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, contractor opportunities and workforce development. Please accept this informative newsletter 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.
Winter appears to have come early this year. With temperatures already below 30 degrees, days of torrential rain and harsh conditions, some projects have slowed. It isn’t even officially winter here in Pennsylvania. GMCS clients and prospects should take this time to consider your contracted labor & industry relations service needs for 2014. GMCS has experienced exponential growth in 2013 and looks forward to continuing to serve your organization’s needs. As your associations and organizations plan for their 2014 season, take time to fully consider the value and quality of the personalized service that GMCS can offer to your members, contractors and organizations. While regional labor disputes have declined over the last two months, 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 since 2005, 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 housing’s contribution to the industry. We discover that hotel construction spending has soared. According to BOMA, Energy Efficiency is beginning to reap rewards while only a small percentage of Philadelphia’s building owners are actually reporting in on their facility’s performance. LEED 4 makes its debut, right here in Philadelphia. We review 11 hot BIM/VDC industry topics. We find new tools in building life cycle assessment. We review a recent GLASS Report on important industry legislation. We see that modular construction is back in the newsletter with several interesting articles. For data, Wells Fargo reports positive news for the industry while ABI slows down after several strong showings. LABOR continues to highlight a growing demand on our regional labor force. We learn that employers cannot condition collective bargaining on the outcome of Noel Canning. We see what new NLRB Member Hirozawa has to say about the NLRB’s agenda in 2014. GMCS issues Jurisdictional Guidance on Rain Screen. BNA provides an analysis of CBA settlements. We see that the DOL is busy pursuing discrimination cases against contractors. Finally, BNA’s Wage Trend Indicator (WTI) provides a look ahead on wages. 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 electronic tracking of workplace Injuries. OSHA cites Philadelphia contractor in building collapse. We review OSHA’s published proposed rule on Crystalline Silica exposure in the Federal Register and see that OSHA has extended its public comment period for Crystalline Silica. OSHA makes new resources available for hazardous chemical exposure. Facility mangers learn how to manage slips, trips & fall risks in winter. We learn about OSHA’s Alliance Program Construction Roundtable. We see that common mistakes can lead to construction injuries and learn how to prevent them. We learn about the impact of the “Daily Huddle” on the work site. A recent study links safety focused companies with profitable returns. 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, safety pays, but falls cost. Finally, we continue to focus on OSHA’s ongoing National Fall Prevention program. The MULTIEMPLOYER PENSION PLANS section highlights the status of the S&P 1500’s Index plans. We see that Corporate Defined benefit Plans are “Ecstatic” over funding ratios and returns. Some data indicates that public pension plans have begun to lower plan assumptions. We read about one political candidate’s view on DB plans. DOL issues a warning to Plan Advisors. We learn that GAO finds conflict and confusion in pension disclosure rules. HUMAN RESOURCES starts off with a review of the NFL’s recent decision to hire an independent investigator and if you should too. We learn that FSA “Use it or Lose it” rule has been amended. We learn how make sure that our employee handbooks are not employment contracts. We learn about the need to update non-compete agreements. We learn about the effective use of non-competes and non-solicitation agreements in the workplace. We learn about the perils of re-boarding. We review the importance of updating our FMLA policies to reflect recent DOMA decisions. We learn that employers who snoop could face liability under the Stored Communications Act. We learn about best practices for Managing Employee Departures. We review the risks associated with avoiding the mandates of the ACA. Finally, we see that the Department of Labor has updated their pages for the Employee Benefits Security Administration. In REGULATIONS, the recent building collapse on Market Street brings about new bills in City Council reinforcing public safety. In LEGISLATIVE, the Fall Session is coming to a close with legislation making its way through the chambers and onto the Governor’s desk. A 2.3 billion dollar transportation bill has made its way through the House and Senate and has been signed into law. HB473, Mechanics Lien, still sits in Senate Sub Committee. GMCS is 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:
Housing Leads Construction Industry to
Moderate Growth in 2014, According to McGraw Hill Construction:
Read the full Press Release here…
US hotel construction spending soars:
Spending in the hotel industry through July was up
nearly 30% to $15.2 billion, Kermit Baker, chief economist with the American
Institute of Architects, said, quoting U.S. Census Bureau data. The increase
far outpaced the other commercial/industrial sectors of commercial (+1.6%), manufacturing
(+0.2%) and office (-2.1%), he said during a Reed Construction Data webinar
titled “The 2014 outlook: Emerging opportunities for construction.”
There were a total of 2,767 projects comprising
333,775 rooms in the in construction, final planning or planning stages as of
September, according to data from STR, parent company of Hotel News Now.
