On June 9, AGC and its coalition partners sent a letter to Senator John Kerry (D-Mass.) and Senator Joseph Lieberman (I-Conn.), as well as the rest of the Senate, expressing concerns over a provision in the American Power Act encouraging the use of Project Labor Agreements (PLAs).

The letter states that the undersigned organizations are committed to free and open competition in all public construction markets and believe that publicly financed contracts should be awarded without regard to the labor relations policy of the government contractor. Neither a public owner nor its representative should mandate the use of a PLA that would compel any firm to change its labor policy or practice in order to compete for or perform work on a publicly financed project. The letter also said that it should be up to the contractor to negotiate a PLA on a voluntary basis if the contractor believes it would benefit a particular project. To view a copy of the letter click here.

This week, AGC sent a letter to Congress in response to the Federal Acquisition Regulation (FAR) Council's recent final rule implementing the use of government-mandated project labor agreements (PLAs) on federal construction projects. AGC opposed the final rule because it effectively compels both union and open shop contractors to alter their hiring practices, work rules, job assignments, and benefits in order to compete for or perform work on publicly funded projects. The use of a government-mandated PLA on a project not only constitutes inappropriate government interference with private labor relations, it amounts to an unfair government preference that can significantly impact the cost of public works.

AGC is urging Congress to pass the Government Neutrality in Contracting Act (S.90 and H.R. 983).  The bill would ensure fairness in the federal procurement process among all qualified firms, without regard to their lawful labor policies. Please take a minute to contact your elected officials and urge them support S.90 and H.R. 983 by using AGC's Legislative Action Center.

In addition, in meetings this week at AGC's Federal Contractors Conference, members had the opportunity to discuss in great detail their concerns over the president's executive order encouraging the use of government mandated labor agreements.

On Friday, April 23, Senate Majority Leader Reid (R-Nev.) announced that the Senate would soon turn to immigration reform and that he would be introducing a Democrat-only detailed proposal this week.   This action runs counter to the bipartisan negotiations that had been occurring between Senator Schumer (D-N.Y.) and Senator Graham (R-S.C.) to develop a product that could get the support from both sides of the aisle as well as from the business community.  

As a result of the Reid announcement, the bipartisan negotiations have stalled.  AGC has seen a draft of the Democratic proposal and the document raises concerns on how it would affect the construction industry as well as business in general.  Of particular concern is the concept of making general contractors responsible and liable for the hiring practices of their subcontractors.  AGC will continue to remain in the discussions with both the Senate and the White House as things progress.

This week, the Senate Health, Education, Labor, and Pension (HELP) Committee and the House Education and Labor Committee held hearings on workplace safety.  The HELP Committee focused particularly on mine safety in the Tuesday hearing in response to the recent accident in West Virginia. 

During the hearing, lawmakers and regulators were urged to focus on creative policies that will help employers promote safer workplaces before accidents can happen.  The House focused on the portions of the Protecting America's Workers Act that cover whistleblower and victims' rights provisions.  Witnesses expressed to the committee the need for legislation to modernize federal laws that protect workers who blow the whistle on unsafe working conditions and ensure victims of workplace accidents have a voice during OSHA investigations. AGC is closely watching these issues and the impact the passage of any legislation will have on the construction industry.

Next week, the Senate Health, Education, Labor, and Pension (HELP) Committee and the House Education and Labor Committee will hold hearings on workplace safety. 

The HELP Committee is focusing particularly on mine safety in response to the recent accident in West Virginia.  The House will focus on the portions of the Protecting America's Workers Act that cover whistleblower and victims' rights provisions.  AGC is closely watching these issues and the impact the passage of any legislation will have on the construction industry.

This week both Speaker Pelosi and Senate Majority Leader Reid said that they would like to see comprehensive immigration reform taken up in 2010. The two main Senators working on the development of such a bill, Senator Schumer (D-N.Y.) and Senator Graham (R-S.C.), continue to meet with each other as well as those groups affected by such legislation.  

AGC remains in the discussions and continues to promote workable reform, which would include reasonable employer enforcement as well as a new visa program that would create a system to supply the U.S. economy with the workers it needs as the country begins to recover from the downturn and grow in the years ahead.

The Federal Acquisition Regulation (FAR) Council has issued a final rule implementing Executive Order 13502 on the use of project labor agreements  (PLAs) on federal construction projects, giving contracting agencies broad discretion to determine whether to impose a PLA mandate on a project, when the PLA should be executed, and what terms the PLA will contain.

