Welcome
to the March, 2015 Gregory Management &
Consulting Services (GMCS) REGIONAL CONSTRUCTION INDUSTRY UPDATE.
We are 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.
We
continue to present our second annual 2014
GMCS State of Philadelphia Labor & Industry Relations report to industry stakeholders and are
excited to talk about the many positive relationships and opportunities that
exist for the benefit of developers, facility owners & managers and
contractors. From market stabilizing
settlements, innovative and creative language that seeks to lower the overall
cost of mechanical contractor installs and service crews to newly crafted pre-apprenticeship
programs that create sustainable, much needed, career opportunities for the
local community, all of which were established through positive, solution’s
oriented, labor/management relationship within the industry. As many industry employer associations
continue to refocus their resources towards legislative affairs & political
agendas in 2015, and away from providing positive industry & labor
relations, GMCS Contracted Labor &
Industry Relations Services has become a valuable tool for those
developers, facility owners & managers, contractors and employer groups that
are interested in connecting the communication dots across a highly fragmented
and often dysfunctional industry. GMCS has
become the only recognized, educated, experienced and reliable source for labor
& industry relation’s support in the Mid Atlantic marketplace. We
are the single, unbiased, industry wide provider of labor & industry
relation’s support for the entire Mid-Atlantic region assuring information
sharing, professional, educated and experienced support to the entire industry
along with centralized labor event tracking, data sharing and a vendor that
serves each association and independent contractor.
Having
successfully resolved hundreds of matters related to area collective bargaining
agreements and contractors throughout the Philadelphia metropolitan, Lehigh
Valley and the entire Mid-Atlantic region, GMCS
has become the only recognized, educated, experienced and reliable source for
labor & industry relation’s support.
Did you know that national contractors that are
interested in working within the Philadelphia marketplace contact GMCS for advice on establishing key
relationships within the industry and its AEC community to gain a better
understanding of the region’s collective bargaining agreements, language and
contractor base? If you or your employer
associations aren’t working with GMCS,
perhaps it’s time to reconsider?
Our
region will once again see significant collective bargaining throughout 2015
with at least (9) Collective
Bargaining Agreements that will be actively negotiated or extended in 2015. Recent industry developments, including the creation of a
new employer association of subcontractors & contractors operating throughout
the Mid Atlantic region, existing labor/management relationships and
the ongoing need for productive, positive relationships within the marketplace,
will most certainly have an impact on this year’s collective bargaining and likely
alter the BATNA’s for both labor and
management. With the reality of a new
regional employer association and associated comprehensive Mid Atlantic regional
collective bargaining agreement, employers and labor may have some new options
and opportunities to consider. GMCS continues to provide guidance and
direction to contractors on this subject throughout the run-up and completion
of collective bargaining. Questions or
comments on this matter should be directed to Wayne
Gregory @ wegregory@gregorymcs.com.
Developers
and facility owners and contractors find tangible value and security in GMCS’s broad regional contractor knowledge
base, trusted relationships and continued participation in industry wide
discussions that seek to maintain harmony between facility owners, constructors
and building trades. We accomplish this
through our long standing and trusted relationships in government, management
and labor through the application of collaborative engagement and open
discussion. We help project stakeholders
reach mutually acceptable resolutions enabling projects, their contractors and
employees to return to work quickly. In
many cases, even before the dispute reaches the project. GMCS is
filling the industry leadership void by providing an open conduit for communication amongst the region’s developers,
facility owners, governmental authorities, employer associations, trades and
industry stakeholders through facilitating discussions that lead to
solutions. GMCS nurtures a Culture of Collaboration,
Communication and Cooperation amongst Contractors and Building Trades. GMCS remains firmly committed to our
contractors and our industry. Developers
and facility owners should consider making GMCS
an integral part of their next project planning team. We continue
to be a conduit for communication amongst the region’s employer associations,
trades and industry stakeholders. Many association members and national &
local contractors, have come to rely on our professional and respected service
when they need estimating, bidding and or project advice.
