AGC submitted public comments January 22 to the Occupational Safety and Health Administration and also requested that public hearings be held nationwide on the proposed Crane and Derricks in Construction standard. OSHA is tentatively scheduling public hearings for mid-March 2009 and the locations are yet to be determined. Crane operator qualification and certification is still AGC’s primary concern with the proposal.  AGC also commented on several other areas for clarification, such as the scope, definitions, fall protection, inspections and assembly/disassembly requirements.  AGC’s comments were derived from conference calls with members and chapters who reviewed and commented on the proposal.

For more information on the history of the Crane and Derricks in Construction proposed rule and AGC’s comments during the C-DAC process or the SBREFA panel, click here.

Today, the Senate passed pay discrimination legislation that is similar to a bill which the House passed earlier this month. The bill would change how pay disparity in the workplace is handled as well as allow for a new influx of frivolous lawsuits against employers. The House is expected to pass the Senate version and President Obama is expected to sign the legislation.

The legislation seeks to restart the filing period for a discriminatory act each time a paycheck is issued and would expand the class of people able to bring claims against employers.  AGC opposes this legislation and is part of a coalition working against it.

Like the House, the Senate did not follow the committee process on holding hearings and allowing further examination of the legislation.  The choice to bring labor bills immediately to the floor is a strong indication of the approach that Congress is going to take on labor issues in the next two years.  AGC will continue efforts to monitor labor bills and keep AGC members informed.

On January 22, the Senate failed to pass an amendment offered by Senator Vitter (R-La.) that would have ensured government neutrality in the bidding process for federal and federally funded construction projects. The amendment would have ensured such neutrality by prohibiting the use of Government Mandated Project Labor Agreements (GMLAs).

AGC believes that GMLAs would disrupt labor-management relations in the construction industry and run afoul of the National Labor Relations Act. Use of GMLAs would tread upon both the rights of union contractors’ ability to work under the conditions of already negotiated collective bargaining agreements and would impact an open shop contractor’s right to not engage in collective bargaining.

The amendment was offered during the debate on a pay disparity bill. AGC key voted this amendment to be used in AGC’s annual scorecard of how legislators vote.

On January 15, the House Democratic Leadership announced details of the American Recovery and Reinvestment Act. Details of the $825 billion package were released by the House Appropriations and Ways and Means Committees. The total package consists of $275 billion in economic recovery tax cuts and $550 billion in targeted investments, coupled with several unprecedented accountability measures. AGC estimates that approximately $150 billion of the spending proposed in this bill would benefit the construction industry.

House Speaker Nancy Pelosi (D-Calif.), said today that she hoped Congressional Committees would take up the bill late next week, with the goal of sending a final product to the White House by mid-February. According to House Appropriations Chairman Dave Obey (D-Wis.), this package would create and save 3 to 4 million jobs and jumpstart our economy.

In many instances, funds would be distributed through existing formulas. How funds are spent, all announcements of contract and grant competitions and awards, and formula grant allocations must be posted on an open government web site. Governors, mayors or others making funding decisions must personally certify that the investment has been fully vetted and is an appropriate use of taxpayer dollars. A Recovery Act Accountability and Transparency Board would also be created to review management of recovery dollars and provide early warning of problems. Federal and state whistleblowers who report fraud and abuse are protected. Finally, there are no earmarks in this package.

The House Ways and Means Committee’s $275 billion tax package would provide tax, health and other benefits to American families, as well as incentives for businesses to grow and create jobs.  Highlights in the package benefiting the construction industry include:

• One-year deferral of the 3 percent withholding law from 2011 to 2012
• Bonus depreciation
• 5-year carry-back of net operating losses
• Extension of increased small business expensing
• Repeal AMT limits on new private activity bonds
• School construction bonds
• Remove repayment requirement on $7,500 first-time homebuyer credit
• Tax exempt and tax credit bonds to “recovery zones” (i.e., areas of high unemployment, foreclosures or poverty)
• Various energy efficiency tax incentives and bonds

AGC’s CEO Stephen Sandherr released a statement indicating that the newly released details of the proposed stimulus package provide encouraging signs that Congress is willing to make significant, but essential, investments needed to rebuild our aging infrastructure and inefficient public buildings while repairing America’s ailing economy.  However, he pointed out that in an environment where almost 900,000 construction workers have lost their jobs, the construction community has the capacity to do even more work than is currently being considered. 

AGC is continuing to meet with House and Senate leaders to increase the proposed investments in infrastructure in the draft package and enact the bill as soon as possible.

To view a copy of the House Appropriations Committee Plan, click here.
To view a copy of the House Ways and Means Committee Plan, click here.
To view AGC’s analysis of the bill, click here.

AGC past-president Steve Massie (Jack L. Massie Contractor, Inc., Williamsburg, Va.) testified before the U.S. House of Representatives Committee on Small Business Wednesday.  The hearing was held to address the state of the small business economy and identify policies to promote economic recovery.  In his testimony, Massie said that within 30 to 60 days of projects being awarded, firms like his would be able to begin work, hiring, buying materials and working to improve infrastructure.  Massie's testimony was highlighted in The Washington Post.

AGC also submitted testimony to the U.S. House of Representatives Republican Economic Stimulus Working Group as part of a hearing they held this morning on Economic Recovery Solutions.  AGC’s comments detailed the benefits of infrastructure investments and urged tax incentives to stimulate the economy, improve energy efficiency and create job opportunities.

