Reshaping the Industry

Three actions are necessary to build a thriving, profitable and durable construction industry:

  • Acceptance.  Recognize current situations and challenges and accept they are real.
  • Leadership.  Embrace core values and principles as innovators and leaders.
  • Solutions.  Collaborate among owners, contractors and workforce for solutions.

What challenges is the construction industry facing?  What principles, like sustainable value and social responsibility, should industry leaders embrace?  Where will the solutions come from?

Construction in Texas may be "cheap," but that's only if you consider the final price of the project. In most cases, the true costs are borne by workers, taxpayers, and society at large. Case in point: WFAA's David Schecter, a quality journalist who exposed worker misclassification in a North Texas school district, this week took the time to highlight the story of Guillermo Mata.

From WFAA:

In December, Mata shattered his leg after falling from the second story onto a concrete floor at construction site in Irving.

"Take me to Parkland (hospital),” Mata recalls saying after the injury.

Last month a panel of civic leaders, employers, attorneys and workers participated in a forum discussion titled “Wage Theft – Its Impact on the Local Economy and in the Community”.  The free event, hosted by Rice University’s Center for the Study of Women, Gender and Sexuality and by the Fey y Justica Worker’s Center (formerly the Houston Interfaith Worker Justice Center), was held on the 3rd floor of the Fondren Library at Rice University.  The diverse panel offered different perspectives on how wage theft impacts the local Houston economy, responsible businesses, social  programs, and the community as well as what can be done to eliminate this unethical practice.

Simply put, wage theft is a practice in which employers cheat workers out of wages and benefits owed.  According to Houston’s Down With Wage Theft Campaign:

“Wage theft depresses family income and as a consequence limits spending, lowers business sales, leaves taxes unpaid, public services undermined and economic growth diminished..."  Read more » about Wage Theft Forum at Rice University

El Paso has become the second city in Texas where an employer has been arrested and indicted on charges of wage theft. The Texas Observer reports that El Paso is the only city in the state that has an active wage theft task force. It includes the police and sheriff's departments as well as the County Attorney and District Attorney's offices.

From the Observer:

“It’s huge because we’re finally treating the stealing of someone’s wages the same way we treat someone stealing from Target or Albertsons or [any] store,” says Jed Untereker, an attorney with Paso del Norte Civil Rights Project who represented the employee.

Recently, the United States Judicial Panel on Multidistrict Litigation centralized the six current class action suits to the Eastern District of Pennsylvania for further adjudication.

According to the panel of Judges, “On the basis of the papers filed and the hearing session held, we find that these actions involve common questions of fact, and that centralization under Section 1407 in the Eastern District of Pennsylvania will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.”

The suits arose after the defendants, USG Corporation; United States Gypsum Company; L&W Supply Corporation; New NGC. Inc.; Spangler Companies, Inc.; CertainTeed Corporation; Georgia-Pacific LLC;  American GypsumCompany LLC; LaFargeNorthAmerica, Inc.; TIN, Inc. d/b/a Temple Inland, Inc.; and PABCO Building Products LLC. Read more » about Domestic Drywall Price Fixing Class Action Suit Update

The Construction Career Collaborative (C3) recently held a Sponsors’ Meeting to provide an opportunity to update supporters on progress made toward advancing the principles of C3.

Jim Stevenson, Chairman of C3, provided some highlights of accomplishments to date.  These include:

  • Enlistment of two Beta Project Owners – Texas Children’s Hospital and MD Anderson – involving
    • Four Contractors
    • Numerous Specialty Contractors
    • Hundreds of Craft Workers
  • Development of a toolkit for participants
  • An application for accreditation (under development)
  • Development of an online C3-5 Safety Training
  • Qualification of 46 Safety Trainers at 23 companies
  • Development of a job description and funding model through a loaned staff member
  • Preparation of By-Laws and Policies in order to file as a 501(c)(3) organization
  • Continued spreading the word to add other project Owners

In addition, the C3 Marketing Committee members, John Stautner and Michele Buckingham, facilitated a discussion with sponsors on ways in which C3 supporters might engage and participate in advancing C3 principles to their members and to the community.  Read more » about C3 Supporters Come Together

The lawmaker who had filed a bill to ban "living wage" ordinances around Texas has decided that was a bad course of action. Representative Kenneth Sheets, R-Dallas, withdrew his bill after hearing objections from Republicans and Democrats alike.

