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NEWSLINE
ABC Discusses Impacts of Obama’s Regulatory Expansion and Trump’s Regulatory Relief on Merit Shop Contractors
On Sept. 3, ABC sent a letter to Rep. labor agreement policies that On Sept. 3, ABC sent a letter to Rep. labor agreement policies that of just 12 contracts exceeding of just 12 contracts exceeding James Comer, the ranking member are inconsistent across federal James Comer, the ranking member are inconsistent across federal $25 million (totaling $1.25 billion) $25 million (totaling $1.25 billion) of the U.S. House of Representatives agencies of the U.S. House of Representatives agencies that were procured and built in the that were procured and built in the Committee on Oversight and Reform, 2. U.S. Department of Labor policies United States subject to federal Committee on Oversight and Reform, 2. U.S. Department of Labor policies United States subject to federal explaining the negative impacts explaining the negative impacts related to the Davis-Bacon Act related to the Davis-Bacon Act government-mandated PLAs and government-mandated PLAs and of the Obama administration’s of the Obama administration’s that stifle competition and impose • PLA preferences out of 1,681 that stifle competition and impose • PLA preferences out of 1,681 regulatory expansion on ABC regulatory expansion on ABC enormous burdens on contractor federal contracts (totaling $98.74 enormous burdens on contractor federal contracts (totaling $98.74 member contractors, as well as the productivity and needlessly member contractors, as well as the productivity and needlessly billion) from FY2009 through billion) from FY2009 through Trump administration’s regulatory Trump administration’s regulatory increase construction costsincrease construction costs FY2019 that were subject to the FY2019 that were subject to the relief initiatives, which have helped 3. DOL policies that serve as barriers Obama administration’s pro-PLA relief initiatives, which have helped 3. DOL policies that serve as barriers Obama administration’s pro-PLA to remove burdensome barriers to to remove burdensome barriers to to workforce developmentto workforce development Executive Order 13502. Executive Order 13502. job creation.job creation. • • In contrast, the prevalence of PLA In contrast, the prevalence of PLA ABC described how these issues have mandates on federally assisted ABC described how these issues have mandates on federally assisted “ABC member contractors applaud a chilling effect on competition and projects procured by certain “ABC member contractors applaud a chilling effect on competition and projects procured by certain the Trump administration’s the Trump administration’s impede job creation and economic impede job creation and economic blue states and localities are blue states and localities are substantial deregulatory efforts, recovery: substantial deregulatory efforts, recovery: wasting billions of federal tax wasting billions of federal tax which brought to light cost and which brought to light cost and dollars, slowing the velocity of dollars, slowing the velocity of burdens these regulations put burdens these regulations put 1. Government-mandated PLAs1. Government-mandated PLAs new infrastructure and stifling new infrastructure and stifling on contractors,” said ABC in on contractors,” said ABC in job creation and opportunity for job creation and opportunity for the letter. “During the Obama the letter. “During the Obama • • Anti-competitive and costly Anti-competitive and costly all industry professionals during all industry professionals during administration, ABC members administration, ABC members government-mandated PLAs on government-mandated PLAs on America’s economic recovery from America’s economic recovery from suffered from an aggressive and suffered from an aggressive and federal and federally assisted federal and federally assisted the COVID-19 pandemic.the COVID-19 pandemic. burdensome rulemaking agenda, burdensome rulemaking agenda, contracts drive up the cost of contracts drive up the cost of where regulations were promulgated taxpayer-funded construction where regulations were promulgated taxpayer-funded construction hastily with limited stakeholder hastily with limited stakeholder projects by between 12% and 20%. 2. DOL’s Davis-Bacon Act policies projects by between 12% and 20%. 2. DOL’s Davis-Bacon Act policies input and questionable legal input and questionable legal • • Government-mandated PLAs Government-mandated PLAs authority. Many of the Obama-era authority. Many of the Obama-era unfairly discourage merit shop unfairly discourage merit shop • • ABC members frequently cite ABC members frequently cite regulations were litigated, which regulations were litigated, which contractors, which employ more contractors, which employ more onerous Davis-Bacon Act onerous Davis-Bacon Act created significant uncertainty created significant uncertainty than 87.4% of the U.S. construction regulations and compliance costs than 87.4% of the U.S. construction regulations and compliance costs for ABC member contractors and for ABC member contractors and workforce, from bidding on the workforce, from bidding on the as reasons why they do not pursue as reasons why they do not pursue hampered economic growth. To hampered economic growth. To projects. The negative impact of public works projects subject to projects. The negative impact of public works projects subject to promote economic growth, we must PLAs disproportionately harms promote economic growth, we