Read more here…
Energy-efficiency measures paying off for commercial building owners, says BOMA study:
The commercial real estate industry’s ongoing focus
on energy efficiency has resulted in a downward trend in total operating
expenses (3.9 percent drop, on average), according to BOMA's Experience
Exchange Report.
According to a study of data from the Building
Owners and Managers Association (BOMA) International’s Experience Exchange
Report (EER) by Kingsley Associates, the commercial real estate industry’s
ongoing focus on energy efficiency has resulted in a downward trend in total
operating expenses.
Analysis reveals that properties in the United
States reduced total operating expenses from $8.18 to $7.86 per square foot
(psf) on average from 2011 to 2012, a difference
of $0.32 or 3.9 percent. About two-thirds of these savings were achieved in the
utility category, where average expenses fell $0.21—a whopping 9.0 percent—to
$2.12 psf, underscoring an industry focus on maximizing building efficiency and
smart asset management.
Read more here…
Only 19% of Philly's largest
buildings have reported their energy usage to the city under Philadelphia's new
Energy Reporting Statute:
A new city law requires buildings to report their
energy usage. The original deadline for buildings to file reports has passed,
but was extended to Nov. 25 because the online reporting tool went down during
the government shutdown. Will most businesses report on time?
Read more here…
What is the life cycle environmental impact of your product? Where and how do you get your raw materials? What is in your product, and is any of it hazardous?
These may seem like
reasonable questions to the average sustainability professional, but few
manufacturers like to consider a future in which answering these questions
publicly is a basic requirement of market entry.
But this dream or
nightmare scenario will become a reality in the upcoming era of LEED v4.
Read more here…
Eleven hot BIM/VDC topics for 2013:
The following collection of feature stories and
case studies is based on the number of readers who clicked on the article in
the past 10 months. The topics range from BIM for facilities management
applications to modular data centers to augmented reality. If you like
to geek out on building information modeling and virtual design and
construction, you should enjoy this overview of the top BIM/VDC topics.
The
disruptive growth of BIM has been largely due to the unanticipated interest
contractors have taken in the technology. Contractors have grasped the power of
BIM with far more vigor than designers. Contractors look at BIM models and
immediately understand how they could be used for VDC tasks.
New Tools for Whole Building Life Cycle Assessment:
Globally, there’s an important shift in what it means for building materials and products to qualify as “green.” Familiar single-attribute proxies like recycled content, regional availability and low-VOC are gradually progressing towards more transparent environmental and health performance disclosures across a product or project’s entire lifecycle. Green building certification schemes are integrating life cycle assessment (LCA) as a tool to quantify, communicate and manage environmental impacts from the scale of individual products to whole buildings. The problem is, very few architects are experts in LCA and need help making good decisions with unfamiliar datasets.
In today’s building construction sector, design moves incredibly fast. Building Information Modeling (BIM), a data-rich 3D model-based process for delivering high performance real estate and infrastructure, is now the standard approach for architecture, engineering, and construction industries in North America. Along with supporting better coordination and visualization among multidisciplinary teams, BIM models can serve as the basis for deep sustainability analyses through simulation at key project milestones. This virtual feedback is particularly potent when flowing at the speed of design.
Read more here…
GLASS Report: Legislative Action Alert: S. 1623 Working Families Flexibility Act of 2013:
S. 1623 has been introduced in the U.S. Senate on
October 30, 2013. Gregory Management
& Consulting Services issued a GLASS Report Legislative Action Alert to its
AEC clients throughout the Commonwealth of Pennsylvania. This is a Bill to amend the Fair Labor
Standards Act of 1938 to provide compensatory time for employees in the private
sector. Your legislative advisors should
have been keeping you aware of this legislation since its introduction. 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 text of the legislation that was
introduced in the U.S. Senate on October 30, 2013, go here….
High-Rise Modular Construction Forces Major Adjustments:
As we have witnessed over the last decade, modularized construction and, most importantly, modularized methods, are becoming more and more widely accepted in commercial construction; New York City is currently leading the way in vertical development. In a further attempt to reduce the overall cost of put in place construction, it is my personal belief that we shall continue to see the implementation of modularized methods and all out modular construction here in the Philadelphia marketplace over the next decade. Have we taken the time to prepare like New York City?
Read more here…
Modular methods and techniques
continue to evolve and gain in popularity:
The Designers
of the new Sanford Medical Center have found an antidote for winter in the form
of a workaround that will help keep the project moving regardless of
weather. Significant parts of the $494
million building will be assembled in warehouses scattered around
Fargo-Moorhead, then hoisted into place by cranes when completed. The prefabricated features include headwalls
for each of the 384 patient rooms, mechanical assemblies containing heating,
cooling and other infrastructure components, and bathrooms.