AGC staff hosted a meeting of pipeline safety advocates and U.S. Department of Transportation officials to discuss pending federal safety regulations.  DOT’s Pipeline and Hazardous Materials Safety Administration outlined its efforts to finalize regulations that would allow it to declare state “call before you dig” pipeline safety programs inadequate and conduct civil enforcements within those states.

AGC and its safety partners stressed the need for fair regulations that take into account the shared responsibilities of pipeline operators and contractors.  We’ll be seeking comment on the proposed regulations over the coming months.

The interim head of the State Department’s Bureau of Overseas Building Operations has promised “sweeping” changes to the way the office does business in a letter to AGC.  In the letter, interim administrator Richard Shinnick praised AGC and its partners for identifying ways the federal bureau can make it easier for contractors to help build overseas facilities, and committed to make the necessary changes.  To view the letter, click here.

This week the Senate is debating pay disparity legislation on the House floor.  The legislation is similar to the bills which the House passed last week that would change how pay disparity in the workplace is handled as well as allow for a new influx of frivolous lawsuits against employers.  The legislation seeks to restart the filing period for a discriminatory act each time a paycheck is issued and would expand the class of people able to bring claims against employers. In addition, they would provide for unlimited punitive and compensatory damages while limiting employer defenses as well as make it easier for class action lawsuits to be filed. 

Like the House, the Senate did not follow the committee process on holding hearings and allowing further examination of the legislation.  The choice to bring labor bills immediately to the floor is a strong indication of the approach that Congress is going to be taking on labor issues the next two years.

President-elect Obama Calls for “Dramatic Action”

In a press conference held January 8, President-elect Barack Obama reiterated his concern over the state of the economy and called for “dramatic action” on movement of an economic stimulus package. He said that his plan will save or create 3 million jobs by repairing crumbling roads and bridges; eliminating the backlog of well-planned, worthy and needed infrastructure projects; doubling the production of alternative energy; weatherizing 75% of federal buildings and two million American homes; computerizing America’s medical records; updating thousands of schools, community colleges, and public universities; expanding broadband; and investing in science, research, and technology.

AGC Submits Stimulus Testimony to House Democratic Steering & Policy Committee

On January 7, the House Democratic Steering and Policy Committee held a forum on the economic outlook and the components of an economic recovery plan to spur job creation and create long-term growth. Speaker Nancy Pelosi (D-Calif.), Steering and Policy Committee co-chairs Congressman George Miller (D-Calif.) and Congresswoman Rosa DeLauro (D-Conn.) chaired the forum featuring a panel of economists and experts in infrastructure investment.

AGC recommended to the Committee a full range of economic stimulus activities, including infrastructure investment and tax policies that would have an immediate positive impact on economic activity.

Click here to view AGC’s testimony.

AGC Holds Media Conference Call on Economic Stimulus

On January 8, AGC hosted a media conference call with approximately 60 reporters to announce its first-ever construction employment and business forecast.  President-elect Doug Pruitt (Sundt Construction, Tucson, Ariz.), CEO Steve Sandherr, chief economist Ken Simonson and members Brian Burgett (Kokosing Construction, Fredericktown, Ohio), Tracy Hart (Tarlton Corporation, St. Louis, Mo.), Steve Kimball (Kimball Construction Co, Baltimore, Md.) and Don Weaver (Weaver Bailey Construction Company, El Paso, Ark.) outlined how under current market conditions almost two-thirds of commercial construction companies are planning to lay off workers this year.  All told, those layoffs could lead to a 30 percent reduction in the commercial construction workforce.  They emphasized that market conditions could change rapidly with new stimulus funding and could actually lead to a 25 percent increase in commercial construction jobs this year. 

To see the forecast results, click here. 

Transportation Coalition Launches Ad Campaign

AGC, as a co-chair of the Transportation Construction Coalition, has launched a series of new print and online advertisements designed to encourage support for investing in new transportation construction projects as part of the stimulus.

To view the ads, click here and here.

AGC Releases New National and State-by-State Economic Jobs Report

Personal earnings will increase by $1.1 billion and the national gross domestic product will increase by $3.4 billion for every billion dollars invested in new infrastructure projects according to new national and state-by-state data released by AGC on December 16, 2008. The comprehensive new data, which is based on new economic research conducted for the association as well as federal data and economic impact estimations, demonstrates the unmistakable benefit of including infrastructure investments as part of the stimulus package.

According to the new data, for every billion dollars invested in projects designed to improve highways, water systems, educational and health facilities and energy systems, more than 28,500 jobs will be created or saved nationwide. 9,700 of those jobs would be for construction-related work. Another 4,600 would be for associated work, such as suppliers, while another 14,300 of those jobs would be added to the broader economy.

To view the national and state-by-state data, go to http://www.agc.org/stimulus.

AGC continues to press Congress to enact an economic recovery package with infrastructure investment as soon as possible to prevent further job losses in the industry and to create additional job opportunities for contractors and their workers.

According to the Congressional Budget Office (CBO), the Highway Account will have $3.3 billion left at the end of FY 2009.  However, a default is possible due to the fact that tax collections in the latter half of September will not appear until FY 2010 and construction activity increases in the summer and early fall.  Should FHWA run out of cash on a day-to-day basis in late August or early September, it would be necessary to go back to once-a-week reimbursements to states.

In the long-term, at the 2009 inflation spending levels and current tax law, CBO projects that over the six year 2010-2015 period, the Highway Account is $64.7 billion in the red and the Mass Transit Account is $14.3 billion in the red. Under those estimates, a hypothetical six-year highway bill would have to increase taxes by $79 billion over the life of the bill just to keep 2009 spending levels in pace with inflation.  In addition, any real spending increases will have to be matched by tax increases, dollar for dollar.