AGC's Human Resource and Labor News - February 9, 2018 / Issue No. 02-18 (Print All Articles)

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AGC Meets with New OFCCP Director

On January 31, 2018, AGC attended an intimate stakeholder meeting and roundtable with Ondray T. Harris, the recently appointed Director of the Office of Federal Contract Compliance Programs (OFCCP) at the U.S Department of Labor. AGC took the opportunity to discuss the unique challenges construction contractors face interacting with the OFCCP and complying with its requirements. AGC strongly advocated the need for clarity, communication, and understanding of the industry it regulates from the OFCCP. Director Harris spent much of his time introducing himself and his vision for the OFCCP before settling in for a very interactive and receptive conversation. It remains to be seen the true direction of the OFCCP in the coming months to years, but Director Harris and his staff appear to be interested in working more in partnership with industry to ensure the continued investment in diversity initiatives, the development of American workers, and ultimately the country’s workforce. In line with the Trump administration’s focus on apprenticeships, the Director and staff also discussed how apprenticeship programs can assist in diversity efforts and Affirmative Action requirements for contractors.

On January 31, 2018, AGC attended an intimate stakeholder meeting and roundtable with Ondray T. Harris, the recently appointed Director of the Office of Federal Contract Compliance Programs (OFCCP) at the U.S Department of Labor. AGC took the opportunity to discuss the unique challenges construction contractors face interacting with the OFCCP and complying with its requirements.  AGC strongly advocated the need for clarity, communication, and understanding of the industry it regulates from the OFCCP.  Director Harris spent much of his time introducing himself and his vision for the OFCCP before settling in for a very interactive and receptive conversation. It remains to be seen the true direction of the OFCCP in the coming months to years, but Director Harris and his staff appear to be interested in working more in partnership with industry to ensure the continued investment in diversity initiatives, the development of American workers, and ultimately the country’s workforce. In line with the Trump administration’s focus on apprenticeships, the Director and staff also discussed how apprenticeship programs can assist in diversity efforts and Affirmative Action requirements for contractors.

In 2013, OFCCP updated its regulations on the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) and Section 503 of the Rehabilitation Act of 1973 (Section 503).  The VEVRAA rule prohibits discrimination and requires contractors to take affirmative action in all personnel practices regarding covered veterans.  The Section 503 rule prohibits discrimination and requires contractors to take affirmative action in all personnel practices for qualified individuals with disabilities.

AGC regularly attends these types of meetings to connect the federal agencies with the construction industry they are required to regulate.  These are unique opportunities for AGC to help educate the federal officials on how their rulemakings translate at the practical level and identify additional opportunities for partnership.  AGC looks forward to continuing to work with the OFCCP and other federal agencies on behalf of its membership. 

For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.


EEO-1 Survey Now Open for Qualifying Employers

On January 24, 2018, the EEOC announced it had completed its mailing of the 2017 EEO-1 survey Notification Letters and all employers that qualify must file EEO-1 Reports by March 31, 2018. You may remember that the EEOC recently revised the EEO-1 report, but following advice from AGC the Trump administration reversed the changes and no pay data is required to be reported. The current EEO-1 report is simply the “old” format that employers used to file the last round of reports in September 2016.

On January 24, 2018, the EEOC announced it had completed its mailing of the 2017 EEO-1 survey Notification Letters and all employers that qualify must file EEO-1 Reports by March 31, 2018. You may remember that the EEOC recently revised the EEO-1 report, but following advice from AGC the Trump administration reversed the changes and no pay data is required to be reported. The current EEO-1 report is simply the “old” format that employers used to file the last round of reports in September 2016.

The EEO-1 is an annual survey that requires all private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a contract/subcontract of $50,000 or more to file the EEO-1 report.  The EEO-1 report provides employment data by race/ethnicity, gender and job categories. The filing of the EEO-1 report is not voluntary and is required by federal law, Section 709(c), Title VII of the Civil Rights Act of 1964, as amended; and §1602.7–§1602.14, Title 29, Chapter XIV, of the Federal Code of Regulations. A link to EEOC’s Frequently Asked Question about the EEO-1 filing can be found here.