Read more here…
Wells Fargo Reports that Construction Spending Continues to Bounce Back:
According
to a recent Wells Fargo Economic Report, construction spending rose 0.6 percent
in August, and the prior month’s gain was revised up to 1.4 percent. The data
point to solid gains in residential and nonresidential construction during the
third quarter.
See
the full report here…
Architecture Billings Index Slows Down - Multi-family residential and commercial sectors still thriving:
Washington, D.C. – November 20, 2013 – Following
three months of accelerating demand for design services, the Architecture Billings
Index (ABI) reflected a somewhat slower pace of growth in October. 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 October ABI
score was 51.6, down from a mark of 54.3 in September. This score reflects an
increase in design services (any score above 50 indicates an increase in
billings). The new projects inquiry index was 61.5, up from the reading of 58.6
the previous month.
Read more here…
LABOR:
Demand
on Regional Labor Force Continues to Build with the Recent Deal to Replace
Goethals Bridge:
Given
the close proximity and accessibility of New York City, it’s current multi-year
commercial construction back log, an existing large scale bridge replacement
project that has recently gotten under way with the Tappan Zee bridge and now a
second large scale, multi-year bridge project to begin in 2014, Philadelphia’s
construction labor force will be in high demand. Especially in area trades that are currently
experiencing an already high demand due to Marcellus Shale production, such as
welders, steam fitters, Operating Engineers, etc…
The
Tappen Zee Bridge replacement project is expected to employ roughly 2,600
full-time construction workers each year for the next five years. There will be 2,250 construction jobs created
while the bridge is being built.
As
Philadelphia’s employer associations engage in 2014 collective bargaining, it’s
to be approached cautiously and with a deep understanding of the current
conditions in the labor market impacting collective bargaining.
Read more here…
Employers Cannot Condition Bargaining On Outcome of Noel Canning Case
As employers waits for developments
with the NLRB’s Noel
Canning case
currently in wait at the Supreme Court, some have been led to believe that they
can condition collective bargaining based on the outcome of that Supreme Court
Decision. The Noel Canning case, in which the D.C. Circuit found that
President Obama’s January 4, 2012 recess appointments to the Board were
invalid, and which is now on appeal before the Supreme Court and some believe
could be thrown out.
The case provides a cautionary tale for employers who might consider cancelling multiple bargaining sessions or who consider conditioning bargaining on the outcome of a case that is on appeal. Either course of conduct could result in a finding that the employer violated its duty to bargain in good faith. GMCS is awaiting the Supreme Court’s decision in Noel Canning.
Read more here…
NLRB Member Hirozawa indicates that the
Board Poised For an Active and Productive 2014:
NLRB Board Member Kent Y. Hirozawa recently shared with the
attendees of Epstein, Becker & Green, New York, NY’s 32nd Annual Client
Labor and Employment Briefing his views on the current Board and what to expect
from it.
Hirozawa’s discussed areas where the Board was likely to
focus in the coming months and well into 2014.
Specifically, he noted that Chairman Pearce was likely to drive the
Board back towards rule-making. The
Board has previously attempted to impose a requirement that employers post a
Notice of Employee Rights but the rule was rejected by the Courts. A new fully confirmed Board may take another
stab at it.
Hirozawa specifically noted that the Board is likely to
readdress election procedure regulations.
Now with a fully confirmed Board, employers need to beware of what new
election regulations might look like.
Employers should expect the frequency of Board decisions to
pick- up significantly. Additionally, with rule-making back on the
front-burner, employers should examine their employee relation’s strategies and
programs. In what seems to be a
recurring theme with GMCS clients over the last 90 days, all employers should
take a close look at their policies and work rules from a Section 7
perspective.
Read more about NLRB Board Member Kent Hirozawa comments here…
Employers should consider the value of GMCS
contracted Labor Services now, as we actively plan our 2014 business strategy. Do what other employer
associations and employers have already done; contact Wayne Gregory @ wegregory@gregorymcs.com to see how
our attractively priced contracted labor relations and human resource support
solutions can benefit your organization.
JURISDICTION: Philadelphia Regional Update
- Rain Screen Products and the Signatory Obligations of a Contractor:
There
has been a significant increase in reported cases of jurisdictional disputes
over architectural exterior panel systems / rain screen in the market place
over the last 9 months. Furthermore, many
contractors continue to receive incorrect guidance from industry sources with
respect to the installation of this product and their signatory
obligations. Adding to the confusion are
several pieces of language in area agreements claiming “pre-finished panels for
exterior use” and “corrugated metal wall panels” are to be performed by
employees covered under one agreement.