GMCS provides employer fee-paid recruitment services
concentrating in the Mid-Atlantic construction industry marketplace. We currently have several opportunities available
with local contractors including, Project Executives, Project Managers and
Estimators. Estimators with Masonry experience are encouraged to contact GMCS today.
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. In addition to employer
fee-paid recruitment 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.
This month’s newsletter is comprised of the most popular
postings over the last 30 days on gregorymcs.blogspot.com. Additional topics and subject matter may be
found on the GMCS companion blog @ gregorymcs.blogspot.com. GMCS
continues to track relevant industry legislation and provide summary updates
through its companion blog under the Gregory Legislative
Subscription Service (GLASS) Reports. 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. Between our companion blog at gregorymcs.blogspot.com and the
newsletter, our monthly industry reach continues to exceed 4,500 industry
professionals interested in discovering more about the latest Industry, Labor,
OSHA, Multi-Employer Benefit Plans and HR developments here in the regional
construction marketplace and abroad. Sponsorship and marketing
opportunities are available to industry stakeholders and contractors;
interested firms should contact Wayne Gregory
@ wegregory@gregorymcs.com for more
information.
INDUSTRY:
Real Estate: Despite the hype, Philadelphia is not as
strong as it seems:
I
had the pleasure of attending this year's Real Share conference in Philadelphia
last week. Real Share is an annual "State of the Market" real estate
conference that travels from city to city. The speakers are primarily senior
brokers, area lenders and developers as well as major players in the
hospitality, education and health care fields who share their views of what
happened in the prior year and what to expect in the coming year.
Read
more here…
STRIKE UPDATE:
Construction Contractors Council, AGC Labor Division,(“DC Contractors”) and The
Metropolitan Regional Council of Carpenters:
In
response to the current strike with the Construction Contractors Council,
several Contractors have joined together to form a new contractor association,
the Mid-Atlantic Association of Subcontractors & Contractors, or “MASC.’
Read
more here…
Third Comcast
skyscraper possibly in the works as Center City block bought piece-by-piece:
Third
Liberty Property Trust has been quietly assembling a series of properties at
19th and Arch streets in Center City for what many speculate could be the site
of the third skyscraper for Comcast Corp.
Liberty
is pursuing what could eventually amount to a block bound by 19th, Arch, Cherry
and 20th streets. The location is cater-corner to where Liberty (NYSE: LPT) is
developing the Comcast Innovation & Technology Center and is a stone's
throw from the Comcast Center. Another tower in that area would establish an
expanded urban campus for the cable giant and continue to push the city's Central
Business District deeper into Logan Square.
Read
more here…
Philadelphia’s
Center City District Annual Report: Housing Sustaining Momentum:
Here
is another excellent industry report from Paul Levy and the Center City
District. All developers, builders and
speculators are urged to download the report as it contains comprehensive data
on pricing and units in place and coming to market.
Residential
construction in Greater Center City maintained a very strong pace in 2014 as
1,983 new units were brought to market, down nominally from the record level of
2,168 in 2013. This new supply included 1,358 apartments, 183 condominiums, and
442 single-family homes, with the share of for-sale units increasing from 18%
in 2013 to 32% in 2014. Nearly all indicators suggest that demand has kept pace
with supply and can support the additional units now under construction.
Read
more here…
The MGM effect:
Massive National Harbor project may drive up contracting costs for all:
The
$1.2 billion MGM National Harbor resort will create thousands of jobs and drive
work to hundreds of small and local businesses during the roughly two years it
is under construction. But the MGM effect, according to one leading development
executive, isn't all boon. It may be a drain, too, on the pockets of other
developers.
Read more here…
Alexander
Building Construction expanding operating room, surgical services for
Susquehanna Health:
Alexander
Building Construction Co. has started on a 29,100-square-foot expansion of
Susquehanna Health's Williamsport Regional Medical Center.
The
project includes expanding the facility's operating room and surgical services
suites.
