Is This Working for the Community?

BY AYANNA KHAN

IN JANUARY, Senate Bill 35 was signed by Governor Carney into law. The law establishes a pilot program under the Office of Management and Budget (OMB) and the Delaware Department of Transportation (DelDOT), which mandates Community Workforce Agreements (CWAs) on state-funded construction projects. The program targets six projects: Hodgson Vo-Tech High School; DNREC Lab; Hospital for the Chronically Ill; OMB Food Building; and two DelDOT projects which have not been identified yet. All four OMB projects contain CWAs, while only one project (Hodgson) included a Disadvantaged Business Enterprise (DBE) requirement and both DelDOT projects will contain CWA’s and DBE requirements.

A major challenge with this law is that CWA’s limit black- and minority-owned contractors’ ability to participate and compete for state-funded construction projects. All projects should be inclusive of DBE requirements, not just select projects. A unified approach—incorporating all enterprises (DBE and otherwise)—ensures that a level playing field exists for all Delaware businesses and their employees.

The bill passed the Senate by a party line vote. It was debated for several hours in the House the evening before the General Assembly adjourned for break. House Republicans offered several amendments— which the Delaware Black Chamber of Commerce (DEBCC) supported—such as placing DBE requirements on all projects, removing the CWA requirements, and mandating that all projects be completed by bona fide legal residents of the state. All amendments were defeated. Like the Senate, the bill passed the House by a party line vote aside from Representative Chukwuocha who voted against the bill for the same reasons the DEBCC opposed this measure.

The amendments proposed by House Republicans and supported by the DEBCC would have created more equity for Delawareans, especially black- and minority-owned businesses.

Statements like those found on lines 144 through 145 in the bill, such as “There will be two different approaches: 1) Community Workforce projects and 2) Disadvantaged Business Enterprise (DBE)” do not create equal opportunity for all. They divide DBEs and organized labor, in which many black- and minority-owned contractors do not participate.

In fact, approximately 80% of the construction in Delaware is completed by non-union labor. So, why does this bill prioritize CWAs, limit the number of DBEs to certain projects, and grant state contracts to out-of-state workers while Delaware Blacks and minorities are left on the sidelines?

There should be one unified approach wherein all Community Workforce Projects should be inclusive of DBE requirements. A unified approach—incorporating all enterprises (DBE and otherwise)—ensures that a level playing field exists for all businesses, their employees, and communities. This is what the DEBCC desires, while recognizing that racial disparities need to be addressed, and equitable economic opportunities for minority businesses need to be enhanced.

When a fair field for all Delaware contractors exist, we will truly realize a Delaware business economy that is equitable, improved, and works for all Delawareans.

Ayanna Khan is founder, president, and CEO of the Delaware Black Chamber of Commerce.

The purpose of these articles is to provide the platform for two perspectives to be shared. The views are that of the authors. View the other perspective: https://issuu.com/destatechamber/docs/delaware_business_march_april_2023_7640/s/20359331