On December 27, 2018, in IBEW Local 357 (Desert Sun Enterprises), the National Labor Relations Board (NLRB) issued a decision reaffirming its longstanding rule that, when a union notifies a neutral employer of its intent to picket a primary employer (the employer with which it has a direct dispute) at a site where both employers are operating, the union must include assurances that it that the picketing will conform to the NLRB’s Moore Dry Dock standards. The decision is consistent with an amicus brief filed by AGC and is important for contractors and owners.
The Union Contractors Committee will host a session during AGC of America’s 2019 Annual Convention called the “State of the (Operating Engineers) Union” featuring guest speaker Jim Callahan, general president of the International Union of Operating Engineers. The session is scheduled for April 3 at 3:00 p.m. and is open to all convention registrants. The convention will take place April 1-4 in Denver, CO.
The National Labor Relations Board’s current joint employer standard has received a mixed review from a federal circuit court. The decision is disappointing to AGC, which sought reversal of the standard in an amicus brief in the case, but it provides some valuable guidance on how courts may evaluate the Board’s ongoing rulemaking efforts.
Expands Employer and Employee Insurance Options
AGC recently submitted official comments on a Department of Labor (DOL) proposed rulemaking intended to make it easier for smaller businesses to band together and offer retirement plans to employees. As outlined in the response, AGC appreciates the DOL’s efforts to increase retirement coverage through expanding access to Multiple Employer Plans (MEPs) for small businesses (which describes the vast majority of firms in the construction industry) and recommends that the Department further reduce barriers and liabilities of participating in a MEP, such as the joint liability for the qualification failures of every other employer in the MEP (known as the “one bad apple rule”). Additionally, AGC urges the DOL to be mindful of Chapter provided retirement plans, especially those that currently exist today, and take the necessary steps to ensure that the proposed modifications to current law do not arbitrarily disrupt the quality retirement options that these arrangements consistently provide.
Collective bargaining negotiations settled from January through September of 2018 resulted in an average first-year increase in wages and benefits of 3.0 percent or $1.70, and a median of 2.6 percent or $1.43, according to the Construction Labor Research Council’s (CLRC’s) latest Settlements Report.
Enrollment in E-Verify is a mandatory subject of bargaining, the National Labor Relations Board (“NLRB” or “Board”) recently held, and an employer committed unfair labor practice when it unilaterally enrolled without notify its workers’ union and offering an opportunity to bargain.
On Nov. 1, 2018, members of AGC of America’s Union Contractors Steering Committee and other AGC leaders and staff held a lunch meeting with several leaders of the building trades in Washington, DC. Participants discussed a variety of matters currently of concern to union contractors and labor.
Given the many shortcomings of the multiemployer pension system traditionally used in the unionized sector of the construction industry, many parties are looking for alternatives. AGC, in cooperation with labor and others, is actively advocating for legislative changes that would authorize a new retirement plan model called “composite plans.” In the meantime, there are some alternative plan designs already available to consider. In January, AGC will offer a three-part WebEd series designed to educate union contractors and their representatives about alternatives and help inform their decisions. The series is free to AGC members and chapter staff.