Welcome
to the October, 2015 Gregory Management & Consulting Services (GMCS)
REGIONAL CONSTRUCTION INDUSTRY UPDATE.
GMCS has advised contractors over the last several months
about the game changing decision by the National Labor Relations Board involving
Browning-Ferris Industries of California where it has refined its standard for
determining joint-employer status. The revised standard is designed “to better
effectuate the purposes of the Act in the current economic landscape.” Since that ruling, GMCS has fielded numerous RFI’s from the
NLRB in response to unrelated allegations made by labor for specific
information that could arguably paint the joint employer standard across many
of our clients. It is our opinion that
this Obama NLRB is looking to advance the joint employer agenda across our
industry and is directly assisting labor in identifying and pursuing those
cases, even when the initial allegations had no basis in joint employer
relationships.
Why
should owners and developers be concerned?
Imagine being brought into a labor dispute between your signatory
general contractor and a labor union on a project and being considered as a
joint employer. It is our opinion that you
could potentially be forced to sit down at the negotiating table as a joint
employer with that contractor in the next round of negotiations. It is also our opinion that you could be
compelled to provide confidential internal documents, policy manuals and
communications at the request of a disputing trade or the NLRB further opening
your organization up to additional allegations, charges and additional liability.
We have only just begun to just scratch the surface on this issue, but, in our
opinion, it appears that the NLRB is aggressively pursuing broad and far
reaching RFI’s in unrelated cases that could help them in redefining that
employer relationship in labor disputes.
From
our owner groups in West Philadelphia, Signatory General Contractors, Sub
Contractors and the Labor Brokers that currently operate in the region; it is
our opinion that this decision is certainly a game changer and that many risk
being tied into the new joint employer standard. If you have exercised control over terms and
conditions of employment indirectly through an intermediary, or whether you have
reserved the authority to do so, you are potentially at risk of being found to
be a joint employer and sharing all of the risks that come with that
title. From the owner groups that are
mandating changes in the regions’ collective bargaining agreements, to the
contractors that utilize labor brokers to employee hoist operators on their
projects and so many more scenarios, the net is wide on this one and, in our
opinion, the risk of being found to be a joint employer of a contractor that
you have hired to build your building or work on your project is
significant. All are recommended to seek
appropriate legal counsel on this matter.
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. 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.
We
currently have several excellent candidates that are interested in making a
move within the regional marketplace. GMCS is making those candidates available
to interested employers at no cost. Interested
firms should contact Wayne Gregory @ wegregory@gregorymcs.com for more
information.
Sponsorship
and marketing opportunities are available to industry stakeholders and
contractors; interested firms should contact Wayne
Gregory @ wegregory@gregorymcs.com for more
information.
Johnny Doc to head building trades council:
John
Dougherty, leader of the politically powerful Electricians union in
Philadelphia, expanded his sphere of influence Wednesday with a new title.
Dougherty
was selected to succeed Pat Gillespie as head of the Philadelphia Building and
Construction Trades Council, which represents nearly 40 unions in Philadelphia
and the suburbs.
John Dougherty
Says Two Union Members Hit By Cars on Picket Line:
The
union says it’s going to the U.S. Attorney and State Attorney General’s office
on Monday.
National Labor
Relation’s Board Issues Decision in Browning-Ferris Industries: Joint Employer
Standards In Question
In
the decision, the Board applies long-established principles to find that two or
more entities are joint employers of a single workforce if (1) they are both
employers within the meaning of the common law;
and (2) they share or codetermine those matters governing the essential
terms and conditions of employment. In evaluating whether an employer possesses
sufficient control over employees to qualify as a joint employer, the Board
will – among other factors -- consider whether an employer has exercised control
over terms and conditions of employment indirectly through an intermediary, or
whether it has reserved the authority to do so.
Five Practical Issues Browning-Ferris Creates for
Employers:
National
Labor Relations Board’s decision in Browning-Ferris Industries of California,
Inc., 362 NLRB No. 186 (Aug. 27, 2015), will have significant and far-reaching
effects as it greatly expands the scope of relationships in which the Board can
and will find entities to be joint employers. While the full ramifications of
the Board’s decision remain to be seen, here are five issues, which are
discussed thoroughly by Members Miscimarra and Johnson in their dissent, that
employers will likely face as a result of Browning-Ferris:
Planned office
building at 41st and Market gets a push in Council:
The
building is a sequel to 2.0 University Place, an office building constructed on
a nearby lot at 41st and Filbert few years ago. Like the earlier building, 3.0
University Place will be certified LEED Platinum, the highest rating a building
can get for sustainable design and energy efficiency.
