Gregory
Management & Consulting Services November, 2013 REGIONAL CONSTRUCTION INDUSTRY
UPDATE
Gregory Management & Consulting Services (GMCS) provides neutral, contracted Association Management and Labor & Industry Relations support to many of our region’s associations, contractors, facility owners and Industry Stakeholders. We are focused on facilitating communication amongst our region’s construction employer associations, constructors, facility owners, building trades and governmental bodies with an emphasis on creating a centralized, focused community that promotes industry advancement and workforce development. Please accept this informative news letter containing relevant industry topics that can impact your associations and organizations. GMCS is always available to provide clarification or additional information on any of the topics contained within.
The gentle breezes and warm sunny days of summer have given way to the blustery, overcast and chilly days of fall here in Pennsylvania. This time of year is often a time of planning for many of us. Our associations and business are all planning for the year ahead in 2014. As a competitive cyclist, I am wrapping up my 2013 season and making preparations and training plans for the 2014 racing season. As your associations and organization plan for their 2014 season, take time to fully consider the value and quality of the personalized service that Gregory Management & Consulting Services can offer to your members, contractors and organizations. While regional labor disputes have declined over the last six weeks, overall activity is still very high in the region relative to previous years at this time. GMCS Association Management, Operations and Human Resources support services are always in high demand to our clients. GMCS regional and national clients continue to receive valuable guidance and advice regarding jurisdictional assignments, administration of their collective bargaining agreements, HR and Operations support. As the Director of Industry & Labor Relations representing hundreds of Philadelphia’s commercial construction contractors and facility owners and as an industry service provider for over six years, I understand the complexity and confusion associated with the region’s collective bargaining agreements. From ambiguous language, work rules, jurisdictional claims & area practice, basic contract administration, I have personally worked through, documented and successfully resolved labor and contract disputes for associations, contractors & facility owners and have earned a reputation of trust, integrity and committed service from the regional construction industry and its stakeholders. Contracted labor relations services are a reasonably priced solution to your organization’s labor relation’s needs. Do what other associations, contractors, labor organizations and facility owners have done to ensure work site harmony & productivity, contact GMCS @ wegregory@gregorymcs.com for a customized quote on your contracted labor relations services.
This month’s newsletter provides another diverse set of topics that are important to our industry and its stakeholders. The INDUSTRY section will highlight a recent Econsult report on the shared goals and missions of Higher Education in Philadelphia. We see that Philadelphia is tightening checks on construction bidders. We also check back in on the issue of a lack of diversity on campus construction sites and see what Trenton, NJ is doing to counter that issue. We review several articles on construction forecasts for the remainder of 2013 and into next year. We take a look at Pennsylvania’s newly launched High Performance Building Program. We also see that RACP funding will never be the same with the Governor’s signature on HB493. For technology this month, we see that IPD is gaining in popularity and success and 3D printing hits its stride with a must see photo gallery of an architectural creation. For data, Turner Construction releases its Q3 industry reports and the ABI continues to show strong indicators of growth. LABOR contains an interesting article on a recent labor dispute in MA that may have an impact here on 2014 negotiations. Locally, we also see that the Inquirer is struggling with a recent labor dispute. Speaker Smith puts his two cents in on transportation funding in the state as it relates to Prevailing Wage. One of the region’s most recognized labor law firms, Susanin, Widman & Brennan, give a word of caution to area employers regarding employment and an employees position with their union. GMCS blogs about effective Social Media Campaigns and just how a “Tweet” can hurt you and your company. We read briefly about the ACA and how it can impact negotiations. We also learn that the NLRB has set the stage for multiple bargaining units within a single facility. Finally, we wrap up Labor with our BNA Wage Trend Indicator data. GMCS continues to provide a wide range of ongoing contracted labor & industry relations support to industry multi-employer construction associations, signatory contractors of collective bargaining agreements, labor organizations, institutional & commercial facility owners and industry stakeholders throughout the region. Answers to your HR & labor questions or a customized contracted labor relations solution could be just a telephone call or e-mail away, wegregory@gregorymcs.com. This month’s OSHA section contains many important highlights affecting the industry and its contractors. OSHA published its proposed rule on Crystalline Silica exposure in the Federal Register; once again, we define exactly what is Crystalline Silica and just how prevalent it is in the industry. We also learn that OSHA has extended the comment period for Silica Exposure. OSHA makes new resources available for hazardous chemical exposure. OSHA has also released a new Fall Prevention guide with accompanying “Tool Box talks.” We review the OSHA/SCHC Alliance and web resource regarding Hazard Communication standards. GMCS issues a reminder to its clients on Respirator Fits and testing. We review the Top 10 OSHA violations for 2013. We also consider 5 potential OSHA targets for the remainder of 2013. We look at OSHA’s 2014 initiatives and consider the impact of the “Weighted Inspection” on job sites. We also review an article on Falls in the industry and finish out with a focus on OSHA’s ongoing National Fall Prevention program. The MULTIEMPLOYER PENSION PLANS section contains a very interesting article out of Annapolis, MD and settlements that claim to resolve unfunded liability. We review an article indicating that healthcare plan costs are forecasted to rise at 4.8%. We see that troubled pension plans may mean trouble for your books. We ask the question, “could your plan defend its investment strategy?” We learn that some corporate DB plans have achieved 91% funding and the impact of rising interest rates on those plans. Finally, we read an article claiming that DB pension plans, and their underlying assumptions, are still viable. HUMAN RESOURCES starts off with a review of starting salaries from SHRM and reinforce that with an Online Salary Guide. We review what is allowed when it comes to docking Exempt worker’s pay. We look at 10 points to discuss with your employees on the ACA. The Kaiser Family Foundation produces a very useful ACA subsidy online calculator. We break down the ACA and look at the next Action Steps required with ACA. We ask the question, “what’s missing from your employee manual?” We look at the risks of a disgruntled employee. Finally, did you remember to send out your ACA employee notices