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.
AGC to Continue with Litigation on the Merits of the ETS
AGC recently joined a group of business and non-profit stakeholders to support bipartisan legislation—introduced by Reps. Carol Miller (R-W.Va.) and Stephanie Murphy (D-Fla.) to extend the Employee Retention Tax Credit (ERTC) through the fourth quarter of 2021. The ERTC fourth quarter credit was canceled because it was used to help pay for the $1.2 trillion bipartisan infrastructure law, formerly called the Infrastructure Investment and Jobs Act. AGC will work with the coalition to find senators to introduce companion legislation and explore legislative vehicles to pass an extension of ERTC in the first quarter of 2022.
Prices of construction materials jumped nearly 20 percent in 2021 despite moderating in December, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said contractors rate materials costs as a top concern for 2022, according to a survey predicting the industry’s outlook for the industry the association released yesterday.
Employers with 100 or More Employees Weigh Compliance Approaches