Read
more here…
Construction
Spending Ends 2014 at Highest Level Since 2008 as Public Outlays Turn Positive,
Adding to Strength in Private Segments:
Construction
spending rose in December to a six-year high of $982 billion as public
construction for the year increased for the first time since 2009, according to
an analysis by the Associated General Contractors of America. Association
officials said President Obama's budget proposal and his suggested
infrastructure funding program should help construction spending continue to
grow by accelerating debate about the best way to fund repairs to the nation's
aging roads, bridges, and other public infrastructure.
Read
more here…
Where Have All
the Construction Workers Gone?:
The
buzz and hammering of construction has returned to this city, which was
especially hard hit by the housing bust. The construction workers, however,
have not.
At
the peak of the boom, Nevada employed 146,000 construction workers, according
to the Bureau of Labor Statistics. Now the state employs only 63,000, a 59
percent decrease—and a two-decade low.
Read
more here…
ON MODULAR: New
type of modular housing moving into New York City
Two new
modular, prefabricated housing units.
"In
the last two years in New York there has definitely been an upswing in
development," said editor in chief Amanda Dameron of Dwell Magazine.
A new
seven story apartment building called "The Stack" is the first
multi-family modular building in the city, developers say, providing moderate
income housing.
Built
entirely at a site in Pennsylvania, the 56 modules were constructed and
outfitted in a controlled environment..
Read more here…
ON MODULAR:
Pennsylvania installs prefab bridges
Building
a bridge takes years. That’s a problem, because many states have crumbling
infrastructures, and they’re looking for ways to shore it up with limited
funds.
That's
why the Pennsylvania Department of Transportation is speeding things up.
PennDOT is hiring a team of private contractors to quickly replace hundreds of
state bridges.
Read
more here….
ON MODULAR:
PREFABRICATION PRODUCTIVITY:
From a residential high-rise in New York City
to low-cost hotels in Europe, the application of prefabricated and modular
objects and systems continues to capture the interest of owners, architects,
contractors, fabricators and product manufacturers in the building industry.
Around
the world, prefabrication proponents are finding ways to apply offsite
construction techniques that go way beyond repeatable systems such as bathroom
pods or mechanical pipe rack to more volumetric, pioneering, semi-customized
solutions that address a wide range of common construction challenges.
BIM
EVOLVED: Trending from BIM-Driven to BIM-Dependent - BIM evolves from advantage
to prerequisite:
While
Henry Ford was inventing the Model T automobile as a new travel tool, he
created a delivery process called the assembly line.
It
shortened the manufacturing time and reduced a vehicle’s price, which
significantly expanded the auto market customer-base. The real invention was
arguably not the car but the assembly line process that built it. That process
was adopted and integrated as the core process for hundreds of product
manufacturing processes.
Read
more here…
The Employment Situation Summary – January, 2015:
Construction continues to add jobs, an additional +39,000 in January, 2015:
Construction
continued to add jobs in January (+39,000). Employment increased in both
residential and nonresidential building (+13,000 and +7,000, respectively).
Employment continued to trend up in specialty trade contactors (+13,000). Over
the prior 12 months, construction had added an average of 28,000 jobs per
month.
Glance Value of Construction Put in Place at a Glance -
December 2014: Construction spending during December 2014 was estimated at
$982.1 billion:
The
U.S. Census Bureau of the Department of Commerce announced today that
construction spending during December 2014 was estimated at a seasonally
adjusted annual rate of $982.1 billion, 0.4 percent (±1.3%)* above the revised November
estimate of $978.6 billion. The December figure is 2.2 percent (±1.6%) above
the December 2013 estimate of $961.2 billion.
The
value of construction in 2014 was $961.4 billion, 5.6 percent (±1.2%) above the
$910.8 billion spent in 2013.
DODGE – DMI: Dodge Momentum Index: January Construction
Climbs 9 Percent:
The
value of new construction starts climbed 9% in January to a seasonally adjusted
annual rate of $621.0 billion, according to Dodge Data & Analytics. The
increase for total construction was the result of an especially strong
performance by the nonbuilding construction sector, which benefitted from the
start of a massive liquefied natural gas terminal facility in Texas. Meanwhile,
nonresidential building lost momentum for the second month in a row and
residential building pulled back due to a slower pace for multifamily housing.