on October 1, 2013? Many did not and here is your final reminder. IN THE COURTS, we check out a case before the Pennsylvania Supreme Court on Implied Warranty Claims in Construction Defect cases. In REGULATIONS, the recent building collapse on Market Street brings about new bills in City Council reinforcing public safety. In LEGISLATIVE, the Fall Session continues with legislation making its way through the chambers and onto the Governor’s desk. HB493 was signed into law last week forever altering RACP funding in the Commonwealth. HB473, Mechanics Lien, still sits in Senate Sub Committee. I provide a brief summary and status update on two pieces of federal legislation, the Working Families Flexibility Act and new standards in paint and coating industry as it relates to the Lead Exposure Reduction Amendments Act. We see Prevailing Wage legislation makes a move in the opening days of the Fall Session in the PA General Assembly. It looks to be a busy session with GMCS currently tracking and reporting on over 50 pieces of individual legislation impacting the industry. Associations and organizations that subscribe to the GMCS GLASS Reports receive timely updates to each piece of legislation impacting their organizations as they occur along with a listing of the bill’s primary and co-sponsors. A complete list of all legislation currently impacting this industry is below. GMCS continues to track additional proposed amendments to the Pennsylvania Prevailing Wage Act, Mechanics Lien Laws, Construction Workplace Misclassification Act, Permit Extensions and Right to Work Bills. Philadelphia City Council continues to move legislation through Council Chambers that may impact the industry. You will find a brief summary of industry legislation in process below. Legislative & Industry Affairs will remain a active as we progress through this 2013 Regular Session of the General Assembly; the Fall Session will be an active session. GMCS provides an annual legislative affairs subscription service that monitors and reports on the daily activity of the PA General Assembly to Associations and organizations in all industries throughout the Commonwealth; This is accomplished through its specialized GLASS Reports product. Current GLASS Report recipients include numerous commercial & residential contractor associations, labor organizations, transportation management associations and local & regional governmental bodies. Please contact GMCS @ wegregory@gregorymcs.com to discuss your organization’s needs and how you can benefit from this informative and essential service.
INDUSTRY:
Philadelphia and its Higher Eds: Shared Goals, Shared Missions, Shared Results:
Higher Eds are some of the largest economic engines
in Philadelphia. As a sector, they are some of the City's largest employers,
attract students and visitors from around the world, and lead major capital
projects. The Higher Eds' annual economic impact within Philadelphia is estimated
to be $10.9 billion, supporting 84,000 jobs and generating $211 million in City
tax revenues.
Importantly, these direct expenditures are made
possible in large part by funds imported into the City from across the country
and around the world in the form of tuition dollars from non-Philadelphia
students, alumni donations, and research grants. Hence, outside dollars are
used to support Philadelphia jobs and produce Philadelphia tax revenues, making
the Higher Eds among Philadelphia's largest exporters."
To read more and to access a full copy of this
informative report, click here…
Nutter Administration Tightening Checks on City Construction Bidders:
The Nutter administration says it is improving the
screening of companies that bid for construction contracts, after one
contractor at the airport was caught fudging the facts on his bid.
Read more about
this here…
Diversity lacking at campus construction:
Community members and activists are trying to
change the hiring practices of construction companies at Temple after
complaints about diversity in the workforce and lack of community input.
PHAIR Hiring Coalition began holding protests in
late 2011. The group is an offshoot of Occupy Philly and led by local
electrician Fermin Morales. While the coalition no longer does public protests
at Temple, they continue to meet on a regular basis.
Mary Stricker, a Temple sociology professor, acts
as the liaison between the university and the community. “We would like Temple to work for female and
minority representation on all of these sites that is equivalent to their representation in
the community surrounding Temple,” Stricker said.
Read the full article here…
Trenton
Housing Authority pre-apprenticeship program prepares workers for union jobs
The 204 Rush Crossing apartments and townhouses
under construction on the site of the former Miller Homes complex on Lincoln
Avenue have brought hope of better dwellings for many city residents. Now, the
project will offer career potential for laborers who have long wished for
steady work in the trades but lacked the necessary skills.
Representatives from local trade unions, building
developers and city officials stood inside one of the unfinished buildings
yesterday to announce a new pre-apprenticeship program designed for
construction workers interested in learning to become fully skilled craftsmen
capable of building careers for themselves, rather than working perpetual side
jobs.
Read more here...
NY Building Congress Forecasts Construction Spending
Surges:
As discussed in past issues of this newsletters, a
strengthening labor market in the New York Metropolitan marketplace will have
serious implications on the next several years of regional collective
bargaining here in the Philadelphia Metropolitan marketplace.
Two mega-development sites, a resurgent residential
market and ongoing government infrastructure projects will drive area
construction up to record levels this year and continue to spike through 2015,
according to a new report by the New York Building Congress. The New York City Construction Outlook 2013-2015—prepared with support from the New York Building Foundation—promises boosts in activity across numerous sectors, leading also to an
increase in construction employment.
The report estimates 2013 construction spending to
reach $31.5 billion, a 14% increase from 2012 when construction spending
reached $27.6 billion. Construction activity is expected to continue
gaining momentum in the coming years—growing to $33.4 billion in 2014 and then
$37 billion in 2015.
What does all of this mean for construction jobs?
The NYBC projects the addition of 4,200 new construction jobs in 2013—up to
119,100 from 114,900 in 2012. The forecast anticipates a total of 123,400 jobs
in 2014, and 129,700 in 2015.
Read the full story here…
Three economists give construction outlook for rest
of 2013, and ahead
The construction sector was booming
in the mid-to late-2000s, and then the Great Recession grabbed hold and the
industry changed overnight. Layoffs were rampant; dozens of
mega-construction projects stalled; half built buildings dotted the country.
But, after a few years, a slow, but increasingly steady — or at least somewhat optimistic
— outlook started to take hold.Housing starts were increasingly rapidly, and passage of the transportation bill, or MAP-21, put roadwork back on the map. The continuing shale boom brought a need for new rail facilities, accommodations, drillers, and more. And American ports were pouring money into upgrades at their sites to accommodate the expected larger ships once the Panama Canal expansion finished. So, things had started to offer a bit of hope.
