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Last week, ABC’s Vice President of HSE and Workforce Development, Greg Sizemore, made a presentation to the Republican Legislative Campaign Committee on the importance of continuing workforce development reforms at the state level.

Sizemore outlined the current challenges construction contractors face recruiting, hiring and retaining the skilled workers needed to ensure the industry is in a position to meet both current demand for construction and future economic forecasts. Sizemore also briefed state lawmakers on how industry associations like ABC are stepping up to address the skilled workforce shortage by expanding outreach initiatives, awareness of career opportunities and apprenticeship programs. 

Nearly 100 state Republican legislative leaders attended the group’s national meeting in Colorado Springs, Colorado.

The RLCC is one of a handful of state political groups that ABC National belongs to that offers opportunities to share with lawmakers some of the concerns of the construction industry and the ways industry can partner with decision-makers to offer solutions. 

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On June 25, the U.S. Department of Labor issued a proposed rule on apprenticeship programs that would establish a process for creating high-quality, industry-recognized apprenticeship programs by organizations that apply to become DOL recognized Standards Recognition Entities. DOL’s new release on the proposal is available here.

While the purpose of the proposal is to expand apprenticeships and close America’s skills gap, it excludes the construction industry. Under the rule, DOL would not, at least initially, accept applications from SREs that seek to recognize apprenticeship programs in construction. The reason for the initial exclusion is that DOL considers the construction industry a sector that already has significant registered apprenticeship opportunities.   

Immediately following the proposed rule’s release, ABC President and CEO Mike Bellaman commented: 

“Established industry-recognized apprenticeship programs have been utilized by the merit shop construction industry for decades to provide hardworking Americans with not just a job, but a well-paid, in-demand construction career. ABC members invested $1.6 billion in craft, leadership and safety education for more than 980,000 course attendees in 2018 alone. And ABC will continue to lead the sector in recruiting, educating and upskilling the people who build the places where we live, learn, work and play. We are still reviewing the proposed rule and look forward to providing comments illustrating why all Americans would benefit from the construction industry being included in the IRAP final rule.”

ABC is currently drafting its comment letter on the proposed rule, which will be submitted to DOL by the public comment deadline of Aug. 26.  We welcome any feedback on the proposed rule from ABC chapters and members, which can be emailed to Brad Mannion at mannion@abc.org.

We will continue to provide updates in Newsline on DOL’s apprenticeship expansion proposed rule. 

Additional information can be found at DOL’s website, apprenticeship.gov.

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On July 31, the Department of Labor’s Employee Benefits Security Administration issued a final rule that would allow small and mid-sized businesses to band together and offer 401(k) plans to their employees through Association Retirement Plans. The final rule goes into effect Sept. 30, 2019.

The DOL anticipates that the final rule will enable small businesses to offer benefit packages comparable to those offered by large employers, reduce administrative costs through economies of scale and strengthen small businesses’ hand when negotiating with financial institutions and other service providers.

On Dec. 21, 2018, ABC submitted comments to the EBSA in support of its proposed rule, explaining that the  proposal will provide a vehicle for millions of hard-working Americans to save for the future through ARPs. By allowing more businesses to pool together to offer 401(k) plans, ARPs will create an attractive alternative for small employers to offer high-quality benefits to their workforce and allow them to focus their time and resources on managing the day-to-day activities of their businesses.

The rulemaking came at the direction of President Trump’s Executive Order 13847, Strengthening Retirement Security in America, which ordered the U.S. secretary of labor to allow more small and mid-sized businesses to adopt multiple employer plans as a workplace retirement option.

For more information, see EBSA’s news release and factsheet.

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Two graduates of ABC Pelican Bay’s Baton Rouge Training Center and one from the ABC Heart of America apprenticeship program were in Washington last week to attend the one-year anniversary celebration of President Trump’s Pledge to America’s Workers at the White House on July 25. Last year, ABC pledged to educate and upskill at least 500,000 construction workers over the next five years during the kick-off event.

 Representing ABC at the White House was Tim Gros, an ISC Constructors employee and graduate of the ABC Pelican Bay’s Baton Rouge Training Center, who spent the past two years earning more electrical and instrumentation credentials to take the next step in his career, which increased his salary by 24%. Gros, who shared his personal story with presidential advisor Ivanka Trump before the event, was interviewed about his construction career and experience at the White House on Varney and Co., Fox and Friends First and NBC4i.

