2012 Construction Goals Minnesota Department of Human Rights May 24, 2012

Overview 2012 Goals Minority opportunity in the marketplace Minority participation in the construction industry Substantial projects Transition to a proactive approach Good faith efforts and best practices This is a goal, not a quota 2

Goals Data Sources: U.S. Census, workforce & other data relevant to geographical areas – 2011 Goals2012 – 2020 Goals HENNEPIN & RAMSEY COUNTIES Minority: 32% Female: 6% ANOKA, CARVER, DAKOTA, SCOTT & WASHINGTON COUNTIES Minority: 22% Female: 6% 7 COUNTY METRO AREA Minority: 11% Female: 6% 3

Goals % minority18% minority(Metropolitan Council, Central Corridor) 11% minority Data used to set goals: 2000 Census data, construction occupation data and labor force data % minority (7 county area)32% minority (Hennepin, Ramsey) 22% minority (Anoka, Carver, Dakota, Scott, Washington) Data used to set 2012 goals: American Community Survey (ACS) data , construction occupation data and labor force data. 4

Minority Participation and Opportunity in the Marketplace The goals are meant to address systematic discrimination within the construction industry which affect minority recruitment, hiring, and participation. 5

Minority Participation and Opportunity in the Marketplace Factors which determine entry into a job field: Education/certification gap Skills gap Individual choice Discrimination - Professor Algeron Austin, Economic Policy Institute 6

Minority Participation in the Construction Industry Question: What would the expected participation rate be in the absence of discrimination? Answer: ? Answer: ? Fact: US Census Data 2010 tells us that 32% of the minority workforce identifies themselves as being a member of the construction industry. 7

Minority Participation in the Construction Industry MnDOT 8.5% MnDOT 8.5% MDHR 16.7% MDHR 16.7% MPLS 18.5% MPLS 18.5% St. Paul 16.5% St. Paul 16.5% 8

Substantial Projects Prototype for success One or two substantial projects per partner every two years will demonstrate a commitment to equity and provide models for others to emulate. 9

Substantial Projects Prototypes for Success Light Rail 18% TCF Bank Stadium 25% Target Field 25% Union Depot 20% Future Substantial Projects: Vikings Stadium St. Croix Bridge Light Rail Projects Future Substantial Projects: Vikings Stadium St. Croix Bridge Light Rail Projects Substantial Projects (at 18% goal or higher) 10

Transition to a Proactive Approach Reactive Approach Affirmative Action – Incremental (old model) Invites annual legislative approach Requires more aggressive enforcement model Overemphasizes attainment of goal as a predominant factor in determining elimination of discrimination Strains enforcement resources 11

Transition to a Proactive Approach Proactive Approach Diversity – Inspirational (new model) Decade approach Avoids perception of micromanagement by government Allows enforcement agencies to focus on egregious bad actors Consistent with good faith effort legislative scheme 12

Good Faith Efforts & Best Practices Good faith efforts are specific actions a contractor takes to provide equal opportunities for minorities and females. A contractor's good faith efforts are determined by whether it takes prompt corrective action when it becomes aware of disparate treatment. 13

Good Faith Efforts & Best Practices Database list of Targeted Group Business (TGB) vendors to all general contractors (e.g., LRT Works/Met Council) Develop a system and methodology to unbundle all contracts Strategic career planning and elimination of bicycling 14

Good Faith Efforts & Best Practices, Cont. Commitment to outreach activities and diversity/equity initiatives o Met Council o Diversity Council Expand apprenticeship programs Plan for recruiting and hiring minorities 15

This is a Goal, Not a Quota Quota: In the old model, success is determined by meeting the number Goal: In the new model, success is determined by the extent to which participation in the construction industry is driven by individual choice 16

The Goal Does Not Equate to Good Faith Efforts The criteria the Commissioner is to use in determining good faith efforts is found in Minn. Rule The goal set by the Commissioner is not a criteria to be used to establish good faith efforts 17