Workforce Issues Update – Contractors’ Perspective Welcome attendees to breakfast meeting. Ask attendees to review HBR guidelines for conducting meetings. December 8, 2005

POST HURRICANES Crafts impacted: Civil Electrical Structural Operators General Labor and Truck Drivers Welders Continue to be an Issue Millwrights Difficult in Some Locations Instrument Technicians Short on Skills

POST HURRICANES General Conditions in Louisiana – Mississippi Better Organized Better Housing Conditions More Work Becoming Available

RETENTION PAY AND INCENTIVES Current Situation Per Diems Incentives Completion Bonuses Stabilized Over Time Wages Will Seek a New Level

CONTRACTOR WAGE ISSUES Short Term Managing Current Backlogs Dealing with Short Term Work Schedules Long Term Ability to Furnish “Qualified” Workforce Ability to Supervise and Manage the Workforce Bidding Approach & Process to New Work will Change

CONTRACTOR ACTION PLANS Recruiting Training Keep a pulse of Competitive Wage Structures Retention Motivating Escalation Clauses in Contracts Limiting Exposure to Lump Sum Work Seek Younger Generations Selective Project Bidding

OWNER SUPPORT NEEDED Support Wage Structure Changes Utilize contractors that Provide: Safe Work Place Quality Work Process Training for Employees Promote and Assist Funding for Workforce Development Support Larger Ratios of Helpers Set Expectations on Training as We Have with Safety

OWNERS AND CONTRACTORS Largest Issues Temporary Employment Low Wages in a Hazardous Occupation Labor Intensive Industry Working in Outside Conditions Recruit into This Industry Together Clearly Establish a Standardized Training Curriculum Set Performance Standards United Approach on Certification Standards

SUMMARY Do You Believe There Is a Problem? Mitigate Impact on Work Wages Increases Incentives Retention Bonuses Change in Work Schedules Workforce Leveling Importing of Foreign Labor