Then came uncertainty over the debt ceiling, and the looming debt default. For the past three months, the government data — when it was available — has shown a slight downward trend in many parts of the architectural, engineering and construction industry. And that has three industry economists somewhat worried.
Bernard Markstein, chief economist at Reed Construction Data, Ken Simonson, chief economist at the Associated General Contractors of America and Kermit Baker, chief economist at the American Institute of Architects were the featured speakers at the Oct. 17 webinar “The 2014 Outlook: Emerging Opportunities for Construction.” They each mapped out what they’d seen this year and where they thought the industry was headed next year and beyond.
Read the entire article here…
High Performance Building Program Available:
Did you know that the Pennsylvania Department of Economic and Community
Development offers assistance to facility owners in the forms of grants and
loan funds to underwrite the cost premiums associated with the design and
construction or major renovation of high performance buildings in the state?
The High Performance Building
Program (HPB) provides financial assistance in the forms of grants
and loan funds to underwrite the cost premiums associated with the design and
construction or major renovation of high performance buildings in the state.
GMCS recently worked with a facility owner,
contactor and trade to capitalize on a project’s potential. With
Philadelphia’s recent mandated registration and tracking effective in October,
2013, it may be time for you to consider planning and designing the
future of your building.
See the High
Performance Building program page here…
GLASS Report: Legislative Action Alert: HB 493 Pass PA House and Senate:
HB493 has been Signed by the Governor on October
25, 2013. Gregory Management &
Consulting Services issued a GLASS Report Legislative Action Alert to its AEC
clients throughout the Commonwealth of Pennsylvania. As many large scale commercial &
development projects throughout the region receive some component of their
overall funding package via the Governor’s RACP program, your legislative
advisors should have been keeping you aware of this legislation since its
introduction on February 4, 2013. If
you didn’t know, maybe it’s time that your association considers GMCS GLASS
Reports? Contact Wayne Gregory, wegregory@gregorymcs.com to learn more about GLASS Reports for your organization.
To read the Original Memorandum introducing the
legislation on January 25, 2013 to the House of Representatives, go here….
Collaborating for success with IPD:
With all team members located in this Big Room, it’s easy to work together to solve problems.Trust. Big Room. Reliable promises. Continuous learning. These words aren’t part of the traditional construction lexicon, but they’re an integral part of how the Skanska team is approaching the San Carlos Center, a 170,000-square-foot medical clinic near San Francisco that we’re building for the Palo Alto Medical Foundation, an affiliate of Sutter Health.
Different words are needed because we’re delivering this project via a relatively new method: integrated project delivery (IPD).
Read more here…
The World's First 3D Printed Room is a Mind-Boggling Baroque Interior:
The image gallery alone is worth reading this
article. Imagine the realm of possibilities as it relates to this
evolving technology. The level of detail is beyond imaginable.
Couple this technology with 3D scanning technology and BIM integration and
almost nothing is beyond capable. Has the AEC industry entered a new age,
a renaissance so to speak, in terms of affordability and accessibility to
ornate and recreated classic architectural elements? Are the days of
on-site craftsman becoming limited? While the article is rather small,
the images are breathtaking.
Hansmeyer and Dillenburger’s 3D printed “room”
looks like a historic temple or an architectural fragment from a more
decorative era. The room was printed in large chunks over the course of a
month, and then brought together and assembled in one day. The pieces were then
polished, making the seams blend together into one unified installation.
See the entire article and photo gallery here…
Increased Activity in Design Firms and Increased Construction Activity Results in Steady Growth in Construction Costs According to Turner Building Cost Index:
Turner Construction Company announced that the
Third Quarter 2013 Turner Building Cost Index – which measures costs in the
non-residential building construction market in the United States – has
increased to a value of 868. This reflects a 1.05% increase from the Second
Quarter 2013 and 4.33% annual increase from the Third Quarter 2012.
The press release here…
Download the Turner Q3, 2013 Report here…
Architecture Billings Index Surges Higher:
Showing a steady increase in the demand for design
services, the Architecture Billings Index (ABI) continues to accelerate, as it
reached its second highest level of the year. As a leading economic indicator
of construction activity, the ABI reflects the approximate nine to twelve month
lead time between architecture billings and construction spending. The American
Institute of Architects (AIA) reported the September ABI score was 54.3, up
from a mark of 53.8 in August. This score reflects an increase in design
services (any score above 50 indicates an increase in billings). The new
projects inquiry index was 58.6, down from the reading of 63.0 the previous
month.
Read the full press release here…
LABOR:
Construction resumes after four-day strike ends in Massachusetts:
The strike by
1,300 unionized heavy equipment operators shut down the $3.75 million Manhan
Bridge project completely Friday, along with a number of other construction
sites in the Pioneer Valley, including at the University of Massachusetts
Amherst and Interstate 91 in Deerfield.
There are some very interesting components of the
settlements that parallel past negotiations in Philadelphia and could impact
2014 negotiations in Philadelphia.
One article may be found here…
Another article may be found here…
A union against Inquirer publisher:
The last 30 days, regionally, have been fairly quiet in terms
of labor disputes. The only reportable
incident has been at the Philadelphia Inquirer as management was locked in
their own internal dispute amongst leadership.
Read more here…
Transportation funding linked to Pa. wage
concessions from unions – Speaker Smith Addresses Transportation Funding:
Negotiations
over a transportation funding plan for Pennsylvania are alive in the state
House -- for now.
As
reported in the Pennsylvania Weekly, Speaker
of the House Sam Smith addressed members of the press to discuss the status of
transportation funding legislation currently awaiting action by the House of
Representatives.
Speaker Smith noted he was approached by Department
of Transportation (PennDOT) Secretary Barry Schoch about a month ago and was
asked what would get his interest in Senate Bill 1 to help move something
forward. “I told him the only thing that I thought would generate new interest
in our caucus was the inclusion of some prevailing wage issues, namely the definition
or ‘road maintenance’ that was unilaterally flipped by the Rendell
administration and backed up by a court decision…and increasing the threshold
by increasing the current number of $25,000 to $100,000.”