For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382


2017 Collective Bargaining Yields Average First-Year Increase of 2.7%

Construction-industry collective bargaining negotiations completed during 2017 resulted in an average first-year increase in wages and benefits of $1.34 per hour or 2.7 percent, according to the annual year-end Settlements Report issued by the AGC-supported Construction Labor Research Council. This sustains an upward trend that began in 2011. For newly negotiated multi-year contracts, the average second-year increase negotiated was $1.53 or 2.9 percent.

Construction-industry collective bargaining negotiations completed during 2017 resulted in an average first-year increase in wages and benefits of $1.34 per hour or 2.7 percent, according to the annual year-end Settlements Report issued by the AGC-supported Construction Labor Research Council.  This sustains an upward trend that began in 2011.  For newly negotiated multi-year contracts, the average second-year increase negotiated was $1.53 or 2.9 percent. 

CLRC observed that 2017 settlements followed a very similar distribution to 2016 settlements in that “a strong majority of settlements (69 percent in 2017) fell within the 2.1-3.5% range” and “only 10 percent [of settlements] were [for increases of] greater than 3.5 percent.”  Also, both 2016 and 2017 settlements reflect a “noticeable drop in percent of settlements in the $1.51-1.75 range.”

Regionally, the areas that reported the lowest average first-year increase on a percentage basis – 2.3 percent – were the South Central Region (AR, LA, NM, OK, TX) and the West North Central Region (IA, KS, MO, NE).  The Southwest Pacific Region (AZ, CA, HI, NV) reported the highest average first-year increase on a percentage basis at 3.3 percent.

By craft, the lowest average first-year increase on a percentage basis was negotiated with the Boilermakers at 2.2 percent.  The Carpenters negotiated the highest average first-year increase at 2.9 percent.

The full report is available in AGC’s online Labor & HR Topical Resources library under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreements Data.”  You must be logged in as an AGC member for full access.  The posted version of the report includes a detailed addendum available only to AGC and other CLRC supporters.  It also contains information about the consulting and custom research services that CLRC offers to AGC chapters, members, and others.  Collective bargaining chapters are reminded to please send new contract data directly to CLRC promptly upon settlement of collective bargaining negotiations.

For more information, please contact Denise Gold, Associate General Counsel, at goldd@agc.org or (703) 837-5326.


BLS Data Show Little Change in Union Representation or Weekly Earnings in Construction Industry

Union representation in the construction industry (covering all occupations) rose very slightly in 2017, from 14.6 percent to 14.7 percent, according to an annual report recently issued by the Bureau of Labor Statistics (“BLS”). Union membership in the industry similarly increased over the year, from 13.9 percent to 14 percent. The total number of workers in the industry rose from 7,488,000 to 7,844,000.

Union representation in the construction industry (covering all occupations) rose very slightly in 2017, from 14.6 percent to 14.7 percent, according to an annual report recently issued by the Bureau of Labor Statistics (“BLS”).  Union membership in the industry similarly increased over the year, from 13.9 percent to 14 percent.  The total number of workers in the industry rose from 7,488,000 to 7,844,000. 

Among workers in construction and extraction occupations, whether employed in the construction industry or another industry, union representation and membership in 2017 increased by a modestly greater margin.  Representation rose from 19.4 percent to 20.2 percent, and membership rose from 18.4 percent to 19.3 percent.  The total number of workers in such occupations increased from 6,387,000 to 6,529,000.

The construction industry continues to be among the private industries with the highest rates of union membership.  The industry’s 14 percent union membership in 2017 was outpaced only by the utilities (23 percent), transportation and warehousing (17.3 percent), and telecommunications (16.1 percent) industries.  Union membership across all private-sector industries edged up by 0.1 percentage point in 2017 to 6.5 percent, BLS reports.  This remains modestly lower than the 6.7 percent in 2015 and substantially lower than the 34.4 percent of 2017 workers in the public sector.