must PLAs disproportionately harms federal, state or local prevailing federal, state or local prevailing free industry from those regulations small businesses. free industry from those regulations small businesses. wage laws.wage laws. that create unnecessary and costly • The needless paperwork, waste that create unnecessary and costly • The needless paperwork, waste • • Regulations implementing DOL’s Regulations implementing DOL’s bureaucratic layers.”bureaucratic layers.” and red tape associated with the and red tape associated with the Wage and Hour Division process to Wage and Hour Division process to federal government’s evaluation federal government’s evaluation survey contractors and determine survey contractors and determine ABC’s most pressing concerns are and procurement of federal ABC’s most pressing concerns are and procurement of federal prevailing wage rates is inherently prevailing wage rates is inherently centered around three areas:centered around three areas: contracts potentially subject to contracts potentially subject to flawed and fails to produce flawed and fails to produce government-mandated PLAs is government-mandated PLAs is accurate, prevailing or timely rates.accurate, prevailing or timely rates. 1. Government-mandated project 1. Government-mandated project especially frustrating. ABC is aware • In recent years, union wage especially frustrating. ABC is aware • In recent years, union wage
rates have been found prevailing programs in 2019, it appears DOL regulatory relief from the Trump rates have been found prevailing programs in 2019, it appears DOL regulatory relief from the Trump in a substantial majority of in a substantial majority of did not take into consideration did not take into consideration administration. In his first term so administration. In his first term so classifications, even though the classifications, even though the that the overwhelming majority far, President Trump has eliminated that the overwhelming majority far, President Trump has eliminated percent of unionized workers in percent of unionized workers in of America’s 8.17 million U.S. of America’s 8.17 million U.S. $50.9 billion in overall regulatory $50.9 billion in overall regulatory the U.S. construction industry the U.S. construction industry construction industry professionals costs across the government. construction industry professionals costs across the government. measured by the Bureau of Labor never participated in any federal ABC continues to strongly support measured by the Bureau of Labor never participated in any federal ABC continues to strongly support
Statistics has fluctuated between registered apprenticeship programs comprehensive regulatory Statistics has fluctuated between registered apprenticeship programs comprehensive regulatory 12.6% and 14.5% during the past 12.6% and 14.5% during the past but are instead developed but are instead developed reform, which should include reform, which should include decade.decade. through industry-recognized and across-the-board requirements for through industry-recognized and across-the-board requirements for • • DOL’s failure to provide detailed DOL’s failure to provide detailed market-driven apprenticeships market-driven apprenticeships agencies to evaluate the risks, weigh agencies to evaluate the risks, weigh information about job duties that sponsored by companies large and the costs and assess the benefits of information about job duties that sponsored by companies large and the costs and assess the benefits of correspond to each published correspond to each published small. small. regulations. This will better allocate regulations. This will better allocate wage rate makes it difficult to wage rate makes it difficult to • • Graduates of federal registered limited resources and target efforts Graduates of federal registered limited resources and target efforts determine the appropriate wage determine the appropriate wage apprenticeship programs supply toward achieving the collective apprenticeship programs supply toward achieving the collective rate for many construction-related just 3.2% of the estimated 550,000 environmental, health and safety rate for many construction-related just 3.2% of the estimated 550,000 environmental, health and safety jobs. These wage determinations additional construction workers goals for the construction industry. jobs. These wage determinations additional construction workers goals for the construction industry. force federal contractors to use force federal contractors to use needed to meet industry demands needed to meet industry demands outdated and inefficient union outdated and inefficient union in 2020 alone, according to ABC’s Read the full letter here. in 2020 alone, according to ABC’s Read the full letter here. job classifications that ignore job classifications that ignore estimates prior to the economic https://www.abc.org/Portals/1/ABC%20 estimates prior to the economic https://www.abc.org/Portals/1/ABC%20 the productive multitrade work the productive multitrade work downturn caused by the COVID-19 Letter%20To%20OGR%20Ranking%20M downturn caused by the COVID-19 Letter%20To%20OGR%20Ranking%20M practices successfully used in the pandemic. At current levels of practices successfully used in the pandemic. At current levels of ember%20Comer%20On%20Regulatoryember%20Comer%20On%20Regulatory merit shop construction industry. graduation, it would take more than %20Reform%20090420_1.pdf merit shop construction industry. graduation, it would take more than %20Reform%20090420_1.pdf • • The Congressional Budget The Congressional Budget 30 years for the federal registered 30 years for the federal registered
