“Contractors, labor representatives and owner-clients in the union construction and maintenance industry are significantly more optimistic about growth opportunities in 2017 and beyond (+20%) compared to last year, but they also report an increasing pervasiveness in union craft labor shortages,” reports The Association of Union Constructors (TAUC) in a recent press release announcing the results of the 2017 Union Craft Labor Supply Survey conducted by it and the AGC-supported Construction Labor Research Council.

On June 15, 2017, President Donald Trump signed an executive order instructing the Labor Department to investigate how it can cut back the federal government’s role in creating and monitoring apprenticeship programs, a move that the White House claims will help fill vacant jobs.

The U.S. Department of Labor has issued a proposed rule to rescind the controversial “persuader rule” issued by the previous administration. AGC plans to submit comments in support of the rescission prior to the August 11 deadline.

On June 14, 2017, AGC hosted a meeting between AGC members and officials from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). OFCCP requested the meeting for the purpose of identifying problems that construction contractors have in meeting affirmative action requirements related to recruiting and suggestions for improved compliance assistance tools.

Construction staff wages rose by 3.6% in 2016 and contractors are projecting wages to increase an average of 3.4% in 2017, according to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc. Based on their Construction/CM Staff Salary Survey, PAS reports that increases appear to have leveled off, as noted in the following chart. PAS also points out that historically predictions are typically about .5% low, so year-end 2017 should exceed 3.4% and maybe even 2016’s 3.6% increase.

In line with AGC’s regulatory recommendations, on June 7, 2017, U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (DOL) 2015 and 2016 informal guidance on joint employment and independent contractors. Both pieces of guidance together took an expansive interpretation of employment and threatened the traditional relationship between contractors and their partners. AGC and its members were concerned that these interpretations would make compliance more complicated, leading to unnecessary enforcement efforts and increased costs to projects.

The fiscal year 2018 budget (FY 2018) proposal shows new priorities for the Trump Administration, with the Federal Education and Training Programs taking the brunt of the proposed budget cuts. The Department of Labor’s budget (DOL) includes a 20% reduction in funding from the FY 2017 enacted level, and large job training reductions and employment service accounts represent some of the largest cuts. Funding for state grants for the Workforce Innovation and Opportunity Act (WIOA) have received a 40% cut, and funding for apprenticeship grants have received a 5% reduction. WIOA overwhelmingly passed Congress in 2014, so it is unlikely that Congress will allow the proposed cuts.

The AGC Labor and Employment Law Council (LELC) held its 33rd Annual Construction Labor Law Symposium May 12, 2017, in Washington, DC. Attorneys and chapter labor relations managers from across the country gathered to learn about labor and employment law developments and their significance for construction employers.

The U.S. Department of Justice (DOJ) requested and was granted another delay to file a brief on behalf of the Department of Labor (DOL) in its federal court appeal on the Nov. 2016 Fair Labor Standards Act (FLSA) overtime regulation. The DOJ now has until June 30, 2017, to file its response.

Registration is now open for the 2017 Construction HR and Training Professionals Conference and pre-conference Strategic Management Workshop to be held October 11-13, 2017, in Phoenix, AZ.