Even though he noted negotiations between all four
caucuses have been continuing on the legislation, and some unions have
expressed support for changing prevailing wage requirements, he is unsure
whether the bill will be voted upon any time soon. “If we can’t touch
prevailing wage, then I’m not a part of it,” he said and noted prevailing wage
reform would be needed to get the 55 to 60 House Republicans needed to pass
this type of legislation based upon prior history. “There will be a notable
prevailing wage component if I’m going to stay involved in it and roughly
one-third of my caucus,” he said.
He said he will continue working on getting the
prevailing wage issue settled with an eye to possibly voting on the bill—at the
earliest—when the General Assembly returns to voting session in mid-November.
“Everybody is still talking,” he said, “far be it for me to stop that.”
Employer Unlawfully Fired
Employee Who Was Expelled From Union:
Administrative Law Judge Lauren Esposito determined that Crisdel
Group, Inc. violated the National Labor Relations Act when it laid-off an
employee because he was expelled from the union for reasons other than failure
to pay dues. [Crisdel Group, Inc., 22-CA-077469 (NY)].
Section
8(a)(3) of the NLRA prohibits any employer from justifying any discrimination
against an employee for non-membership in a union if the employer has
reasonable grounds to believe that an employee’s union membership was denied or
terminated for reasons other than the employee’s failure to remit required dues
and initiation fees.
Read
more about this posting from Susanin, Widman & Brennan (SWB), a local law
firm that represents employers in the areas of
labor and employment law, employee benefits, and construction law, by
going here…
Regional Collective Bargaining Settlement Sheets available:
GMCS has compiled a detailed settlement report defining the regional trade settlements for this year’s collective bargaining as well as detailing the previously negotiated settlements for trades and associations in 2013. Complimentary copies of the GMCS Regional Settlement Sheets are available to those associations that contributed to the creation of this year’s Regional Settlement Sheets. Copies are also available to those associations not engaged in active negotiations at this time. Please contact GMCS at wegregory@gregorymcs.com today for instructions on how to receive your copy.
Effective Social Media Campaigns in Labor Disputes & Organizing
Campaigns and their impact on your Employer Associations and firms:
Labor
Relation’s professionals in Philadelphia have had a front row seat to
multi-front social media campaigns being waged across multiple industries
including, construction, manufacturing, entertainment, healthcare, education
and more. In the past year we have witnessed social media campaigns
successfully waged across multiple industries in the region and many with
documentable success. I recently engaged in a discussion with other
national labor relations professionals at Cornell University’s Industry &
Labor Relations School on the growing popularity of the social media
campaign. When discussing the tactics, methods and effectiveness with other
industry professionals, Philadelphia was far ahead of the curve in terms of
deployment, industries impacted and documented success achieved.
Many
within management fail to recognize the effectiveness of these electronic and
social media campaigns. While a
“Tweet” may seem benign in nature, it can irreparably harm you and your
businesses reputation.
Read
more here…
The Affordable Care Act In Labor Contract
Negotiations:
The Affordable Care Act ("ACA") infuses new
complexities into collective bargaining negotiations over health insurance
benefits. In past years, the challenge for many employers at the bargaining
table has been to control escalating health insurance costs and to shift an
increasing share of those costs onto employees. Those challenges were hard
enough. But now, with the advent of the ACA, employers face entirely new
challenges as they develop their bargaining positions on health benefits. The ACA
forces unionized employers to reassess the health benefits that they provide
employees and determine which employees should be eligible to receive them. In
addition, employers must develop new strategies for negotiating health
benefits, with the goal of minimizing their exposure to ACA penalties,
satisfying the ACA's coverage and benefit requirements, and preserving
flexibility to make changes to comply with the ACA's complex and evolving
requirements.Read more about Bargaining Considerations, Taft-Hartley Plans, Bargaining Strategies, Economics and terms here…
Sixth Circuit Affirms NLRB Decision That Set Framework For Allowing Multiple Unions In Single Facility:
The U.S. Court
of Appeals for the Sixth Circuit upheld the National Labor Relations Board's
controversial Specialty Healthcare decision, which established a new
standard for determining what constitutes an appropriate bargaining unit.
In the NLRB's 2011 Specialty
Healthcare decision, a union petitioned for an election in a unit that
consisted of certified nursing assistants (CNAs) but excluded other service and
maintenance employees. The employer objected to the proposed unit on the
grounds that the service and maintenance employees shared a "community of
interest" with the CNAs and should therefore be included in the unit. In
Specialty Healthcare, the NLRB rejected the employer's argument and adopted a
new, heightened standard that requires an employer challenging a union's
proposed unit to establish that "employees it seeks to include [in the
unit] share an overwhelming community of interest with the petitioned for
employees" in the proposed unit.
The Sixth Circuit's ruling may lead
to an increase in union organizing efforts among separate and distinct groups
of employees in the same facility and will bolster any such efforts that are
already underway.
Read more here…
GMCS is the Philadelphia Region’s Leading Labor Relations Solutions Provider:
A recent study by the Center for Construction Research and
Training indicates that work site conflict costs, on average, $11,000.00
per incident. GMCS provides contracted labor relations services to many
of the region’s employer associations, contractors, facility owners and
industry stakeholders helping you to avoid those costly conflicts. With two levels of
affordable annual agreements costing less than 50% of the cost of an average
conflict, contracted labor relations services can help your
organization stay on schedule and budget.
Contact
wegregory@gregorymcs.com for your
consultation today.
