’s not the wages – it’s the benefits and paperwork that concerned several New Hampshire contractors speaking at a hearing Tuesday before the NH Senate Commerce Committee.

Several trade union representatives at the hearing countered that Senate Bill 271 is really not aimed at local contractors, but those outside New Hampshire, drawn here because it is the only New England state without prevailing wage requirements. (Some 24 states don’t have such laws, although the closest one to New Hampshire without one is in Virginia)

“At the end of the day, tax dollars of Granite Staters should go to local workers and local companies,” said Sen. Dan Feltes, D-Concord, the bill’s prime sponsor.

Feltes cited a 2016 study about the benefits of a prevailing wage: At least $300 million in economic activity resulting in some 1,700 jobs and tax revenues of 7.3 percent.

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But union representatives said that the lack of a prevailing wage makes New Hampshire a magnet for out-of-state contractors that do pay both lower wages and benefits, often using undocumented immigrant labor, “and it undercuts our local contractors,” said Denis R. Beaudoin, business manager of IBEW Local 490, the electricians’ union. The construction industry has only replaced 2,000 of the 9,000 jobs it lost during the recession, he said, adding: “How can we justify the work going out of state?”
And while contractors testified that they offer health benefits, they don’t match other union benefits, like an apprentice program, said David Pelletier, business manager of UA Local 131, the plumbers and pipefitters union.

“Unions do provide more benefits than open shops,” acknowledged Abbott. One business did back the prevailing wage bill: American Income Life, a Londonderry insurance firm.

Kris Thieme, an agent from the company, countered contractors’ claim that a prevailing wage would drive up construction costs. He said soft costs, like engineering and architecture, were a bigger factor than labor. Besides, he said, if workers don’t have good benefits or wages, they would be more likely to receive state subsidies for healthcare, which would be passed on to taxpayers.

SB 271 would only apply to state projects, not municipal or school construction jobs, but the NH Municipal Association was concerned that the language wasn’t clear enough on that matter, since many local projects involved state funding.


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NABTU STATEMENT ON ADMINISTRATION’S EFFORTS TO EXPAND APPRENTICESHIP TRAINING

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NABTU Statement on Administration’s Efforts to Expand Apprenticeship Training

Published: Monday, 21 May 2018 15:32
May 10, 2018

WASHINGTON, DC – North America’s Building Trades Unions (NABTU) today issued the following statement in response to the Administration’s efforts to expand apprenticeship into new industries:

“NABTU supports the Administration’s efforts to expand apprenticeship into industries that currently lack this important form of workforce training. As an industry with over 100 years of experience in establishing a world-class apprenticeship and training infrastructure, we know first-hand that high quality, registered apprenticeship programs provide reliable pathways to middle class careers and long-term economic security. The hundreds of thousands of hardworking American men and women in the building and construction industry can attest to this.

“NABTU appreciates and welcomes the continued opportunity to impart our experience and expertise on successful apprenticeship models. We will remain fully engaged in the establishment of “Industry Regulated Apprenticeship Programs” to ensure rigor and quality while mitigating any potential negative impacts to the apprenticeship brand – especially to NABTU and our contractor partners’ $1 billion collectively bargained investment in construction apprenticeship training.

“In 2017, the U.S. Department of Labor reported that there were 190,000 new apprentices nationwide – across all sectors of the economy. Of that total, NABTU is proud that one-third of these new apprentices began their training in our joint labor-management training programs in the construction industry – a longstanding partnership between our unions and our contractor partners.”

ABOUT NORTH AMERICA’S BUILDING TRADES UNIONS

North America’s Building Trades Unions is an alliance of 14 national and international unions in the building and construction industry that collectively represent over 3 million skilled craft professionals in the United States and Canada. Each year, our unions and our signatory contractor partners invest over $1 billion in private sector money to fund and operate over 1,900 apprenticeship training and education facilities across North America that produce the safest, most highly trained, and productive skilled craft workers found anywhere in the world.

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City of Cincinnati, labor group win key lawsuit over contracting

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By Chris Wetterich
Jan 5, 2018, 2:57pm

Under federal law, it is OK for the city of Cincinnati to require bidders on contracts to have apprenticeship programs and health and retirement plans, the U.S. Court of Appeals for the Sixth Circuit has ruled, a major victory for Cincinnati City Council Democrats and the Laborers International Union, which pushed for the requirements.

The so-called “responsible bidder” ordinance has been the subject of lawsuits and long-running disputes between council’s progressive and conservative members since it was enacted in 2013.

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In the case, Allied sued the city. A U.S. District Court judge ruled against the city but was reversed on appeal.

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Illinois’ Construction Apprenticeship Programs Return $11 in Total Benefits for Every Dollar Invested

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Published by Frank Manzo IV
AUGUST 24, 2016

A new report from the Illinois Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois finds that apprenticeship programs have significant positive social and economic impacts in Illinois.

