Monday, September 7, 2015

REGIONAL CONSTRUCTION INDUSTRY UPDATE – September, 2015



Welcome to the September, 2015 Gregory Management & Consulting Services (GMCS) REGIONAL CONSTRUCTION INDUSTRY UPDATE. 

GMCS wants to wish everyone a safe and happy Labor Day.  It’s been an interesting and historical month in Labor right here in Philadelphia over the last month.   We have witnessed a historical change in the Philadelphia Building Trades take place with John Dougherty  (Doc) assuming the leadership helm on December 1, 2015.  The Finishing Trades Institute of the Mid-Atlantic Region (Philadelphia) continues to establish their relevance and value to the industry by becoming a 2015 Susan Harwood Targeted Topic Grant Recipient.  Finally, as reported here and to our clients over the last several months, the game changing decision by the National Labor Relations Board involving Browning-Ferris Industries of California where it has refined its standard for determining joint-employer status. The revised standard is designed “to better effectuate the purposes of the Act in the current economic landscape.”


From our owner groups in West Philadelphia, Signatory General Contractors, Sub Contractors and the Labor Brokers that currently operate in the region; it is our opinion that this decision is certainly a game changer and that many risk being tied into the new joint employer standard.  If you have exercised control over terms and conditions of employment indirectly through an intermediary, or whether you have reserved the authority to do so, you are potentially at risk of being found to be a joint employer and sharing all of the risks that come with that title.  From the owner groups that are mandating changes in the regions’ collective bargaining agreements, to the contractors that utilize labor brokers to employee hoist operators on their projects and so many more scenarios, the net is wide on this one and, in our opinion, the risk of being found to be a joint employer of a contractor that you have hired to build your building or work on your project is significant.  All are recommended to seek appropriate legal counsel on this matter.  

GMCS is focused on facilitating communication and collaboration amongst our construction employer associations, constructors, facility owners, building trades and governmental bodies with an emphasis on creating a centralized, focused community that actively promotes labor harmony, industry advancement, contractor opportunities and workforce development.

Is your firm looking to fill key positions within your organization?  With over 25 years of industry contacts & experience within the Philadelphia metropolitan region and developed industry relationships to work from, GMCS has become a powerful recruiting organization in this region’s construction industry marketplace.  Our goal is to provide our clients and candidates with superior quality recruitment services while maintaining the highest degree of integrity, confidentiality and professionalism.  Go here to find out more about our Employer and Candidate Services.  GMCS maintains an active network of experienced industry professional candidates that are currently exploring their next career opportunity.  GMCS actively markets these candidates to both regional and national firms as well as partnering recruitment agencies throughout the country.  Interested candidates and employers should contact Wayne Gregory today at wegregory@gregorymcs.com to discuss the best GMCS employment and recruitment solution for you.

We currently have several excellent candidates that are interested in making a move within the regional marketplace.  GMCS is making those candidates available to interested employers at no cost.  Interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Sponsorship and marketing opportunities are available to industry stakeholders and contractors; interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Regional Industry Employment Candidates Looking for new and rewarding challenges:

GMCS is looking to place an experienced Commercial Construction Project Manager that is highly interested in transitioning into the Real Estate Property Management side of the industry. (EMPLOYER FEES WAIVED):

GMCS is looking to place an experienced Facility Manager that has an extensive facility maintenance background with leading Philadelphia institutions. Experience level ranges from HVAC service to senior management roles. Candidate is highly interested in transitioning into a new position within the Tri-State area. (EMPLOYER FEES WAIVED):

GMCS is looking to place an experienced commercial construction industry professional with a broad background in human resources, with particular emphasis on labor relations and employee benefits.  BA, MBA, and JD degrees; Certified Employee Benefit Specialist and Compensation Management Specialist designations. (EMPLOYER FEES WAIVED):

Interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information. 

Johnny Doc to head building trades council:

John Dougherty, leader of the politically powerful Electricians union in Philadelphia, expanded his sphere of influence Wednesday with a new title.

Dougherty was selected to succeed Pat Gillespie as head of the Philadelphia Building and Construction Trades Council, which represents nearly 40 unions in Philadelphia and the suburbs.

Read more here…

US Labor Department awards $10.5M in workplace safety and health training grants to 80 nonprofit organizations:

The U.S. Department of Labor's Occupational Safety and Health Administration has awarded $10.5 million in one-year federal safety and health training grants to 80 nonprofit organizations across the nation for education and training programs to help high-risk workers and their employers recognize serious workplace hazards, implement injury prevention measures and understand their rights and responsibilities.

Read more here….

National Labor Relation’s Board Issues Decision in Browning-Ferris Industries: Joint Employer Standards In Question

In the decision, the Board applies long-established principles to find that two or more entities are joint employers of a single workforce if (1) they are both employers within the meaning of the common law;  and (2) they share or codetermine those matters governing the essential terms and conditions of employment. In evaluating whether an employer possesses sufficient control over employees to qualify as a joint employer, the Board will – among other factors -- consider whether an employer has exercised control over terms and conditions of employment indirectly through an intermediary, or whether it has reserved the authority to do so. 

Read more here….

