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Seven of the eight top U.S. construction and engineering firms in a new ranking of corporate culture are ABC members. MIT Sloan Management Review and Glassdoor teamed up to introduce the Culture 500, the first-ever scientific ranking that compares the corporate cultures of more than 500 of the most powerful companies driving the American economy.

The Culture 500 applies artificial intelligence technology to Glassdoor’s plentiful data to rank corporations based on nine cultural dimensions: agility, collaboration, customer orientation, diversity, execution, innovation, integrity, performance and respect.

Within the construction and engineering industry, the ABC member companies with the highest agility were ranked as follows:

1. AECOM
2. Bechtel
4. Fluor
5. Jacobs
6. KBR
7. Kiewit
8. Turner

Learn more about the Culture 500 and find an interactive online tool to compare each of the nine cultural dimensions. 

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As the New York state legislature adjourned in Albany, ABC’s Empire State Chapter members celebrated the successful blockage of an extremely onerous effort to expand prevailing wage in the state well beyond its typical applicability on public works projects. 

The effort, widely supported by Democrats in the legislature and Gov. Andrew Cuomo, sought to expand the definition of “public works” to a bevy of private projects receiving more than 30 percent of the project budget from public sources beyond direct public investment. This would have included things like tax-free bonds on affordable housing, various tax incentives on environmental cleanup work and energy-related tax credits, among other sources of public assistance. 

Unlike many prevailing wage states, as long as a union claims to represent 30% of the workforce, the state automatically adopts their wage and benefits for prevailing wage work. This expansion, on top of widening the pool of work for which it would be harder for merit shop contractors to compete, could have raised construction costs by as much as 30%. This would have severely harmed New York taxpayers, many of whom benefit from the projects with bottom lines that would have been negatively impacted by the proposed expansion.

Throughout the legislative session, the legislature and the governor’s office worked together to advance the measure through a variety of approaches, including a discussion about narrowing the scope of certain affordable housing projects to which the expansion would apply and even an effort to exclude New York City from the expansion altogether. However, in the face of widespread vocal opposition from ABC Empire Chapter and its members, as well as associated coalition groups, the bill was ultimately defeated. 

“There is no doubt that if passed, this bill would have crippled the construction industry,” said ABC Empire State Chapter President Brian Sampson. “Though this is a big victory for the chapter, the battle over expanding prevailing wage is not over, with Gov. Cuomo announcing that this is one of his top three priorities for 2020. We will continue to fight and advocate for even stronger protections against policies that damage the merit shop construction industry in the coming months and years.” 

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On July 2, the Equal Employment Opportunity Commission updated the Component 2 EEO-1 Online Filing System website to include additional resources for employers. The website now includes a More Info section and a Frequently Asked Questions page. 

Under the More Info section, the EEOC offers resources to assist employers with filing their Component 2 EEO-1 data, including a sample form, an instruction booklet, a fact sheet and reference documents.

According to a notification letter sent to impacted employers, the EEOC has contracted with NORC at the University of Chicago to collect the Component 2 data for 2017 and 2018. The web-based portal for the submission of the Component 2 EEO-1 reports for 2017 and 2018 will be active by July 15, 2019 via the Component 2 EEO-1 Online Filing System. Employers will be notified when this filing system is available.

The website also 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 either 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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On June 26, the Senate Health, Education, Labor and Pensions (HELP) Committee approved the Lower Health Care Costs Act (S. 1895) by a bipartisan vote of 20-3. This bill seeks to address several cost-driver issues within our nation’s health care system including protecting patients from surprise medical billing and increasing transparency within health care. ABC, as part of the Partnership for Employer Sponsored Health Care, submitted a statement and comment letter to the HELP Committee ahead of the hearing and will continue to monitor any additional progress of this legislation in the Senate.

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More than half of the women named on Constructech magazine’s 2019 Women in Construction list are leaders at ABC member companies.

Each year, Constructech recognizes powerful women in construction who are making an impact on the industry each day. “Even as the number of women in the construction industry continues to remain at roughly 9%, the women in the space are making some noise, proving they are innovative, passionate, tech-savvy and working to make the industry a better place,” says the magazine.