Furthermore, “It is understood that the installation and attachment of
the miscellaneous iron and steel to serve as support systems pertaining to any
work outlined in this Agreement shall be done by the Employees covered under
this Agreement.” In many cases within a
large part of the Philadelphia marketplace, you do have options. Don’t let your free labor relations advice cost you or your project
profits.
Read
more here…
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.
BNA analysis of collective bargaining data for all settlements through
September 30:
A BNA analysis
of collective bargaining data for all settlements through September 30 showed
an average first-year wage increase of two percent compared with 1.6 percent in
the comparable period of 2012. The median first-year wage increase for
settlements reported to date in 2013 was the same as in 2012, at two percent.
There was an average two percent increase in settlements for first-year wages,
and an average 2.4 percent increase when omitting construction as well as state
and local government contracts. These percentages are up from 1.6 percent and
2.3 percent increases respectively for an equivalent time period in 2012. When
lump-sum payments were factored into wage calculations, the all-settlements
average first-year increase to date in 2013 was 2.3 percent. The comparable
period in 2012 reported a two percent increase.
Rule Against Non-Union Workplace “Disruptions” Can Run Afoul of NLRA:
A recent
opinion from an Administrative Law Judge (ALJ) serves as an important reminder
for non-unionized employers. As we previously explained, Section 7 of the NLRA
gives employees the right to form, join or assist labor organizations. It also
guarantees employees the right to engage in other concerted activities for the
purpose of mutual aid or protection. Even in the absence of a labor union, an
employee complaining about wages, hours or working conditions on behalf of
himself or herself and other employees cannot be disciplined or discharged for
such conduct under the NLRA.
Read more here…
DC-area construction contractor to pay $875,000 to settle discrimination
case with US Labor
Department
Nearly 400
minority applicants to receive back wages as company reviews hiring
practices. The U.S. Department of Labor
today announced that federal construction contractor M.C. Dean Inc. has settled
allegations that it failed to provide equal employment opportunity to 381
African American, Hispanic and Asian American workers who applied for jobs at
the company's Dulles headquarters. A review by the department's Office of
Federal Contract Compliance Programs determined that the contractor used a set
of selection procedures, including invalid tests, which unfairly kept qualified
minority candidates from securing jobs as apprentices and electricians.
See the U.S.
DOL Press Release 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.
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.
Annual Wage Gains Likely to Change Little, if Any, WTI Says:
Arlington, Va.
(Nov. 19, 2013) — U.S. workers in the private sector likely will experience
only incremental changes, if any, in the pace of annual wage gains in the
coming months, according to the preliminary fourth-quarter Wage Trend
Indicator™ released today by Bloomberg BNA, a leading publisher of specialized
news and information.
Read the full
report here…
OSHA:
OSHA announces proposed new rule to improve tracking of workplace injuries and illnesses:
OSHA
has recently issued a Notice of Proposed Rule Making affecting many association
members and contractors within the construction industry. The intended
purpose of the rulemaking is to improve workplace safety and health through the
collection of useful, accessible, establishment-specific injury and illness
data to which OSHA currently does not have direct, timely, and systematic
access. With the information acquired through this proposed rule, employers,
employees, employee representatives, the government, and researchers will be
better able to identify and abate workplace hazards. OSHA is proposing to amend
its recordkeeping regulations to add requirements for the electronic submission
of injury and illness information employers are already required to keep under
Part 1904. The proposed rule amends 29 CFR 1904.41 to add three new electronic
reporting requirements.
Under
the proposed rule, employers with more than 250 workers would be required to
submit electronically their injury records, including case-characteristic data,
to OSHA on a quarterly basis. Employers with more than 20 workers in
industries with high injury and illness rates would be required to submit
electronically a summary of their work-related injuries and illnesses once a
year.
The
proposed regulation is also intended to help OSHA
identify employers that need their help the most -- compliance assistance as
well as safety inspections.
To
read more and to access a link to OSHA’s site on this Proposed Rule Making, go here…
OSHA Cites Philadelphia demolition contractors for willful and serious safety violations following fatal June building collapse:
PHILADELPHIA — The U.S. Department of Labor's Occupational Safety and Health Administration today cited Griffin Campbell, doing business as Campbell Construction, and Sean Benschop, doing business as S&R Contracting, for safety violations, including three willful per-instance violations, following the June 5, 2013, building collapse that killed six people and injured 14. Campbell Construction was demolishing the four-story building known as the "Hoagie City" building adjacent to the Salvation Army Thrift Store, located at the 2100 block of Market Street in Philadelphia. S&R Contracting was operating the building's interior walls and floors.