Office has estimated that the Office has estimated that the apprenticeship program to meet apprenticeship program to meet repeal of the Davis-Bacon Act repeal of the Davis-Bacon Act industry demands for just this year.industry demands for just this year. would save $12 billion in federal would save $12 billion in federal construction costs between 2019 Additionally, ABC identified the construction costs between 2019 Additionally, ABC identified the and 2028. ABC believes the CBO following anti-growth, Obama-era and 2028. ABC believes the CBO following anti-growth, Obama-era vastly underestimates the true vastly underestimates the true regulations that the Trump regulations that the Trump inflated cost of the Davis-Bacon administration eliminated, reversed inflated cost of the Davis-Bacon administration eliminated, reversed
Act because the methodology is and/or modified. The Trump Act because the methodology is and/or modified. The Trump extremely conservative. In addition, administration’s actions promote extremely conservative. In addition, administration’s actions promote the CBO does not address the the CBO does not address the free enterprise, reduce regulatory free enterprise, reduce regulatory associated increased costs on associated increased costs on burdens and costs and positively burdens and costs and positively public works projects procured impact employers and workers in the public works projects procured impact employers and workers in the by state and local governments industry. by state and local governments industry. subject to state and local prevailing subject to state and local prevailing wage laws modeled after the wage laws modeled after the • • Rescinded the FAR Fair Pay and Rescinded the FAR Fair Pay and federal Davis-Bacon Act. These federal Davis-Bacon Act. These Safe Workplaces (Blacklisting) final Safe Workplaces (Blacklisting) final are large markets and have a are large markets and have a rule rule significant impact on state and significant impact on state and • • Rescinded the DOL Persuader final Rescinded the DOL Persuader final local budgets and the quality of local budgets and the quality of rule rule
U.S. infrastructure, overall.U.S. infrastructure, overall. • • Eliminated the OSHA Volks final ruleEliminated the OSHA Volks final rule • • Modified the DOL Overtime final ruleModified the DOL Overtime final rule 3. DOL’s workforce development 3. DOL’s workforce development • • Modified the OSHA Tracking of Modified the OSHA Tracking of policiespolicies Workplace Injuries and Illnesses Workplace Injuries and Illnesses final rulefinal rule • • To successfully expand To successfully expand • • Modified the OSHA Respirable Modified the OSHA Respirable apprenticeship opportunities and Crystalline Silica final rule apprenticeship opportunities and Crystalline Silica final rule close the skills gap, all U.S. workers • Modified the 2014 NLRB Ambush close the skills gap, all U.S. workers • Modified the 2014 NLRB Ambush should have the opportunity should have the opportunity Elections final ruleElections final rule to participate in DOL’s new to participate in DOL’s new • • Reversed the 2015 NLRB Decision in Reversed the 2015 NLRB Decision in industry-recognized apprenticeship Browning-Ferris Industries industry-recognized apprenticeship Browning-Ferris Industries program, particularly as federal program, particularly as federal • • Repealed and replaced the 2015 Repealed and replaced the 2015 registered apprenticeship programs WOTUS final rule registered apprenticeship programs WOTUS final rule supply only a small fraction of the supply only a small fraction of the construction industry’s workforce. Lastly, ABC pointed out that ABC construction industry’s workforce. Lastly, ABC pointed out that ABC • • While considering new industry members continue to see meaningful While considering new industry members continue to see meaningful
Apply for STEP, AQC by Oct. 30 To Be Eligible for ABC’s 2021 Top Performers Ranking
What defines the best of the best? ABC’s Top Performers lists—the only rankings of their kind—recognize member contractors’ achievements in safety, quality, diversity, project excellence and special designations, ranked by work hours. You must achieve STEP Gold or higher and earn the Accredited Quality Contractor designation to qualifyapplications are due by Oct. 30 for consideration in the rankings
In addition, members should update their company profiles on FindContractors.com to ensure market segments and special designations are noted in the Top Performers rankings. Read on for more information on how to attain each of these qualifications.
ABC’s STEP Safety Management System
Every ABC member wants to send its workers home safely every night. Take the first step towards achieving world-class safety by participating in STEP, whether you are beginning your safety journey or continuing to strengthen your performance. On Aug. 31, the U.S. Department of Labor’s Wage and Hour Division published a notice in the Federal Register to announce that the minimum wage for federal contractors will increase from $10.80 per hour to $10.95 per hour beginning Jan. 1, 2021. Top-performing STEP participants are 827% safer than the U.S. Bureau of Labor Statistics industry average. Getting started with STEP is free, and it can help you lower your workers compensation insurance rates. Visit abc.org/step or email stepapps@abc.org for more information.
