Thursday, January 2, 2014

REGIONAL CONSTRUCTION INDUSTRY UPDATE - JANUARY, 2014




Welcome to the January, 2014 Gregory Management & Consulting Services REGIONAL CONSTRUCTION INDUSTRY UPDATE.  The Gregory Management & Consulting Services REGIONAL CONSTRUCTION INDUSTRY UPDATE has successfully completed its first full year of circulation.  Between our companion blog at gregorymcs.blogspot.com and the newsletter, our monthly industry reach has exceeded over 7,300 views in December from industry professionals interested in discovering more about the latest Industry, Labor, OSHA and HR developments here in the Philadelphia construction marketplace and abroad.  We continue to receive requests for sponsorship opportunities from local employer associations, industry stakeholders and contractors and are currently exploring those opportunities; interested firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more information.  2014 brings about change for the newsletter as we transition into a fee based model.  Gregory Management & Consulting Services will still continue to provide valuable, industry specific news updates via the REGIONAL CONSTRUCTION INDUSTRY UPDATE, at no charge, in a scaled down version; a majority of the fee based information will still be offered at no charge on our companion blog at gregorymcs.blogspot.com. 

As I take stock of the last year I am always brought back to a quote that I had read in college, “the only constant in life is constant change.”  Change is good and we can often find growth opportunities in that process.  However, we  should always consider the impact of that change on our environment and personal relationships.  As our industry continues to struggle to recover from a long economic downturn and to find leadership and a unified voice, I urge everyone to consider the impact of their actions on the industry; an industry that many of our firms were built on.  An industry that is comprised of experienced general contractors, sub-contractors, specialty contractors and the “Best Trained” and “Highly Skilled” workforce available.  A first in class workforce that has the comprehensive skill sets, training, qualifications and required capacity to build “the Philadelphia Region one landmark at a time.”  A workforce with such skills and capacity, that others have tried to model without success.  A workforce that was created when management and labor developed a productive and functional relationship and worked collaboratively and jointly to build. These complex management/labor relationships, with often conflicting agendas, aren’t easy to maintain and many have failed in the past.  Perhaps it’s time that we start reallocating our energy and resources and consider the value of reengaging our industry?  With the start of this new year, let’s consider the benefits of refocusing our efforts on matters of mutual interest and starting anew?  Considering the current slate of projects on the street as we enter into 2014, Comcast II, Cira South, ongoing plans at Penn, Drexel, CHOP, TJU, etc, wouldn’t it be wiser to consider the value of and in these relationships and working collaboratively to advance an industry?  Great progress will be realized when we choose to work together.

Gregory Management & Consulting Services (GMCS) provides neutral, contracted Association Management and Labor & Industry Relations support to many of our associations, contractors, facility owners and industry stakeholders. We are focused on facilitating communication amongst our 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. 

GMCS clients and prospects should take this time to consider your contracted labor & industry relations service needs for 2014.  GMCS has experienced tremendous growth throughout 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.  Regional labor disputes have begun to increase and overall activity is still very high in the region relative to previous years at this time.  GMCS Association Management, Operations and Labor Relations & 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 & industry 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.

As mentioned, we are debuting a new newsletter format for 2014.  This month’s newsletter is comprised of the most popular postings over the last 30 days on gregorymcs.blogspot.com. As has always been the case, they are listed by the following categories: INDUSTRY, LABOR, OSHA, MULTIEMPLOYER PENSION PLANS, HUMAN RESOURCES. Additional topics and subject matter may be found on the GMCS companion blog @ gregorymcs.blogspot.com.  GMCS will continue to track relevant industry legislation and provide summary updates on its companion blog.  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.  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 our 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 DEPARTMENT OF LICENSES AND INSPECTIONS ANNOUNCES NEW REQUIREMENTS FOR ALL PERMIT APPLICATIONS AND CONTRACT LICENSES:

Philadelphia, December 23, 2013– Effective January 1, 2014, all contractors working on all types of construction and demolition projects in the City of Philadelphia will be required to meet additional requirements in order to obtain required permits. Under the new regulations mandated by the Department, permits will not be issued by the Department of Licenses and Inspections (L&I) unless the contractor named on the permit provides a Tax Clearance form from the Department of Revenue and a current, valid Certificate of Insurance.