On an unadjusted basis, total construction starts in January were reported at
$43.2 billion, up 18% from the same month a year ago.
Read
more here…
Architecture
Billings Index: Business Conditions at Architecture Firms Soften in January:
Billings
at architecture firms declined modestly in January, as the Architecture
Billings Index (ABI) score fell to 49.9 (a score below 50 indicates a decrease
in billings). While this was the first decline in firm billings in nearly a
year, it is minute enough that it is likely to be more of a blip than a trend.
And while business conditions at architecture firms frequently soften during
the holiday period at the end of the year, ABI data is seasonally adjusted to
minimize those effects (note that this month all historical seasonal-adjustment
factors were updated, leading to some revision of historical data). Inquiries
into new work remained strong, and more firms reported an increase in the value
of signed design contracts in January, after a brief slowdown in December.
Read
more here…
LABOR:
Collective Bargaining in 2014 Yields Average First-Year
Increase of 2.3%:
Construction-industry
collective bargaining negotiations settled during 2014 resulted in an average
first-year increase in wages and benefits of $1.07 per hour or 2.3 percent,
according to the annual year-end Settlements Report issued by the AGC-supported
Construction Labor Research Council. For
newly negotiated multi-year contracts, the average negotiated second-year
increase was $1.31 or 2.4 percent, and the average third-year increase was
$1.37 or 2.5 percent.
Read
more here…
2015 Regional Collective Bargaining Agreements for
Philadelphia Commercial Construction and Heavy & Highway Contractors:
With
another active year of collective bargaining ahead, owners and developers are urged
to keep a close eye on the current state of labor and industry relations within
the industry.
NLRB Division of Advice on Making Unilateral Changes when
Employer and Union are at Negotiations Stalemate:
A unionized employer did not violate the National Labor Relations
Act when, after reaching a bargaining impasse with the union, it unilaterally
issued a health care proposal that gave it broad discretion to make unilateral
changes to certain parts of the health care plan.
Read more here…
Baylor Health Care System, Scott & White Healthcare
Agree to Rescind Overly Broad, Unlawful Rules and Post and Email Notice to
35,000 employees Via Employer’s Intranet System:
The
Fort Worth Regional Office of the National Labor Relations Board (NLRB) today
announced that Baylor Health Care System, Scott & White Healthcare agreed
to rescind various overly broad policies, including its social media policies,
and post and email an NLRB Notice to all of its 35,000 employees throughout Texas
in response to a complaint filed by the NLRB, Region 16 Office in Fort Worth.
Baylor Health Care System, Scott & White Healthcare provides medical
services throughout the state of Texas.
Read
more here…
Employment
Cost Index – December, 2014 - Wages and salaries increase 0.5 percent, and
benefits increase 0.6 percent for the three month period ending December, 2014:
Compensation
costs for civilian workers increased 0.6 percent, seasonally adjusted, for the
3-month period ending December 2014, the U.S. Bureau of Labor Statistics
reported today. Wages and salaries (which make up about 70 percent of
compensation costs) increased 0.5 percent, and benefits (which make up the
remaining 30 percent of compensation) increased 0.6 percent.
Job Openings and Labor Turnover Summary – December, 2014:
Construction Quits Jump while Hiring and Job Openings Rise:
There
were 5.0 million job openings on the last business day of December, little
changed from 4.8 million in November,
the U.S. Bureau of Labor Statistics reported today. Hires (5.1 million) and
separations (4.9 million) were little changed in December. Within separations,
the quits rate (1.9 percent) and the layoffs and discharges rate (1.2 percent)
were unchanged. This release includes estimates of the number and rate of job
openings, hires, and separations for the nonfarm sector by industry and by four
geographic regions.
Employee or Contractor? Health Care Law Raises Stakes:
The
I.R.S. is emphasizing the distinction between employees and self-employed
independent contractors this year, tax specialists warn. That makes it
important for workers and critical for businesses that use their services to
make sure to get the classification right. If you flub the answers, it could be
costly.
