Wednesday, April 1, 2015

REGIONAL CONSTRUCTION INDUSTRY UPDATE - APRIL, 2015



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

Collective bargaining remains a primary concern this month as a significant number of agreements between regional employer associations and building trades will expire at midnight on April 30, 2015.  In our opinion, given the current state of industry relations, the ongoing withdraw and lack of industry collaboration with some industry groups and the lack of experienced labor relations professionals at the table, this year’s collective bargaining may have its challenges.  Adding to the list of potential challenges is the increased demand for skilled labor throughout the marketplace.  Regional developers and facility owners should pay close attention to the ongoing progress and outcome of these negotiations as any disruptions or monetary fluctuations may impact project schedules and or budgets.
  
  
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, could certainly have an impact on this year’s collective bargaining by likely altering 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.  Do you know what to do on your project in the event of a job action?  Questions or comments on this matter should be directed to Wayne Gregory @ wegregory@gregorymcs.com.

GMCS continues to expand our products and services to meet the needs of our industry and expanding client base.  Most recently, our monthly newsletter service has transitioned to a fee based product serving the needs of associations and organizations interested in receiving our comprehensive and informative industry specific monthly newsletter.  While we do not plan on ceasing the publication of our very popular complimentary monthly newsletter, we do plan on reducing it in size and scope while transitioning to a new and enhanced delivery platform highlighting key industry data and relevant topics backed by sponsored content.  GMCS is currently seeking industry sponsors interested in participating in this unique opportunity to place their business in front of thousands of industry specific readers every month.  As has always been the case, every article, in both our fee based and complimentary products, is posted by category on our corporate blog at gregorymcs.blogspot.com.

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

Is your firm looking to fill key positions within your organization?  With over 25 years of industry contacts & experience within the Philadelphia metropolitan region and developed industry relationships to work from, GMCS has become a powerful recruiting organization in this region’s construction industry marketplace.  Our goal is to provide our clients and candidates with superior quality recruitment services while maintaining the highest degree of integrity, confidentiality and professionalism.  Go here to find out more about our Employer and Candidate Services.  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.

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

INDUSTRY:

The 10 Most Exciting New Hotel Projects Coming To Philadelphia In 2015 And Beyond:

Philadelphia’s hotel scene just keeps getting better. After a number of key openings and renovations in recent years — and after Philadelphia saw its highest occupancy rate ever in 2014 — a number of high profile hotel projects are on the books to open in Philadelphia in the next few years.

Read more here…

Seeking Qualified Vice President of Operations – Commercial Construction, Philadelphia:

GMCS is assisting a local General Contractor in placing a qualified and experienced Vice President of Operations.  Our client operates mainly in the Pennsylvania, New Jersey and Delaware areas and includes expertise and projects with government, academia, state and local authorities, military and healthcare.  Qualified candidates will have experience and contacts in the unionized commercial construction environment and have a proven track record of success in these markets.

Additional details shall follow.  Forward all inquiries, letters of interest and resumes to Wayne Gregory @ wegregory@gregorymcs.com.

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…

A professional Philadelphia demolition firm’s social media page that will echo volumes about the culture, pride and professionalism within this organization.

Take a few minutes to see what Cippco Contracting is doing that completely sets them apart from everyone else in the industry.   I can’t recall another contractor in the region that approaches training, safety and a positive corporate culture like they do.  It’s worth a look!

Read more here…

Wohlsen Construction Co Builds Reading and beyond: Hilton DoubleTree hotel construction city’s grandest since Abraham Lincoln in 1930:

The countdown is on for Wohlsen Construction Co. to complete a $42 million construction contract with Hospitality LLC to build the Hilton DoubleTree hotel in the 700 block of Penn Street, across from the Santander Arena. Total cost for the hotel is projected at about $60 million.

Read more here…

ON MODULAR: The Future Of 3D Printed Building Construction Is Now:

Back in November 2013 we wrote an article asking Does It Matter Who Wins the Race to Create the First 3D Printed Building? We determined that being first didn’t matter nearly as much as the fact that there were a number of firms working on the technology to make 3D printed buildings a reality. Some of the projects we covered were DUS Architects’ canal house in Amsterdam using their KamerMaker 3D printer, Enrico Dini’s D-Shape 3D printer and Behrokh Khoshnevis’ Contour Crafting. At the time it appeared we probably wouldn’t see a functional and usable building until the end of 2014 at the earliest.

Read more here…

ON MODULAR: China builds complete 57-story skyscraper in record 19 days:

Sploid reader Xian Min Zhang sent us the latest time-lapse video of the construction of his latest building: A 57-floor 2-million-square-foot (180,000-square-meter) skyscraper fully built with energy-efficient, factory-produced Lego-like blocks. He claims that they are now building these at a record three floors per day!

