After a year marked by numerous price spikes, construction costs declined in December but remained elevated compared to year-earlier prices, while prices of new buildings also moved higher, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials noted that the cost of many construction projects is increasing as firms cope with labor shortages and increased costs for many of the materials they need for projects.
According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., construction support staff wages are to rise by an average 3.4% by 2018 year end and pay increases have been fairly consistent the past few years. The prediction is based on data gathered from over 165 companies in the 15th edition of PAS’s Construction Support Staff Salary Survey. Though the projected 2018 increase is 3.4% for administrative and technical support, it is pointed out that historically support staff predictions are low, so year-end 2018 might look similar to 2017 and come in with a 3.5% increase.
On December 27, 2018, in IBEW Local 357 (Desert Sun Enterprises), the National Labor Relations Board (NLRB) issued a decision reaffirming its longstanding rule that, when a union notifies a neutral employer of its intent to picket a primary employer (the employer with which it has a direct dispute) at a site where both employers are operating, the union must include assurances that it that the picketing will conform to the NLRB’s Moore Dry Dock standards. The decision is consistent with an amicus brief filed by AGC and is important for contractors and owners.
The Union Contractors Committee will host a session during AGC of America’s 2019 Annual Convention called the “State of the (Operating Engineers) Union” featuring guest speaker Jim Callahan, general president of the International Union of Operating Engineers. The session is scheduled for April 3 at 3:00 p.m. and is open to all convention registrants. The convention will take place April 1-4 in Denver, CO.
The National Labor Relations Board’s current joint employer standard has received a mixed review from a federal circuit court. The decision is disappointing to AGC, which sought reversal of the standard in an amicus brief in the case, but it provides some valuable guidance on how courts may evaluate the Board’s ongoing rulemaking efforts.
Construction employment increased by 38,000 jobs in December and by 280,000 jobs, or 4.0 percent, over the past year, while the industry’s average pay accelerated and unemployment decreased to a historic low, according to an analysis of new government data by the Associated General Contractors of America. Association officials added that most contractors report they plan to continue hiring in 2019, according to the association’s annual outlook that was released earlier this week.
Expands Employer and Employee Insurance Options
AGC recently submitted official comments on a Department of Labor (DOL) proposed rulemaking intended to make it easier for smaller businesses to band together and offer retirement plans to employees. As outlined in the response, AGC appreciates the DOL’s efforts to increase retirement coverage through expanding access to Multiple Employer Plans (MEPs) for small businesses (which describes the vast majority of firms in the construction industry) and recommends that the Department further reduce barriers and liabilities of participating in a MEP, such as the joint liability for the qualification failures of every other employer in the MEP (known as the “one bad apple rule”). Additionally, AGC urges the DOL to be mindful of Chapter provided retirement plans, especially those that currently exist today, and take the necessary steps to ensure that the proposed modifications to current law do not arbitrarily disrupt the quality retirement options that these arrangements consistently provide.
The U.S. Environmental Protection Agency (EPA) is proposing for public comment a modification to the National Pollutant Discharge Elimination System (NPDES) 2017 Construction General Permit (CGP), which covers eligible stormwater discharges from construction activities in areas where the EPA is the permitting authority. The 45-day public comment period will close on Jan. 28, 2019.