Training program in Norristown prepares adult students
for apprenticeships:
For
young adults who have not gotten the educational boost from high school
programs that they need to start their careers, a pre-apprenticeship program
for the building trades has already helped eight individuals.
One
graduate is in an electrical union apprenticeship program, one is in culinary
school and two are attending college, said Aariann Vaughn, the project director
of the program. Two other graduates are working in the masonry field and
general construction. The last two graduates are working in other fields, she
said.
Read
more here…
Trade union asking members to accept pay cut:
In
a Jan. 25 letter from the leadership for the International Union of Operating
Engineers Local 955, CEO and manager Bruce Moffatt says the current price of
oil leaves the industry as it stands unsustainable.
NLRB overturns Register Guard - Employee use of email for
statutorily protected communications on nonworking time must presumptively be
permitted by employers who have chosen to give employees access to their email
systems:
At
issue in this case is the right of employees under Section 7 of the National
Labor Relations Act to effectively communicate with one another at work
regarding self-organization and other terms and conditions of employment. 1 The
workplace is “uniquely appropriate” and “the natural gathering place” for such
communications,2 and the use of email as a common form of workplace
communication has expanded dramatically in recent years. Consistent with the
purposes and policies of the Act and our obligation to accommodate the
competing rights of employers and employees, we decide today that employee use
of email for statutorily protected communications on nonworking time must
presumptively be permitted by employers who have chosen to give employees
access to their email systems. We therefore overrule the Board’s divided 2007
decision in Register Guard to the extent it holds that employees can have no
statutory right to use their employer’s email systems for Section 7 purposes.
Read
more here…
Regional Collective Bargaining Settlement Sheets
available:
GMCS
has compiled a detailed settlement report defining the regional trade
settlements from last year’s collective bargaining as well as detailing the
previously negotiated settlements for trades and associations. Copies are
available to associations engaged in regional negotiations. Please
contact GMCS at wegregory@gregorymcs.com today for
instructions on how to receive your copy.
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.
Union Work Stoppages Summary – 2014:
In
2014, there were 11 major work stoppages involving 1,000 or more workers and
lasting at least one shift, the U.S. Bureau of Labor Statistics reported today.
The 11 major work stoppages beginning in 2014 were down from the 15 major work
stoppages beginning in 2013, and equaled the second lowest annual total (11 in
2010) of work stoppages since the series began in 1947. The lowest annual total
was 5 in 2009. (See chart 1 and table 1.)
OSHA & SAFETY:
OSHA and NIOSH issue hazard alert to
protect workers from silica exposure during countertop manufacture and
installation
OSHA
and the National Institute for Occupational Safety and Health have jointly
issued a hazard alert (PDF*) about protecting workers from significant
crystalline silica exposure during manufacturing, finishing, and installing
natural and manufactured stone countertops.
OSHA: Preventing cold stress, slips
on snow and ice:
Snow
and ice create slips, trips and falls hazards for workers. Employers should
clear snow and ice from walking surfaces and spread deicer as quickly as
possible after a storm. When walking on snow or ice is unavoidable, employers
should ensure that workers are equipped with footwear with good traction and
insulation. Employers should also instruct workers to take short steps and walk
at a slower pace so they can react quickly to a change in traction. See OSHA's
Winter Weather Web page for more information on staying safe in cold weather.
OSHA will host second-annual
Construction Fall Safety Stand-Down, May 4-15, 2015:
Every
day in this country, construction workers fall. One wrong step and they're
tumbling down a steeply pitched roof, sliding or dropping off an unstable
ladder, or left hanging from a scaffold. The difference between an unexpected
stumble and tragedy is simple: fall protection.
Read
more here…
OSHA publishes directive for
compliance officers for inspecting cranes and derricks:
Last
month OSHA issued a directive (PDF*) for OSHA compliance officers on enforcing
requirements of the Cranes and Derricks in Construction standard. The new
directive provides OSHA compliance personnel with direction on performing
inspections where power-operated equipment, covered by Subpart CC - Cranes and
Derricks in Construction, is present on a construction worksite.
