Renewing the Workforce

Construction is a large and complex worldwide industry constantly shaped by new information technologies, advanced materials, environmental policies, regulations and changing building methods. Most importantly, though, construction is shaped by people. Sustaining a strong industry requires attracting and valuing a skilled, career-driven, high quality workforce... who also like to build!

How is the construction industry attracting the skilled workforce for future growth market demands? Do prospective candidates see construction as a viable career choice?

Construction Citizen has long been focused on presenting the skilled trades as an outstanding option for young people to consider as a career.  There are serious policy discussions now at the Texas Capitol and elsewhere about whether a blue collar track for kids should be re-emphasized in an education system that has become more and more focused on sending all students to four year institutions.

It's a nuanced argument, and I wanted to present you with real perspective from an expert who understands both sides of the debate.  So, I sat down in Washington with John Schmitt, Senior Economist at the Center for Economic and Policy Research, who's written extensively about what he calls “the college conundrum”.

“We have to think about what the purpose of college is,” Schmitt said.   Read more » about College Isn't For Everybody [VIDEO]

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In 2009, House Bill (HB) 4328, authored by Texas State Representative Mark Strama and sponsored by Texas State Senator Carlos Uresti, created the Interagency Literacy Council for “the study, promotion and enhancement of literacy in the state.”  The Texas Interagency Literacy Council (Council) was instructed to provide a written report to the Texas Legislature, the Office of the Governor, and the Texas Workforce Investment Council (TWIC) on November 1 of each even-numbered year beginning in 2012, until the Council expires in 2019.  The Texas Workforce Commission (TWC) has now published the Council’s 2012 report.

Illiteracy in the state of Texas is a growing problem.  TWIC reports in a 2010 study that over four million Texans are eligible for adult education services.  This number is projected to double by 2040.  On average, 19% of adult Texans cannot read a newspaper.

Aware that the adult education system in Texas is fragmented among state agencies, employers, and nonprofit and volunteer organizations, the council was charged with identifying barriers   Read more » about TWC Interagency Report

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In 1967, Leo Joeris founded Joeris General Contractors on the principle “First Build Trust”.  That principle has remained both the driving force for the company and the secret to its success.

In a video produced by the company, Gary Joeris, son of Leo Joeris and President of Joeris Group Inc, talks about the importance of that trust within the company.  He states:

“Everything we build depends on trust.  Trust in relationships, external and internal.  Trust in our fairness and our integrity with owners, architects, subcontractors, and our employees.  Trust in the technical knowledge and skill we bring to each project.  Trust in our ability to deliver results on time and on budget.”   Read more » about A Company Built on Trust Thrives in Texas

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Leaders in the construction industry told the Texas Workforce Commission (TWC) that the state needs to get tough on companies that cheat the system by misclassifying their employees.  Construction Citizen has reported extensively on the problem, also known as payroll fraud, and now state leaders are starting to make moves toward correcting it.

During a hearing, Workforce Commissioner Ronny Congleton asked that the commission press the legislature to, in a general sense, crack down on misclassification.  “We need to bring the rule of law to this enormous underground economy in Texas,” Congleton said.  “We have to do something.  Doing nothing drives honest employers out of the business because they cannot compete.”

Commissioner Tom Pauken said he couldn’t go that far.  “This is a serious problem.  I respect the idea behind the proposal.  But, it’s so broad that it concerns me,” he said.

After raising that objection, Pauken was able to convince his fellow commissioners to join him in unanimously asking lawmakers to prohibit construction companies that win government contracts from misclassifying.  The specific proposal has yet to take shape, but Pauken said current law could be tweaked   Read more » about TWC Takes a Stand on Payroll Fraud After Business Leaders Call it a “Cancer”

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Leaders from business and workers’ advocates sat down recently in Washington to talk about the road ahead when it comes to creating a sustainable workforce in the construction industry.  Following a 90 minute panel at the Aspen Institute, Mike Holland, Division President for Marek Brothers Systems in Houston, and Emily Timm, Policy Analyst with Workers Defense in Austin, agreed they can combine their efforts for the good of both industry and workers.