The report also addresses earnings.  According to BLS, the median weekly earnings of all employees in the construction industry rose from $822 to $840 in 2017.  Union-represented workers continue to earn substantially more – nearly 45 percent more – than their nonunion counterparts, but the gap is slowly narrowing, as nonunion workers’ pay has been rising at a higher rate than union-represented workers’ pay.  The median weekly earnings of union-represented workers in the industry increased from $1,146 to $1,155 – less than 1 percent – in 2017, while those of nonunion workers increased from $780 to $797 – over 2 percent.  It is worth noting that BLS data showed increases of about 4.8 percent for union-represented workers in the industry and about 5 percent for nonunion workers last year.

The median weekly earnings for workers employed in construction and extraction occupations across industries rose from $784 to $796.  According to BLS data, nonunion workers’ pay increased about 2.2 percent from $719 per week to $735 over the year, while union-represented workers’ pay actually declined nearly 1.6 percent from $1,142 to $1,124.

Assessments of BLS industry data should consider that such data cover surveyed employees at all levels and classifications, including personnel that are not typically organized, such as office staff.  The data also cover all sectors of the industry, including employees of home builders and home improvement firms.

For access to additional historical data on these and related topics, click here.


AGC Urges Trump Administration to Rescind President Obama's Project Labor Agreement Executive Order

On January 25, AGC urged President Trump to rescind President Obama’s project labor agreement (PLA) executive order and replace it with a new order. AGC asked President Trump to issue a new order that ensures fair and open competition on federal construction contracts by preventing agencies from mandating contractors to sign a PLA as a condition of winning a federal or federally assisted construction contract and from implementing a preference policy for bids with a PLA. The Obama-era order encourages federal agencies to mandate PLAs on projects valued at $25 million or more. Until President Trump acts, that executive order remains in effect.

On January 25, AGC urged President Trump to rescind President Obama’s project labor agreement (PLA) executive order and replace it with a new order.  AGC asked President Trump to issue a new order that ensures fair and open competition on federal construction contracts by preventing agencies from mandating contractors to sign a PLA as a condition of winning a federal or federally assisted construction contract and from implementing a preference policy for bids with a PLA.  The Obama-era order encourages federal agencies to mandate PLAs on projects valued at $25 million or more.  Until President Trump acts, that executive order remains in effect.

In addition to calling for rescission of the executive order, AGC is also urging Congress to support the Fair and Open Competition Act, which would prohibit federal contracting agencies from mandating that contractors enter into PLAs on direct federal projects.

For more information, contact Jim Young at youngj@agc.org.

 


 


Presentations Sought for AGC’s 2018 Construction HR and Training Professionals Conference

AGC’s 2018 Construction HR & Training Professionals Conference and Federal Construction HR Workshop will be held October 10-12, 2018, in Fort Worth, TX. The conference will offer unique opportunities for HR, training, and workforce development professionals in the construction industry. For training professionals, the conference will offer sessions related to the most cutting-edge techniques currently in the industry and envisioned for the future in training, education and workforce development. For HR professionals, the conference will help attendees stay up to date and compliant with employment laws and best practices. Some sessions will be of interest to both HR and training professionals alike.

AGC’s 2018 Construction HR & Training Professionals Conference and Federal Construction HR Workshop will be held October 10-12, 2018, in Fort Worth, TX.  The conference will offer unique opportunities for HR, training, and workforce development professionals in the construction industry.  For training professionals, the conference will offer sessions related to the most cutting-edge techniques currently in the industry and envisioned for the future in training, education and workforce development.  For HR professionals, the conference will help attendees stay up to date and compliant with employment laws and best practices.  Some sessions will be of interest to both HR and training professionals alike.

AGC is now seeking presentations from industry professionals on a variety of topics.  Details, along with a framework for proposal submissions, and other important information is available in the call for presentations.  All presentation proposals must be submitted using the provided form no later than Thursday, March 1, 2018.  Selected presenters will receive a complementary registration to the conference.  Construction HR & training professionals who are currently working for AGC member-companies are encouraged to submit a proposal. 

Click here to submit your proposal today!

For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382 or Carly Trout at carly.trout@agc.org or 703-837-5360.


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