Gregory Management & Consulting Services Supporting the Industry:
Gregory Management & Consulting Services (GMCS) continues to provide support to national & regional Employer Associations, Developers, Industrial and Commercial Facility Owners, Industry Owner groups and trades in developing positive relationships within the industry and also in cross-industry collaboration. Do you have questions on jurisdiction, language, your signatory obligations or how to administer your current agreements more effectively and efficiently? Could your Association benefit from full time, 24/7 labor relations support? Would your negotiating team benefit from the support and advice of an experienced negotiator? Are national and regional trends & settlements in collective bargaining of interest to your organization? Contact GMCS @ wegregory@gregorymcs.com for a customized contracted Labor Relations Support solution. Through long term, trusted & established relationships across the entire industry, GMCS works with diverse groups of owners, employer associations and industry stakeholders to advance the interests of our industry. From jurisdictional assignments, collective bargaining preparation, trends analysis and commentary, execution, support, agreement interpretation & guidance, association management, contracted labor relations support solutions, industry and legislative affairs, let GMCS, with its reputation built on a firm foundation of Knowledge, Trust, Integrity and a unwavering commitment to Serve the industry, guide you to a better solution.Wage Gains Unlikely to Improve, Latest WTI Indicates:
According to BNA’s latest Wage Trend Indicator, private sector workers in the coming months likely will see little or no improvement in the overall rate of annual wage increases, according to the final third-quarter Wage Trend Indicator.
The index edged down
to 98.70 (second quarter 1976 = 100) from the second-quarter reading of 98.72.
For the past two years, the WTI has fluctuated within a narrow range from 98.47
to 98.75, showing no clear upward or downward trend.
Reflecting mixed
economic conditions, three of the WTI's seven components made positive
contributions to the final third-quarter reading, while four factors
were negative.
Read the full report here…
OSHA:
OSHA's Notice of Proposed Rulemaking (NPRM) for Occupational Exposure to Respirable Crystalline Silica was published in the Federal Register on September 12, 2013:
The Occupational Safety and Health Administration (OSHA) proposes to amend its existing standards for occupational exposure to respirable crystalline silica. The basis for issuance of this proposal is a preliminary determination by the Assistant Secretary of Labor for Occupational Safety and Health that employees exposed to respirable crystalline silica face a significant risk to their health at the current permissible exposure limits and that promulgating these proposed standards will substantially reduce that risk.The entire document that proposes a new permissible exposure limit can be found here…
What is Crystalline Silica?:
Respirable
crystalline silica – very small particles at least 100 times smaller than
ordinary sand you might encounter on beaches and playgrounds – is created
during work operations involving stone, rock, concrete, brick, block, mortar,
and industrial sand. Exposures to respirable crystalline silica can occur when
cutting, sawing, grinding, drilling, and crushing these materials. These
exposures are common in brick, concrete, and pottery manufacturing operations,
as well as during operations using industrial sand products, such as in
foundries, sand blasting, and hydraulic fracturing (fracking) operations in the
oil and gas industry.
More
on Crystalline Silica and an important OSHA Fact Sheet for the Construction
Industry can be found here…
OSHA extends comment period on proposed silica rule to provide additional time for public input:
The U.S Department of Labor’s
Occupational Safety and Health Administration is extending the public comment
period for an additional 47 days on the Notice of Proposed Rulemaking on
Occupational Exposure to Crystalline Silica.
In response to requests for an
extension, the deadline to submit written comments and testimony is being
extended from Dec. 11, 2013, to Jan. 27, 2014, to allow stakeholders additional
time to comment on the proposed rule and supporting analyses.
Read the Press Release here…
OSHA Releases New Resources to Help Employers Protect Workers from Hazardous Chemicals:
From
steel mills to hospitals, from construction sites to nail salons, hazardous
chemical exposure is a serious concern for countless employers and workers in
many, many industries, in every part of this nation.
To
help keep workers safe, OSHA recently launched two new chemical safety
resources.
Check
out the official OSHA Blog post on this subject here…
OSHA releases new fall prevention training guide with "tool box talks:
A
new OSHA Fall Prevention Training
Guide with "tool box talks" is now available to educate
workers on how to stay safe while working on roofs, scaffolding and ladders.
You
may find the OSHA Fall Prevention Training Guide with Tool Box Talks here…
OSHA and Society of Chemical Hazard Communication Alliance partnership on Global Hazard Communication:
More
than 2,500 people virtually attended this summer’s GHS webinar presented
through the Alliance of OSHA and the Society of Chemical Hazard Communication.
OSHA staff discussed the training needed to meet the first deadline in the
implementation phase, Dec. 1, 2013, and answered questions about the Hazard
Communication standard since it was updated last year to align with the
Globally Harmonized System of Classification and Labeling of Chemicals.
OSHA’s
Hazard Communication Resource Page, containing many NEW updates and
downloadable resources, may be found here…
The
Society of Chemical Hazard Communication & OSHA Alliance (SCHC-OSHA)
Committee Partnership page, containing many NEW updates and even more
downloadable resources, may be found here…
OSHA -
Respirator Fit Standards - Winter Reminder:
OSHA
recently issued proposed citations totaling more than $280,000 in fines against
multiple contractors on a single industrial site. I bring this to the
attention of our clients, not because of the dollar amount, but because of the
citations issued. Most of which were avoidable citations for known
hazards such as a failure to provide adequate worker protections on the
site. Most of which were easily identifiable by the Competent Person on
site at the time of these incidents.
A
link to the OSHA citation defining the specific violations can be found here…
While
Gregory Management & Consulting Services clients operate within all sectors
of the general construction industry, I want to focus on PPE, respirators and
fit testing standards as it impacts every sector of the entire industry.
As we enter the public comment period for silica exposure and should already
know the standards for Respiratory Protection in the industry, it should go
without saying that the respirator, and related fit testing, are crucial
components within every safety program and must be taken seriously by
management and the Competent Person on every site.