Holland believes the profession of construction craft work has to be elevated.  “It just hit me when were having the conversation: as a former craft worker and a proud employer, it's a sad state of affairs,” Holland said.  “[Employers] need to treat their construction craft employees the same way they would treat any other employee.”   Read more » about The Road Ahead for Construction Craft Work [VIDEO]

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Last week the Illinois Department of Employment Security (IDES) and Governor Pat Quinn announced a renewed effort to protect workers and reward law abiding companies by fighting worker misclassification, or payroll fraud, through education and enforcement. Payroll fraud occurs when companies intentionally treat their employees as independent contractors in order to avoid paying unemployment insurance, workers’ compensation insurance, minimum wage, overtime pay, and to avoid having to withhold payroll taxes.  IDES has posted a clear explanation of how to tell whether an individual should be considered an employee or an independent contractor on their website, as well as a link where suspected payroll fraud may be reported.  As stated on their web site:

“Law abiding businesses that properly classify their employees are subsidizing businesses that misclassify and could end up paying higher unemployment insurance contributions, higher workers' compensation premiums, and higher taxes than would be required if all employers followed Illinois law.”

A press release from the Illinois Department of Labor quoted Governor Quinn:  “Hiding a full-time employee as an independent contractor creates an unfair competitive advantage.   Read more » about Illinois Renews Effort to Stamp Out Payroll Fraud

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As Pat Kiley recently wrote about in his recent series Construction Craftwork as a Career, construction craftwork has seen a decline in Houston and around the country over the last few decades for multiple reasons.  One huge problem is the deterioration of the employer-employee relationship that's been spurred by the growing problem of misclassifcation of workers as independent subcontractors.  Wage theft by unethical employers also makes it very difficult to attract young people into the skilled trades.

On Construction Citizen's recent trip to Washington, I had a chance to sit down with Christine Owens, Executive Director of the National Employment Law Project, to talk about what can realistically be done to fix some of these problems.

“I think any job has the potential to be a good job,” Owens said.   Read more » about Finding Realistic Ways to Rebuild the Middle Class

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At Construction Citizen, we’re always looking for examples of communities being made better by creative thinkers in the construction industry.  One program that's been touted as a shining example is called Our House.

During my recent trip to Washington DC, I had a chance to sit down with former Maryland State Senator Chris McCabe.  He’s helping get the word out about Our House and what they do for young men who find themselves on the wrong side of the law.  Many would describe them as “throwaways”, but McCabe says the people who run Our House want nothing more than to help juvenile offenders find their way back to a life of integrity by introducing them to the skilled trades.

Set on a 140 acre farm in Maryland, the 20-year-old program puts these young men in a situation many of them have never experienced: a structured day.  They learn carpentry skills for 8 hours each day.  At night, they attend classes as they prepare to get their GED’s.

“What we’re trying to do is teach them a skill but that’s not the end game,” McCabe said.  “The real   Read more » about Rebuilding Young Lives Through Construction [VIDEO]

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History and Hope: Fifty Years Later C3 Gets It Right

Editor’s note:  In parts one through three of this series, Pat Kiley’s article Construction Craftwork as a Career has listed the state of the commercial construction craft workforce, given an account of the history of the industry over the past fifty years, and talked about the reasons for the rise and fall of union versus open shops.  He concludes with the view that the industry can regain esteem for crafts worker careers through a new approach which combines the best of the union and open shop systems.

There is one other factor that has brought us to the state of the industry, described in the first part of this series.  It is, to me, the most regrettable thing that has happened, especially as we look forward.  Raw labor costs have become a real element of the way this market now competes.  Leave aside the lack of benefits and training – many companies pay as little as possible because of the abundant supply of immigrant labor.  And, unscrupulous contractors are skirting the basic employment laws governing overtime and withholding taxes, even minimum wage.  What is even more concerning is that, in this ridiculously competitive fee environment, more owners and general contractors are using these lowball bidders, so they are thriving while many who play fair – who meet the minimum legal requirements – struggle.   Read more » about Construction Craftwork as a Career, part 4 of 4

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History and Hope: Union versus Open Shop

Editor’s note:  In parts one and two of this series, Pat Kiley’s article Construction Craftwork as a Career has listed the “brutal facts” of the current state of the commercial construction craft workforce and given an account of the history of the industry over the past fifty years from his personal perspective.  His series continues with an explanation of the decline of union shops with the rise of open shops in the Houston area.

Three things really sounded the death knell for the unions.  The first happened in 1980.  The National Building Trades Unions President, Robert Georgine, lead a successful effort to amend the 1976 ERISA (Employee Retirement Income Security Act) Laws and got the union pension funds, (into which contractors were contributing a defined, negotiated hourly contribution per covered worker), declared as “Defined Benefit Pension Plans.”   Read more » about Construction Craftwork as a Career, part 3 of 4

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