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The LA Times reported that Labor Commissioner Julie Su has made a big difference in the identification of “unscrupulous businesses” who are cheating their workers out of their wages and that she “doesn’t back down from fights when she thinks that employers are cheating their workers.”Two years into her job as California’s top Labor Commissioner and “enforcer," she is making good on her promise to get “a just day’s pay for a hard day’s work a reality in every workplace in California.”She is submitting a report to Governor Brown today that documents her approach and the results she has achieved. According to the Times article, she has focused her efforts on those business sectors where new immigrants and first generation Americans work. Those businesses include construction, farming, food service, janitorial, car wash facilities and restaurants where those workers clean tables and wash the dishes for minimum wages.
Reshaping the Construction Industry
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I was the keynote speaker for the American Subcontractors Association (ASA) Houston Chapter last week. As I try to do on those occasions, I asked a couple of questions of the crowd in my preliminaries. As expected, the results were most revealing. First, I asked whether their level of business was greater now than at this time last year. Almost 70% of the audience raised their hands that indeed their business was better. That response fell in line with the Greater Houston Partnership’s latest economic figure for the Houston MSA nonresidential construction permits year over year, up 48.9%. This is one of the highest in the country.
May 24, 2013
The Peach State is moving forward with its plans to ensure, as much as possible, that workers are not undocumented immigrants. The law has been in effect for three years now and this latest move tightens the screws on employers even further.A major piece of the law, The Illegal Immigration and Enforcement Act, is the requirement that all employers with more than 10 workers on payroll must use the E-Verify system. Previously, employers with over a hundred employees had to do this. If they don't, they cannot obtain a business license in Georgia. This applies to all new hires and employers are not required to verify the immigration status of those workers who were with them prior to July 1, 2013.Attorneys in Georgia have been blasting emails to employers to offer their help with this, saying in part:The IIEA went into effect on July 1, 2011, but the E-Verify requirement was phased in over time. Effective January 1, 2011, the IIEA required all employers with 500 or more employees to attest to their registration and participation in E-Verify as a condition of obtaining a local business license.
May 23, 2013
Last Wednesday was a great day for reflection about the workforce issue, at least for me. It began at a lunch gathering of Associated Builders and Contractors Past Presidents and the current executive committee to gather insight and input for the coming year’s planning session objectives, as requested by the ABC Greater Houston Chapter incoming chair Tim Ricketts. As Tim asked the past presidents for recollection of significant issues, accomplishments, and struggles during their respective terms, the issues of workforce, craft training, and unions dominated the discussion. Familiar themes of owner input and related issues, union difficulties, and economics were brought up. For example, owners were paying a significant training contribution via the union wage and fringe benefits to contractors, but didn’t see the value in paying contractors or ABC to do training in a merit shop environment.
May 22, 2013
In the past several weeks, I have been asked by local media to comment on the labor shortage in the commercial construction industry and how it is impacting the consumer. Most people in our industry know the obvious answers: the consumer is experiencing higher costs for a less-skilled workforce. Currently, the pool of qualified craft workers is extremely limited in our area.However, the opportunity side of this shortage is equally obvious. Legislators have come to realize that college is not for everyone – particularly the high cost of higher education and the associated debts that make it harder to afford. High schools are realizing the importance of “career ready” as opposed to only “college ready”. Owners are beginning to understand that they should be more in control of procuring the level of worker they want and need on their projects. Contractors are beginning to realize that to build what is anticipated to be required in the next twenty years, a “sustainable workforce” is more than just words.
May 21, 2013
This month, the Houston Chapter of the Associated General Contractors (AGC) celebrated its 90th anniversary. It was founded in 1923 when Houston was a town of barely 60,000 folks. Over 200 members, elected officials, former chapter leaders, and friends attended the celebration. The evening was capped by comments from former and current chapter leaders and the Mayor of Houston. It was a fitting celebration of the long and storied history of the AGC Chapter in Houston and the skyline they have created.
May 20, 2013
PPI, other cost measures show little change; housing starts tumble but permits soarEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.The producer price index (PPI) for finished goods dropped 0.3%, not seasonally adjusted (-0.7%, seasonally adjusted), in April and 0.6% over 12 months, the Bureau of Labor Statistics (BLS) reported on Wednesday. The PPI for inputs to construction—a weighted average of the cost of all materials used in construction plus items consumed by contractors such as diesel fuel—slipped 0.1% for the month and inched up just 0.4% year-over-year. Inputs for residential construction were flat for the month and increased 1.4% in price over the year
May 20, 2013
In October 2010, Chamberlin Roofing & Waterproofing embarked on a project that would mark a time of change for the City of Dallas and its residents. Woodall Rodgers Freeway is a major highway that runs just north of Downtown Dallas directly through the city. It is a connector freeway between two other large highways. When Wodall Rodgers Freeway was constructed in 1962, highways were the most popular mode of transportation. City officials and wealthy landowners were building homes and purchasing land outside of Dallas city limits, thus making highways extremely appealing.In 2000, Dallas' population reached over two million people, and the highway infrastructure was no longer the most optimal means of transportation. Downtown and uptown were two of the most popular areas for nightlife, business, and residential growth, and there was only one thing standing between them: Woodall Rodgers Freeway.
May 17, 2013
On Wednesday, May 15, 2013 the AGC Annual Safety Stand Down was held on commercial construction projects throughout the Greater Houston area. It was a day dedicated to emphasizing the importance of each construction worker returning home safely every day. I was fortunate to participate in two separate events.With the impressive ExxonMobil construction project in the background, David Doucet, Mark Briggs (Area Directors for the North and South Occupational Safety and Health Administration offices, respectively) and I met that morning to sign a Safety Training Alliance agreement, an agreement that reinforces the need for a safety first work environment. Located on 385 acres, the giant jobsite will be completed in 2015 to become the company’s largest worldwide
May 16, 2013
Last Friday marked a momentous occasion for our country, as a group of craft professionals bolted the spire for the new World Trade Center into place 1,776 feet above the ground in New York City. This incredibly emotional moment meant a great deal to many Americans, and provided an opportunity to remember those who were lost in the tragic events of September 11, 2001.Matt Lauer and Savannah Guthrie from the NBC Today Show share the moment in this short video:
May 16, 2013