See the Press Release and related documents here…

Drones Drop in on Construction – The End of Architectural Building models?:

With BIM integration and 3Dimensional printing capability, just try to imagine what your next business development pitch could be like? 
Will a drone fly onto your jobsite in 2014? These radio-controlled devices with a mounted camera can take video and photo of a jobsite from high above the site. The use of these devices is gaining interest in construction.

Read more here…

Skyscrapers: 2014 Global Trend Forecast:

Yards  Skyscraper activity has been particularly high this year in terms of project proposals, completions and construction breaking ground Architects have also been pushing height boundaries to deliver tall buildings that meet the expectations and design aesthetics of their urban locations.

The year 2013 saw One World Trade Centre – the replacement for the original twin towers – crowned the tallest building in the Western Hemisphere while Broad Sustainable Building in China began the foundations for its ambitious prefabricated skyscraper, Sky City, among countless other projects.

Read more here…
Proposal Seeks to Limit Age of NYC Cranes:

The New York City mayor’s office has issued a proposal for a 25-year age limit on cranes operating in the city.

The New York City mayor’s office has issued a proposal for a 25-year age limit on cranes operating in the city. Mobile and tower cranes would be removed from service based on the original date of manufacture, or based on the age of the crane’s oldest component, whichever is greater. In addition, crane owners would be required to outfit all cranes with load cycle counters to record data regarding every lift that a crane performs—which is critical to setting maintenance schedules and overall operability over a crane’s service life.

Read more here…
ULI: Real estate market in 2014 will be 'recovering from the recovery:

Commercial real estate is reaching an inflection point where “valuations will no longer be driven by capital markets.” In 2014, Emerging Trends interviewees expect “space market fundamentals and property enhancements to emerge as the primary drivers of total returns,” reducing the reliance on falling capitalization rates and high amounts of leverage.

According to ULI CEO Patrick L. Phillips, the U.S. commercial real estate market is gradually “recovering from the recovery” and will “gain momentum” in 2014.  “The market has progressed further through the economic and real estate cycles,” and there is “real evidence” of momentum in the marketplace.

See the full ULI Emerging Trends in real Estate Report and more here…

National Trust offer energy roadmap for small buildings and small portfolios:

The National Renewable Energy Laboratory and the National Trust for Historic Preservation’s Preservation Green Lab initiative have released the report “Industry Research and Recommendations for Small Buildings and Small Portfolios,” analyzing untapped opportunities in energy savings.

NREL points out that the “small” sector is still important because more than 90% of U.S. commercial buildings fall into this category, accounting for 51% of total floor space and consuming more than 40% of the energy used in U.S. commercial buildings. The authors offer the Department of Energy's Building Technologies Office a potential course of action for engaging owners and operators, removing barriers, and establishing and achieving sector-specific energy goals.

Read more here…

Meet Steven Lakin, president of the GBCA:

Steven S. Lakin was named executive managing director of the General Building Contractors Association in August 2012 and recently received the title of president. A native of Philadelphia, Lakin spent 30 years in the Washington D.C. area serving in a variety of capacities. He did a stint in the Reagan administration and was later involved in government and public affairs including lobbying and fundraising for clients including the Associated Building Contractors.

Read more here…

Wells Fargo Securities Economics Group recently reported that Hotel Demand Will Remain Solid, but Cooling Is to be Expected:

Hotel demand has surged in recent years, but the pace is slowing. Business and leisure travel is expected to remain robust, but moderating corporate profits and slowing overseas travel may cool the trend.

Hotel Demand Cooling, but Should Remain Solid Despite sluggish U.S. economic growth, hotel demand has outperformed most major property types over the past three and a half years. According to PPR, hotel demand is up more than 20 percent since bottoming in 2010 and the average occupancy rate is now at its highest level in more than seven years at 67.5 percent in the Q3. Hotel demand, as measured by occupied space, typically follows the trend in real GDP (top chart), but, in this recovery, solid improvements in corporate profits have been more telling.