Read the entire press release here…
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…
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:
Each
year in the United States, tens of thousands of workers are made sick or die
from occupational exposures to the thousands of hazardous chemicals that are
used in workplaces every day. The U.S. Department of Labor's Occupational
Safety and Health Administration today launched two new web resources to assist
companies with keeping their workers safe.
While
many chemicals are suspected of being harmful, OSHA's exposure standards are
out-of-date and inadequately protective for the small number of chemicals that
are regulated in the workplace. The first resource OSHA has created is a
toolkit to identify safer chemicals that can be used in place of more hazardous
ones. This toolkit walks employers and workers step-by-step through
information, methods, tools and guidance to either eliminate hazardous
chemicals or make informed substitution decisions in the workplace by finding a
safer chemical, material, product or process.
The
complete toolkit is available here…
OSHA
also created another new web resource: the Annotated Permissible Exposure Limits,
or annotated PEL tables, which will enable employers to voluntarily adopt
newer, more protective workplace exposure limits. OSHA's PELs set mandatory
limits on the amount or concentration of a substance in the air to protect
workers against the health effects of certain hazardous chemicals; and OSHA
will continue to enforce those mandatory PELs. Since OSHA's adoption of the
majority of its PELs more than 40 years ago, new scientific data, industrial
experience and developments in technology clearly indicate that in many
instances these mandatory limits are not sufficiently protective of workers'
health.
The
annotated PEL tables can be found here…
Read
the full OSHA Press Release here…
Slips, trips & falls spike in the winter. Learn to manage these risks:
Each
year Zurich in North America (“Zurich”) reserves approximately $1 billion to
pay slip, trip, and fall claims for workers and public invitees. Approximately
25% of those reserves initially are set aside to handle incidents involving
slips, trips, and falls due to snow and ice.
It
should be noted that not all pubic invitee or general liability claims are
reported to Zurich or other insurance companies due to self-insured reserve
programs utilized by many large corporations.
At
Zurich, the average public invitee or general liability claim reported, due to
snow and ice, is valued at approximately $15,132. The average employee claim is
valued at $35,132.
Zurich’s
snow and ice incident statistics Lobby/entrance areas ranked next with 6% of
the claims and 5% of the severity. The average slip and fall at lobbies or
entrances is valued at $14,798.
Job
sites make up the next highest number of incidents but the severity is
considerable. The average general liability claim on a job site associated with
slips, trips and falls on snow and ice is valued at $85,072. The majority of
these claims indicate a subcontractor’s employee slipped and fell on snow or
ice on our insured’s job site. With the high cost of claims, it is critical for
insurance companies to subrogate any and all claims possible.
Download
Zurich’s Managing Risks in Snow and Ice Prone Regions document here…
Alliance Program Construction Roundtable:
OSHA established the Alliance Program Construction
Roundtable to bring Construction-related Alliance Program participants together
to discuss and share information on workplace safety and health. Through the
Alliance Program Construction Roundtable, participants develop and share
construction-related compliance assistance tools and other resources for
workers and employers.
Read more about who the Construction Roundtable Representatives are and the free
safety products that have been developed through this collaborative
relationship here…
Common
Mistakes that Lead to Construction Injuries….And How to Prevent Them:
An
“accident” is normally defined as an unexpected or unforeseen condition with an
element of “chance”. In the world of construction, incidents can happen to even
the most experienced professionals and are not normally due to “chance”.
Incident causation is usually based on unsafe acts and/or unsafe conditions and
therefore can be prevented.
Heinrich’s
Domino Theory, circa, late 1920’s, regarding the sequence of events that lead
to construction injuries still holds true today. This theory places strong emphasis on the
Unsafe Work Act / Unsafe Work Condition “domino” as Heinrich believed that
unsafe acts more frequently are the cause of incidents than unsafe work conditions.
With this in mind, let’s take a moment to address some common behaviors and how
to break the chain of events (“dominoes”) that could lead to an
incident/injury.
Read
more here…
The Daily Huddle: The Key to Safe and Winning Job Sites
Football season has arrived and Americans once again have weekend schedules filled with Friday night high school games, Saturday college contests and, of course, the NFL on Sunday, Monday and now Thursday nights.
After watching a game one Sunday evening I began to consider how football has many similarities to the construction industry—specifically construction safety.
In football, at any level, the most successful teams are those that communicate clearly and often.