The rule implements the executive order's stated policy to "encourage" executive agencies to "consider" requiring the use of project labor agreements in connection with large-scale construction projects, which are defined as projects with a total cost to the federal government of $25 million or more.  Mimicking the Executive Order, the rule provides that an agency "may" require that every construction contractor and subcontractor on a particular project agree to negotiate or become a party to a PLA if the agency decides that use of a PLA will (1) advance the government's interest in achieving economy and efficiency in federal procurement, producing labor-management stability, and ensuring compliance with laws and regulations governing safety and health, equal employment opportunity, labor and employment standards, and other matters; and (2) be consistent with the law.  The rule adds several other factors that agencies may consider in their project-by-project evaluation of whether a PLA is appropriate, but it neither requires the agencies to consider those factors nor limits their consideration to those factors. 

Read more about the added factors here.

AGC issued a statement, noting that we will continue to strongly oppose any effort by government officials, who often have little or no experience in construction labor relations, to undermine existing relationships between contractors and construction workers by imposing project labor agreements.  AGC will continue to encourage agency officials to exercise the broad latitude provided by these rules to avoid imposing these agreements.

On Tuesday, March 23, President Obama signed into law the Patient Protection and Affordable Care Act, capping a year of intense and at times partisan debate. In the end, 34 Democrats joined all Republicans in opposing the measure in the House, and all Republicans opposed the measure in the Senate.

Following passage, both chambers of Congress passed a reconciliation package that makes slight changes to the bill, including removal of language that exempts a single industry, construction, from the small business exemption that was included in the law just signed by the president. However, before all the reconciliation changes can be made to the law, it must pass the House one more time, likely today or later this week.

AGC opposed the $1 trillion package from the beginning because of the complexity of the plan, the $500 billion in new taxes on employers and individuals, the new mandates on employers, the cost shifting rather than cost reductions and the likelihood that it will increase insurance costs for those who already have and provide insurance.

The Patient Protection and Affordable Care Act will be phased in over the next eight years and includes an individual requirement to have health insurance, creates new state-based exchanges, requires employers to provide health care benefits, provides cost sharing for low-income individuals and expands Medicaid.

Assuming the reconciliation bill passes, the following changes will affect the construction industry:

• Employers with 50 or fewer employees will be exempt from providing coverage to their employees. The Senate bill had only exempted construction firms with five or fewer employees from the mandate, but AGC worked with other construction trade groups to repeal this provision that targeted the industry. In addition, the penalties for a waiting period of less than 90 days have been removed.
• Some small employers could be eligible for temporary small business tax credits to offset a portion of the cost of providing coverage, but the credit phases out as firm size and average wage increases. The credit will be available for only two years.
• The bill will limit contributions to FSAs and restrict the purchases for over-the-counter products from using FSA funds.
• The bill places a 40 percent excise tax on "Cadillac" health plans beginning in 2018. Under the reconciliation package the tax is placed on plans that have an aggregate value that exceeds $11,850 for individuals and $30,950 for firms in the construction industry.
• In 2014, new state-based exchanges will be created for individuals, and eligible small employers will be phased in.
• The bill also restricts the construction and expansion of existing physician-owned hospitals.

The White House is strongly considering using the upcoming Congressional Recess to appoint attorney Craig Becker to the National Labor Relations Board (NLRB), despite the fact that the Senate has already refused to confirm the nomination of Becker to a five-year term on the Board, effectively blocking his confirmation. A recess appointment is a way for the president to do an end run around Congress. If the recess appointment is made, it would last until the end of this year.

Read more on Becker here.

AGC opposed the nomination of Mr. Becker to the NLRB because of his controversial positions on labor law.   AGC joined other associations on a letter to the president outlining our opposition to a recess appointment.  In addition, all Senate Republicans sent a letter to President Obama asking him not to use the upcoming two-week break to make this recess appointment. 

Please use the Legislative Action Center to contact the White House and your Senator to inform them of your opposition to the recess appointment of Craig Becker.

Last week, the House Education and Labor Committee released a discussion draft of the Protecting America's Workers Act (PAWA).   The draft is focused on: increased whistleblower protections; changes to the appeals process for the abatement of hazards; victim's rights; and civil and criminal penalty increases. 

AGC is reviewing the new discussion draft to determine the changes to current law and the impact it would have on the industry.   It is expected that the House Committee will take action on this bill in April.