ABC congratulates members named on the 2019 Women in Construction list:

Carrie Arnold, Fluor Corp.
Elizabeth Calder, Suffolk Construction 
Adrienne Carlson, Faith Technologies Inc.
Rebekah Casey, Brasfield & Gorrie
Amanda Comunale, Victaulic
Valan Daniel, Gray Construction
Nicole Darling, Ryan Companies
Liz Fronduto, Power Design Inc.
Kelsey Gauger, Suffolk Construction
Kally Gibbs, Haskell
Jennifer Giese, Faith Technologies Inc.
Mona Kharouba, Suffolk Construction
Courtney King, Ryan Companies
Allison Lewis, Gray Construction
Marie Speakman, Suffolk Construction
Kaitlin Veenstra, Ryan Companies
Tamara Yang, Balfour Beatty US
Constance Lai, Grunley Construction Co. Inc. 
Adrienne Sherwood, Grunley Construction Co. Inc.
Ashley Martin, Flintco, LLC
Gabrielle Robitaille, Flintco, LLC
Gianny Romero, Flintco, LLC
Rachael Montosi, Kaplan Construction
Cristine Winchester, Flintco, LLC
Patricia Waller, Gannett Fleming
Debbie Watt, Shawmut Design and Construction

Find the full list of the 2019 Women in Construction here.

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ABC President and CEO Mike Bellaman commented today on the U.S. Department of Labor’s proposed rule on industry-recognized apprenticeship programs—or IRAPs—which initially excludes the construction industry. 

“While we’re still reviewing the proposed DOL rule, ABC looks forward to providing comments illustrating why all Americans would benefit from the construction industry being included in the IRAP final rule,” said Bellaman. “Given the massive skills gap in the United States, the administration missed an opportunity to embrace an ‘all-of-the-above’ approach to workforce development. 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. And our commitment to recruiting, educating and upskilling the people who build where we live, learn, work and play remains unchanged.  

“ABC has been a leader in craft training since founding the apprenticeship curriculum developer NCCER nearly 30 years ago, and ABC’s chapter network has established more than 800 education programs across the United States. In addition, ABC members invested $1.6 billion in workforce development opportunities for more than
980,000 course attendees to receive craft, leadership and safety education in 2018 alone. ABC and our 21,000 members will continue to support the American worker—and create more pathways for our workforce to achieve the American dream—by
expanding apprenticeship programs and workforce development opportunities.”  

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More than 100 industry leaders and stakeholders came together June 24 for ABC’s fifth annual Diversity & Inclusion Summit to discuss the value of diversity in construction. The summit kicked off with Thomas Grandmaison, managing director of strategy and innovation for Aon’s Construction Services Group; Derek Hoffine, operations manager for Hensel Phelps; and Luke Sherry, research analyst at the consulting firm FMI, who presented on the state of the construction industry. The session explored technology in construction, emerging trends and the role of diversity and inclusion in the workforce. 

In a keynote address, Frans Johansson, preeminent expert on diversity and innovation and bestselling author, inspired attendees by explaining how the best ideas and innovations come from collaboration between people with diverse experiences, skills, expertise, perspectives, backgrounds and cultures. In his remarks, he stressed how important diversity and inclusion are to both rewrite the rules and create new ideas. Johansson said, “Diversity and inclusion drives innovation. It is the one thing that is going to give you a competitive edge.” Johansson’s keynote address concluded with a rapid-fire feedback session where audience members shared their initial reactions to his perspectives. Johansson also signed copies of his book, “The Medici Effect.” 

Attendees also heard from a panel of small business owners and general contractors who provided practical solutions to help clarify the true meaning of capacity-building, going into detail about financial growth, expansion into new trades and more. Another panel spotlighted diversity efforts at the local ABC level, featuring ABC chapter presidents Peter Dyga of the ABC Florida East Coast Chapter, Brian Sampson of the ABC Empire State Chapter and Jean Toman of the ABC Delaware Chapter. Each panelist shared the unique tactics their organization used to achieve ABC’s goals of expanding diversity and inclusion initiatives and delivering best practices.

Caryn York, the first African American woman to lead the Job Opportunities Task Force in Baltimore, shed light on criminal justice reform and how the First STEP Act will help address the workforce shortage in the country. York shared details about Project JumpStart, an 87-hour pre-apprenticeship program that provides classroom and hands-on training to Baltimore residents. The day concluded with ABC Memorandum of Understanding partners the National Association of Minority Contractors, National Black Chamber of Commerce, U.S. Pan Asian Chamber of Commerce, U.S. Veterans Business Alliance and Women Construction Owners and Executives speaking about collaboration, synergies, partnerships and more. 