Another graduate of the Baton Rouge Training Center in attendance was Sharon Ramsey, who previously worked as a nurse and accountant, and completed her instrumentation education at the age of 62. She currently tutors students going through similar craft training programs and wants her story to be an example of how women can succeed in a male-dominated field. Representing the ABC Heart of America apprenticeship program was Jeff Hawk, who enrolled as an electrical apprentice in September 2018. Hawk worked as a front desk clerk in a hotel and wanted to expand his career opportunities by becoming an electrician.

In 2018 alone, ABC members invested $1.6 billion in craft, leadership and safety education, up from $1.1 billion in 2013, according to a recent survey. The 45% increase in spending resulted in nearly twice as many course attendees—more than 980,000—receiving education to advance their careers in commercial and industrial construction.

Since President Trump signed the executive order to establish the National Council for the American Worker on July 19, 2018, more than 200 companies and organizations have signed the Pledge to America’s Worker, committing to offering more than 9.9 million new education and training opportunities for American students and workers over the next five years.

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On July 25, the ABC-led Coalition for a Democratic Workplace testified before a House subcommittee on the Protecting the Right to Organize Act (H.R. 2474), which would jeopardize workers’ privacy, constitutional rights and freedoms if passed. This legislation currently has 186 Democrat cosponsors and is essentially a “union boss wish list,” as Ranking Member Tim Walberg (R-Mich.) described it in his opening statement.

CDW, which is comprised of hundreds of organizations representing millions of businesses in the United States, has been leading the opposition to the PRO Act. In testimony before the Subcommittee on Health, Employment, Labor and Pensions on behalf of the CDW, G. Roger King, senior labor and employment counsel at HR Policy Association, said the bill would take the country’s labor laws backward and hurt many employers, employees and independent contractors.

There are currently 27 states that have adopted “right-to-work” laws, which guarantee workers can seek employment without fearing they will be required to join or pay dues to a union if they are hired. The PRO Act would remove these protections and effectively take away workers’ right not to join a labor union. In addition, this bill would strip away workers’ right to secret ballots elections, as well as their privacy rights. Forcing employers to divulge their workers’ private information, like home addresses, shift schedules, telephone numbers and personal email addresses, to unions is another radical provision in the PRO Act and a fundamental breach of privacy that could lead to unwanted harassment.

You can read King’s full testimony here.

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On July 18, the U.S. Small Business Administration issued an interim final rule that will adjust monetary-based small business size standards for inflation to allow more small businesses to become eligible for the SBA’s loan and contracting programs.

The interim final rule lays out the new size standards by industry, which will be raised nearly 8.4% from current levels. Interested parties can view the new size standards beginning on page 34269 in the Federal Register notice. The final rule is effective Aug. 19, 2019. SBA also invites public comment on the interim final rule, which is due Sept. 16, 2019.

According to an SBA press release, the agency is adjusting its size standards to reflect the inflation that has occurred since the last adjustment for inflation in 2014. The SBA estimates that nearly 90,000 additional businesses will gain small business status under the adjusted size standards, which could lead to as much as $750 million in additional federal contracts awarded to small businesses and up to 120 additional small business loans totaling nearly $65 million.

The SBA also recently issued a proposed rule to modify its method for calculating annual average receipts used to prescribe size standards for small businesses from a three-year averaging period to a five-year averaging period. The agency is soliciting comments on this proposal, and comments are due Aug. 23, 2019.

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The U.S. Department of Labor’s Occupational Safety and Health Administration has published several resources to protect workers from various hazards related to summertime weather, such as hot weather and hurricanes.

The agency recently released an OSHA Alert with the latest information and a list of safety practices to use when working in high temperatures and humid conditions. Additionally, the alert includes links to OSHA’s “Water. Rest. Shade.” and “Occupational Heat Exposure” webpages.

With hurricane season lasting from June 1 to Nov. 30, OSHA urges employers to be prepared to keep their workers safe during these extreme weather events. As part of this effort, the agency’s Emergency Preparedness and Response page provides information on protecting workers before and after hurricanes strike.

The webpage provides workers with links to the agency’s Preparedness page, which outlines the warnings and watches used for hurricanes, and Response/Recovery page, which features information on hazard exposures and risk assessments for hurricane response and recovery work.

Additional resources for hurricane preparedness can be found at the following websites:
FEMA.gov
Ready.gov/hurricanes
National Weather Service’s Hurricane Preparedness Page

Please encourage your members and staff to visit ABC National’s webpage on emergency preparedness and recovery resources for detailed information on how to quickly access state and federal resources.

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In a victory for ABC, New Hampshire Gov. Chris Sununu vetoed legislation that would have imposed prevailing wage requirements on state projects for the first time since the law was repealed in 1985 on July 19.