Read more here…

November Construction Starts Turn in a Solid Performance:


Reed Construction Data announced today that the value of November construction starts, excluding residential contracts, rose a solid 12.5% to $25.0 billion after increasing 5.0% in October. Since the starts data are not seasonally adjusted (NSA), caution should be used in analyzing monthly movements. Year-over-year comparisons are often used, as they remove much of the seasonal effects. Starts were up a less spectacular 2.0% compared to November 2012. The year-to-date starts data, which totaled $250.5 billion, were up a decent, if not overwhelming, 4.3% from the same period in 2012

Read more here…
AAA Makes Substantial Revisions to Commercial Arbitration Rules:

The American Arbitration Association (“AAA”) issued new Arbitration Rules and Mediation Procedures governing commercial disputes for AAA commercial arbitrations initiated on or after October 1, 2013. Arbitration proceedings filed prior to October 1, 2013 continue to be governed by the Arbitration Rules & Mediation Procedures amended and effective June 1, 2010.  There are a number of significant changes to the Commercial Rules, many of which appear designed to add increased flexibility to the parties and retain arbitration’s promise of a streamlined, cost-effective alternative to traditional litigation.

Read more here….
World's Tallest Prefab Building Leads Modular Boom - Navy Yard:

Trucks are expected to arrive at the Atlantic Yards Thursday carrying the first modules of what will become the tallest prefabricated building in the world.
Coming from a factory at the Brooklyn Navy Yard, the roughly 930 steel-framed boxes are the basic building blocks for Forest City Ratner’s B2, an eco-friendly, 32-story tower with 363 rental units, half of which will be reserved for low, moderate and middle-income families.
B2, which is expected to open in December 2014, is just one of many high-profile prefab projects rolling into the city.
Read more here…

Construction sector adds 17,000 jobs in November:

U.S. payrolls expanded by 203,000, the Labor Department reported on Friday, a total well above the gain of 180,000 economists had forecast.

The jobless rate, meanwhile, dropped to a five-year low of 7.0%. It had been expected to tick down to 7.2% from 7.3% in October.

The report also showed about 8,000 more jobs were added to payrolls in September and October than previously thought.

Read more here…

CONSTRUCTION EMPLOYMENT INCREASED IN 39 STATES FROM A YEAR AGO AND IN 30 STATES FROM OCTOBER TO NOVEMBER BUT DIVERGENT TRENDS HIGHLIGHT FRAGILITY:

Mississippi and California Rack up the Largest 12-Month Gains, Montana and Ohio Have Biggest Declines; Indiana and California Top Monthly Rankings, While Kentucky and Arizona Shed the Most Jobs in November

Construction firms added jobs in 39 states over the past 12 months, while employment nearly stabilized in the remainder, according to an analysis released today by the Associated General Contractors of America of Labor Department data. Association officials cautioned that the industry’s recovery was still relatively fragile, noting that a number of states experiencing large annual gains lost jobs during the past month.

Read more here…

GLASS Report: Legislative Action Alert: SB607: Approved by Governor, Act No. 121:

SB607: An Act providing standards for carbon monoxide alarms; and imposing penalties.  Re-introduction of Senate Bill 920 from the 2011-12 session, which establishes the Carbon Monoxide Alarm Standards Act.

Read more here…

Slight Contraction for Architecture Billings Index:

Washington, D.C. – December 18, 2013 – After six months of steadily increasing demand for design services, the Architecture Billings Index (ABI) paused in November. 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 November ABI score was 49.8, down from a mark of 51.6 in October. This score reflects a slight decrease in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.8, down from the reading of 61.5 the previous month.

Read more here…

LABOR:

Getting the job done: With Quincy’s $1.6b redevelopment at risk, building trade unions must step up:

THE DEMOLITION work is complete. But there isn’t a soul to be found in the fenced-in block in the center of Quincy where steelworkers, steamfitters, laborers, and other tradesmen should be well along in the construction of the first phase of the $1.6 billion revitalization project in this South Shore city of 91,000.

The 2010 agreement between the New York-based developer Street-Works LLC and the South Shore Building Trades Council requires the exclusive use of union construction workers on the first five buildings in the project, including a 15-story apartment building originally slated for this site. But last month, the developer declared a temporary halt to the project, citing runaway labor costs. Union leaders scoff at such claims. They say the developer has failed to communicate concerns with them. But the real losers in this game of back-and-forth are Quincy residents whose downtown has become blighted and obsolete.

