Friday, January 22, 2016

Avoid familiar results on minority contracting



Recent reports of Mayor Jim Kenney’s goal to ensure 45 percent of workers on city-funded construction sites be minority can be viewed one of two ways – with skepticism or hope.

In a radio interview earlier this week on WURD-900 AM with Solomon Jones and written about in The Tribune, the mayor implied he wouldn’t blame critics for choosing the former: “Look, people should be skeptical, and people should say, ‘We’ve heard this before.’ ”


Indeed, we have.

For example, when former Mayor Michael Nutter came in, he immediately appointed an 18-member diversity commission. It discovered that of the $26.3 billion generated by local construction contractors, less than 1 percent of the gross receipts went to African-American and Hispanic businesses. It said female-owned companies earned about 5 percent of the revenue.

Nutter’s commission made 31 recommendations to increase the number of minority companies getting construction jobs, and made another 40 recommendations to increase the number of minority workers employed at construction sites. It concluded the building trade unions should have a membership goal of 32 percent minority and 7 percent female.

Yet here we are, still, trying to address stark disparities in contract awards and opportunities for minorities.

Some progress has been made in awarding city contact dollars. Between 1998 and 2003, then-City Councilman W. Wilson Goode told The Philadelphia Daily News that only 2.3 percent of contracts went to minority-owned businesses and 2.2 percent went to women. Nearly 96 percent of city-contracted work was handled by companies owned by white men.

A study conducted by Econsult Solutions Inc. and Milligan & Company LLC, found that in fiscal 2014, the city awarded $267 million in contracts to minorities, reflecting about 29 percent participation.

But the construction trades have remained particularly stubborn. Government statistics quoted in the Tribune story estimated those trades are 99 percent male and 74 percent white.

“First, we need a baseline on where we are right now,” Ryan Boyer, business manager for Laborers’ District Council of Philadelphia, told The Tribune. While most of its members are African American, Hispanic or Asian, they are also the lowest paid of the trades.

Boyer viewed Kenney’s goal favorably, telling The Tribune the mayor was “dedicated to making substantial improvement there. Kenney has a robust plan, and has been meeting behind closed doors to create a fair system.”

Boyer said the system would openly post apprenticeship exams and follow-up with improvement tips to those who failed the tests. And a new grading system would move away from a strict pass-or-fail system.

The glimmer of hope we might draw from Kenney’s goal-setting partly lies in the handful of successes that have taken place with minority participation in public projects. At the Convention Center, non-white and female participation totaled 35 percent, when measured in hours worked.

A $46 million Water Department project, which involves underground storage tanks for Venice Island in Manayunk, included 33 percent minority and 5 percent female participation. A report said 48 percent of the workers were Philadelphians.

So diversity in contracting is not a matter of can’t. It’s a matter of won’t.

And Kenney’s close ties with labor leader John Dougherty heighten our skepticism toward lofty promises in an industry that rarely changes. Dougherty is the head of the Philadelphia Building and Construction Trades Council and business manager for Local 98 of the International Brotherhood of Electrical Workers, which in recent years has contributed mightily to campaigns throughout Pennsylvania, including the new mayor’s.

But to the doubters, Kenney said, “The only thing we can do is produce, and I think that I am in a position now because of the support I received and the coalitions I received with the building trades.”

Let’s hope this time will be the time that really makes a difference.

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