Read more here…

The Employment Situation – February, 2015: Construction added 29,000 jobs in February. Employment in specialty trade contractors rose by 27,000:

Total nonfarm payroll employment increased by 295,000 in February, and the unemployment rate edged down to 5.5 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in food services and drinking places, professional and business services, construction, health care, and in transportation and warehousing. Employment in mining was down over the month.

Read more here…

Value of Construction Put in Place at a Glance - January 2015: Barely misses 2015 estimates, but up from January, 2014:

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during January 2015 was estimated at a seasonally adjusted annual rate of $971.4 billion, 1.1 percent (±1.2%)* below the revised December estimate of $982.0 billion. The January figure is 1.8 percent (±1.6%) above the January 2014 estimate of $954.6 billion.

Read more here…

DODGE – DMI: Dodge Momentum Index Rises in February:

The Dodge Momentum Index increased to 126.3 (2000=100) in February, a gain of 4.3% from January’s 121.1, according to Dodge Data & Analytics. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. The Momentum Index has been exhibiting somewhat of a saw-tooth pattern of late, up in December, down in January, and now up in February. Despite the volatility that is sometimes visible in planning data, the overall trend for the Index continues to be positive, painting the picture of a broad-based yet still moderate recovery for nonresidential building projects at the planning stage. The Index now stands 17% higher than one year ago.

Read more here…

Architecture Billings Index: Severe Winter Weather Continues to Depress Design Revenue

Business conditions at U.S. architecture firms improved modestly in February, but growth rates remain well below typical 2014 levels. With a national index score of 50.4 for February, billings increased somewhat from the 49.9 reading in January. New design contracts were also weak in February, posting a 50.0 score, which signifies no improvement over January levels. Even new project inquiries, though indicating growth, were at their slowest pace of increase in two and one-half years.

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…

Employer Costs for Employee Compensation – December, 2014: Wages and salaries = 68.4% / Benefits = 31.6 % of Total Compensation Package:

The following BLS statistical data is an excellent resource for employers interested in comparing and benchmarking their own compensation data against a national data set.  The information within contains a detailed cost per hour of the most common compensation components and is an excellent resource for interested employers.  Additionally, for our clients engaged in collective bargaining this year, this is an excellent resource to gauge/measure/compare your current wage and H&W benefit allocations going into negotiations.  For those engaged in collective bargaining, following this link will provide a detailed analysis and breakdown for bargaining unit employees. GMCS clients receive a summarized report of this data to further assist their organizations in collective bargaining. 

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.

Read more about 2015 Regional Collective Bargaining Agreements for Philadelphia by going here…

Construction employers added 29,000 jobs in February; Reaches the highest employment total in six years; unemployment rate fell to an eight-year low of 10.6 percent:

Construction employers added 29,000 jobs in February and 321,000 over the past year, reaching the highest employment total in six years, as the sector's unemployment rate fell to an eight-year low of 10.6 percent, according to an analysis by the Associated General Contractors of America. Association officials cautioned, however, that construction jobs in the highway and transit sector were at risk because of Washington gridlock.

Read more here…

An impact analysis this latest General Counsel Memo for National Labor Relations Board, GC 15-04, and its impact on employee policy manuals:

On March 18, 2015, NLRB General Counsel Richard F. Griffin, Jr. issued General Counsel Memorandum GC 15-04 containing extensive guidance as to the General Counsel’s views as to what types employer polices and rules, in handbooks and otherwise, will be considered by the NLRB investigators and regional offices to be lawful and which are likely to be found to unlawfully interfere with employees’ rights under the National Labor Relations Act.

Read more here…

Job Openings and Labor Turnover – January, 2015: New Hires down while Quits are up.:

There were 5.0 million job openings on the last business day of January, little changed from 4.9 million in December, the U.S. Bureau of Labor Statistics reported today. Hires decreased to 5.0 million in January and separations were little changed at 4.8 million. Within separations, the quits rate was little changed at 2.0 percent and the layoffs and discharges rate was unchanged at 1.2 percent. 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. The release also includes 2014 annual estimates for hires and separations. The annual number of hires, quits, layoffs and discharges, and other separations increased in 2014.

Read more here…

Report shows a more efficient auto show:

Changes in the union workforce at the Convention Center have dramatically lowered the cost of putting on an event there, an internal analysis shows.

The report compares labor hours and the number of people working at this year's landmark Philadelphia Auto Show with last year's show, finding that lower costs and more efficiency yielded a 20 percent savings on the show's labor bill.

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.