New web resource for residential
construction employers to protect workers from falls:
To
assist employers in selecting effective fall protection methods to protect
workers in residential construction, a new website provides details about
equipment highlighted in OSHA's Guidance Document for Residential Construction
(PDF*).
Read
more here…
OSHA reminds employers to post OSHA
300A injury/illness summary February through April:
OSHA
is reminding covered employers to post OSHA's Form 300A, which summarizes the
total number of job-related injuries and illnesses that occurred during 2014
and were logged on OSHA's Form 300, the log of work-related injuries and
illnesses. The summary must be posted between Feb. 1 and April 30, 2015, and
should be displayed in a common area where notices to employees are usually
posted.
Read
more here…
OSHA publications accessible on
smartphones and tablets; Safety and Health Information Bulletins available:
If
you use a smartphone or a tablet on the job, important worker safety and health
information is a click away. Dozens of electronic publications can be
downloaded at no cost from OSHA's Publications Web page. To order publications,
contact OSHA's Publications Office at 202-693-1888.
Read
more here…
New reporting requirements:
Employers required to report fatalities and severe injuries and illnesses:
As
of Jan. 1, 2015, employers covered by federal OSHA are now required to report
work-related fatalities within 8 hours and work-related in-patient
hospitalizations, amputations and losses of an eye within 24 hours of finding
out about the incident.
Alliance with Scaffold and Access
Industry Association renewed to protect workers from scaffold hazards:
OSHA
has renewed its alliance with the Scaffold and Access Industry Association to
provide information and training to protect the safety and health of workers
who use scaffolds and lift equipment. Through the alliance, OSHA and SAIA will
work to reduce and prevent fall and caught-in-between hazards and issues
related to frame, mast climbing and suspended scaffolds and aerial lift
equipment.
OSHA urges Employers to prevent
texting while driving:
OSHA
reminds employers that they have a responsibility to protect their workers by
prohibiting texting while driving. It is a violation of the OSH Act if
employers require workers to text while driving, create incentives that
encourage or condone it, or structure work so that texting is a practical
necessity for workers to carry out their job.
Read
more here…
OSHA National fall Prevention
Program:
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:
Milliman analysis: January 2015 interest rates reach a
record low of 3.38% with abysmal effect on pension funding:
The
funded status of the 100 largest corporate defined benefit pension plans
dropped by $90 billion during January as measured by the Milliman 100 Pension
Funding Index (PFI). The $90 billion funded status decline was the eighth
largest monthly drop in the 15-year history of the Milliman 100 PFI. The funded
status deficit ballooned to $382 billion from $292 billion at the end of
December 2014 due to the 42 basis point decline in the benchmark corporate bond
interest rates used to value pension liabilities. Pension assets had a monthly
above-expected return due to strong fixed income asset return and this helped
to counter liability losses. As of January 31, the funded ratio decreased to
79.6%, down from 83.5% at the end of December 2014. The previous sub-80% PFI
funded ratio was in December 2012.
The
funded status of the 100 largest corporate defined pension plans fell by $90
billion during January as measured by the Milliman 100 Pension Funding Index
(PFI). This decline was the eighth largest monthly drop in the 15-year history
of the Milliman 100 PFI. The funded status deficit ballooned to $382 billion
from $292 billion at the end of December 2014. Pension assets, however, had a
monthly above-expected return. As of January 31, the funded ratio decreased to
79.6%, down from 83.5% at the end of December 2014.
Read
more here…
Feds place 150
union pension funds in 'critical' status:
The
Labor Department says 150 union multi-employer pension funds are in "critical
status," meaning that they lack enough assets to meet at least 65 percent
of their future obligations.
Another
85 funds are listed as being "endangered," meaning they lack the
assets to meet at least 80 percent of their future obligations.
Read
more here…
Corporate
pensions suffer sharp declines:
The
funded status of U.S. corporate pension plans saw a sharp downturn in January,
though by just how much depends on whom you ask.