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…

Employees of a Subcontractor May Sue the General Contractor on Construction Projects as if they are their employer. This decision potentially impacts all employers that engage in the “Labor Broker” model of business:

Many Philadelphia commercial construction employers engage in the use of a “Labor Broker” to utilize members of other building trades on projects; this is usually done to avoid signing additional collective bargaining agreements and assuming the short and long term liabilities associated with these collective bargaining relationships.  Specifically, and as it relates to this case, there are many similarities to recent past projects in our region in terms of the GC/subcontractor relationships and case specifics.  This appellate decision could potentially have broad-reaching implications for those employers that utilize this method of employment with subcontracted employees, independent contractors and all employers that engage in the “Labor Broker” model of business.

On December 10, 2013, the United States Court of Appeals for the Sixth Circuit reversed the District Court’s decision in the case of the Equal Employment Opportunity Commission (EEOC)’s lawsuit against Skanska USA Building, Inc.  In its reversal, the court held that Skanska USA Building, Inc. was the de facto employer for the subcontracted employees. 

Read more here…

JURISDICTION: Philadelphia Regional Update – Interior Glazing Products and the Signatory Obligations of a Contractor:

There has been a significant increase in reported cases of jurisdictional disputes over interior glazing type systems in the market place over the last 12 months.   This is the type of glazing that you would typically see installed in the course of an interior office fit-out or similar installation.  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 recent claims by competing entities for this work in the field.  Don’t let your free labor relations advice cost you or your project time and profits.

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.

Read more 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.  

Department of Labor's Persuader Rule Postponed to March 2014:

Just before the Thanksgiving holiday, the Department of Labor pushed back its target date from November 2013 to March 2014 for publishing its final rule regarding the “advice exception” to the so-called “persuader rule” in the Labor-Management Reporting Disclosure Act of 1959 (LMRDA). Because the proposed rule has significant monetary and legal implications for employers, they should monitor the proposed rule closely.

How does the proposed change to the persuader rule affect employers?

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.

Uptick in Wage Growth Likely in 2014, BNA Wage Trend Indicator Shows:

Arlington, Va. (Dec. 17, 2013) — The pace of private-sector wage growth likely will pick up in the latter half of next year, according to the revised fourth-quarter Wage Trend Indicator™ released today by Bloomberg BNA, a leading publisher of specialized news and information.

The index rose to 98.78 (second quarter 1976 = 100) from 98.70 in the third quarter, marking its first increase since the first quarter of 2013 after two quarters of essentially no change.

Read more 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.

Contact Wayne Gregory at Gregory Management & Consulting Services, wegregory@gregorymcs.com, to learn more about this subject matter or others impacting your associations, employers, members and our industry.

To read more and to access a link to OSHA’s site on this Proposed Rule Making, go here…

OSHA Ends Investigation of Deadly Center City Building Collapse:

OSHA cited Campbell and Benschop last month, and applied maximum fines -- a $313,000 penalty for Griffin Campbell and Campbell Construction, and a $84,000 penalty for Sean Benschop and S&R Contracting -- for a number of egregious and willful violations found prior to the June 5 collapse. The violations included a failure to demolish the building from the top down and leaving an unsupported wall more than one story high.

Read more here…

New educational video available on preventing electrocutions with cranes:

A new animated video in OSHA's educational series about potential hazards in the construction industry is now available. "Prevent Electrocutions: Work Safely with Cranes near Power Lines" is the 14th video in the series, which are based on real-life incidents and include detailed depictions of hazards and the safety measures that would have prevented the injuries and fatalities. Available in both English and Spanish, the videos are brief, easy to understand, and geared to the needs of employers and workers.

To stream or download the videos, go here…

OSHA extends comment period on proposed silica rule to provide additional time for 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 Prevention Videos (v-Tools) | Construction Hazards:

Every year in the U.S. more than 800 construction workers die and nearly 137,000 are seriously injured while on the job. Construction workers engage in many activities that may expose them to serious hazards, such as falling from rooftops, unguarded machinery, being struck by heavy construction equipment, electrocutions, silica dust, and asbestos.