ABC, its chapters and member companies strive to embrace diversity as an empowering competitive advantage through education, awareness and business practices. ABC’s diversity outreach is led by the association’s Diversity Committee, which was established in 1999 as a key component of ABC’s value proposition to develop people, win work and deliver work safely, ethically and profitably for the betterment of the communities in which they work. The committee also plays an instrumental role in ABC’s strategy to grow and deliver value to a diverse and committed membership.

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ABC awarded Caesar Gorski, former president of Gorski Construction Co. of the ABC Eastern Pennsylvania Chapter, its Life Membership award during ABC Legislative Week 2019 in Washington, D.C. 

Gorski Construction was named General Contractor of the Year by the Eastern Pennsylvania Chapter three times and was awarded many National Excellence in Construction^® awards. Gorski Construction participated in ABC’s STEP safety management system and was an Accredited Quality Contractor.

Gorski joined the ABC Delaware Valley Chapter in the 1960s as his company grew from a custom home builder to construct commercial projects. He and a few others helped form the ABC North Jersey Chapter, and he was a founding member of the ABC Lehigh Valley Chapter, where he served on both the Board and Executive Committee. 

Gorski was a member of ABC’s National Board of Directors throughout the 1980s. He was a member of the ABC Eastern Pennsylvania Chapter Board from 1985-1988 and was chapter chair in 1987. Gorski is a National Beam Club member and a contributor to PAC and the Trimmer Construction Education Fund. He recruited more than ABC 50 members over the years. His son, Jerry, now works for Gorski Construction and has served in many ABC leadership roles throughout the years.

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On June 19, the U.S. Environmental Protection Agency issued the Affordable Clean Energy final rule, which replaces the Obama administration’s overreaching Clean Power Plan with a rule that restores rule of law, empowers states and supports energy diversity.

In the notice, the EPA finalizes three separate and distinct rulemakings: 

• Repeal of the CPP; 
• The ACE rule, which establishes emission guidelines for states to use when developing plans to limit carbon dioxide at their coal-fired electric generating units; and
• New regulations for EPA and state implementation of ACE and any future emission guidelines issued under the Clean Air Act section 111(d).

On Oct. 31, 2018, ABC submitted comments in support of the EPA’s ACE proposed rule, stating that the EPA has taken a more reasonable approach to addressing carbon emissions while supporting businesses and jobs and ensuring necessary and essential environmental protections in our communities. 

Additionally, ABC submitted comments in support of the EPA’s proposal to the repeal the CPP in January 2018. Had it gone into effect, the Obama administration’s CPP would have imposed strict regulations on coal-fired power plants, increasing compliance and transaction costs and creating uncertainty for America’s small businesses.

On March 28, 2017, President Trump signed Executive Order 13783, Promoting Energy Independence and Economic Growth, which directed the EPA administrator to review the CPP. Following the review, the EPA published the proposal to repeal the CPP on Oct. 16, 2017 and the new ACE proposed rule on Aug. 31, 2018. 

For more information on the ACE final rule, see the EPA’s fact sheet and website. 

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On June 12, ABC submitted comments to the U.S. Department of Labor’s Wage and Hour Division in support of its proposal to clarify and update the regulations governing regular rate requirements under section 7(e) of the Fair Labor Standards Act and offered the Department further suggestions for improvement. These regulations define what forms of payment employers include and exclude in the “time and one-half” calculation when determining workers’ overtime rates.

In its comment letter, ABC explained that it agrees with the Department’s assessment that it is past time for clarification of how Section 7(e) of the FLSA applies to compensation in the 21st century workplace. Updating the regulations is essential to clarify the types of employee benefits, many of which did not exist when the previous rules were written, that should be excluded from the regular rate. Clarification will encourage more employers to provide benefits such as tuition reimbursement, public transportation subsidies, child care services and numerous similar benefits discussed below.

To assist DOL in this rulemaking, ABC surveyed its member companies to determine what kinds of perks, benefits or other miscellaneous payments are currently being offered to employees in the construction industry.  The survey found that large numbers of ABC member employers reward their employees with discretionary bonuses, give payouts to employees of unused vacation and sick leave, offer their employees tuition reimbursement and repayment of student loans and provide other critical employee benefits that DOL is proposing to exclude from the regular rate of pay.

DOL’s WHD issued the Regular Rate Under the Fair Labor Standards Act proposed rule on May 29. According to the proposal, DOL is proposing updates to its regulations governing regular rate for the first time in more than 50 years in order to provide clarity to employers and employees and better reflect the 21st century workplace. For more information, see DOL’s press release and website.

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