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Executive Order on Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums

Posted by National Alliance for Fair Contracting on

White House
March 6, 2024

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1.  Policy.  My Administration’s Investing in America agenda includes a once-in-a-generation investment in our Nation’s infrastructure.  This agenda is also driving the creation of well-paying jobs and growing the economy sustainably and equitably, and it will continue to do so for decades to come.  To fully realize the benefits of these investments, students and workers at all stages of life need equitable access to education and training for the good jobs in their communities.

Critical to achieving these goals is promoting Registered Apprenticeships, as described in title 29, parts 29 and 30, of the Code of Federal Regulations, which provide substantial benefits to both workers and employers.  As the Nation’s largest employer and procurer of goods and services, the Federal Government can be a model for the use and promotion of skills-based hiring, such as the use of Registered Apprenticeships, which reduces barriers to employment and attracts a diverse workforce to meet our Nation’s critical needs.  My Administration has made strengthening and empowering the Federal workforce a management priority.  As a part of its overall strategy to hire, retain, and develop the people needed to accomplish executive department and agency (agency) missions and to create equitable, transparent, and transferable career-development pathways, the Federal Government can scale and expand Registered Apprenticeship programs to modernize and broaden avenues to Federal jobs, thereby improving access to opportunities for underserved workers.

Additionally, Labor-Management Forums provide an opportunity for managers, employees, and employees’ union representatives to discuss how Federal Government operations can promote satisfactory labor relations and improve the productivity and effectiveness of the Federal Government.  Labor-Management Forums, as complements to the existing collective bargaining process, allow managers and employees to collaborate in order to continue to deliver the highest quality goods and services to the American people.

It is the policy of my Administration to promote Registered Apprenticeships to meet employer needs while investing in workers’ skills; reducing employment barriers; and promoting job quality, equity, inclusion, and accessibility for the benefit of the Federal Government and the Nation.  Further, it is the policy of my Administration to establish cooperative and productive labor-management relations throughout the executive branch.

(See Full Executive Order)

Project labor agreements on federal construction projects will benefit nearly 200,000 workers

Posted by National Alliance for Fair Contracting on

Posted February 9, 2022 at 11:07 am by Ihna Mangundayao, Celine McNicholas, and Margaret Poydock

President Biden recently signed an executive order (EO) requiring project labor agreements on federal construction projects over $35 million, a move that is expected to affect $262 billion in federal construction contracting and improve job quality for nearly 200,000 workers.

Project labor agreements (PLAs) are used primarily in the construction industry to establish the terms of employment for all workers on a project. Generally, PLAs specify workers’ wages and fringe benefits and may include provisions requiring contractors to hire workers through union hiring halls, otherwise establish a unionized workforce, or develop procedures for resolving employment disputes. PLAs often include language that prevents workers from striking during the project while also preventing employers from locking workers out.

PLAs are effective mechanisms for controlling construction costs, ensuring efficient completion of projects, and establishing fair wages and benefits for all workers. PLAs also help ensure worker health and safety protections while providing a unique opportunity for workforce development. These agreements can be written to engage local populations, provide jobs for underrepresented groups, and develop experience for apprentices.

Project labor agreements don’t raise construction costs

Evidence shows that PLAs do not increase construction costs. For example, New York City embarked on a $5.3 billion project in 2009, and the use of four PLAs was estimated to lead to 1,800 new jobs while saving the city approximately $300 million. A study from the Berkeley Labor Center also found that projects with PLAs attracted a “similar number of bidders” and “came in at a slightly lower price” when compared to projects without PLAs in place. Another 2015 paper from University of Utah economists compared nine PLA affordable housing projects with 121 affordable housing projects built without PLAs and found that the PLA projects were not more expensive to build.

(Read More)

(White House Briefing)

Biden joins ironworkers in Upper Marlboro to sign federal labor protections into law

Posted by National Alliance for Fair Contracting on

Joshua Barlow
February 5, 2022, 10:32 PM

President Joe Biden joined union members at Ironworkers Local 5 in Upper Marlboro, Maryland, where he signed an executive order that gives construction workers new protections for federally contracted projects.

According to the White House, the executive order requires federal construction contracts worth more than $35 million to use project labor agreements.

The order, which goes into effect immediately, will affect an estimated 200,000 union workers in an industry that has taken severe economic hits due to the pandemic.

Project labor agreements (PLA) are legal mechanisms by which the terms and conditions for workers on an individual project are determined. Within the new executive order, any contractor who is awarded a federal contract must co-sign the PLA with any union representing their labor force.

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FACT SHEET: President Biden Signs Executive Order to Boost Quality of Federal Construction Projects

Posted by National Alliance for Fair Contracting on

White House Briefing Room
FEBRUARY 03, 2022 | STATEMENTS AND RELEASES

Biden-Harris Administration will make federal procurement more economical and efficient by improving coordination and minimizing disruptions on large federal construction projects

Tomorrow, the President will sign an Executive Order to improve timeliness, lower costs and increase quality in federal construction projects. Federal construction projects span the country – from the maintenance of nuclear sites to base construction to waterways and flood projects. By requiring the use of project labor agreements (PLAs) on federal construction projects above $35 million, the Order will help alleviate the management and coordination challenges that can stymie progress on major construction projects. This helps projects get completed on time and helps the government get the best value for taxpayers’ dollars.

