A Columbia University white paper charges that a misapplication of the law sets a prevailing wage at developments that don't require it. Critics disagree.
By DANIEL MASSEY
A new report charges that prevailing wages across New York are often set improperly, adding up to $3 billion a year to public infrastructure projects across the state.
A 45-page white paper by the Center for Urban Real Estate at Columbia University argues that prevailing wages in New York are miscalculated and urges reforms that would peg the rates to federally published data on average wages.
Under state law, prevailing wage is set at the rate in a union contract that covers at least 30% of the workers in a trade and locality. Yet the report contends that in many instances, prevailing wages are being set even when 30% of the workers are not covered by union agreements.
"The underlying premise of prevailing wage legislation is not a bad one—that if you're pouring government money into an area, then you need to be sure that money doesn't undermine the labor market," said Julia Vitullo-Martin, the report's author. "But almost surely, 30% is not met in a lot of cases because unionization in construction is on the decline."
Ms. Vitullo-Martin argues that data show construction unions represent considerably less than 30% of the construction workforce throughout the state, as well as in most, if not all, localities, including the city. She cites an analysis of federal stats by UnionStats.com that shows 25.9% of construction workers statewide were covered by union contracts in 2011, while only 23.6% of construction workers in the New York City area were covered by such agreements.
Tuesday, June 5, 2012
Report: Wage snafu adds billions to project costs
Monday, June 4, 2012
The Fourth Interim Report of the Review Officer
Review Officer, Dennis Walsh has issued his Fourth Interim Report, the report contains numerous items of interest and is a must read for all members.
"No one should assume that because, at least for now, the District Council is free of organized crime influence and the members are finally governing their District Council, the Union can revert to the warm bath of old ways. The Union must move forward and continue to constantly analyze how to improve its operations and control costs."
It's all Related
Trio dominates development in NYC.
“IF THE CITY DOES WELL, WE ALL DO WELL,̶: said Related Cos. CEO Stephen Ross, depicted here with partners Jeff Blau (left, in illustration) and Bruce Beal Jr. (right).
By Daniel Massy
When Jeff Blau started at The Related Cos. in 1989, the first task Chief Executive Stephen Ross gave the 21-year-old was to buy up auto shops in Willets Point, Queens. Related built stores for Kmart, and the retailer wanted one in the area. Nothing came of it, but 23 years later, Related is about to gain control of Willets Point in a high-stakes gamble to salvage the city's most complicated real estate development project.
To understand why Related triumphed over three other bidders there is to understand why it has become the leading developer in a city notoriously difficult to build in: Related thrives on that complexity. It is better at navigating the obstacles—from bargaining with unions to compromising with city officials—and more willing to take risks than its rivals. It thinks in decades, not quarters.
Saturday, June 2, 2012
NYC Construction Wages Increase, Jobs Decrease
Construction employment in New York City was 102,600 in the first quarter of 2012, a three percent decline from the same period a year ago and the lowest level of industry employment since the first quarter of 1999, according to a New York Building Congress analysis of New York State Department of Labor employment statistics.
The 102,600 construction jobs represent a 20 percent decline from the first quarter of 2008, which was a peak year for City construction activity.
New York City construction employment for all of 2011 averaged 111,500, down from 112,400 jobs in 2010; 120,700 jobs in 2009; and 131,800 jobs in 2008. According to its recent Construction Outlook Update, the Building Congress projects construction employment will increase to 120,800 this year.
Construction industry employment generally is lowest in the first quarter of each year because companies reduce employees on payroll during the winter months.
The heavy construction and civil engineering sector shed 2,600 jobs from the first quarter of 2011 to the first quarter of 2012, a 32 percent decline.
The specialty trades sector, which includes plumbers and electricians, lost 1,800 jobs during this time period. The building construction sector, however, saw a net gain of 1,300 jobs.
The average wages earned by construction workers continues to increase, however.
Construction workers in New York City earned an average of $51,000 in the first nine months of 2011, the latest period for which data are available, compared to $49,200 for the same period in 2010 and $48,600 during the first nine months of 2009.