Construction is the fastest-growing industry in Illinois. Over the next decade, the construction industry is projected to grow at twice the pace of the overall state economy, adding thousands of new jobs. All of the fastest-growing trades in Illinois’s construction industry require at least 3 years of apprenticeship training.

For many young Illinois workers, enrolling in a registered apprenticeship program is a better option than attending college or university. The annual income gain from participating in a registered apprenticeship program is $3,442 on average, greater than the average effect of having an associate’s degree and many bachelor’s degrees- including social work, English language and composition, and linguistics and foreign languages.

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(PDF Copy of Study)

L&I settles $200,000 claim against Whatcom County Jail contractor

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October 2, 2014

Bellingham – A contractor renovating the Whatcom County Jail has paid nearly $200,000 in back wages owed to 13 workers on the project.

Sierra Detention Systems, of Brighton, Colo., paid the money following a Washington State Department of Labor & Industries investigation, which was spurred by a January worker complaint. The company paid lower apprenticeship wages to electricians.

“We don’t know whether the company’s intent was to avoid paying the higher journeyman wage,” said Jim Christensen, Prevailing Wage Program manager for the agency, who noted this was a first-time offense for the firm. “In this case, the employees were doing the work of electricians and were not part of any state-registered apprenticeship program.”

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POCAN, MILLER, MURRAY INTRODUCE BILL TO INVEST IN APPRENTICESHIPS, INCREASE SKILLED WORKERS

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Sep 18, 2014 | Press Release

WASHINGTON, D.C.- Today, Representative Mark Pocan (D-WI), a member of the House Education and Workforce Committee, along with Education and Workforce Committee Ranking Member George Miller (D-CA), and Senator Patty Murray (D-WA) introduced the Promoting Apprenticeships for Credentials and Employment Act (PACE Act), a new bill that would support greater development of registered apprenticeship programs. The PACE Act would help prepare more highly skilled workers for in-demand industries and occupations through heightened awareness of and participation in registered apprenticeship programs.

The PACE Act would better integrate apprenticeships into postsecondary education programs and expand apprenticeship opportunities to new areas, particularly those professions dominated by women. As such, this legislation would promote new career pathways and greater economic security for women and their families.

“This legislation provides workers and job seekers with better access to employment, education, training, and support programs to help them secure good, well-paying jobs,” said Representative Mark Pocan. “It will also improve opportunities for businesses by ensuring hard-working Americans have the skills necessary for today’s most in-demand industries and occupations. Business leaders want this. Hardworking Americans need this. Everyone benefits when our middle class thrives.”

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California Colleges Reaping the Local Hiring Benefits of Hard-Fought Project Labor Agreement

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A Project Labor Agreement (PLA) covering up to $500 million of construction at Riverside City, Moreno Valley and Norco colleges has surpassed its local hiring goals. The projects are partially funded through California’s Measure C bonds with the state and federal government providing matching funding.

The use of a PLA was heavily contested, but building trades union advocates and their mission of ensuring local hire ultimately prevailed:

Since the agreement was adopted in 2010 on a 3-2 vote, 65 percent of workers have come from Riverside and San Bernardino counties and 54 percent of participating businesses have been local, according to a presentation prepared by Padilla & Associates, which administers the agreement for $1.6 million.

The five-year agreement requires contractors to pay union-level wages and benefits, sets a local hiring goal of 50 percent and requires apprenticeship programs. Workers from Riverside County get first priority followed by workers from San Bernardino County.

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OSHA Accepting Susan Harwood Training Grant Applications

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OSHA announced it is soliciting applications under the Susan Harwood Training Grant Program, with $7 million available for non-profit organizations, including community-based organizations, faith-based organizations, employer associations, labor unions, management associations, colleges, and universities.

According to OSHA, the program supports the creation of in-person, hands-on training and educational programs and the development of materials for workers and employers in small businesses; industries with high injury, illness, and fatality rates; and workers who are underserved, have limited English proficiency, or are temporary workers. The program awards two types of grants: Targeted Topic Training and Capacity Building. Each grant fund will have approximately $3.5 million in funding.

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Stalemate at Metropolitan Sewer District – Ohio

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At $3.2 billion and an estimated 15- to 20-year time frame for completion, Cincinnati’s project to retrofit and replace its sewers is one of the most expansive in the city’s history. But the sewer project, which is part of a mandate from the federal government, is now facing major hurdles as the city and county dispute how contracts for the project should be awarded and whether the government should be more involved in dictating how contractors train their employees.

Most recently, the Hamilton County Board of Commissioners put an unprecedented funding hold on all sewer projects until Cincinnati changes its “responsible bidder” law, which City Council unanimously passed in June 2012 and modified in May this year.

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