Honolulu Mayor Expands PLA Requirement on Public Projects
Honolulu Mayor Kirk Caldwell recently signed a city-wide community workforce agreement (CWA), requiring the use of union labor on all public projects procured by the city over $2 million. The CWA, stemming from City Council Ordinance 20-14, sets forth various provisions around labor stoppages, dispute resolutions, state-registered apprenticeship requirements and implementation of the union-only “Helmets to Hardhats” program.
Most notable, however, is the provision that on projects performed under the CWA, the use of union labor is required, even if the project is awarded to a merit shop contractor. If a merit shop contractor wins a bid under this new agreement, that contractor is only allowed the use of up to seven “core employees” that must then pay union dues for the duration of the project. One union worker must then be hired for each merit shop employee used, and union labor would then be used to satisfy the rest of the hiring needs on the job.
While a project has not yet been procured under the new policy, industry groups including ABC continue to monitor developments.
House Approves Great American Outdoors Act and 100,000+ Potential Construction Jobs
The U.S. House of Representatives passed the Great American Outdoors Act (S. 3422/H.R. 1957), which was introduced by Sen. Cory Gardner (R-Colo.), by a vote of 310-107. The bill is expected to be signed into law by President Trump.
This bipartisan legislation would help address the billion deferred maintenance backlog in the Department of the Interior, billion of which has been accumulated by the National Park Service.
The bill will create the National Parks and Public Lands Legacy Fund, which would direct up to $9.5 billion in nontaxpayer funds over five years to improve infrastructure within the NPS and other agencies, with significant deferred maintenance backlog, much of which is related to transportation assets.
A 2019 Pew Research Center-commissioned report by the Cadmus Group found that addressing the NPS’ nearly $12 billion maintenance backlog would create or support an estimated 108,364 construction jobs. The increase in construction demand generated by the Great American Outdoors Act would deliver much-needed jobs to the construction industry.
The Great American Outdoors Act would also ensure full, dedicated funding for the Land and Water Conservation Fund, which would permanently secure the financial integrity of one of the most important public land conservation programs while bolstering the $778 billion outdoor recreation economy.
Prevailing Wage Expanded in Minneapolis
In June, the Minneapolis City Council approved an ordinance expanding prevailing wage to competitively bid projects valued at $175,000 or more. While the city’s existing procurement policy said prevailing wages must be paid on any project funded in whole or in part by either state or federal funds, the most recent action places prevailing wage requirements on city projects regardless of whether state or federal funds are involved.
Associated Builders and Contractors of Minnesota and North Dakota actively opposed the legislation in front of the city council, expressing concerns, among other organizations, regarding the impact to the competitive bidding process, increased costs associated with prevailing wage and counteracting claims that prevailing wage laws make projects safer.
The new law went into effect as of August 2020.
ASSP and AIHA Join Forces to Improve Worker Wellbeing
Longtime industry allies American Society of Safety Professionals (ASSP) and American Industrial Hygiene Association (AIHA) have signed a three-year memorandum of understanding that details how the organizations will continue to collaborate on advancing workplace safety and health. For more than 20 years, ASSP and AIHA have worked together to improve work environments and advance the profession.
According to the MOU, the collaboration between ASSP and AIHA over the next year includes sharing COVID-19 content and best practices; leading initiatives through the Center for Safety and Health Sustainability; determining criteria for academic program accreditation related to environment, health and safety; coordinating government affairs activities; developing training and continuing education programs; revising voluntary national consensus standards; and exploring regulatory and legislative issues of common interest. For more information, visit asp.org and aiha.org.
Report Finds $9.6B in Infrastructure Projects Delayed or Canceled
A new report found that more than $9.6 billion worth of infrastructure projects have been delayed or canceled in the wake of the COVID-19 pandemic. The report, released by the American Road & Transportation Builders Association, says that 16 states have announced project delays or cancellations worth approximately $5 billion, and 20 local governments and transportation authorities have pushed out or scrapped projects worth another $4.54 billion.
In addition, at least 44 states, transportation authorities and local governments have projected declining revenues. While that doesn’t mean transportation programs will necessarily feel the same percentage impact of those declines, it does point to increased pressure on transportation-related revenue sources, as well as state and local budgets, according to the report.