Given that fourth quarter earnings are generally highest, due to year-end bonuses, it appears that annual earnings in 2012 will top $70,000 for the first time in New York City. Annual earnings reached $69,700 in 2010 and $69,300 in 2009.
"Government spending on infrastructure projects helped buoy the industry in the aftermath of the Great Recession. Thanks to ongoing City and State capital projects and the injection of federal stimulus money, infrastructure related jobs in heavy construction and civil engineering increased in 2009 and 2010 but are now declining," said New York Building Congress President Richard T. Anderson. "While this sector represents just five percent of the industry's employment, the year-to-year reduction in these jobs is a source of concern as it suggests that private sector firms are laying off workers as a result of decreased government spending.
"On a brighter note, we are encouraged by the uptick in employment for buildings workers, which suggests that private sector developers and institutions are beginning to invest once again in residential, commercial and institutional properties," Anderson added.
Source: Citybiz
Friday, June 1, 2012
Benefit Changes
As we previously advised, the Trustees have been considering changes to the benefits available through the New York City District Council of Carpenters Welfare Fund ("Welfare Fund") in order to control costs and ensure the Welfare Fund's financial stability for the future. The Trustees recently adopted changes to the Welfare Fund that go into effect on June 1, 2012.
Tuesday, May 29, 2012
Extell’s One Hudson Yards is set to soar
By STEVE CUOZZO
Extell chief Gary Barnett is reviving a long-dormant, $ 1-billion Far West Side development project — and he’s brashly named it “One Hudson Yards” even though it’s technically not part of the rail yards site.
Extell just tapped Jones Lang LaSalle to find tenants for the 56-story, 1.7 million square office tower to rise on the east blockfront of 11th Avenue between W. 33rd and 34th streets. The project was first announced in 2009, when Barnett was to partner with Israel Green in what was then called the World Product Center. But plans for the arresting, Kohn Pedersen Fox-designed tower went on hold. Extell and Green parted ways and the site is today an empty lot.
Now, Barnett’s again itching to build. “We believe we have the best location in the area, on terra firma [rather than above a rail yard]. We’re right at the new No. 7 line subway station, at the foot of a new park and across from the Javits Convention Center,” he said.
Barnett won’t start construction without pre-leasing half the tower — “at the rents we’re going to charge, it would be suicidal,” he said. Asked what the rents might be, he said with a laugh, “Between $50 and $100 a square foot.”
Related Cos. is the designated developer of the Hudson Yards rail site bounded by 10th and 12th avenues and West 30th-33rd streets. Extell’s site is just north of it in what city officials call the “Hudson Yards area.”
Ironworkers bend on wages
By DANIEL MASSEY
The ironworkers' union—desperate to regain market share from surging nonunion construction, and afraid of missing out on lucrative work at Hudson Yards and the Tappan Zee Bridge—has agreed to an unprecedented wage and benefit rollback. It's already shaking up development in the city.
Members of Metallic Lathers and Reinforcing Ironworkers Local 46 voted earlier this month to cut their overall compensation by 15%, or by about $14 an hour, and to work-rule changes that could slash total project costs by up to 25%..
The 1,500-member union relinquished a 4% raise this year and cut next year's scheduled 4% increase to 2%. Wages and benefits will now total $79 an hour instead of the $93 the union had previously won in -negotiations..
In addition, the union members agreed to allow on job sites a higher percentage of apprentices, who earn less than half the standard pay, and to expand the workday to eight hours from seven.
Monday, May 28, 2012
Remembering nation's vets, even as Memorial Day's importance seems to fade
By John Farmer/The Star-Ledger
Another Memorial Day. It always brings back memories, distant ones of days long gone, of parades and bemedaled men, many marching in uniform, neighbors who’d been through the fire.
The Memorial Day parades after World War II (Decoration Day then) were celebrations of more than victory. They celebrated the fulfillment of the implicit promise of the nation’s founders that their infant democracy would not merely lead the world but, in time, save it. As it surely did in World War II.
