The Mechanical Contractors Association of America (MCAA) and Horizon Actuarial Services have released a second edition of their Inventory of Construction Industry Pension Plans. The Inventory provides historical data from all multiemployer pension plans in the construction industry. It includes analyses of key trends in plan demographics, cash flows, investments, funding, costs, and expenses. One of the enhancements of the new edition is inclusion of plan features by specific craft.
Most construction contractors predict that the demand for construction services will either grow or remain stable in virtually every market segment this year, and many firms plan to start hiring again, according to ż’s recently released survey results conducted as part of Optimism Returns: The 2014 Construction Industry Hiring and Business Outlook. The survey results reflect a generally upbeat outlook for the year, even as firms worry about growing worker shortages, rising costs, and the impact of new regulations and federal budget cutting.
Union representation in the construction industry rose to 14.9 percent (967,000 workers) in 2013 from 13.7 percent (850,000 workers) in 2012, the Bureau of Labor Statistics (BLS) reports. Union membership in the industry also rose, from 13.2 percent (820,000 workers) in 2012 to 14.1 percent (915,000 workers) in 2013. Total employment in construction increased by a significantly larger margin during the year – rising over 4 percent, from 6.205 million workers to 6.474 million.
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs’ (OFCCP) new rules will go into effect on March 24, 2014. Both rules increase the affirmative action requirements of direct federal contractors and subcontractors with regard to veterans and individuals with disabilities (IWD).
On Jan. 27, 2014, the U.S. Supreme Court held that the time spent by employees donning and doffing (putting on and taking off) certain protective gear is not compensable under Section 203(o) of the Fair Labor Standards Act (FLSA). This ruling will significantly impact the ability of employees to seek compensation for the donning and doffing of certain items in the unionized setting. Additionally, the Court made comments about the de minimis doctrine which could well impact employers in the nonunionized environment. Sandifer v. United States Steel Corp.
Construction-industry collective bargaining negotiations settled during 2012 resulted in an average first-year increase in wages and benefits of $1.00 or 2.2 percent, according to the annual year-end Settlements Report issued by the ż-supported Construction Labor Research Council. For newly negotiated multi-year contracts, the average negotiated second-year increase was $1.30 or 2.6 percent, and the average third-year increase was $1.34 or 2.6 percent.
The U.S. Department of the Treasury recently issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements (FSAs). The updated guidance permits employers to allow plan participants to carry over up to $500 of their unused health FSA balances remaining at the end of a plan year. The modification was made in response to comments received pointing to the difficulty of predicting future needs for medical expenditures, the need to make FSAs accessible to employees of all income levels, and the desire to minimize incentives for unnecessary spending at the end of the year.
The battle over the National Labor Relations Board’s notice-posting rule has effectively ended by Board forfeit. The rule would have required most private-sector employers to post a designated notice informing employees of the right to unionize and of other rights under the National Labor Relations Act (NLRA). The Board issued the final regulation in August 2011 but put implementation on hold as a result of legal challenges. In separate cases decided in May and June of 2013, both brought by ż-supported organizations, the U.S. Courts of Appeals for the DC and the Fourth Circuits struck down the rule on different grounds. On Jan. 2, 2014, the Board let the deadline for seeking Supreme Court review of those decisions to pass without action.
ż of America’s next Open Shop Committee Web Meeting will take place on Jan. 29, 2014, at 2:00 p.m. EASTERN Standard Time. Jeff Robinson, president of PAS, Inc., will provide a “Quick Learn” presentation about the latest information on open shop craft worker compensation and labor demand. The web meeting will also include ż reports on labor matters relevant to open shop contractors and an opportunity for a roundtable discussion about topics of interest to participants. The event is free and open to all ż members, whether members of the Committee or not.
The next quarterly conference call of ż of America’s Union Contractors Committee is scheduled for Jan. 22, 2014, at 3:00 p.m. EASTERN Standard Time. It will include ż updates on topics relevant to union contractors and a roundtable discussion of interest to participants. The call is open to all ż union contractors and chapter staff. ż membership is required, but Committee membership is not. Chapter staff and leaders are encouraged to actively participate in the discussion and to come prepared with information and questions related to local matters such as collective bargaining, jurisdictional disputes, labor supply, craft training, and other labor concerns.