This week, the "so-called" Employee Free Choice Act (EFCA) was introduced in both the House and the Senate. While H.R. 1409 had 223 cosponsors and S. 560 had 40 cosponsors, the total number of cosponsors was less than supporters had hoped, indicating that businesses and other groups in opposition are making a strong case to leaders on Capitol Hill. AGC released a statement March 10 in response to the introduction of card check and announced that more than 10,000 AGC members had sent messages to Congress in opposition to the legislation. That number has grown to over 14,000 in just three days.

This bill would deprive millions of employees the right to a private vote when deciding whether or not to unionize. It would hurt construction workers and make it very difficult for small construction companies to grow, hire or succeed. This legislation would also lead to federally mandated employment terms for construction firms.

Though most of the focus of this bill has been the impact on open shop employers and their employees, EFCA is also likely to have a negative effect on union contractors and their 8(f) "pre-hire agreements." Visit www.agc.org/efca to learn more about the impact of EFCA on union contractors.

AGC strongly opposes this legislation. Please continue to use AGC's Legislative Action Center to write and let your Members of Congress know your opposition to EFCA. The Senators in Colorado, Louisiana, Arkansas, Virginia, Nebraska and North Carolina are considered key in stopping EFCA from moving forward, but all Members of Congress need to hear from you. It is important to stress to your Senators that it is not enough just to oppose the bill, but to oppose any procedural votes such as cloture votes on EFCA.

The U.S. House of Representatives today approved a bill to reauthorize two federal programs that provide financing for wastewater infrastructure upgrades, repair and reconstruction. The vote was 317 to 101 in support of H.R. 1262, the Water Quality Investment Act of 2009.

The bill would provide a total of $19.4 billion over five years in authorization of appropriations for wastewater infrastructure projects, including $13.8 billion for the Clean Water State Revolving Loan Fund (SRF) program. These funds provide low-interest loans and additional loan subsidizations to communities for wastewater infrastructure. Funds are distributed to states based on a statutory formula and are made available through the annual appropriations process. For a state-by-state breakdown of funding that is authorized, click here.

The bill also includes $2.5 billion for the sewer overflow control grants program. This program provides grants to communities to control combined sewer overflows (CSOs) and sanitary sewer overflows (SSOs), which are overflows of untreated waste that can occur during wet weather events.

"It is deeply disturbing that some in Congress would attempt to add yet another hardship to America's workers by seeking to deprive them of the right to a free, fair and private vote. The proposed card check legislation is fundamentally unfair to millions of construction workers, will disrupt collective bargaining agreements already in place and will deprive workers and their employers of the right to set pay and work rules."

"The legislation also takes important business decisions away from workers and employers and puts them into the hands of Washington-appointed arbitrators with little to no experience in construction. Our union and non-union members agree that this legislation will deprive workers of basic rights and distract the nation from what must still be done to jump start the economy. That is why our members have sent almost 11,000 messages to Congress in opposition to this legislation over the past several weeks, and that is why our 33,000 member companies and their employees will continue to be heard on this issue."

The nation's largest construction association, the Associated General Contractors of America, today called on its 33,000 member companies to immediately contact their Representatives and Senators and urge them to oppose proposed "card check" legislation. The legislation, which would deprive millions of employees of the right to a private election to decide whether to unionize, would hurt construction workers and make it very difficult for small construction companies to grow, hire or succeed.

"If this bill were to pass, employees would suffer the most," said the association's chief executive officer, Stephen E. Sandherr. "In exchange for workplace disruptions, lost rights and federally mandated employment terms, this bill offers nothing that would benefit the nation's economy."

Sandherr said the bill, labeled the Employee Free Choice Act, would take away a worker's right to a private vote in deciding whether to form a union. He noted that the association, which represents both union and non-union construction companies, has long supported time honored rules guaranteeing workers the ability to make one of the most important choices of their working career in a way that is free of coercion or intimidation from either side.