OSHA & SAFETY:

OSHA Updating Eye & Face Protection Standards In Construction:

OSHA is finally getting around to updating its construction industry standards for eye and face protection. A proposed rule was published in the Federal Register on March 13, 2015 that would update the standards to be more in line with the general industry and maritime industry standards for eye and face protection. The purpose is to get the OSHA standards up to date with the current national consensus standards, i.e., incorporate the latest American National Standards Institute (ANSI) standards..

Read more here…

Learn how to get involved in the 2015 National Safety Stand-Down:

Three million! That's how many workers OSHA and its partners hope to reach during the 2015 National Safety Stand-Down to prevent falls. From May 4-15, participants are asked to pause their workday and participate in safety training in fall prevention. Last year more than 1 million employers and workers across the country joined the effort, making it the largest occupational safety event ever hosted in the United States.

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.

Read more here…

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.

Read more here…

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.

Read more here…

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: Milliman US: 2015 Multiemployer Pension Funding Study

The Spring 2015 study shows that the overall funding shortfall for all plans increased by $5 billion for the year ending December 31, 2014, while the aggregate funding percentage decreased slightly to 80%. There has been significant recovery from the low point in 2009, but the aggregate funded percentage has yet to return to pre-2008 levels. Multiemployer plan funding levels have steadily improved, though they leveled off in 2014. For plans in need of financial recovery, the biggest driver is investment performance.

Read more here…

Milliman Index: Pension Funding Index March 2015:

The funded status of the 100 largest corporate defined benefit pension plans improved by $80 billion as measured by the Milliman 100 Pension Funding Index (PFI). The deficit fell to $303 billion from $383 billion at the end of January. As of February 28, the funded ratio increased to 83.3%, up from 79.6% at the end of January.

Read more here…

Group pension buy-out sales more than double:

“While a DB pension plan adds equity to a company, years of low interest rates and increasing Pension Benefit Guarantee Corporation premiums have encouraged more companies to consider transferring their risk to an insurer by purchasing a group annuity,” says LIMRA, which released the findings of its survey Thursday.

Read more here…

Multiemployer Review: Tools for plans in critical and declining status:

The Multiemployer Pension Reform Act of 2014 (MEPRA) was part of the Consolidated and Further Continuing Appropriations Act of 2015, which was signed by President Obama in December. One of the major changes MEPRA has made is the creation of a new status for very poorly funded plans called “critical and declining status.” In this Multiemployer Review, we define this new status and outline major rules and procedures related to plan mergers, plan partitions, and benefit suspensions.

Read more here…

Adjustable pension plan still in works for Consumers Union:

Consumers Union, the owner of Consumer Reports, agreed to eliminate the March 15 deadline for approval of an employment contract that includes an adjustable pension plan employees had bargained for in 2013.

Consumers Union has been waiting for plan approval from the Internal Revenue Service and had until the March 15 deadline to approve the plan. The IRS has not given its OK, but it did give approval in July 2014 of an identical plan at the New York Times, according to Bill O’Meara, president of the Newspaper Guild of New York, a union that covers news employees at both organizations.

Read more here…

HUMAN RESOURCES:

HR: Winter Storms Warning: A new survey reveals that most companies barely earn a passing grade on how they cope with winter storms.:

Employers from New England to the Gulf Coast have been struggling this year with what may be remembered as the winter from hell.

Considering the record amounts of precipitation and cold temperatures, thousands of employers have been forced to make difficult decisions. How many days should the office be closed? Which employees need to work from home? Should critical workers stay in a hotel within walking distance?

Read more here…

New rule simplifies FMLA administration:

The U.S. Supreme Court’s 2013 decision in United States v. Windsor created a lot of uncertainty in federal employment benefits. Because the federal government’s definition of marriage as a union between one man and one woman was deemed unconstitutional, the decision left unanswered the question of when same-sex spouses were eligible for spousal benefits in a variety of contexts. In a move that is sure to simplify things for multistate employers, the U.S. Department of Labor (DOL) is taking steps to clarify that issue under the Family and Medical Leave Act (FMLA) with a new rule that goes into effect Friday.

Read more here…

Supreme Court Announces New Federal Test for Pregnancy Discrimination Claims:

The U.S. Supreme Court issued a long-awaited decision regarding failure-to-accommodate claims under the Pregnancy Discrimination Act (the PDA), a subsection of Title VII of the Civil Rights Act of 1964 (Title VII). The opinion includes a new test to be used in assessing PDA claims that could present employers with unique responsibilities in dealing with pregnant workers, as well as new challenges should they be faced with pregnancy-discrimination litigation.

Read more here…

Five Things Fact Finders Expect from Your Documentation:

When you document, you’re not writing just for the moment, says Fentin. The following parties will eventually be looking at your documentation: Employee, Opposing counsel, Administrative agencies—the EEOC or state deferral agency, Judge, Jury, etc..

Read more here…

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

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

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

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

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