OSHA's top 10 violations for 2013
The region Fall protection tops the list of the Occupational Safety and Health Administration’s most-cited workplace safety violations, according to a presentation by OSHA officials at the 2013 National Safety Council Congress & Expo in Chicago. During the past 12 months, a total of 8,241 fall protection violations were issued by the agency.The FY 2013 top 10 are:
1. 1926.501 – Fall Protection 8,241 violations
2. 1910.1200 – Hazard Communication 6,156
3. 1926.451 – Scaffolding 5,423
4. 1910.134 – Respiratory Protection 3,879
5. 1910.305 – Electrical, Wiring Methods 3,452
6. 1910.178 – Powered Industrial Trucks 3,340
7. 1926.1053 – Ladders 3,311
8. 1910.147 – Lockout/Tagout 3,254
9. 1910.303 – Electrical, General Requirements 2,745
10. 1910.212 – Machine Guarding 2,701
Data Source: OIS Standards Cited Report Dated 9/13/13
See the entire article here…
5 Issues OSHA Will Target over the Remainder of 2013:
According to Eric Conn, Head of the OSHA Practice Group
at Epstein Becker Green, there are 5 Issues that will be a target as we round
out the remainder of 2013. Four of those
issues are specific to the construction industry and facilities
maintenance. They are as follows:
Emergency Exits & Exit Routes
Hazard Communication
LO/TO & Machine Guarding
Fall Protection
Compliance with the Grain Standard
See the
whole article here…
OSHA 2014 Budget Justification - Will Implement Its New "Weighted Inspection System
The U.S. Occupational Safety and Health Administration released its 2014 Budget Justification this week, indicating implementation of its new “weighted inspection system” to target the most serious hazards such as those found in refineries, trenching, shipbreaking, falls, chemical plants and industries that use crystalline silica, lead, and hexavalent chromium.The Agency plans to adjust its enforcement approach by developing a system to rate inspections on complexity. By rating the complexity of an inspection, OSHA compliance officers and Area Offices will be focusing time and effort on “more complex inspections,” such as Process Safety Management (PSM) facilities and health inspections such as bloodborne pathogen, respiratory protection, and other hazards. OSHA believes that this “ultimately will have a greater impact on workplace safety and health.”
Page 23 of the justification states:
“In
FY 2014, OSHA plans to conduct an estimated 39,250 inspections to produce safer
and healthier workplaces and continue to use national and local emphasis
programs to target high-risk hazards and industries for inspections. This
represents a decrease of 1,711 from the FY 2012 total, reflecting the
implementation of OSHA’s new weighted inspection system. These targeting
initiatives have successfully addressed some of the most serious hazards such
as those found in refineries, trenching, shipbreaking, falls, chemical plants
and industries that use crystalline silica, lead, and hexavalent chromium,
among others. The Agency intends to explore adjustments to its enforcement
approach and develop a system to rate inspections on complexity. By rating the
complexity of an inspection, it should provide an incentive for OSHA compliance
officers and Area Offices to focus time and effort on more complex inspections
(such as Process Safety Management) that ultimately will have a greater impact
on workplace safety and health.”
“Strong,
fair and effective enforcement remains one of OSHA’s prime objectives.
Enforcement impact is magnified by improving inspection targeting and holding
the worst of the worst employers accountable for their actions through the
Severe Violator Enforcement Program (SVEP). With the aid of stronger and more
rigorously analyzed data, OSHA will continue to conduct rigorous, targeted
inspections so every employer will understand that it is unacceptable to expose
workers to serious health or safety hazards.”
OSHA
estimates that four new standards will be promulgated in FY 2014, the agency is
also accelerating the initial steps for additional standards in subsequent
years.
Access the source for this article here…
Safety pays, but falls cost: Plan, provide, and train to
stop fatal falls in construction:
OSHA In an article in the Fall
2013 issue of Elevating Safety
(PDF*), OSHA Director of Construction Jim Maddux discusses the high cost of
fatal falls in construction, which are the leading cause of death in the
industry. Worker injuries and deaths don’t just hurt families and communities,
he explains, they also take a great toll on our economy. To prevent falls,
employers need to plan ahead to get the job done safely, provide the right
equipment, and train everyone to use their equipment safely. To order free
educational and training resources, including OSHA's new bilingual
ladder safety booklet (PDF*), visit our Publications
page or call the Office of Communications at (202) 693-1999.
OSHA National fall Prevention Program Continues:
Falls
are the leading cause of death in construction, and OSHA is working with NIOSH
and the National Occupational Research Agenda to get the word out about how to
"Plan, Provide, Train" to prevent fatal falls. To learn more, please
check out OSHA’s Fall Prevention Campaign resource page here…
MULTI-EMPLOYER PLAN UPDATE:
City of Annapolis and 4 employee unions reach historic
4-year agreement:
The
City of Annapolis and its four employee unions have reached a historic 4-year
agreement. These negotiations addressed the City’s unfunded liabilities,
restoring full funding to the Police Fire Pension Plan and putting in place a
solution for previously unfunded retiree healthcare.
Read
more here…
Based
on early responses from a major survey conducted annually by Mercer, employers
expect health benefit cost per employee will rise by 4.8% on average in 2014.
Cost growth slowed to 4.1% in 2012, a 15-year low. The projected increase for
2014, while still relatively low, represents a slight uptick in the rate of
growth (Fig. 1).
“The
recession has been one factor behind slower cost growth, by dampening
utilization,” said Beth Umland, Mercer’s director of research for health and
benefits. “But employers have made fundamental changes in their health benefit
programs in recent years that have put the brakes on unsustainable cost
growth.”
Employers
estimate that if they made no changes to their current plans, health benefit
cost per employee would rise by 7% on average in 2014.
Read
more here…
Another
resource for health care costs can be found here…
You can hardly pick up a newspaper or business magazine today without reading about the staggering costs of defined benefit multiemployer plans, both public and private, and the impact on companies, their workers and lenders. There are approximately 1,500 private multiemployer plans covering more than 10 million workers and retirees. According to the PBGC, about 24 percent of these plans are now in critical financial condition (less than 65 percent funded) and another 17 percent are endangered. Up to 150 plans face insolvency and termination within the next 10-15 years.
Risk management of pension liabilities now needs to be a top priority. Management needs to devise a plan to contain these costs.
Read more here…
Another Participant Challenge to Defined Benefit Plan Investments: Could Your Plan Defend its Investment Program?
The focus of U.S. litigation challenging plan investments has been 401(k) plans, but that may be changing. Defined benefit plan sponsors may have felt that they were immune to these types of claims because the funding rules require them to make up investment losses, but defined benefit plans are now becoming targets in class action litigation.
