Union membership across occupations in the construction industry declined from an annual average of 1,055,000 in 2019 to 993,000 in 2020, a drop of 62,000 or 5.9%, according to an annual economic release recently issued by the Bureau of Labor Statistics (“BLS”). However, total construction industry employment declined even more, from 8,352,000 to 7,829,000, a drop of 523,000 or 6.3%. As a result, union members’ share of employment inched up from 12.63% to 12.68%.
On February 5, the U.S. House of Representatives passed the National Apprenticeship Act of 2021, a bill that would provide nearly $4 billion to expand registered apprenticeships through grants and modify the approval process for apprenticeship programs. Importantly, the bill elevates the role of registered apprenticeship, makes it a national priority, and aligns workforce programs across multiple federal agencies. However, the bill includes language that would bar access to the new grant opportunities to programs that do not partner with a labor union. AGC supports all bona fide and high-quality apprenticeship programs that are registered with the U.S. Department of Labor and believes they should all be eligible for grant opportunities under the bill. An amendment to clarify all registered apprenticeship programs would be eligible for grants failed despite AGC voicing support for the amendment. The legislation needs to be approved by the U.S. Senate before becoming law. There is no timeframe for Senate consideration at this time and AGC will continue to advocate for modifications of the bill.
The COVID-relief bill moving through Congress does not include a federal paid leave mandate. However, it does include an extension of the Families First Coronavirus Response Act (FFCRA) refundable tax credits from March 31, 2021 through September 30, 2021 for those employers that follow those expired mandates. Additional information and guidance on FFCRA and the tax credits can be found on the Department of Labor website and Internal Revenue Service website. However, the tax credits included in the COVID-relief bill would also increase the amount of wages for which an employer may claim the paid family credit in a year from $10,000 to $12,000 per employee while also expanding the reasons for leave. Employers with over 500 employees would still be ineligible for tax credits. The broader COVID-relief bill is under restrictive and specific procedural rules that prohibit legislators from resurrecting and enhancing the FFCRA paid leave mandates. The legislation could become law as early as March. AGC fully expects future legislative attempts to impose federal paid leave mandates on employers.
On February 10, the House Ways and Means Committee approved legislation, as part of the broader Biden Administration COVID-relief legislation, that would extend the Employee Retention Tax Credit (ERTC) through December 31, 2021. Previously, AGC supported the expansion and extension of the ERTC in the end-of-year (2020) COVID relief bill, which boosted the credit for eligible employers from $5,000 per year to $7,000 per quarter and extended its availability through June 31, 2021. The Biden Administration and Democrats in Congress have made it a priority to pass further COVID relief before enhanced unemployment benefits expire on March 14. AGC anticipates this provision to be included in any final package.
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AGC concerned not all registered apprenticeship programs eligible for benefits
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.
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.