One regional construction equipment supply company expands on the huddle concept by creating a safety culture based on open, interactive communication within ‘The Huddle.” According to Hiliary H. Holloway, Jr., one of the region’s respected industry safety experts, his firm recently adopted a version of the “Safety Huddle” which we they call the “Safety Discussion.” In addition to discussing the normal "Toolbox/what will we be doing today" topics, they expand their discussion to include anything related to safety. Their discussions may include the obvious, i.e. incidents we may have read or heard about in the news, but also may include things like animal bites or health concerns like salmonella outbreaks or availability of vaccines. “Today we discussed the just released listing of the 24 safest cars and of course the discussion was interactive (everybody has an opinion on that), and demonstrated safety goes beyond “what the safety guy said!”
Bill Burke of the Madison Risk Group has more to say
about the Safety Huddle, how to create one and its importance in a
safety-centric culture here…
Study Finds Link Between Company Focus On Safety, Financial Return for Investors:
In the
report, “The Link Between Workforce Health and Safety and the Health of the
Bottom Line: Tracking Market Performance of Companies That Nurture a 'Culture
of Health,' ” published in the September issue
of the Journal of Occupational and Environmental Medicine, a team of nine
researchers tracked the stock market performance of companies that had won the
American College of Occupational and Environmental Medicine's Corporate Health
Achievement Award. The award is given to “organizations with exemplary health,
safety and environmental programs,” according to the organization.
Average
Increase: 97.26 Percent
The
researchers modeled four different scenarios and found that, from 1999 to 2012,
the award-winning companies' stock rose by an average of 97.26 percent. The
lowest return in the four scenarios was 75.69 percent and the highest was
140.58 percent.
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 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:
S&P 1500 pension plans funding position
holds steady for October:
Funding
levels of pension plans sponsored by S&P 1500 companies remained stable
during the month of October, with a funded ratio (assets divided by
liabilities) of 91% at the end of the month, equal to a month ago when it
reached the highest level seen since October 2008. This funded ratio corresponds to a deficit of
$185 billion as of October 31, 2013, up slightly from $182 billion a month ago
according to Mercer. This is a significant reduction from the estimated deficit
of $557 billion as of December 31, 2012
Read
more from Mercer here…
Defined
benefit plans remain above 2008 funding levels.
Corporate pensions climbed up the next rung on the funded ratio ladder
last month, bringing the universe to 91.9%, according to Milliman.
The
actuarial and financial services firm said Thursday that its latest Pension
Funding Index (PFI), which includes 100 of the largest defined benefit
corporate plans, uncovered that $31 billion was added in overall asset value
over the month.
Read
more from Milliman here…
The
discussion about attainable assumptions has become reality.
The
median interest rate used by 29 of the nation’s 100 largest public pension
plans dropped from 8% in 2012 to 7.75% in 2013, according to the
latest study by Milliman Inc.
The
global consulting and actuarial firm, released its second annual Public Pension
Funding Study, which consists of the nation’s 100 largest public defined
benefit pension plans. It complements Milliman’s corporate Pension Funding
Study, which is now in its 13th year.
Read
more here…
One politician’s view on Defined benefit Pension Plans in Pennsylvania. Rob McCord: “We Are Not a Society That Will Allow People to Eat Cat Food in Their Senior Years”:
Pennsylvania Gubernatorial candidate shares his views in this Keystone Politics blog post here….
Defined Benefit plans continue de-risking, but not disappearing:
The
DB plans continue de-risking, but not disappearing
The
relatively few employers who still offer to defined benefit retirement plans
will continue to seek ways to de-risk, according to a new report from
Institutional Investor Forums and Towers Watson, but most of those who still
offer pensions to new hires intend to do so for all employees five years from
now.
Survey
results released Tuesday by Towers Watson indicate that three-fourths of those
with a DB plan either have implemented or are considering implementing a formal
“journey” plan to de-risk once certain trigger points have been reached.
Forty-two percent of respondents had a journey plan in place by the end of
2012, and another 8% have begun one in 2013.
Lump
sums remain a popular de-risking method with 39% offering them or planning on
offering them to former employees within the year; another 28% could offer
lump-sum payments to pension holders by 2015.
Read
more here…
Advisors Warned of Department of Labor's Coming Fiduciary Rules:
Despite
a recent show of political opposition, the Department of Labor seems poised to
press ahead with a proposal to broaden the definition of fiduciary to cover
advisors working in the retirement plan segment, a leading opponent of the
measure warned on Monday.
Brian
Graff, who heads the American Society of Pension Professionals and Actuaries
and the National Association of Plan Advisors, argued that the proposed rules
would create "unintended consequences" that could lead plan advisors
to abandon the small business market.
For
advisors, the real pain from the rules would not come from the expanded
definition of fiduciary per se, according to Graff, who noted that many of
those advisors already operate as fiduciaries in their practices. But when
applied in the context of the plans covered by the 1974 Employee Retirement
Income Security Act, the rules could amount to an effective ban on the
commission-based model.