The
plan’s investment manager, FAF Advisors, was a subsidiary of U.S. Bancorp. FAF
not only invested 100% of plan assets in equities, but was said to have invested
over 40% in its own mutual funds, which plaintiffs claim caused it to
personally benefit from the use of plan assets by increasing its assets under
management and making the funds more attractive to other investors.
Read
more here…
Corporate pension funded ratio in September exceeds 91%, a level last observed in 2008:
Pension
funded status improves by $32 billion during September. The $132 billion
pension deficit for the Milliman 100 PFI is a stellar improvement over the $469
billion pension deficit experienced just one year ago.
Read more here…
Another source confirming the data above can be found here…
Rising Interest
Rates and Increased Funding Status Making Options for Multi-Employer DB Plans
For nearly 30 years, institutional investors have lived within a regime of
falling interest rates. In the 1980s, U.S. 10-year Treasury bond interest rates
peaked at 14%. In 2012, they reached new lows, falling below 2%. On the upside,
this secular trend helped fuel one of the most powerful bull markets—for both
stocks and bonds—in history.
On the downside, it can be argued that
low rates have helped fuel a cycle of booms and busts, centered on technology
stocks and real estate, since the year 2000. What’s certain is that falling
interest rates caused the valuation of defined benefit (DB) pension plan
liabilities to soar.
Read more here…
Defined benefit pension math still works:
The question of whether defined benefit pension plans are large contributors to the deteriorating financial condition of cities and counties and other public-sector sponsors of these plans, especially within the lower growth and low-interest-rate environment that characterizes the current economy, continues to be at the forefront of public policy discussion. Unrealistic promises of high returns from long-term pools of invested capital have been identified as a culprit in the widened spread between the dollars necessary to pay benefits and the assets available for that purpose.In assessing the validity of these claims, let us analyze the investment environment and the likelihood of achieving the goal of a 7% to 8% return on a pool of assets invested in a diversified manner over an extended investment horizon.
Read the full analysis here…
HUMAN RESOURCES:
Rise in
Professionals' Starting Salaries Outpaces Wage Gains:
U.S. starting salaries for
professional occupations are projected to increase an average
of 3.7 percent in 2014, according to placement firm Robert
Half International. Technology positions are expected to see the largest gains
among all fields researched, with an anticipated 5.6 percent increase in the average salary for those newly hired.
In comparison, average base-pay
increases for 2014 are expected to remain at 3 percent for the second year in a row, according to consensus forecasts. The Survey of Professional
Forecasters puts the Consumer Price Index increase at just 2.1 percent next year, with a projected national unemployment rate of
slightly above 7
percent restraining labor inflation.
Read more here…
Online Salary Guide Resources from Robert
Half:
Hiring
managers with knowledge of current salary and employment trends in their
industries and geographies are in the best position to recruit and retain top
performers. Our Salary Guides provide comprehensive data on average starting
salaries for accounting and finance, administrative, technology, legal, and
creative professionals. Each of Robert Half's specialized staffing divisions
publishes an annual Salary Guides specific to the field it serves, as
well as an accompanying Salary Center. Go to the Salary Guide Center here…
Docking pay for exempt employees: What’s allowed?:
As a rule of thumb, FLSA doesn’t permit deductions
from exempt employees. The regs state that the amount of money a salaried
employee earns can’t be dependent on the number of days or hours he or she
works. You also can’t deduct money based on the quantity or quality of work the
employee produces.
But – no surprise here – there are several
exceptions. What happens if your company accidentally makes an improper
deduction? Nothing, so long as it’s an isolated incident and the company
corrects it. But if there are repeat violations, entire departments of exempt
workers can suddenly transform into OT-eligible ones by the magical powers of
FLSA.
Read more about Permitted and prohibited deductions here…
10 things to remind your employees about ACA:
Effective
HR professionals are dealing with both
the usual crush of questions on open enrollment and a new onslaught of queries
and concerns surrounding Obamacare and the health care marketplaces – even from
those who have nothing to do with the public exchanges. By now, you have
notified workers about the Affordable Care Act. You've made sure all your plans
are compliant. Surely that’s all you have to communicate, right?
Read more here….
ACA Subsidy Calculator:
This
tool illustrates health insurance premiums and subsidies for people purchasing
insurance on their own in new health insurance exchanges (or “Marketplaces”)
created by the Affordable Care Act (ACA). Beginning in October 2013,
middle-income people under age 65, who are not eligible for coverage through
their employer, Medicaid, or Medicare, can apply for tax credit subsidies
available through state-based exchanges.
With
this calculator, you can enter different income levels, ages, and family sizes
to get an estimate of your eligibility for subsidies and how much you could
spend on health insurance. As premiums and eligibility requirements may vary,
contact your state’s Medicaid office or exchange with enrollment questions.
Go to the calculator here…
Boiling down the ACA
A lot of
employers and advisers might want a simple, at-a-glance way to see all the
Affordable Care Act requirements that apply to their business(es). This is no easy
task given group size, SHOP exchanges and self-funding variables. Let’s take a
look at a few provisions that are effective for the plan year beginning on or
after January 1.See what (non-grandfathered) large group insured plans (more than 50 employees) should be focused on by going here…
Action Steps NOW To Comply With The Affordable Care Act:
Although
the one-year delay in the effective date of the pay-or-play provisions of the
Affordable Care Act (“ACA”) (until January 1, 2015) gives employer-sponsored
health plans more time to prepare for those requirements, many ACA provisions
will take effect on January 1, 2014. Employees are asking for information
regarding these changes and the Department of Labor is already including ACA
requirements in its benefit plan audits. The target keeps moving.
See
what you need to do NOW to ensure that your health plan is in compliance on
January 1, 2014 and what you need to be prepared for in the future by going here…
What's the One Thing Missing from Most Employee Handbooks?