Based on FY2021 figures, this Order could affect $262 billion in federal government construction contracting and improve job quality for the nearly 200,000 workers on federal construction contracts. Additionally, the President’s Executive Order directs the departments of Defense and Labor, along with the Office of Management Budget, to lead a training strategy for the nearly 40,000-person strong contracting workforce on the implementation of this Order’s policy.

This Executive Order is just one of many steps the Biden-Harris Administration is taking that will improve the efficiency of federal procurement. Since taking office, the President fulfilled his commitments to strengthen Buy American rules, and secured a reliable supply of experienced, quality workers for federal service contracts. As of January 30th, federal contractors in new or extended contracts must pay a $15/hour minimum wage, as the President directed in Executive Order 14026.

This new Executive Order, while only applicable to federal procurement, advances the Administration’s commitment to rebuild the nation’s infrastructure, on-time and at reasonable cost. The Order will only apply to provisions in the Bipartisan Infrastructure Law that are direct federal procurement, which excludes construction projects financed through grant dollars to non-federal entities. The Executive Order will benefit taxpayers, contractors, and workers by:

  • Alleviating the coordination challenges on large, complex projects. Multi-million-dollar projects can present real management challenges to the primary contractor on the project, which has to work with multiple businesses and multiple types of skilled labor to complete a project. PLAs can help coordinate diverse contractors and sub-contractors and their employees working on a project and prevent disputes between subcontractors. Additionally, workers will have more confidence in the management of the project and a greater commitment to completing the project if they have a voice at the table. This helps projects get completed on time by minimizing work disruptions. On-time projects save the government, and taxpayers, money.
  • Raising quality standards for contractors bidding on federal projects. PLAs help raise the standards of all bidders on federal contracts. Contractors who offer lower wages or do not train their workers will need to raise their standards to compete with other high-wage, high-quality companies. Businesses with well-trained workers will be more likely to bid for and win federal contracts. Well-trained, high quality workers are more productive, completing projects well and on time.
  • Reducing uncertainty in the contracting process. PLAs standardize the work rules, compensation costs, and dispute settlement processes on construction projects. This standardization helps create more certainty for the government and, therefore, taxpayers, about the costs and completion rate for projects.
  • Increasing training for the federal contracting workforce. The Executive Order directs the Departments of Defense and Labor, along with the Office of Management and Budget, to lead a training strategy for the contracting workforce on Project Labor Agreements and the implementation of this Order. This training will create a more uniform and accessible experience for contractors interacting with departments and agencies across the federal government.

(See White House Briefing)

(See Official White House Presidential Action on PLAs) released Feb. 4, 2022

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Executive Order on Improving Federal Contractor Operations by Revoking Executive Order 13495

Posted by National Alliance for Fair Contracting on

AlasBy the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., and in order to promote economy and efficiency in Federal Government procurement, it is hereby ordered as follows:

Section 1. Revocation of Prior Order. Executive Order 13495 of January 30, 2009 (Nondisplacement of Qualified Workers Under Service Contracts), which requires that successor Federal contractors in certain circumstances offer a right of first refusal of employment to employees employed under the predecessor contract, is hereby revoked.

Sec. 2. Agency Implementation. The Secretary of Labor (Secretary), the Federal Acquisition Regulatory Council, and heads of executive departments and agencies shall, consistent with law, promptly move to rescind any orders, rules, regulations, guidelines, programs, or policies implementing or enforcing Executive Order 13495.

Sec. 3. Enforcement. The Secretary shall terminate, effective immediately, any investigations or compliance actions based on Executive Order 13495.

Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

DONALD J. TRUMP

THE WHITE HOUSE,
October 31, 2019.

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Mendoza signs prevailing wage executive order (IL)

Posted by National Alliance for Fair Contracting on

By Jerry Nowicki
Aug. 14, 2019

SPRINGFIELD – With a $45 billion, six-year capital infrastructure plan becoming law earlier this year, Illinois Comptroller Susana Mendoza signed an executive order Tuesday aimed at refocusing enforcement of state prevailing wage laws for construction projects receiving state money.

“When I took office in 2016, we made sure to let folks know that … our goal is to continue to enforce this executive act. What we’re doing now is just reaffirming it and updating it and getting the word out as we embark on a $45 billion capital plan that this is state law, people need to be aware of it, they need to abide by it.”

Prevailing wage is the rate of compensation determined by the government that must be paid to workers for projects involving state government funding.

At a news conference in her office Tuesday, Mendoza warned of halted checks for any contractor if it comes to her attention workers are not receiving the prevailing wage.

Mendoza said anyone believing a company is in violation of the act could notify her office.

“They would notify us, we would look into that alongside the Department of Labor, and we have the potential to stop payments, further vouchers going out, further warrants, essentially, being sent out until that corrective action is taken,” she said.

