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…
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…
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.
Read more here…
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.
Read more here…
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.
Read more here…
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.
Read more here…
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.
Read more here…
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.
Read more here…
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:
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