CWA’s: DEVELOPING OUR COMMUNITIES LA / OC BUILDING TRADES COUNCIL

OVERVIEW Prevailing wage Public works projects Why Community Workforce Agreements? Questions?

DEFINING PREVAILING WAGE Prevailing wage rates are recognized by state and federal government for workers on public construction projects. Rates are set based on the pay of the greatest number of employees in a specific occupation, in a specific geographic area. Prevailing wages are codified in state and federal law. In California, this is done by the Department of Industrial Relations.

DEFINING PUBLIC WORKS PROJECTS Paid for with public funds, in whole or in part Can be construction, alteration, demolition, installation, repair Done under a contract Always at prevailing wage (with or without a CWA)

WHY WORK WITH UNIONS? We build efficiently and safely: doing it right the first time The only means to true local hire and veteran preference We “work ourselves out of a job,” with competitive timelines and quality for our contractors No seniority in our agreements We invest $200M in apprenticeship training each year in California alone All public works projects are prevailing wage: get your constituents the benefits!

BUILDING TRADES APPRENTICESHIPS Preparing the Next Generation of Construction Workers through Joint Apprenticeship & Training Committees (JATCs) Classroom instruction + on-the-job learning for 3-5 years Registered with the national Department of Labor’s Office of Apprenticeship and the State’s Department of Apprenticeship Standards (DAS) Funded by Building Trades men and women, and contractor partners-- over $1B invested annually 1600+ training centers in US, plus partnerships with high schools and community colleges 93% of the State Certified Apprenticeship Programs in Construction graduates come from Building Trades programs Provides a path to middle-class careers, at no cost to taxpayers

MULTI-CRAFT CORE CURRICULUM (MC3) The Multi-Craft Core Curriculum (MC3) is developed by North America’s Building Trades Unions It is intended for apprenticeship-readiness classes in high schools, community colleges and community based organizations, and covers topics related to Building Trades careers The goals of the NABTU apprenticeship readiness programs are to increase the number of qualified candidates for apprenticeship across all crafts; to increase the diversity of apprenticeship candidates by recruiting women, communities of color, veterans and out of school youth; and to increase retention.

DEFINING COMMUNITY WORKFORCE AGREEMENTS A CWA is a type of pre-hire agreement negotiated between project owners and the local Building Trades that covers working conditions and standards for construction projects, as well as how to resolve any issues that might come up. At its core, it is a contract between the Owner/Agency and Unions to work in partnership to build a project.

IMPACTS of CWA’s for COMMUNITY for OWNERS/DEVELOPERS + CONTRACTORS local hire & community outreach women, veteran, and minority representation supports local economy mentorship and job opportunities for OWNERS/DEVELOPERS + CONTRACTORS builds relationships and goodwill in community stability & efficiency in project process labor harmony: no strikes or disruptions protects budget and schedule of project risk management political partnership

ELEMENTS of CWA’s Labor Relations Labor Compliance/Certified Payroll efficient dispute resolution that does not impact project dramatically reduce risk of delay and cost overruns Labor Compliance/Certified Payroll guarantee a highly-skilled and trained workforce ensure workers receive fair pay, health and retirement benefits, and safe working conditions Local Hire/Community Outreach career training opportunities through apprenticeship programs provide a continuous and immediate boost to the local economy

CWA’s: Things To Know CWA’s are... used on public and private projects of all different sizes used throughout the life of a project often include modernization, maintenance and repair. A CWA is collectively bargained to establish work rules, dispute resolution processes, and meet the unique needs of the project. PLA’s were first used on big public works projects in the 1930s (e.g. Hoover Dam, Grand Coulee Dam). Since then, projects across the US have been built using PLA’s. CWA’s are the only labor agreements that provide local and veteran preference hire.

Questions from Non-Union Contractors about Community Workforce Agreements Q. Will I have to pay higher wages because of the CWA? A. No. Prevailing wage is required on Public Works Construction in CA, including Cities. (Charter Cities that do not require PW rates are excluded from receiving State funds for projects.) The wages required in the CWA including benefits, equal the prevailing wage. Q. Will I have to become a signatory to the Union? A. No. On City Projects cover by a CWA, a contractor is required to sign a letter of assent agreeing to be bond by the CWA for only that specific project. Q. I heard that it will increase my cost because I will have to pay the Union? Is this true? A. No. The benefit payments are made to trust funds on behalf of the employee and are already included in the prevailing wage rate. There is a tax savings as benefit payments are not subject to payroll taxes. Union dues are paid out of the employees wage for representation.

Questions from Non-Union Contractors about Community Workforce Agreements Q. Manpower is getting hard to find, will the Union be able to provide trained manpower? A. For many decades local Building Trades Unions have been providing a skilled and trained workforce. The CWA will give you access to their highly trained membership. Since the recession, local Building Trades Apprenticeship programs have over doubled the number of apprentices being trained. These local programs are approaching 15,000 apprentices in LA and OC. Q. Will I be allowed to use my key employees on these projects? A. Core employees are allowed to work on CWA covered projects to the requirements negotiated in the CWA. Q. Will my employees have to join the Union? A. No. Eligible core employees will only have to register at the appropriate Union Hall, prior to their first day on the project.

Questions from Non-Union Contractors about Community Workforce Agreements Q. Do I have to use core employees? A. No. You may request all of your needed work force from the Local Union. Q. What if the Union sends a worker who I don’t feel is qualified or that I don’t need? A. The contractor shall have the right to determine competency of all employees, the number of employees required and shall have the sole responsibility for selecting employees to be laid off. Q. Will my company be less likely to be awarded projects at the City if it is non-union? Will the Union have influence in the process? A. No. The City and/or Contractors, as appropriate, have the absolute right to award through competitive bidding or other delivery method to any contractor with or without any Union contract. Unions are not involved in selection.

QUESTIONS? Chris Hannan channan@laocbuildingtrades.org 213-483-4222 LA / OC BUILDING TRADES COUNCIL