Some on the left argued it was "draconian." This is from the liberal Burnt Orange Report:

"The draconian bill was aimed at metropolitan areas such as San Antonio and Travis County, where living wage agreements are already on the books. The Austin City Council is considering one that would be added to economic incentive packages. These agreements require projects to pay a living wage to construction workers if they are receiving incentives.

Basically, Sheets doesn't think that local governments should have the control to use their tax dollars in support of their community values. Sounds just a bit like that "Big Government" Republicans are always railing against."

Our mission at Construction Citizen is straightforward: To advance a socially responsible, sustainable, value added construction industry.  Doing that is anything but simple. We are owners, contractors and craftspeople committed to this mission and we can’t do it alone. This is a community effort and we think of you, our readers, as part of that community. That’s why we’re asking you to help us highlight the good and the bad within our industry. 

To that end, we’ve launched the Construction Citizen News Tip Line. It’s an anonymous way for you to point our team in the direction with things you see happening that need to be brought to light. We understand that there are many in the industry that feel – as we do – that safety violations, misclassification of workers, bad treatment of employees, and other problems need to be rooted out. But, we also understand the need for anonymity.  If you contribute to our coverage, we promise your identity will be kept secret. We will only use your contact information to follow up with any questions our team might have. Or, you can simply leave us a news tip without your information. That might make it harder to look into things, but we’ll do our best. Read more » about Construction Citizen’s News Tip Line

This month the Construction Career Collaborative (C3) elected a Board of Directors and Executive Committee.  This is an important milestone for the organization, and we are extremely grateful to our owner representatives for agreeing to serve not only on the board, but also in key officer positions.  These individuals are charged with moving the initiative forward by providing wise stewardship and advocacy for C3 principles.
The organization will fill remaining open board positions through 2013.
C3 would like to extend our thanks to these individuals and wish them great success in their efforts.

2013 BOARD OF DIRECTORS   Read more » about Construction Career Collaborative Names Leadership

The American Subcontractors Association (ASA) held their Spring Business Forum and Convention in Las Vegas this past weekend. At the event, the ASA announced nine companies as this year’s winners of the Excellence in Ethics Award.

According to the committee:

“ASA’s Excellence in Ethics Awards program promotes the highest standards of internal and external integrity for a subcontracting firm, said Shannon MacArthur, MEMCO, Spring, Texas, chair of the ASA Task Force on Ethics in the Construction Industry, which developed the awards program. Each applicant was required to respond to questions concerning the firm’s corporate ethics policies and procedures, its construction practices, and its general business practices. Each applicant also was required to submit detailed documentation, including sealed letters of recommendation from a customer, a competitor and a supplier.”

This year’s winners are: Read more » about 2012 American Subcontractors Association Excellence in Ethics Awards

After the recent American Subcontractors Association (ASA) panel on the origins and current status of the Construction Career Collaborative (C3) movement in the Houston region, Construction Citizen caught up with two of the panelists to get their reactions and any additional comments they might want to add to the conversation.

Peter Dawson, Senior Vice President of Facilities Services at Texas Children’s Hospital, and John Roberts, Executive Vice President of Jones Lang LaSalle’s Project and Development Services Group, are newly elected to the C3 Board of Directors and have been strong advocates of C3 concepts such as paying construction workers by the hour as employees, paying appropriate taxes on the workforce and providing the construction workforce with the best safety training available. Read more » about Owners Explain Construction Career Collaborative

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