Wednesday, September 30, 2015

REGIONAL CONSTRUCTION INDUSTRY UPDATE – October, 2015



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

GMCS has advised contractors over the last several months about 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.”  Since that ruling, GMCS has fielded numerous RFI’s from the NLRB in response to unrelated allegations made by labor for specific information that could arguably paint the joint employer standard across many of our clients.  It is our opinion that this Obama NLRB is looking to advance the joint employer agenda across our industry and is directly assisting labor in identifying and pursuing those cases, even when the initial allegations had no basis in joint employer relationships.

Why should owners and developers be concerned?  Imagine being brought into a labor dispute between your signatory general contractor and a labor union on a project and being considered as a joint employer.  It is our opinion that you could potentially be forced to sit down at the negotiating table as a joint employer with that contractor in the next round of negotiations.  It is also our opinion that you could be compelled to provide confidential internal documents, policy manuals and communications at the request of a disputing trade or the NLRB further opening your organization up to additional allegations, charges and additional liability. We have only just begun to just scratch the surface on this issue, but, in our opinion, it appears that the NLRB is aggressively pursuing broad and far reaching RFI’s in unrelated cases that could help them in redefining that employer relationship in labor disputes.        

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. 

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…

John Dougherty Says Two Union Members Hit By Cars on Picket Line:

The union says it’s going to the U.S. Attorney and State Attorney General’s office on Monday.

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…

Planned office building at 41st and Market gets a push in Council:

The building is a sequel to 2.0 University Place, an office building constructed on a nearby lot at 41st and Filbert few years ago. Like the earlier building, 3.0 University Place will be certified LEED Platinum, the highest rating a building can get for sustainable design and energy efficiency.

Read more here…

DMI: New Construction Starts in August Fall 11 Percent:

New construction starts in August dropped 11% to a seasonally adjusted annual rate of $554.5 billion, according to Dodge Data & Analytics. Declines were reported for each of construction’s three main sectors – nonresidential building and housing pulled back from their improved July pace, while nonbuilding construction continued to recede from the heightened performance witnessed earlier in 2015. During the first eight months of 2015, total construction starts on an unadjusted basis were $446.1 billion, up 15% from the same period a year ago. If the volatile electric utility and gas plant category is excluded, total construction starts during the first eight months of 2015 would be up a more moderate 7% relative to last year.

Read more here…

Liberty Property Trust to construct $1B campus in Camden:

Liberty Property Trust plans to construct a $1 billion “iconic skyline” along the Delaware River in Camden, N.J., that aims to become an integral component to the struggling city’s revitalization.

While the Malvern, Pa., real estate investment trust has owned office and industrial buildings in South Jersey, it has never invested in the city of Camden.

Read more here…

675-acre 'River Renaissance' coming to Bucks County:

Bensalem Township and economic development officials are scheduled to unveil a bold new plan for 675 acres fronting the Delaware River.

An event is set for Oct. 2 in which officials will provide details on a plan called: River Renaissance in New Bensalem. Only an overview of what will be discussed has been disclosed at this time.

Read more here…

LVHN marks the start of construction on $93M facility

At its Lehigh Valley Hospital- Muhlenberg campus in Bethlehem, officials marked the start of construction on its Specialty Care Pavilion, a $93.6 million project that covers 161,000 square feet and rises four stories at the south side of the campus. The four-story pavilion will be connected to the main hospital through the existing south tower lobby and the former hospital cafeteria.

Read more here…

Main Line Health starts work on $47M outpatient care center:

The center, being built on Baltimore Pike near Brinton Lake Road in Concord Township, will also have a medically integrated fitness and wellness center that will have saltwater filtered pools including a 25-yard lap pool, a therapy pool, a spa pool, steam rooms and saunas.

Read more here…

Nationwide Survey Finds 86 Percent of Contractors Have Difficulty Filling Key Craft and Salaried Jobs as Demand for Construction Increases:

An overwhelming majority of construction firms report trouble finding qualified craft workers to fill key spots as demand for construction continues to rebound in many parts of the country, according to the results of an industry-wide survey released today by the Associated General Contractors of America. Association officials called for new career and technical school programs, as well as other workforce measures to offset the labor shortages that are forcing firms to change how they operate and pose risks to workplace safety.

Read more here…

Developer plans tower for vacant Rittenhouse lot

Southern Land Co., which has its headquarters in Nashville, is planning a residential tower at 1911 Walnut St., according to the company website, which says the future building will offer "state-of-the-art living, desirable shopping and delicious dining."

Read more here…

Axalta to build $70M research facility at Philadelphia Navy Yard

Axalta Coating Systems Inc. will bring an estimated $70 million global research-and-development facility to the Philadelphia Navy Yard and relocate 190 jobs to the site with the expectation it could double the number of its employees at the South Philly campus over the next five to seven years.

Read more here…


New PBGC Projections: Solvency of Multiemployer Program Fund Extended Three Years; Condition of Single-Employer Program Continues to Improve:

The projected insolvency date for the insurance program for multiemployer pension plans, which cover more than 10 million Americans, has been delayed by three years, according to the FY 2014 Projections Report released today by the Pension Benefit Guaranty Corporation. The risk of program insolvency has decreased over the near term due primarily to the new premium revenues anticipated under the Multiemployer Pension Reform Act of 2014 (MPRA).  It is more likely than not that the program's assets will be depleted in 2025, compared with 2022 in last year's report, and the risk of insolvency grows rapidly thereafter.

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: Architecture Billings Index Backslides Slightly:

The Architecture Billings Index (ABI) slipped in August after showing mostly healthy business conditions so far this 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 August ABI score was 49.1, down from a mark of 54.7 in July. This score reflects a slight decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 61.8, down from a reading of 63.7 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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