Mendoza’s executive order outlines other steps her office will take to ensure contractors pay their employees the prevailing wage as well. The executive order says her office will not accept any grant or contract submissions without proof that the contractor is in compliance with the prevailing wage act, and would have the authority to “pre-audit” any state-funded contracts as well.

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GOV. HICKENLOOPER SIGNS EXECUTIVE ORDER TO IMPROVE PAYROLL AND WORKER CLASSIFICATION IN CO CONSTRUCTION INDUSTRY (CO)

Posted by National Alliance for Fair Contracting on

Office of the Governor
June 5, 2018

DENVER – Wednesday, June 6, 2018 – Gov. John Hickenlooper has signed an executive order creating a joint task force including employer and employee groups to better address payroll and worker misclassification in Colorado’s construction industry.

Misclassification of employees as independent contractors and other labor law violations disadvantage both law-abiding construction contractors and construction workers in Colorado. Some labor brokers within Colorado’s construction industry have been found to have purposefully misclassified workers to avoid paying unemployment premiums and payroll taxes.

“Law-abiding companies and workers are being undercut by those who skirt the law in Colorado,” said Governor John Hickenlooper. “This task force will bring all parties together to find the right solutions to root out any illegal labor activity in our state.”

“Payroll fraud in the construction industry hurts workers and honest businesses,” said Randy Thornhill, Executive Secretary-Treasurer, Southwest Regional Council of Carpenters. “The first step in tackling this issue is evaluating current enforcement practices. With this executive order, the governor’s commitment to building a better economy is clear. His leadership on these issues will lead to a cleaner industry and safer workplaces.”

The Joint Enforcement Task Force on Payroll Fraud and Employee Misclassification in the Construction Industry will coordinate with relevant state agencies to share information and streamline investigations around alleged misclassification of workers. The task force also will coordinate with business, labor and community groups.

“We are going to hit the ground running to convene key stakeholders in order to ensure across the board compliance with Colorado’s labor and employment laws, particularly in the commercial construction industry,” said Sam Walker, executive director of the Colorado Department of Employment and Labor. “Consistent and effective enforcement of our laws and regulations is a win-win for law-abiding companies and their workers. By collaborating with the other state agencies on this task force, as well as with workers and contractors within the industry, I know we’ll be able to identify areas for improvement so that our State’s labor and employment protections work as they should throughout Colorado’s booming construction sector.”

(Read More)

Murphy signs executive order creating Jobs and Economic Opportunity Council

Posted by National Alliance for Fair Contracting on

BY Michael Hill, Correspondent
February 27, 2018, 5PM EST

At the International Union of Operating Engineers Training Center Local 825, Gov. Phil Murphy painted New Jersey’s economy as stuck in the mud.

“For eight years, we have slogged behind every competitor state in multiple categories,” said Murphy.

His list went on – challenging his new role to lead the state to a stronger and fairer economy.
“It’s time for New Jersey to get back to leading by doing,” said the governor.

With the stroke of a pen, the governor signed another executive order, his 12th in six weeks. This time, creating the Jobs and Economic Opportunities Council within the Governor’s Office made up of the lieutenant governor and several cabinet members.
“Specifically, I’m directing the council to analyze state and national economic trends and data to design the policies needed to attract, expand and retain good jobs. I am asking them to identify potential funding sources,” said Murphy.

The governor said the council’s scope will be broad and do what he’s already ordered his cabinet to begin doing – streamline state government by considering how best to use technology.

“Turning New Jersey around must begin with fixing our economy, making us a place that creates jobs and new opportunities in innovation and infrastructure” continued Murphy.

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USDOL Wage & Hour Division Announces 2017 Prevailing Wage Seminars

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Join us at a Prevailing Wage Seminar in your region in 2017!

The Wage and Hour Division (WHD) Prevailing Wage Seminars (Prevailing Wage Seminars) are three-day compliance trainings designed for regional stakeholders (unions, private contractors, state agencies, federal agencies and workers). In these seminars, conference participants will learn about the following:

  • The Davis-Bacon Act and McNamara O’Hara Service Contract Act
  • Executive Order 13495 “Nondisplacement of Qualified Workers”
  • Executive Order 13658 “Establishing a Minimum Wage for Contractors”
  • The process of obtaining wage determinations and adding classifications
  • Compliance assistance and enforcement processes
  • The process for appealing wage rates, coverage, and compliance determinations

 

Prevailing Wage Seminars for 2017 are being scheduled in the following cities:

  • Pittsburgh, PA – TBD

 

(Read More)

Wage and Hour Division Final Rule: Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors

Posted by National Alliance for Fair Contracting on

Sept. 30, 2016

The Department of Labor has announced that on September 30, 2016, it will publish a final rule to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. Executive Order 13706 was signed by President Barack Obama on September 7, 2015, and requires parties that enter into covered contracts with the Federal Government to provide covered employees with up to 7 days of paid sick leave annually, including paid leave allowing for family care. The final rule describes the categories of contracts and employees covered by the Executive Order; the rules and restrictions regarding the accrual and use of paid sick leave; the obligations of contracting agencies, the Department of Labor, and covered Federal contractors under the Order; and the remedies and enforcement procedures to implement the Order’s requirements.

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