ABC’s Accredited Quality Contractor Designation
Is your company AQC material? AQC members demonstrate their commitment to financial fitness, world-class safety, workforce development, talent management, diversity and inclusion, the highest levels of quality construction and the betterment of the communities in which they work. If your company excels in these areas, you too can earn the AQC accreditation, which is recognized by the Construction Users Roundtable. For more information, visit abc.org/aqc or email Jake Reedy at reedy@abc.org.
FindContractors.com
Be sure your company profile is up to date in FindContractors.com to have The increase is a result of the DOL’s 2014 final rule, which implemented Executive Order 13658 on Establishing a Minimum Wage for Contractors and raised the hourly minimum wage paid by contractors to workers on covered federal contracts to $10.10 with annual increases thereafter. This was your market segments and special designations listed in the Top Performers rankings. ABC’s member database features contact information for more than 13,000 contractors. Members can search for an ABC contractor, supplier or other construction professional by name, chapter, location, sales volume or type of construction. ABC populates member profiles with information on whether they have earned an Excellence in Construction® Award, National Safety Excellence Award, National Diversity Excellence Award, participate in the STEP safety management system and Accredited Quality Contractor programs, have special designations and have signed the Drug- and Alcohol-Free Workplace Pledge. Contact FindContractors@abc.org for a login if you don’t have one.
Visit abc.org/TopPerformers for the digital edition of the 2020 Top Performers lists or read the news
release for more details. determined by the secretary of labor in accordance with the methodology set forth in the order.
More information on EO 13658 and the annual wage increase can be found on the DOL website. https://www.dol.gov/agencies/whd/gov ernment-contracts/minimum-wage
OSHA’s Revised Beryllium Standard for Construction and Shipyard Sectors Addresses ABC’s Concerns
On Aug. 31, the U.S. Department of Labor’s Occupational Safety and Health Administration issued a final rule amending its standards for occupational exposure to beryllium and beryllium compounds in the construction and shipyard sectors. ABC and other construction organizations previously filed a settlement with the agency to effectively narrow the scope of the Obama administration’s beryllium final rule, which would have applied a comprehensive, burdensome set of requirements related to beryllium on all construction employers.
As part of the settlement, filed in the Eighth Circuit Court of Appeals on Aug. 25, OSHA agreed to issue an FAQ that makes clear that for normal construction operations, exposures to common construction materials will typically not be covered by the rule. The FAQ states, “exposure to rock, soil, concrete and brick at the typical construction site will not result in beryllium exposure above the action level under foreseeable conditions.” and thus, will not be covered by the rule. This outcome addresses the concerns of ABC, the National Association of Home Builders and the Mason Contractors Association of America and provides certainty for contractors in how they approach and prioritize their safety and health programs. According to a DOL news release, the final rule, officially titled Occupational Exposure to Beryllium and Beryllium Compounds in Construction and Shipyard Sectors, amends the standard’s sections on methods of compliance, respiratory protection, personal protective clothing and equipment, medical surveillance, recordkeeping and more. Additionally, the language included in OSHA’s FAQ is part of the new final rule’s preamble.
The final standards will affect roughly 12,000 workers employed in nearly 2,800 establishments in the construction and shipyard industries and are estimated to yield $2.5 million in total annualized cost savings to employers.
The final rule will go into effect on Sept. 30, 2020. Additional information on the rulemaking can be found on the DOL website.
As part of the Construction Industry Safety Coalition, ABC has been heavily involved in OSHA’s rulemaking efforts over the last several years in attempt to limit the application of the original rule within the construction industry. Specifically, on Nov. 7, 2019, CISC submitted comments to OSHA on a beryllium proposed rule that maintained the lower eight-hour permissible exposure limit and short-term (15-minute) exposure limit and made minor changes to the ancillary provisions of the beryllium standard that are tailored for the construction industry. Additionally, members of CISC participated in the informal public hearing on the rule held by the agency in 2019.
Several members of the CISC, which include ABC, NAHB and MCAA, also filed suit against OSHA in the D.C. Circuit Court of Appeals to challenge the original Obama administration’s rule and an interim Trump administration rule.
Read more about ABC’s actions in the beryllium regulatory process in Newsline.
