Congressman Emanuel Cleaver speaks at the new Kansas City Current Stadium project on the first day of Construction Inclusion Week 2023

In its latest Settlements Report, the AGC-supported Construction Labor Research Council (CLRC) advises that construction-industry collective bargaining agreements settled from January through September of 2023 provide an average 4.6 percent increase in the first contract year. The CLRC notes that the multi-year settlements are now seeing the full effects of the surge in inflation. Because most unions will have negotiated new rates by the end of 2025, the CLRC projects that the steep growth in increases will slow. Measured by dollar value, the first-year increases during the first part of 2023 was $2.97, a substantial $1.32 jump from 2020. The CLRC projects first-year increases to average $3.40 in 2025. Regionally every region except New England has seen increases and nearly every craft has seen increases, some with notable increases.

The U.S. Department of Labor (DOL) announced a proposal to Define and Delimit the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees under the Fair Labor Standards Act. The Associated General Contractors of America recently urged the U.S. Department of Labor’s (DOL) Wage and Hour Division to abandon or at least postpone issuance of this anticipated proposed rulemaking. The DOL last updated these regulations as recently as 2019, going into effect in 2020, which strongly suggests there is no need for urgency in issuing more changes.

U.S. Department of Labor (DOL) recently provided a private member only virtual update on the changes in their massive final rule “Updating the Davis-Bacon and Related Acts Regulations.” Specifically, Jessica Looman, Principal Deputy Administrator for the Wage and Hour Division (WHD), and additional WHD officials provided a topline review of the final rule and fielded a number of questions from attendees. A copy of the slides can be found here. While we expected more clarity from the DOL, instead they mostly directed people to the preamble of the rule for further clarification. While the WHD has provided limited resources and is offering several webinars on September 14th and 13th, no further guidance is expected before the effective date of October 23, 2023. More information and webinar links can be found here.

Program Offered at the 2023 Construction HR and Workforce Conference

AGC of America is offering a two-part webinar series on the Inflation Reduction Act (IRA). The first session, held on September 26, covered the latest developments under IRA. The second session, scheduled for October 3, will focus on complying with IRA’s prevailing wage and apprenticeship requirements in light of the new Treasury Guidance. Registration is by series, but all registrants will receive access to the recordings of the sessions, allowing those who miss a live session to watch the playback.

October 10 at 2:00 p.m. ET

Few candidates have the basic skills needed to work in high-paying construction careers, forcing short-staffed contractors to find new way to keep pace with demand and undermining efforts to build infrastructure and other projects, according to the results of the latest workforce survey conducted by the Associated General Contractors of America and Autodesk. The results highlight significant shortcomings in the nation’s approach to preparing workers for careers in construction.

Employers should note two August 26 decisions from the National Labor Relations Board that limit their power to implement changes during first contract negotiations and after a collective bargaining agreement (CBA) has expired. These decisions — Wendt and Tecnocap — overrule a 2017 case that gave employers latitude to make operational changes following the expiration of a CBA. What do employers need to know about these rulings? Here are the answers to your top six questions.

In its Cemex Construction Materials ruling issued August 25, the National Labor Relations Board (NLRB) paved the way for unions to represent employee units without winning a secret ballot election outside the 8(f) exemption, effectively placing the burden on employers to disprove a union’s claim of 9(a) representative status. A day earlier, the NLRB issued new election rules (effective December 23, 2023) that speed up the election process and effectively bar employers from litigating key election issues until after a vote. (For info on the differences between 9(a) and 8(f) union recognition, see here and here.)