The U.S. Department of Labor (DOL) Office of Labor-Management Standards October 2 published a rule that requires unions January 1, 2009, to begin filing annual financial reports, listing expenditures in trusts created for the benefit of their members. Under the new rule, union-controlled trusts-which include apprenticeship and training programs, as well as building and strike funds-will be required for the first time to publicly disclose receipts and disbursements that currently take place outside the reach of established accounting practices.
ABC expressed support for the T-1 form in comments filed May 5 with DOL. ABC agreed with DOL that requiring the disclosures would serve as a deterrent against impropriety by labor organizations by enabling the public to see how union trust funds are being used. “We are extremely pleased that the Labor Department has seen the need for union trust funds to be more transparent so that their members can actually see how their money is being spent,” said Bob Hirsch, ABC director of legal and regulatory affairs. “The rule will go a long way to ensure that union officials cannot use the trust funds for improper means.”
CONSTRUCTION INPUT PRICES RISE SLIGHTLY IN SEPTEMBER:The price of construction inputs in September 2008 rose 0.5 percent compared to August 2008, according to the October 15 producer price index (PPI) report by the U.S. Department of Labor. This rise represents a 13.1 percent increase compared to September 2007.
“The ongoing deflation in materials prices is beginning to help shift the development environment for the better,” said ABC Chief Economist Anirban Basu. “With construction materials prices relatively flat as indicated in both the August and September PPI reports – and likely to decline even more in the near future – the developer/owner community will have an easier time creating a stable budget for their commercial and industrial construction projects.”
To see the full analysis, click here.
OSHA ISSUES PROPOSED RULE ON CRANE SAFETY: U.S. Occupational Safety and Health Administration (OSHA) Oct. 9 published a proposed rule that will update the existing 40-year-old crane regulations by requiring employers to follow a multiple-step process to establish a safe environment where employees can operate cranes. The first step in the proposed rule would require employers to analyze the ground at the site and determine if it is stable enough to support the weight of the equipment and the loads that would need to be lifted. Next, employers would have to consider any other hazards present in the area that could inhibit the safe operation of a crane, including people and objects that are within the swing radius of the crane. Finally, the employer would be required to train employees to recognize hazards and would have to inspect the equipment being used in order to ensure that it was safe to operate.
The proposed rule would also require all crane operators to be certified and trained either through an accredited testing organization, by the U.S. military, by a licensed government entity or through an audited qualification program offered by the employer. In addition to the proposed rule, OSHA Oct. 9 also implemented a National Crane Safety Initiative designed to address safety hazards while operating a crane. OSHA launched the initiative in an effort to raise awareness of crane safety issues and to increase enforcement of the current standards. The agency plans to launch local emphasis programs that will incorporate increased targeted inspections of construction worksites and promote compliance with workplace crane safety requirements. ABC is evaluating the proposed rule and will submit comments to OSHA by the Dec. 8 deadline.
ABC SIGNS PARTNERSHIP TO BENEFIT STUDENT CHAPTERS:ABC Oct. 1 signed a five-year partnership with College Majors 101 (CM101), a national website for students, to help highlight the achievements of students studying construction management. The partnerships will allow ABC, one of the leading professional associations for construction management students, and CM101 to share content and showcase student accomplishments on CM101’s Construction Management channel. CM101 currently offers more than 40 channels where students can learn about specific majors from those who are already in the field.
“ABC is very excited for the opportunity to work with College Majors 101,” said John Strock, ABC director of careers in construction. “The website is a great way to showcase what we are doing in the area of undergraduate construction management and to spotlight a very important part of the future construction workforce.
401(K) PLAN UPDATE:On August 12, 2008, a federal district judge in Michigan ruled in favor of an employer in a case involving a Section 401(k) plan. The decision was unique because of the issues raised and it provides very good guidance, and some comfort, to all construction industry employers utilizing a Section 401(k) plan for retirement purposes. Defined benefit plans have experienced large underfunding and most of the 10 largest union-employer defined benefit funds in the construction industry are experiencing serious to critical underfunding levels. As a consequence, employers in all industries have moved to defined contribution plans for retirement purposes and Section 401(k) plans have gained great favor.
In the Michigan case, current and former employees of an employer utilizing the Section 401(k) plan contended that they routinely worked more than 40 hours per week and were entitled to overtime pay under the FLSA. The employees contended that the employer, as the administrator and the fiduciary of the 401(k) plan, failed to credit them with unpaid overtime and, thereby, breached its fiduciary duties under ERISA. The employer contended that the contributions to the 401(k) plan were based upon compensation actually paid, not on wages that should have been paid and that the company decision to classify employees as exempt from the FLSA overtime pay requirements was a business decision not subject to ERISA’s fiduciary requirements. Federal Judge Lawrence Zatkoff agreed and concluded that the decision to classify employees as exempt from FLSA’s overtime pay requirements was indeed a business decision and not covered by ERISA. Of course, construction industry employers seeking to classify employees as exempt from the FLSA’s overtime pay requirements must be careful to comply with the new 2004 regulations concerning exempt status and job descriptions for such employees should be rewritten to incorporate the standards contained in the 2004 regulations. However, this decision is very good news for employers utilizing Section 401(k) plans because the decision limited the fiduciary duties of an employer with a 401(k) plan to ERISA requirements only. If the decision would have accepted the argument of the plaintiffs to expand the fiduciary requirements of employers with 401(k) plans, much additional litigation would have been likely throughout the entire country. At least for the moment, construction industry employers with Section 401(k) plans do not need to be concerned about being challenged on FLSA overtime pay exemption decisions in an ERISA proceeding. By Bill Harding, Chapter Attorney
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~~~NEW SEMINARS BEING OFFERED~~~
UNDERSTANDING THE LATINO CULTURE
Does your company employ or do your employees interact with Latinos employed by other companies on your job site?