Everybody had a part, not just those who fought. So did the women who nursed the wounded and those at home who worked in the factories that became arsenals of democracy. (Remember "Rosie the Riveter"?)
Even men who weren’t called served. They registered for the military draft and took their chances like everyone else. Some were eager to serve but couldn’t because of medical problems or because they held civilian jobs vital to the war effort.
Wednesday, May 23, 2012
Tuesday, May 22, 2012
Office of the Inspector General: Operation “GOTCHA”
This investigation was narrowed down to various active jobsites. Grievances were filed against the Signatory Contractors that violated District Council Collective Bargaining Agreements (“CBAs”). In addition, 17 members were found to be in violation of the Constitution of the United Brotherhood of Carpenters and Joiners of America and the Bylaws of the District Council.
The investigation stemmed from Hotline calls received by the Office of the Inspector General reporting that numerous Signatory Contractors invovled in diving operations covered under CBAs and Occupational Safety and Health Administration (“OSHA”) regulations, were not following the correct procedures when conducting the diving operations.
The grievances that were filed by the Office of the Inspector General will be followed up by the District Council Grievance Committee, which is headed by the Director of Operations, Matt Walker. The charges that will be filed by this office will be referred to the Chair and Co-chair of the District Council Trial Committee, Walter Mack and Jim Zazzeli, respectfully.
The grievances filed and the charges to be filed in connection to this investigation are based merely upon accusations. All contractors and members are considered innocent until proven guilty by the Grievance Committee or the Trial Committee.
The Office of the Inspector General would like to extend its gratitude to the Labor Technical College and OSHA, which were both consulted during this investigation, for their cooperation in this matter.
The Office of the Inspector General would like to thank all the members that contacted this office to report these violations. The safety of all members is a concern of the Office of the Inspector General and of this District Council.
At this time, the investigation is still open and ongoing.
Fraternal Order of Woodworkers 2012 Contract Memorandum
Prospects of the New York City District Council’s contract negotiations have many F.O.W. members anxious about the upcoming deliberations that will shape our industry for the future. For years our component of the construction trade has been observing drastic transformations and the weakening of the installation of Architectural Woodworking in New York City. With the sweeping decline of union woodworking shops, international agreements, company requests and the rise of companies who only perform installations, the average N.Y.C. Woodworking journeyman is seeing less time on their tools.
Many have been required to install a product made from non-union shops and are faced with the alternative of installing or forfeiting their employment. The “Hot Cargo” and National Labor Relations Board rulings are being used by installation companies and contractors to force our members to make decisions that no good union member should have to deal with. We need the support from our union to initiate new policies and campaigns that will try to reawaken the developers what a good union vocation can achieve. A “hands on” certification for all new “Out Of Work List” woodworkers candidates and perhaps creating a “specialty” local which would help to protect and ensure more work for the qualified craftsmen. With the recent discouraging Favorite Nations Clause situation, we especially need to reach out to all union members to unite, protect and represent those whom hold this craft in high regard.
Monday, May 21, 2012
Steward Review Operating Procedures
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| Memo posted on Council website. |
I will attempt to explain and clarify the memo for you.
Section 12 (K) of the District Council By-Laws, requires the Executive Committee to develop and preside over a uniform system of Shop Steward review and sentencing guidelines,which shall be adopted by the Delegate Body. The By-laws required the development of said system by March 15, 2012 or thereafter be developed and implemented by the Review Officer.
In attempting to comply with this By-law provision the council distributed the Shop Steward Operating Procedures to all delegates on May 9th..
From the Bilello Memo:
"Brothers and Sisters, Prior to the May 9th delegate meeting, a packet was distributed to all delegates that contained draft "Steward Review Operating Procedures," as well as draft "Steward Review Sentencing Guidelines." These documents were included in response to delegates rightfully demanding the receipt of all material for review well in advance before they are asked to vote on whether or not to approve."
"While it was in the interest of satisfying that demand, they were distributed before the Executive Officers of the Council had a chance to review them."
Bilello is playing fast and loose with the facts.