He added that the legislation also requires the federal government to appoint an arbitrator to impose terms of employment for America's business workers if their unions and managers can't reach a deal in 130 days. Currently, the federal government can only impose an outside arbitrator if either side fails to negotiate in good faith.

He said the 130-day provision was particularly problematic for the construction industry because over 90 percent of construction companies are small businesses that employ fewer than 100 people. He said the prospect of having government-appointed officials with little experience in construction dictate labor agreements would discourage would-be employers from starting their own operations. As a result, Sandherr said, the card check legislation would lead to the consolidation of the construction industry into a handful of large companies with the resources to cope with Washington-directed labor agreements. "Gone would be the innovations brought on by entrepreneurs and the satisfaction of working for a small company that operates like a family," he added.

The association is asking its member companies to contact their representatives directly by logging on to www.agc.org/lac. "We're going to let Congress know this bill will give America's workers the following benefits: it will deprive them of their right to a private election, it will limit economic growth and it will stifle job creation for years to come," Sandherr said.

During AGC's 90th Annual Convention in San Diego, March 4-7, chief economist Ken Simonson and CEO Stephen Sandherr outlined details on the recently-enacted stimulus legislation. Simonson and Sandherr explained how the stimulus will improve employment and business prospects for the industry and help local communities rebuild gaining infrastructure.

The San Diego Union-Tribune attended the event, as did several other media outlets. AGC regularly updates it's stimulus Web site, www.agc.org/stimulus with details on stimulus funding.

It is widely expected that supporters of the "so-called" Employee Free Choice Act (EFCA) will seek to introduce this legislation next week. This bill would deprive millions of employees the right to a private vote when deciding whether or not to unionize. It would hurt construction workers and make it very difficult for small construction companies to grow, hire or succeed. This legislation would also lead to federally mandated employment terms for construction firms.

Though most of the focus of this bill has been the impact on open shop employers and their employees, EFCA is also likely to have a negative effect on union contractors and their 8(f) "pre-hire agreements." Please go to www.agc.org/efca to learn more about the impact of EFCA on union contractors.

AGC strongly opposes this legislation. AGC members have sent over 4,000 letters to legislators over the last few weeks to speak out against EFCA Please continue to use AGC's Legislative Action Center to write and let your Members of Congress know your opposition to EFCA. The Senators in Colorado, Louisiana, Arkansas, Virginia, Nebraska and North Carolina are considered key in stopping EFCA from moving forward, but all Members of Congress need to hear from you.

It is important to stress to your Senators that it is not enough just to oppose the bill, but to oppose any procedural votes on EFCA.

On March 4, President Obama signed a Presidential Memorandum designed to reform government contracting, strengthen oversight and manage taxpayer dollars. The proposal would end no-bid and cost-plus contracts, maximize the use of competitive procurement processes and clarify the rules prescribing when outsourcing is and is not appropriate. The reform is projected to save taxpayers up to $40 billion a year.

The memorandum tasks the Federal Acquisition Reform (FAR) Council to develop and issue by July 1, 2009, government-wide guidance to assist agencies in reviewing contracts, and create processes for ongoing review of existing contracts in order to identify those that are "wasteful, inefficient, or not otherwise likely to meet the agency's needs." The guidance will also formulate appropriate corrective action in a timely manner. The memorandum also mentions taking corrective action, such as modifying or canceling contracts that are deemed to meet that criteria.

The Office of Management and Budget (OMB) is also directed to develop and issue by September 30, 2009, government-wide guidance to:

1. govern the appropriate use and oversight of sole-source and other types of noncompetitive contracts and to maximize the use of full and open competition and other competitive procurement processes;
2. govern the appropriate use and oversight of all contract types, in full consideration of the agency's needs, and to minimize risk and maximize the value of government contracts generally, consistent with the regulations to be promulgated pursuant to section 864 of Public Law 110-417;
3. assist agencies in assessing the capacity and ability of the Federal acquisition workforce to develop, manage, and oversee acquisitions appropriately; and
4. clarify when governmental outsourcing for services is and is not appropriate, consistent with section 321 of Public Law 110-417 (31 U.S.C. 501 note).

