CONSTRUCTION MATERIALS PRICES INCH UP IN JUNE: Prices for construction materials inched up 1.0 percent in June 2009, according to the July 14 producer price index (PPI) report by the U.S. Labor Department. Still, prices are down 6.1 percent from June 2008.
“The magic of economics rests with its self-equilibrating mechanisms. These mechanisms are designed to prevent economies from severe overheating or intolerable contraction,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu.
“Producer prices represent a perfect example,” Basu continued. “When the economy is expanding, producer prices rise, making it more expensive for suppliers to expand, which limits the pace of expansion. However, with the economy shrinking as it is now, producer prices tend to decline, which induces cost-efficient supply and limits the extent of the downturn.”
“Recent reports indicate that a combination of factors continues to place upward pressure on construction input prices despite the ongoing global economic downturn,” said Basu. “One of those factors is China, which has introduced its own stimulus package of several hundreds of billions dollars with an intense focus on infrastructure.”
FEDERAL MINIMUM WAGE SET TO INCREASE JULY 24:ABC is reminding its members that the federal minimum wage, currently set at $6.55 per hour, will increase to $7.25 per hour on July 24, the third and final increase scheduled over a three-year period that began in 2007.
PROPOSED RULE ENCOURAGES PLAS ON FEDERAL CONSTRUCTION PROJECTS: The Federal Acquisition Regulatory (FAR) Council July 14 issued proposed regulations as part of a continuing effort to implement President Obama’s Executive Order 13502, which encourages the use of government-mandated, union-only project labor agreements (PLA) on federal projects costing more than $25 million, including those funded by the American Recovery and Reinvestment Act of 2009. In advance of the proposed rule, the Office of Management and Budget (OMB) released a policy memorandum encouraging federal department and agency heads to immediately consider the use of PLAs on upcoming federal construction projects.
“We are troubled that the Office of Management and Budget has directed federal agencies to start considering union-only mandates without even waiting for the proposed rule to become final,” said 2009 ABC National Chairman Jerry Gorski, president of Gorski Engineering, Inc., Collegeville, Pa. “Executive Order 13502 and the FAR Council proposed rule will lead to an increase in costly and discriminatory publicly funded project labor agreements on federal construction projects procured by federal agencies,” said Gorski. “More than 84 percent of the construction workforce consists of hardworking taxpayers that choose not to be represented by a union. However, government mandated project labor agreements will create a monopoly for unionized contractors on federal construction projects at taxpayers’ expense. Forcing PLAs onto federal projects violates longstanding federal procurement laws that require free and open competition, without favoritism.”
The proposed rule is subject to a regulatory process that includes a 30-day public comment period that began on the same day the regulations were released. ABC will submit comments to the FAR Council opposing the regulations, but is also encouraging all members to participate in the comment period by expressing their opposition to this policy and highlighting the negative impact it will have on their businesses. “America’s construction workforce stands to lose the most from these politically motivated actions. Thousands of workers will have part of their wages taken by union pension plans, from which the workers will receive no benefits,” said Gorski.
OSHA TO CONDUCT LOCAL EMPHASIS PROGRAMS ON STIMULUS PROJECTS:The Department of Labor Occupational Safety and Health Administration (OSHA) June 30 announced that it will implement local emphasis programs (LEP) to oversee construction projects funded by the American Recovery and Reinvestment Act of 2009.
The LEPs will be designed to monitor safety issues such as fall protection, contractor liability and electrocution hazards. In addition, the program will address issues associated with the expedited scheduling and nontraditional work hours that are occurring because of the requirement that the stimulus money be spent quickly. Under the program, OSHA will conduct random inspections of stimulus-funded construction projects based on a formula from the University of Tennessee, which is designed to process lists of stimulus-funded projects from McGraw-Hill Cos.’s Dodge reports.
NLRB UPDATE:On May 6, 2009, an Administrative Law Judge (ALJ) for the NLRB ruled that a nonunion construction company did not commit an unfair labor practice by firing “on the spot” an employee who planned to leave the company to be placed in the hiring hall rotation for the Iron Workers Union. ALJ Shamwell noted that the employee was employed on an at-will basis and that it was reasonable for the construction company to terminate an employee who without any prior notice announced his intention to quit “and in this case, to work for a possible competitor – the union.” The ALJ also dismissed the claim that the construction company fired the employee’s stepson based upon their close relationship as retaliation for the employee’s decision to join the union. The ALJ concluded that it was clear “on a practical level” that the owner of the construction company would have been “equally incensed” over any competing employer who came to his jobsite and lured one of his best workers away. The construction company also presented evidence that the stepson was terminated because he did not follow the company’s leave procedures. This decision is a clear reminder to construction industry employers to make it clear in the employee handbook that employees are hired at-will but that notice of an employee’s decision to leave employment is expected. A two week notice is the most common length of time specified. In addition, if leaves of absence are allowed, the company handbook should clearly specify the procedures to be followed in requesting and obtaining permission for such leave.
By Bill Harding, Chapter Attorney
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ABC AFTER-WORK WEDNESDAYS!
Come on by for an “ABC Business-to-Business After-Hours Event.” This will be a casual gathering of ABC members and prospects/guests purely to socialize in a relaxed environment. There isn’t a set schedule or agenda. The event is slated to begin at 4:30 p.m., and will probably wrap up around 7:00 p.m. Everyone is welcome to come and go as they please. Networking is a big part of doing business, so let’s throw a little fun into the mix.
WHEN: July 22nd (Wednesday) (Lincoln After Hours -
WHERE The Fox & Hound Date and Location TBA)
17602 Wright Street (West Center Rd)
Omaha, NE
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30 HOUR OSHA TRAINING
Do any of your key personnel need 30 Hour OSHA Training?
Because of increased OSHA activity, several companies have shown
an interest in a 30 Hour OSHA class.
WHEN: July 31, August 7 & 21, 2009
WHERE: Mahoney State Park (Cottonwood Room)
TIME: 7:00 A.M. – 5:30 P.M.
COST: $395.00 member price -- $595.00 non-member price
Lunch and daily park permit fees provided by ABC
If you are interested, please contact Chris or Deb at 402-477-4451.
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