The state legislature, both chambers of which were taken over by Democrats in the 2018 midterm elections, passed the legislation during its now-adjourned 2019 session. The ABC New Hampshire/Vermont Chapter testified in opposition to SB 271 at public hearings throughout the legislative process and advocated for an executive veto after the legislation received final passage from the Senate in May.

In a press release lauding the move by Gov. Sununu, ABC New Hampshire/Vermont Chapter President Josh Reap said, “Taxpayers deserve the best possible product at the best possible price, and that’s exactly what Gov. Sununu has ensured by vetoing this bill.”

Gov. Sununu’s veto means that New Hampshire remains the only state in New England that doesn’t require prevailing wage on state projects, and one of 24 states nationally without a statewide prevailing wage law.

“In the midst of a booming economy with record low unemployment, the last thing we should do is reduce competition in our construction markets,” wrote Gov. Sununu in his veto message on SB 271.  

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Last week, Timothy Mongeau, ABC’s director of workforce development, spoke on the Workforce Development for Veterans Through Apprenticeship panel during the National Association of Drug Court Professionals All Rise 2019 conference, the world’s largest conference on addiction, mental health and justice reform.

The panelists, which included Dan McGuire, president of Clover Contracting Inc.; Danny Funderburk, learning and development, William A. Hazel Inc.; and Stacy Hester, president of 3C-Concepts and a veteran of the Marines, discussed ways to support veterans enrolled in veteran treatment court programs though career and education opportunities in industries like construction. Specifically, Mongeau discussed the construction industry’s apprenticeship model and education career path that stresses an earn-while-you-learn model and infinite room for professional growth.

ABC chapters are the ideal connection among the NADCP, more than 300 U.S. Department of Labor-registered apprenticeship programs across 20 different occupations and the 21,000-plus ABC member contractors that are actively recruiting veterans. This translates into support, stability, dignity and an opportunity to achieve the American Dream for the men and women who have protected the nation.

The NADCP is a national 501(c)(3) organization dedicated to educating and offering technical assistance to drug court, DWI court and veterans treatment court professionals. Treatment courts are the most successful intervention in the United States for leading veterans and others living with substance use and mental health disorders out of the justice system and into lives of recovery and stability.  To learn more, visit nadcp.org/treatment-courts-work. 

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On July 15, the U.S. Equal Employment Opportunity Commission opened the online portal for the collection of data on pay and hours worked (or Component 2 data) for calendar years 2017 and 2018.

According to an EEOC press release, a data file upload function and validation process (in addition to the  data collection portal) is expected to be available for all filers no later than Aug. 15, 2019, as an alternative data collection method for employers who prefer to utilize data file upload capability. Information regarding the data file upload function is available on the Component 2 EEO-1 Online Filing System website.

The EEOC also recently added to the website additional resources for employers, including a sample form, an instruction booklet, a fact sheet, reference documents and a Frequently Asked Questions page. Additionally, the website lists help desk information to offer filers additional support. Interested parties can contact the help desk by phone at (877) 324-6214 or by emailing eeoccompdata@norc.org.

Background

In light of a recent court decision, certain employers will be required for the first time to submit detailed data on employee compensation and hours worked (or Component 2 data) for calendar years 2017 and 2018 to the EEOC as part of their annual EEO-1 form submission by Sept. 30, 2019.

According to the EEOC’s FAQs, certain employers, including federal contractors, are required to submit EEO-1 2017 and 2018 Component 2 compensation data:

• Employers, including federal contractors, are required to submit Component 2 compensation data for 2017 if they had 100 or more employees during the 2017 workforce snapshot period. Employers, including federal contractors, are required to submit Component 2 compensation data for 2018 if they had 100 or more employees during the 2018 workforce snapshot period.
• Federal contractors with 50-99 employees are not required to report Component 2 compensation data.
• Federal contractors with 1-49 employees and other private employers with 1-99 employees are not required to file EEO-1 Component 1 data or Component 2 data.

The submission of Component 2 data was initiated during the Obama administration. However, under the Trump administration, the Office of Management and Budget blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated. 

ABC has been active in efforts to reverse the court’s decision or, at minimum, extend the time period for employers to comply with any new Component 2 pay data requirement. On May 3, the U.S. Department of Justice filed a notice of appeal of the court’s decision, but the outcome of the litigation is unclear at this time. The EEOC has since clarified that the appeal does not stay the district court orders or alter EEO-1 filers’ obligations to submit Component 2 data, and EEO-1 filers should begin preparing to submit Component 2 data.

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