Construction-industry collective bargaining negotiations completed in 2020 resulted in an average first-year increase in wages and fringe benefits of $1.63 or 2.8 percent, according to the annual year-end Settlements Report recently released by the AGC-supported Construction Labor Research Council (“CLRC”). This is slightly down from raises negotiated in 2019, when the average first-year increase negotiated was $1.67 or 2.9 percent, and it marks the first decline in the size of increases negotiated since 2011. However, CLRC notes, the average dollar-amount increase negotiated in 2020 remains more than double the amount negotiated in 2011.

Demand for Nonresidential Construction and Public Works Will Decline Amid Ongoing Pandemic Concerns, Worsening State and Local Budgets as Association Officials Call for New Recovery Measures

The U.S. Environmental Protection Agency (EPA) will host two information sessions in February on the 2021 Diesel Emissions Reduction Act (DERA) National Grants.

President Biden’s “Executive Order (EO) on Tackling the Climate Crisis at Home and Abroad” contained a brief provision focused on the Davis-Bacon Act and prevailing wages. In addition to reminding agencies involved of their legal obligations to apply and enforce existing Davis-Bacon requirements, the EO also ordered the Secretary of Labor to update prevailing wage requirements. There has yet to be any concrete indication of when Marty Walsh, the nominee to be the Secretary of Labor, might be confirmed and any efforts ordered upon him will have to wait until he is confirmed and in place at the DOL. AGC will be involved in any updates to Davis-Bacon and keep members informed.

On January 20, President Biden released a legislative proposal to reform the nation’s immigration system. The proposal is separate from presidential actions halting construction of the southern border wall or preserving and fortifying Deferred Action for Childhood Arrivals (DACA). The DACA program had been under considerable attack from the Trump Administration and in the courts. The EO attempts to provide greater certainty while Congress makes permanent changes. The other important program to the construction industry, Temporary Protective Status (TPS) program, is in less urgent need of executive action as it was previously extended through October 4, 2021 by the Trump Administration. There are more than 100,000 construction workers estimated to work in the industry with the TPS and DACA programs.

As part of his approach to addressing climate change, President Biden signed an executive order that directs a pause on entering into new oil and natural gas leases on public lands or offshore waters, as well as a rigorous review of existing leasing and permitting practices related to fossil fuel development and doubling renewable energy production from offshore wind by 2030. The order does not immediately affect the substantial number of leases entered into during the Trump administration. While AGC and its members look forward to new clean energy construction market opportunities, the association remains concerned about impacts to traditional energy markets and its members who perform that work.

In a January 27 Executive Order, President Biden initiated steps to mobilize the entire federal government to address climate change from every sector of the economy – and to motivate states and other countries to do the same. The EO falls short of declaring a climate emergency; however, it tasks the federal agencies to make and act on recommendations related to climate policies, environmental justice, labor, national security, energy, and conservation.

On January 21, President Biden issued an executive order (EO) calling on Occupational Safety and Health Administration (OSHA) to issue revised COVID-19 guidance to employers by February 4. In addition to issuing revised guidance, OSHA must consider if an emergency temporary standard (ETS) is necessary, including the necessity for masks in the workplace. If an ETS is deemed necessary—which AGC expects OSHA to do—the agency must issue the standard by March 15. The EO further directs OSHA to launch a national emphasis program (NEP) to focus enforcement efforts on COVID-19 violations in workplaces that place large numbers of workers at risk and to respond to any retaliatory practices undertaken by employers, work with state OSHA plans to ensure that workers in those states are equally protected consistent with OSHA’s guidance and ETS, and to conduct outreach campaigns to inform workers of their rights. In addition, the EO puts forth a similar process for a COVID-19 ETS to be considered and issued by the Mine Safety and Health Administration (MSHA) as soon as practicable. AGC is engaging with these agencies to ensure the construction industries’ concerns are addressed.

Regulatory Implementation Will Not Occur Overnight

On Dec. 23, 2020, the U.S. Environmental Protection Agency (EPA) finalized its penalty rule that increased the maximum civil penalties per violation of an environmental statute or agency regulation. These annual adjustments are required by the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015. Below are the new penalty maximum levels to account for inflation. In practice, fines tend to track the perceived or actual economic benefit derived from the violation(s) – consistent with applicable EPA penalty policies.