Senators Carl Levin (D-MI), Claire McCaskill (D-MO), John McCain (R-AZ) and Representatives Edolphus Towns (D-NY) and Peter Welch (I-VT) pledged to work with the President on this effort. In addition, the President endorsed the goals of the bipartisan effort on defense procurement reform led by Senators Levin and McCain, and has asked Defense Secretary Gates to work with the Senators on these efforts.

AGC looks forward to working with OMB, the FAR council and Congress throughout the rulemaking and legislative process.

AGC submitted comments yesterday to the Internal Revenue Service (IRS) in response to the agency's December 5, 2008 notice of proposed rulemaking to implement the 3 percent withholding law enacted in 2006. Effective January 1, 2012, federal, state and local governments with annual expenditures of $100 million or more are required to withhold 3 percent from payments for goods and services, including payments made under government contracts with construction companies. The law was intended to reduce the so-called "tax gap" and tax evasion. AGC has strongly opposed this legislation since it was introduced.

IRS' proposed rule clarifies that payments for the construction of a building or other public works projects are subject to 3 percent withholding, which could adversely affect a contractor's cash flow. To view a copy of AGC's letter, and for additional information on the proposed rule and AGC's position, please click here.

Congress recently enacted a one-year delay in the effective date of the law (i.e., from 2011 to 2012) as part of H.R. 1, the American Recovery and Reinvestment Act. AGC has made full repeal of the onerous 3 percent withholding tax a top priority of the 111th Congress and will continue efforts to urge Congress to enact such legislation.

On January 7, Representative Kendrick Meek (D-FL) introduced H.R. 275, a bill to repeal the 3 percent withholding law. On January 21, Senator Arlen Specter (R-PA) introduced a Senate version, S. 292. AGC is working with a broad coalition of stakeholders to enact the legislation.

The House Committee on Transportation and Infrastructure yesterday approved $88.7 billion in new investment to t he nation's aviation and clean water infrastructure. The FAA Reauthorization Act of 2009 will provide $70 billion to the Federal Aviation Administration and federal aviation infrastructure programs for the next four years. The Water Quality Investment Act of 2009 will give $18.7 billion for water and environmental infrastructure.

The FAA bill provides $16.2 billion for the Airport Improvement Program, $13.4 billion for FAA Facilities & Equipment, and $1 billion for Research, Engineering, and Development. The funding will enable the FAA to modernize its air traffic control system and improve capacity at the nation's airports. In addition, the bill provides $39.3 billion for FAA operations.

The Water Quality Investment Act authorizes $13.8 billion in Federal grants over five years to capitalize the Clean Water State Revolving Fund and provide low-interest loans to communities for wastewater infrastructure. It also reauthorizes $250 million in grants over five years for alternative water source projects and authorizes $1.8 billion over five years in grants to municipalities and states to control sewer overflows. It amends the Clean Water Act to provide a national standard for public notification of overflows, and increases the authorization of appropriations to $150 million for each of the fiscal years 2010 through 2014. Finally, the bill increases the authorized funding levels for the cleanup of contaminated sediment in the Great Lakes, which was enacted into law in 2008 with funding levels below the House-passed version of the bill.

The Committee also approved the Views and Estimates for Fiscal Year 2010, which helps guide the development of the year's budget resolution. It lays out the Committee's position on the budget proposed last week by the Obama Administration and calls for authorization of surface transportation programs, reauthorization of the FAA, selected provisions of the Clean Water Act and the Comprehensive Environmental Response, Compensation and Liability Act, reauthorization of the Coast Guard and the Federal Emergency Management Agency and consideration of a water resources development act.

The Committee also noted that recent projections by the Congressional Budget Office show that the current levels of highway, transit and highway safety investment are unsustainable under current revenue projections. AGC is actively working to ensure the Highway Trust Fund remains solvent.

Click here to view a comparison chart of state-by-state estimates for FY 2009 highway formula funding and FY 2010 estimated highway formula funding.