DMI: New
Construction Starts in August Fall 11 Percent:
New
construction starts in August dropped 11% to a seasonally adjusted annual rate
of $554.5 billion, according to Dodge Data & Analytics. Declines were
reported for each of construction’s three main sectors – nonresidential
building and housing pulled back from their improved July pace, while nonbuilding
construction continued to recede from the heightened performance witnessed
earlier in 2015. During the first eight months of 2015, total construction
starts on an unadjusted basis were $446.1 billion, up 15% from the same period
a year ago. If the volatile electric utility and gas plant category is
excluded, total construction starts during the first eight months of 2015 would
be up a more moderate 7% relative to last year.
Liberty Property Trust to construct $1B campus in Camden:
Liberty
Property Trust plans to construct a $1 billion “iconic skyline” along the
Delaware River in Camden, N.J., that aims to become an integral component to
the struggling city’s revitalization.
While
the Malvern, Pa., real estate investment trust has owned office and industrial
buildings in South Jersey, it has never invested in the city of Camden.
675-acre 'River
Renaissance' coming to Bucks County:
Bensalem
Township and economic development officials are scheduled to unveil a bold new
plan for 675 acres fronting the Delaware River.
An
event is set for Oct. 2 in which officials will provide details on a plan
called: River Renaissance in New Bensalem. Only an overview of what will be
discussed has been disclosed at this time.
LVHN marks the
start of construction on $93M facility
At
its Lehigh Valley Hospital- Muhlenberg campus in Bethlehem, officials marked
the start of construction on its Specialty Care Pavilion, a $93.6 million
project that covers 161,000 square feet and rises four stories at the south
side of the campus. The four-story pavilion will be connected to the main
hospital through the existing south tower lobby and the former hospital
cafeteria.
Main Line
Health starts work on $47M outpatient care center:
The
center, being built on Baltimore Pike near Brinton Lake Road in Concord
Township, will also have a medically integrated fitness and wellness center
that will have saltwater filtered pools including a 25-yard lap pool, a therapy
pool, a spa pool, steam rooms and saunas.
Nationwide
Survey Finds 86 Percent of Contractors Have Difficulty Filling Key Craft and
Salaried Jobs as Demand for Construction Increases:
An
overwhelming majority of construction firms report trouble finding qualified
craft workers to fill key spots as demand for construction continues to rebound
in many parts of the country, according to the results of an industry-wide
survey released today by the Associated General Contractors of America.
Association officials called for new career and technical school programs, as
well as other workforce measures to offset the labor shortages that are forcing
firms to change how they operate and pose risks to workplace safety.
Developer plans
tower for vacant Rittenhouse lot
Southern
Land Co., which has its headquarters in Nashville, is planning a residential
tower at 1911 Walnut St., according to the company website, which says the
future building will offer "state-of-the-art living, desirable shopping
and delicious dining."
Axalta to build
$70M research facility at Philadelphia Navy Yard
Axalta
Coating Systems Inc. will bring an estimated $70 million global
research-and-development facility to the Philadelphia Navy Yard and relocate
190 jobs to the site with the expectation it could double the number of its
employees at the South Philly campus over the next five to seven years.
New PBGC Projections: Solvency of Multiemployer Program
Fund Extended Three Years; Condition of Single-Employer Program Continues to
Improve:
The
projected insolvency date for the insurance program for multiemployer pension
plans, which cover more than 10 million Americans, has been delayed by three
years, according to the FY 2014 Projections Report released today by the
Pension Benefit Guaranty Corporation. The risk of program insolvency has
decreased over the near term due primarily to the new premium revenues
anticipated under the Multiemployer Pension Reform Act of 2014 (MPRA). It is more likely than not that the program's
assets will be depleted in 2025, compared with 2022 in last year's report, and
the risk of insolvency grows rapidly thereafter.
FMI's Q3
Nonresidential Construction Index Shows Nonresidential Construction Sector
Remains Optimistic Despite Drop in Overall Economy:
The
nonresidential construction sector continues at a steady pace, a slight decline
notwithstanding, according to the FMI Nonresidential Construction Index Report
(NRCI) for Q3 2015. The Index reflects
the observations and sentiments of a sampling of construction industry
executives nationwide.
ABI: Architecture Billings Index Backslides Slightly:
The
Architecture Billings Index (ABI) slipped in August after showing mostly
healthy business conditions so far this year. As a leading economic indicator
of construction activity, the ABI reflects the approximate nine to twelve month
lead time between architecture billings and construction spending. The American
Institute of Architects (AIA) reported the August ABI score was 49.1, down from
a mark of 54.7 in July. This score reflects a slight decrease in design
services (any score above 50 indicates an increase in billings). The new
projects inquiry index was 61.8, down from a reading of 63.7 the previous
month.
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