Read
more here…
Government Accountability
Office finds conflict, confusion in pension disclosure rules:
Participants
in private retirement systems who receive their pension plan information
electronically face the possibility of missing important information in part because
of conflicting regulations, the Government Accountability Office said in a
report.
Both
plan providers and participants told the GAO that while the use of electronic
disclosure is gaining in popularity because of decreased printing costs and the
ease of delivering and saving information, privacy concerns and the possibility
of data being sent to old email addresses was a concern.
Read
more here…
HUMAN RESOURCES:
NFL Hires Outside Investigator . . . Should
You?
Given
the relevance and timeliness of this topic, it’s time to look at this issue in
depth and consider the circumstances. One final comment before we go to
the article, did you know that workplace investigations are not necessarily
confidential? Many inexperienced investigators
assure confidentially to those being interviewed, but the NLRB has recently
ruled against explicit confidentiality in employee investigations.
The
National Football League ("NFL") has hired an outside investigator to
handle the complaint made by Jonathan Martin, an offensive lineman for the
Miami Dolphins. The national news media cannot seem to get enough of this
story, and the coverage has been relentless. The media, however, seems to have
focused on the bullying angle. But for some of us, based on the reports, it
looks like there was more than just bullying going on. If the allegations are
true there may be violations of the league's workplace harassment policy as
well. Given the dynamics here, and the high profile nature of the situation, we
think it makes a lot of sense for the NFL (and the union) to bring in an
investigator from the outside.
Wage Gains: FSA use-it-or-lose-it rule
amended; will benefit's usage explode?
Business
groups and employer advocates applauded after the IRS issued notice that up to
$500 in Flexible Spending Accounts can be carried over, starting with the
period from 2013 to 2014. On December 31 of this year, use-it-or-lose-it will
only apply to dollars 501 and above.
If open
enrollment materials have already been finalized for 2014, it’s too late to
communicate the change for 2013 funds. The $500, however, does not lower the
annual $2,500 FSA limit, so up to $3,000 may be available in the following plan
year. The old two-and-a-half-month grace period still applies.
Read
more here…
Download
the FSA Press Release and fact Sheet from Treasury.gov by going here….
Make Sure Your Handbook is NOT an
Employment Contract:
Your
employee handbook can be interpreted as creating express or implied contracts,
says Attorney Allan H. Weitzman; however, disclaimers and receipts can help
prevent that from happening.
In
Employee Handbooks, every Word Counts.
Read
more about this topic and see examples of important Disclaimers and Receipts here….
The
Need to Update Noncompetes, and the Legal and Practical Issues Associated With
Doing So:
If employers want their noncompete agreements to
work, and keep working, it’s critically important that they update those
agreements on a regular and repeated basis. Over time things change, and those
changes can affect key things that impact the enforceability of a non-compete,
such as: – The contours of state law
change with each new court decision deciding the enforceability of a noncompete
agreement. – Employees’ job duties
typically change over time in ways that can render the terms of a noncompete
drafted years ago unhelpful, if not entirely unenforceable. – The employer’s
business changes – added or deleted affiliates or business lines can alter the
scope of the noncompete restriction in a way that either makes it too
unreasonably broad to be enforced or too narrow to be useful. – The
competitive landscape navigated by the employer keeps changing such that what
were reasonable restrictions at the time the noncompete was executed could
become unreasonable over time. As all these types of changes happen faster and
faster in today’s world, and as litigation over noncompetes continues to rise,
employers have to update their noncompetes even more frequently to keep them
relevant. But having current employees sign new noncompetes poses both legal
and practical challenges.
Read more here…
Effective Use Of Non-Competition/Non-Solicitation Agreements In The
Workplace:
Few
things can be more frustrating to an employer than spending significant
resources training a new employee, allowing the employee access to trade
secrets, and introducing the employee to customers, only for the employee to
quit and accept a similar job for a competing business. Non-competition/non-solicitation agreements
can be valuable tools for employers to protect their trade secrets and mitigate
the risk of being placed at a competitive disadvantage down the road.
Non-solicitation
restrictions typically are used to prohibit employees (and former employees)
from soliciting customers and employees for a competing business, and
non-competition restrictions typically are used to prohibit employees (and
former employees) from working for a competing business within a specific
geographical area for a specified period of time after employment has
ended. Although these restrictive
covenants are disfavored under the law because they impose a restraint on free
enterprise, courts in most states will enforce them if the employer has a
legitimate interest in the restrictions and the scope of the restrictions are
not overly broad. In addition to
standard employment agreements, noncompetition/non-solicitation restrictions
are frequently included in severance agreements, stock option agreements, and
agreements related to the purchase of a business.