Read
more here…
DB plan
sponsors actively look at risk management options:
Close
to one-quarter (22%) of plan sponsors say they are very likely to offer
terminated vested participants a lump sum window in the coming year, according
to recently released data from Aon Hewitt. In addition, 19% of employers plan
to increase cash contributions to reduce PBGC premiums in 2015, and 21% say
they will consider purchasing annuities for a portion of their plan
participants.
Read
more here…
Kimberly-Clark offloading $2.5 billion in pension
liabilities:
Consumer
products giant Kimberly-Clark is the latest defined benefit pension sponsor to
transition significant pension liabilities to the insurance industry. That
trend may accelerate due to the prospect of higher pension costs attributable
to increasing life expectancy reflected in the Society of Actuaries’ new
mortality tables, and rising PBGC premiums.
On
Monday the company announced it is offloading about $2.5 billion in liabilities
for 21,000 retirees to Prudential and MassMutual in a transaction that takes
effect June 1.
HUMAN RESOURCES:
HR: Pennsylvania Poster Update: Workers’ Compensation:
Pennsylvania
has revised their Workers’ Comp Insurance notice. In addition to numerous
formatting changes, they have added a statement advising that misleading or
incomplete information may violate insurance fraud laws as well as a number of
new claims contact information (including hearing impaired and email).
Nutter signs paid sick leave legislation:
By
mid-May, paid sick leave will be law in Philadelphia. Mayor Michael Nutter
signed legislation Thursday requiring companies with 10 or more employees to
provide one hour of paid sick leave for every 40 hours worked.
Read
more here…
The One Question Top Talent Wants Companies to Answer:
This
is one of our first questions that we ask potential clients when taking on an
executive recruiting role with their organization and a question that is
answered when we take a new client in under our Employer Branding Services
product. ”Why do employee candidates want to work for you?” In most cases, many
hiring managers, many executives too, do not have a clear answer to this
question.
NLRB rulings have far-reaching impact on employers and
policies:
In
December 2014, the National Labor Relations Board (NLRB) delivered two major
edicts that affect all employers. The first speeds up the union election
process so employers will have less time to respond to a petition. The second
allows employees to use employers’ e-mail systems for union organizing and
other protected concerted activity, such as complaining about working conditions.
Anti-Harassment Policies, Training and Prompt Remedial
Action Can Insulate Companies From Liability:
The
recent verdict in favor of the plaintiff in the Marchuk v. Faruqi & Faruqi
case reminds us that employers must take their obligation seriously to provide
a harassment-free work environment. Employers, particularly in New Jersey, are
often counseled that failure to implement an effective anti-harassment policy
can subject the company to independent liability for illegal harassment in the
workplace. Employers are also aware that they can be held vicariously liable
for illegal harassment committed by their supervisors. However, many employers
are not aware that maintaining effective anti-harassment policies, having
adequate complaint procedures and taking prompt remedial action in response to
complaints can avoid litigation and provide a safe haven from vicarious
liability for alleged supervisory harassment. This protection should serve as
motivation for employers to regularly publish an effective anti-harassment
policy and complaint procedure and conduct regular anti-harassment
training.
Read
more here…
DOJ Says Title VII's Sex Discrimination Prohibition
Includes Gender Identity – Employers Should Consider Policy Revision:
U.S.
Attorney General Eric Holder has announced that the Department of Justice (DOJ)
now takes the position that Title VII's prohibition against sex discrimination
includes discrimination based on gender identity, including transgender status.
In a press release issued December 18, 2014, the Attorney General stated that he
has informed all DOJ component heads and U.S. attorneys in a memo that the
department will no longer assert that Title VII's prohibition against
discrimination based on sex excludes discrimination based on gender identity
per se, including transgender discrimination.
Read
more here…
To dock or not to dock? That is the question:
One
of the most common questions I hear from employers involves when they can or
can’t dock employees’ paychecks. It’s very tempting to use an employee’s
paycheck as a way to recoup losses you’ve incurred because of her actions,
especially when, as a practical matter, there will never be any other way to
collect the debt from her. However, you should exercise caution when docking an
employee’s paycheck because federal and
state laws limit the deductions that can legally be made.
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
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