The videos below show how quickly workers can be injured or killed on the job and are intended to assist those in the industry to identify, reduce, and eliminate construction-related hazards. Most of the videos are 2 to 4 minutes long, presented in clear, easily accessible vocabulary, and show common construction worksite activities. The videos may be used for employer and worker training.

Read more here…

More than $460,000 in fines proposed against Long Island, NY, contractor for fall and scaffolding hazards:

Painting & Decorating Inc. was cited by OSHA for repeat fall and scaffolding hazards following an inspection of a work site in Manhasset, N.Y. The painting and stucco contractor has a long history of fall protection and scaffold safety violations and now faces an additional $460,350 in OSHA fines.

Read more here….

Plant owner: Taking a stand against OSHA:

Bucks County businessman William H. Marsh says he is taking a stand against the U.S. government.

A federal workplace inspector showed up unannounced at Marsh's steel manufacturing business in Warminster on Nov. 21 seeking to measure the company's noise level, he said.
When the inspector produced no warrant, Marsh denied him entry

Read more 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…

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 2014 Budget Justification here…

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:

Illinois Breaking Pension Impasse Saves 29% on Debt: Muni Credit:

Underfunded public pensions have prompted changes in states from California to New York. Since the recession ended in 2009, three-quarters of states have curbed costs through steps such as requiring public employees to pay more into pension funds or cutting benefits for new workers, according to the National Association of State Retirement Administrators.

In Illinois, the proposal passed last week would limit annual cost-of-living allowances and raise the retirement age for some workers. The plan projects $160 billion of savings over the next 30 years.

Read more here…

Ballard Spahr reports that Illinois Passes Landmark Pension Reform:

Under the new law, which takes effect June 1, 2014, Illinois hopes to reach fully funded status in 30 years by cutting benefits and adding supplemental state contributions to the required state annual payments. The state’s pension plans are currently only 39.3 percent funded. State annual contributions have risen steadily over the past four years, consuming 20 percent of the state’s budget in fiscal year 2014—up from only 12 percent of the state’s budget in fiscal year 2010.

Read more here…

Pension annuitization remains attractive as 2013 ends:

As the year draws to a close, pension plan sponsors may want to consider annuitizing their pension liabilities. Throughout 2013, the Dietrich Pension Risk Transfer Index, which analyzes the relative attractiveness of annuitizing pension obligations, has climbed steadily upward, ending at 97.12 as of Dec. 1, slightly up from November’s figure of 97.10.

Meanwhile, the index’s current annuity discount rate proxy rose five basis points to 3.26 percent. In short, the index tracks market conditions that impact settlement costs. A higher index value means settlement costs have been reduced. Consequently, the index’s ascendance indicates the time is right to undertake a pension risk transfer deal by the end of this year and into the next.

Read more here…

Teamsters will vote on new YRC labor agreement:

International Brotherhood of Teamsters workers will vote on a proposal from YRC Worldwide Inc. to extend and modify a labor agreement, the union said Friday. While the company has said that such an agreement is crucial to helping it meet its debt obligations, the vote will come without an endorsement from Teamsters negotiators.

Read more here…

HUMAN RESOURCES:

OFCCP issues new rules on hiring of disabled individuals:

On August 27, the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) announced a final rule intended to promote the hiring and employment of people with disabilities by federal government contractors. The rule makes changes to the regulations implementing Section 503 of the Rehabilitation Act of 1973, which prohibits employment discrimination against individuals with disabilities, and Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).

The final rules were published in the Federal Register on September 24 and can be kindly described as voluminous and difficult to decipher. This article provides guidance on the key revisions to the Section 503 and VEVRAA regulations that affect contractors that are required to prepare affirmative action plans (AAPs).

Read more here…

Tips for sorting out a few thorny employment discrimination questions:

Employers face tough personnel decisions every day, and the threat of litigation makes the decision process even more problematic. Recently a group of attorneys tackled a couple of situations that present discrimination hazards–whether it’s too risky to reduce an older employee’s hours and whether it’s possible to lawfully check out an applicant’s workers’ compensation history. 

Read more here…

If You Fire Me Without Cause, Can I Ignore My Non-Compete And Steal Your Clients?:

In the decades since Post v. Merrill Lynch, Pierce, Fenner & Smith, 48 N.Y.2d 84 (1979), in which the New York Court of Appeals concluded it would be unreasonable to enforce a non-competition agreement requiring forfeiture of compensation against an employee terminated without cause, New York courts have struggled with articulating a clear rule as to whether an employee’s post-employment restrictive covenants are enforceable upon a termination without cause and, if so, when.

