On January 14, the Federal Highway Administration launched the Bridge Replacement, Rehabilitation, Preservation, Protection, and Construction Program created in the recently passed Infrastructure Investment and Jobs Act. The program represents the single largest dedicated bridge investment since construction of the interstate highway system, providing $26.5 billion to states, the District of Columbia and Puerto Rico over five years. The total amount that will be available to these entities in fiscal year 2022 is $5.3 billion. In conjunction with this announcement, the White House also detailed its progress over the last 60 days on implementing the new law, which may be found here.
According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., construction support staff wages are to rise by an average 3.6%. The prediction is based on data gathered from over 199 companies in the 18th edition of PAS’s Construction Support Staff Salary Survey. This is lower than the actual increase of 3.8% for 2020, but at the moment, PAS expects actual year-end 2021 to come in higher than the 3.6% reported in the survey and 2022 even a little higher. Demand for all employee levels continues, including those who support contractors’ operations and financial professionals.
January 25 and 27, 2022
On January 13, the U.S. Department of Labor’s Wage and Hour Division published Field Assistance Bulletin (FAB) No. 2022-1 clarifying the requirements of Executive Order (EO) 14026 that increases the hourly minimum wage for certain federal contractors to $15 effective January 30, 2022.
AGC, in conjunction with the Coalition for a Democratic Workplace (CDW) and four fellow CDW-member trade associations, submitted an amicus brief with the National Labor Relations Board in a case that could result in broader remedies for unlawfully discharged employees. The Board invited briefs in the Thryv, Inc. case to weigh in on whether the Board should expand its traditional “make-whole” remedy for employees who are discharged, laid off, or otherwise discriminated against by an employer’s unfair labor practice. Specifically, the Board is considering allowing employees to receive awards of “consequential damages” in addition to traditional awards of lost earnings and benefits.
Construction-industry collective bargaining negotiations completed in 2021 resulted in an average first-year increase in wages and fringe benefits of 3.0 percent or $1.74, according to the annual year-end Settlements Report recently released by the AGC-supported Construction Labor Research Council (CLRC). These results are essentially the same as reported in 2019, when the first-year increase was 3.0 percent or $1.73. Last year’s slight drop in the size of negotiated first-year increases – measuring at 2.9 percent or $1.66 – was the first dip seen in a decade.
The federal contractor vaccination mandate remains on hold since the December 17, 2021, decision by the U.S. Court of Appeals for the Eleventh Circuit to maintain a nationwide stay (or freeze) of the mandate until—potentially—as late as April 2022. During the week of January 10, 2022, AGC engaged in direct discussions with major construction federal agencies and key regulators. Guidance has been issued on ensuring federal compliance with court orders and injunctions, meaning that contractors should expect no federal action to enforce the contract clause implementing the requirement that federal contractors and subcontractors be vaccinated.
AGC, in conjunction with the Coalition for a Democratic Workplace (CDW) and four fellow CDW-member trade associations, submitted an amicus brief with the National Labor Relations Board in a case that could result in broader remedies for unlawfully discharged employees. The Board invited briefs in the Thryv, Inc. case to weigh in on whether the Board should expand its traditional “make-whole” remedy for employees who are discharged, laid off, or otherwise discriminated against by an employer’s unfair labor practice. Specifically, the Board is considering allowing employees to receive awards of “consequential damages” in addition to traditional awards of lost earnings and benefits.