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.
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.
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.
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.
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.
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..
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.
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:
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.
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?
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.
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..
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
No comments:
Post a Comment