Five Practical Issues Browning-Ferris Creates for Employers:

National Labor Relations Board’s decision in Browning-Ferris Industries of California, Inc., 362 NLRB No. 186 (Aug. 27, 2015), will have significant and far-reaching effects as it greatly expands the scope of relationships in which the Board can and will find entities to be joint employers. While the full ramifications of the Board’s decision remain to be seen, here are five issues, which are discussed thoroughly by Members Miscimarra and Johnson in their dissent, that employers will likely face as a result of Browning-Ferris:

Read more here…

STRIKE UPDATE: AGC Washington DC and the Metropolitan Regional Council of Carpenters, Philadelphia settle over a year long Labor/Contract dispute:

The new contract reflects the continued commitment of the Washington DC Contractors and the Metropolitan Regional Council to grow the union market share in the Washington, DC area.

The Four-Year Agreement (5/1/14 through 4/30/18) provides for a total Wage-Fringe Benefit Package increase of $4.30.

Read more here…

Carpenters, contractors settle Convention Center side dispute

Outside the Convention Center, union carpenters no longer allowed to work there pursued a public strategy to regain those jobs: rallying and protesting, armed with bullhorns, leaflets, and an inflatable Fat Cat.

Inside their union hall, another strategy was underway: firing off grievances against 13 major show contractors, the companies actually hired to set up and dismantle the trade shows and conventions that fill the center.

Read more here…

Value of Construction Put in Place at a Glance - July 2015: Spending increases 9.3% above the $533.7 billion for the same period in 2014:

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during July 2015 was estimated at a seasonally adjusted annual rate of $1,083.4 billion, 0.7 percent (±1.5%)* above the revised June estimate of $1,075.9 billion. The July figure is 13.7 percent (±2.0%) above the July 2014 estimate of $952.5 billion.

During the first 7 months of this year, construction spending amounted to $583.2 billion, 9.3 percent (±1.5%) above the $533.7 billion for the same period in 2014.

Read more here…

New OSHA Directive to Speed Up Resolution of Whistleblower Complaints:

A directive to establish nationwide policies and procedures aimed at speeding up the resolution of “whistleblower” complaints handled by the Occupational Safety and Health Administration (OSHA) was issued on August 19, 2015.

Read more here…

Construction companies, supervisors charged in worker death

District Attorney Cyrus R. Vance Jr., the New York Police Department and the city's Department of Investigation announced the charges in the April death of Carlos Moncayo, an employee with Sky Materials Corp. Moncayo was in an unsecured trench at a building site in Manhattan's trendy Meatpacking District when it caved. The building was once home to the restaurant Pastis and is now being developed into a Restoration Hardware retail store.

Read more here…

The long reach of the National Labor Relations Act

Non-union employers are often under the misimpression that they are not affected by the National Labor Relations Act (NLRA) — the federal statute governing union-related issues in the private sector.


A recent court decision stands as yet another reminder that this is not the case, and that non-union employers can still run afoul of the NLRA’s ever-changing requirements (and that employees and their advocates are increasingly using the NLRA to pursue claims against employers, even non-union employers).

Read more here…

Virtua proposes $1 billion campus in Westampton:

Virtua Health is proposing a $1 billion hospital complex on a 110-acre farm that the South Jersey nonprofit acquired in Westampton Township more than a year ago. The project would include a nine-story hospital that would replace the four-floor Virtua Memorial Hospital in Mount Holly, three miles away in Burlington County.

Read more here…

MILLIMAN US: Pension Funding Index August 2015: Corporate pension funded status drops by $16 billion in July:

In July, the funded status of the 100 largest corporate defined benefit pension plans worsened by $16 billion as measured by the Milliman 100 Pension Funding Index (PFI). The deficit rose to $261 billion primarily due to a decrease in the benchmark corporate bond interest rates used to value pension liabilities. As of July 31, the funded ratio declined to 84.8%, down from 85.5% at the end of June. This breaks the upward momentum from the second quarter of 2015 where the funded ratio had increased for three consecutive months.

Read more here…

FMI's Q3 Nonresidential Construction Index Shows Nonresidential Construction Sector Remains Optimistic Despite Drop in Overall Economy:

The nonresidential construction sector continues at a steady pace, a slight decline notwithstanding, according to the FMI Nonresidential Construction Index Report (NRCI) for Q3 2015.  The Index reflects the observations and sentiments of a sampling of construction industry executives nationwide.

Read more here…

ABI: Strong Conditions Persist for Architecture Billings Index: Long struggling Northeast region starting to rebound:

The Architecture Billings Index (ABI) is reflecting healthy and sustained demand for design services in nearly all nonresidential project types. 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 July ABI score was 54.7, down a point from a mark of 55.7 in June. This score still reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 63.7, up slightly from a reading of 63.4 the previous month.

Read more here…

This e-mail newsletter has been provided complimentary to Associations and industry stakeholders by Wayne Gregory of Gregory Management & Consulting Services (GMCS).  Wayne Gregory has been the recognized regional leader in the areas of Labor & Industry Relations since 2005 and is continuing to serve the industry and its multi-employer Associations under the GMCS brand, Knowledge, Trust, Integrity and a unwavering commitment to Serve the industry.  From Association Management & Executive Leadership services,  Owner Representation, Government & Legislative Affairs & Subscription Services and Labor & Industry Relations, let GMCS help your Associations and organizations to forge a new and clear path forward.

We hope that you enjoy the new newsletter format and welcome all comments and suggestions regarding these changes.  You may forward those to Wayne Gregory @ wegregory@gregorymcs.com.

Best wishes to all for a safe, prosperous, healthy & harmonious 2015.

Sincerely,
Gregory Management & Consulting Services
Audubon, PA 19403
On the web: www.gregorymcs.com


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