Read more here….

Where Job Descriptions Fail and How to Fix Yours:

Even when they are accurate to begin with (not always the case), it’s all too easy for job descriptions to get out of date, and that causes all sorts of problems, practical and legal, for employers.

The most typical problems have to do with job specifications that are inaccurate. They either require something that isn’t truly required or they describe duties that are no longer relevant.

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Discriminatory practices: pitfalls of the I-9 process:

The I-9 process of verifying an employee’s identity and employment authorization can be, as W.C. Fields put it, “fraught with eminent peril.” Failure to comply with documentation, verification, and discrimination laws can result in stiff fines and penalties. And recent settlement agreements between employers and the U.S. Department of Justice (DOJ) indicate that the government is paying attention.

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Unwelcome encore: managing investigations to survive ensuing litigation:

The classic Yogi-ism―”It ain’t over ’til it’s over”―has special significance for employment investigations. An investigation can lead not only to discipline against a perpetrator but also to litigation by the victim―or even the perpetrator―against the investigator or the employer. In either of those unsavory situations, the investigator or HR manager may be called on―often by subpoena and sometimes by being named as a defendant in the lawsuit―to defend the investigative report and the process that led to it.
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Will New Tax Law Punish Employers That Agree Not To Consent To Unemployment Claims?:

A little-publicized addition to the Federal Unemployment Tax Act (“FUTA”) quietly became law on October 21, 2013.  Known as the Unemployment Insurance Integrity Act of 2011 (“Act”), it suggests that employers will have to take a new tack when responding to agency info requests about departed employees’ unemployment compensation (“UC”) claims—if the employer previously has agreed not to contest their UC eligibility.

Prior to this Act, employers routinely would agree to “We won’t contest” clauses in their employment separation agreements.  These clauses often were key to securing legal releases from departing employees, even when the reason for their departures might disqualify them from UC eligibility.  Employers also, in the past, have deflected UC agency notices and information requests by responding, “The Employer does not contest the Claimant’s eligibility for benefits.”  The Act may nullify and punish this type of time-honored departure arrangement.

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Handling Leave of Absence Requests: FMLA Medical Certification:

When an employee requests a leave of absence under the Family & Medical Leave Act (FMLA), the employer must provide a medical certification form to be completed by the employee’s health care provider. In this BLR video, employment law attorney Michael Bansback of LeClairRyan explains your rights and responsibilities as an employer regarding the medical certification process.

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5 New Jersey Employment Laws That Go Into Effect In January 2014:

New Jersey employers hopefully have already heard about these new laws and/or requirements, but in an effort to get you ready for the New Year, we’ve compiled a list of new employment laws that go into effect in January 2014.  You should make sure to update your plans and policies as needed:

Minimum Wage — Voters in New Jersey approved a ballot initiative raising the minimum wage to $8.25 beginning January 1st, with mandatory increases in subsequent years tied to the inflation rate.

Read more here…
Tread lightly with electronic disclosures:

In light of all the Affordable Care Act disclosure requirements, and with the year-distributions required for retirement plans, employers seem to be thinking more and more about distributing benefit plan notices electronically. Perhaps companies want to post them on a company website or e-mail them to employees, but there is no question that mailing paper notices to employees becoming a less preferred option. Unfortunately though, it is the preferred method for plan communications from a regulatory perspective. ERISA does permit the electronic disclosure of certain plan communications under certain circumstances. But employers should be very careful.

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IN THE COURTS:

U.S. Supreme Court Holds That Forum Selection Clauses In Construction Contracts Should Be Rigorously Enforced:

The United States Supreme Court has issued a unanimous decision upholding a general contractor’s ability to require its subcontractors to litigate disputes in the state or federal court of its choosing.

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 2014.

Sincerely,
Wayne E. Gregory
Gregory Management & Consulting Services
2869 Eagleville Road
Audubon, PA 19403-2051
Phone: (215) 498-5790
E-Mail: wegregory@gregorymcs.com
On the web: www.gregorymcs.com

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