In your experience, what's the one thing most employers overlook when putting together an employee handbook? The answer to that question depends on whom you ask - and, for a legal perspective, this question was put to leading employment lawyers writing on JD Supra. Here is what they heard back. After reading, ask yourself, how does your employee handbook fare with this list of must-have items?See the full list here…
Disgruntled employees: What are the risks, what are the remedies?:
HR professionals know the tips and tricks to keep from making bad hires. There’s never any certainty, but smart professionals armed with strong interviewing skills and solid job descriptions stand a better than good chance of weeding out bad hires on the front end. But what does the savvy HR pro do about “bad quits” – people who spew venom against their former employer or cause other harm as they head out the door? Does HR have any recourse when someone is not just going away, but going away mad?Read more here…
Healthcare Marketplace Notice to Employees – Did You Follow Through on the
October 1, 2013 Requirements?:
If not,
here is your last chance to rectify the matter.
The Patient Protection and Affordable Care Act requires employers to
furnish employees a notice of the availability of coverage through public
health insurance exchanges, i.e., the “Marketplace”. The Department of Labor requires that employers give employees the
notice by October 1, 2013. The Department of Labor Technical Release
2013-02 provides temporary guidance and templates for the notice.You may find the DOL Technical Release 2013-02 here…
Read more on this subject here…
IN THE COURTS:
Pennsylvania Supreme Court to Address
Important Issue on Implied Warranty Claims in Construction Defect Cases:
The
Pennsylvania Supreme Court has granted allocator in the case of Conway v.
Cutler, No. 954 MAL 2012 (Pa. Oct. 15, 2013), to address an
issue regarding implied warranty claims and remote/subsequent purchasers
of newly constructed residential homes. According to Attorney Joe Walsh of the Lansdale, Pennsylvania law firm of Walsh Pancio LLP, an attorney who defends a number of construction defect claims (including cases involving water intrusion issues in home with stucco cladding), this case has great potential ramifications for the building industry and insurers who are still providing defenses under reservation of rights. Attorney Walsh notes that these implied warranty claims are generally at the center of the homeowners’ complaints together with other contract, tort, and UTP claims.
Anyone wishing to review the Pennsylvania Supreme Court Order granting allocator, may click this LINK.
See the original posting here..
REGULATION:
Demolition requirement bills introduced in
Philadelphia City Council:
Following
up on recommendations from their investigation of city demolition practices,
City Council members unveiled a five-bill package to strengthen the safety
requirements on demolition jobs and mandate minimum training for both
contractors and city inspectors, among other changes.
"This
legislation is the next phase of reinforcing public safety in demolition
practices in Philadelphia," said Councilman Curtis Jones Jr., chairman of
the Council committee that held demolition hearings over the summer, spurred by
the June 5 building collapse in Center City that killed six people and injured
14 more.
Council
sources said there is still significant disagreement among Council members on
how stringent the new regulatory requirements should be.
Read
more here…
Gregory Legislative Affairs Subscription Service (GLASS) Reports provide up to the minute legislative developments, directly to your organization, as they develop in the PA General Assembly. GLASS Reports provide a clear view of industry changing legislation as it develops through a direct subscription service your organization. GLASS REPORTS are the single, personalized response to your organization’s legislative affairs needs. Contact GMCS for a personalized consultation and proposal that fits your organization’s legislative affairs needs.
PA General Assembly Senate and House Session Schedule:
The Fall Regular Session of the PA General Assembly has begun. The Senate and House Session Schedules are as follows:
House
November 12, 13, 18, 19, 20
December 9, 10, 11, 16, 17, 18 (Non-Voting)
Senate
November 12, 13, 18, 19, 20
December 3, 4, 9, 10, 11
For
a PDF copy of the full House Bill Calendars, click here…
For
the full Senate Bill Calendar, click here….
HR 1406, the Working Families Flexibility Act – Passes U.S. House of Representatives:
On
May 8, 2013, the U.S. House of Representatives passed HR 1406, the Working
Families Flexibility Act, which would allow employers to offer compensatory
time off in lieu of time-and-a-half cash wages for overtime.
The
bill would let private-sector employers offer compensatory paid time off to
hourly employees who work more than 40 hours per week in lieu of cash wages at
1 ½ times their regular rate of pay. The comp time would be offered at a rate
of 1 ½ hours per hour of overtime worked, and both the worker and the employer
would need to agree in writing to the comp time arrangement. To be eligible for
the comp time, an employee would have to have worked a minimum of 1,000 hours
within the last 12 months. Employees could accrue up to 160 hours of comp time
a year.
This
bill has it supporters and its opposition and this newsletter is simply not the
forum to discuss all of them. An informative article on the bill can be found here…
GMCS
represents and supports a wide range of clients in the region; many are engaged
in the commercial and residential construction markets and associated with
multi-employer associations. In many cases, multiple employers utilize a
transient workforce that can easily move from project to project and employer to
employer as demands and schedules dictate. Consideration should be given
to the administration of a program that could facilitate the tracking and
dispersal of accrued time and required payouts. Much like Philadelphia
City Council’s previous attempt to legislate paid sick time, administering this
program could be potentially costly to those employers. Arguably, all of
our region’s construction employers are already burdened with significant
administration and compliance responsibilities, but this bill could potentially
add an additional layer of complexity and administration to an already costly
and burdensome process. I urge all of my clients to take the time to
review the legislation and give full consideration to the impact that it may
have on your operations, both in the office and in the field.
Status
as of October 31, 2013: Passed House, 223/204
HR 2903, The Lead Exposure Reduction Amendments Act of 2013:
On
May 22, 2013, the U. S. House of Representatives reintroduced legislation for
the Lead Renovation Repair & Painting (LRRP), H.R. 2093 The Lead
Exposure Reduction Amendments Act of 2013 (H.R. 2093) is identical to
legislation introduced in the last Congress. The bill reinstates the opt-out
provision to allow home owners without small children or pregnant women
residing in the home to decide whether to require LRRP compliance, allow
remodelers to correct paperwork errors without facing full penalties and
provide an exemption for emergency renovations. It would also eliminate the
requirement that recertification training be “hands on,” so that remodelers
would no longer have to travel to training facilities out of their region.
The
bipartisan bill, companion legislation to S. 484, was introduced in the U.S.
House of Representatives by Rep. Tim Murphy (R-Pa.), along with 21 original
co-sponsors. Read more here…
Status
as of October 31, 2013: Remains in Committee
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