Do you understand the Latino’s style at work?
Our seminar will cover several topics including motivation conflict, management, forcefulness, sense of responsibility,
risk taking, resourcefulness, ethics and problem solving. Also to be discussed will be Latino loyalty, ambition, leadership, pride, honor and success along with general issues in the workplace and interaction with other cultures and other Latinos.
This seminar is being presented by Chip Andersen and will be held at the Ashland Country Club, Ashland, NE on October 29 from 1:00 – 5:00 p.m.
PRODUCTIVITY EQUALS PROFITABILITY
This is a one-day program that will help provide employees of self-performing construction companies with a realistic view of what must happen in the field in order to increase gross profit on every job. This program is designed for the self-performing general and trade contractors, owners, CEO’s, upper-;level managers, estimators, project and operations managers, general superintendents and field supervisors at all levels of responsibility.
This program is being presented by Michael Brunner and will be held at the Ashland Country Club, Ashland, NE on November 12, 2008 from 8:00 a.m. – 4:30 p.m.
COMMUNICATION & LEADERSHIP BASICS PROGRAM
This eight-hour program focuses on identifying, explaining and applying the basic concepts of both communication and leadership in the construction industry. The program is for anyone in the construction industry who holds (or plans to hold) a leadership or management position – presidents, vice presidents, project managers, estimators, field supervisors, foremen, crew leaders, lead men, etc.
This program is also being presented by Michael Brunner and will be held at the Ashland Country Club, Ashland, NE on November 13, 2008 from 8:00 a.m. – 4:30 p.m.
Watch your mail for further information on the above seminars/programs.
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Training Classes
Management & Safety Class Schedule
First Aid/CPR Classes
$50.00 each attendee – Member Price/$60.00 each attendee – Non-Member
Recertification only - $40.00 each attendee – Member Price/$50.00 each attendee – Non-Member Price
¨ November 4, 2008 – 1:00 – 5:00 p.m. – LINCOLN
¨ November 7, 2008 – 1:00 – 5:00 p.m. - OMAHA
¨ November 12, 2008 – 7:00 – 11:00 a.m. - OMAHA
¨ November 13, 2008 – 7:00 – 11:00 a.m. – LINCOLN
¨ November 18, 2008 – 1:00 p.m. – 5:00 p.m. – KEARNEY
¨ November 19, 2008 – 7:00 – 11:00 a.m. – NORFOLK
OSHA 10 Hour Class
OSHA requires a competent person on all job sites. This course ensures that your people have the necessary training to comply with OSHA standards CFR 1926.32(f) for a competent person. Training includes OSHA Construction Standards CFR 29 1926, Scaffolds, Ladders and Stairways, Housekeeping, Personal Tools, Electrical Hazards, Fall Protection, Materials Handling, Hazardous Communications and much more!
**CFR 192 OSHA Regulations Book for the Construction Industry with new steel erection standards will be available for $25.00** each for class participants.
$135.00 each attendee – Member Price/$240.00 each attendee – Non-Member Price
¨ November 19, 2008 – 7:00 a.m. – 5:30 p.m. – KEARNEY
¨ November 20, 2008 – 7:00 a.m. – 5:30 p.m. – NORFOLK
¨ November 25, 2008 – 7:00 a.m. – 5:30 p.m. – LINCOLN
¨ November 25, 2008 – 7:00 a.m. – 5:30 p.m. - OMAHA
Focus Four Safety Training:
For employees who are starting to work in the industry or the seasoned employee who may need a refresher course in the four focused areas that cause the most injuries and deaths in construction. The course will cover the 4 subparts of the CFR1926 standard – falls, electrical, struck by and caught-in-between.
$90.00 each attendee – Member Price/$125.00 each attendee – Non-Member Price
¨ November 11, 2008 – 1:00 – 5:00 p.m.- LINCOLN
30 Hour OSHA Class
Federal Law requires each company have a designated trained safety coordinator. This will give your foremen, supervisors, safety directors or safety coordinators the expertise to comply with all OSHA and State requirements. This is an in-depth look at CFR 1926 and 1920 and NE 757 as they affect construction. Price includes study materials
$395.00 each attendee – Member Price / $595.00 each attendee –Non-Member price.
¨ October 21, 28 & November 4, 2008 – 7:00 a.m. – 5:30 p.m. – OMAHA
¨ December 2, 9, 16, 2008 – 7:00 a.m. – 5:30 p.m. - LINCOLN
CONTINUING EDUCATION:
HVAC/MECH Code Lincoln $125.00
Oct. 22 through January 7, 2009 . Call 477-4451 for more information
6:30 – 8:30 p.m.
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Omaha Classes are held at the Education Center, 2602 Harney Street, Omaha
Lincoln Classes are held at the Training Center, 830 Westgate Blvd., Lincoln
PLEASE DUPLICATE THIS FORM FOR MULTIPLE CLASSESCompany: Address: Phone: Fax:
Names (please print): Class/Date: Cost:
Class/Date: Cost:
Class/Date: Cost:
Return Registration Form and Check Payable to Associated Builders & Contractors
830 Westgate Blvd., Lincoln, NE 68528 FAX 402-477-4522
Email-debh@abcnebraska.org