Read
more here…
Navigating the Perils of Re-boarding:
While many employers rarely experience this,
employers signatory to collective bargaining agreements are subject to
re-boarding at times and caution should always taken when bringing back former
employees.
Late last year, 13 Chrysler employees were
reinstated after being fired in 2010 for drinking on the job (acts that were
captured on video and reported by a local television station). Despite the
outrageous nature of this case, and the fact that such reinstatements are
relatively uncommon, HR professionals need to be aware of what could happen in
their organizations and be prepared to handle these situations proactively.
"Start with a potential new beginning in
mind" when it comes to any termination, says Lori Adelson, a labor and
employment attorney at Arnstein & Lehr in Fort Lauderdale, Fla. She says
it's also important for HR to do its best to ensure that the transition is
confidential and that only those who "need to know" actually do. Following
that practice consistently may lessen the issues related to welcoming the
employee back into the fold.
Read more here…
Updating FMLA Guidance to Reflect DOMA
Decision:
Unconstitutionality of DOMA Means FMLA Spousal Leave Applies to Legally Married Same-Sex Couples
The Supreme Court’s decision in United States v. Windsor focused on Section 3 of DOMA which defined “spouse” as a husband or wife of the opposite sex for purposes of federal laws or regulations. Because of that definition, legally married same-sex couples were not entitled to federal benefits or rights. As a result, FMLA leave benefits did not extend to employees needing time off to care for a same-sex spouse with a serious health condition.
Read more here…
Employers who Solicit Facebook Friend "Snooping" Could Face Liability Under Federal Stored Communications Act:
Facebook
postings by employees have increasingly become a factor in employment
discrimination lawsuits. In some of my
recent cases, employers were made aware of an employee’s threats of violence,
workplace misconduct or other inappropriate actions when a co-worker, who also
was a Facebook “friend”, brought the Facebook post to the employer’s
attention. Such posts can be powerful
evidence in defending against a discrimination lawsuit and proving that any
adverse employment action was for a legitimate non-discriminatory reason.
However,
a recent ruling by a federal District Court in New Jersey strongly suggests
that employers who actively solicit Facebook friends to disclose the postings
of an employee could be in violation of the Federal Stored Communications Act
(“SCA”), 18 U.S.C. §§ 2701-11.
Read
more here…
Best Practices for Managing Employee Departures:
As the job market improves, job options for workers are increasing and so is employee turnover. According to the Bureau of Labor Statistics, the average tenure of the American worker is 4.6 years. For a Millennial worker born between 1977 and 1992, the wanderlust comes even sooner. Millennials move on an average of every 3.2 years.
Read more here…
Risks of ACA avoidance strategies for employers:
Already, several ACA avoidance strategies, including layoffs, downsizing, moving employees from full- to part-time status, and replacing employees with a contract workforce, have made headlines. It’s unclear how much of this is actually happening versus just being reported, but I’d be willing to bet that most employers at or above the 50-employee threshold have at least thought about using strategies to avoid the ACA’s requirements. I thought you would be interested in hearing about the potential risks of those strategies.
Read more here…
Department of Labor's Employee Benefits Security Administration has updated
its website with the following:
Mental Health Parity:
* Final regulation, available at www.dol.gov/ebsa/pdf/mhpaeafinalrule.pdf
* FAQs about ACA Implementation Part XVII and
Mental Health Parity Implementation, available at http://www.dol.gov/ebsa/faqs/faq-aca17.html
* U.S. Department of Health and Human Services’
Study: Consistency of Large Employer and Group Health Plan Benefits with
Requirements of the Paul Wellstone and Pete Domenici Mental Health
Parity and Addiction Equity Act of 2008, available at www.dol.gov/ebsa/pdf/hhswellstonedomenicimhpaealargeemployerandghpbconsistency.pdf
* News release, available at http://www.dol.gov/ebsa/newsroom/2013/13-2158-NAT.html
REGULATION:
Philly City Council advances demo
regulations:
THREE
BILLS tightening up the way demolition projects are carried out in the city
passed through committee and are headed for a vote next week before City
Council.
The
bills help implement Occupational Safety and Health Administration training
standards and mandate annual continuing education for demolition workers at
construction sites.
The
legislation stems from the June collapse of a building under demolition at 22nd
and Market streets onto an adjacent Salvation Army thrift store, killing six
people.
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
December 9, 10, 11, 16, 17, 18 (Non-Voting)
Senate
December 3, 4, 9, 10, 11
For
a PDF copy of the full House Bill Calendars, click here…
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