Saturday, May 19, 2012
$90M midtown penthouse tops mark for priciest New York City apartment
Duplex bought by 'someone people would recognize' at One57 caps string of huge deals
By Jason Sheftell / NEW YORK DAILY NEWS
MARCHMADE
Record-setting buyer at One57 should get a Central Park view like this for his or her $90 million.
Thursday, May 17, 2012
Construction Industry's Workforce Shortage Brings Concerns, but Green Jobs Bring Promise, According to New McGraw-Hill Construction Report
NEW YORK, May 17, 2012 /PRNewswire via COMTEX/ --The construction industry is concerned about skilled worker shortages, according to a new SmartMarket Report from McGraw-Hill Construction entitled "Construction Industry Workforce Shortages: Role of Certification, Training and Green Jobs in Filling the Gaps." It is the first study to focus exclusively on design and construction professionals and trade workers. Skilled workers have left the industry as a result of the economic downturn, an aging workforce and an insufficient pipeline of younger workers, according to the new study released at the AIA 2012 National Convention and Design Exposition this week in Washington, DC. The study shows that 69% of architect, engineer, and contractor (AEC) professionals expect skilled workforce shortages in next three years; 32% of AEC are concerned about a shortage of specialty trade contractors by 2014; 49% of the general contractors are concerned about finding skilled craft workers by 2017, and 37% of architect and engineering firms are concerned about finding experienced workers. Skilled green workers are in even more demand; 86% of architects and engineers and 91% of contractors are finding too few green skilled employees.
Facing the loss of employees in the construction professions, industry professionals are worried they may have lost those skills, and uncertainty about interest by the next generation raises concerns about being able to fill gaps in the future. In a separate but related survey McGraw-Hill Construction conducted for the American Institute of Architects (AIA), 79% of architecture firms are not sure the U.S. student pipeline will be sufficient to replace those leaving the profession, a problem exacerbated by the 76% of U.S. architecture students/recent graduates who would consider working abroad.
"The downturn in construction activity may be masking a serious problem in the construction industry workforce," said Harvey Bernstein, vice president, Industry Insights and Alliances for McGraw-Hill Construction. "But the rise of green jobs and more availability of training and professional certifications can help to attract interest in the professions and make firms more competitive."
City's job gains in 2012 are best in 60 years
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| The city's unemployment rate improved in April. |
By Daniel Massey
The city gained an eye-popping 12,000 private-sector jobs in April, bringing total private-sector growth to 60,000 for the year, the best four-month streak since the 1950s, according to an analysis of state Department of Labor data released Thursday.
The unemployment rate finally caught wind of the gains, inching downward after three consecutive months when it rose in defiance of job growth. It ticked down to 9.5%, from 9.7% in March. The city netted 10,200 jobs last month after losses in the public sector, according to the analysis by real estate services firm Eastern Consolidated.
“We usually see strong growth in the first couple of months of the year, only to see the pattern slow down by mid-year,” said Barbara Byrne Denham, chief economist at Eastern Consolidated. “But we're not seeing that. The fact that it's still going strong says there's some serious momentum in the local economy.”
James Brown, principal economist at the Department of Labor, singled out the construction industry, which was one of the hardest hit during the recession, for “starting to show a little life.” Hotels, public works and stalled residential projects that have picked up are leading the way, he said. The industry added 1,300 jobs in April on a seasonally adjusted basis.
Wednesday, May 16, 2012
Labor leader Ed Malloy dies at 77
A former steamfitter, Mr. Malloy steered the city and state construction trades council for nearly two decades until his retirement earlier this year.
By Daniel Massey
Edward Malloy, a dapper, tireless labor leader who steered the city and state construction trades council for nearly two decades, died Tuesday after a bout with cancer. He was 77.
A veteran of the U.S. Army and a former steamfitter, Mr. Malloy served as president of the Building and Construction Trades Council of Greater New York from 1992 to 2008 and as president of the New York State Building and Construction Trades Council from 1992 until his retirement earlier this year. “His hard work and wit allowed him to pass easily from union halls to business board rooms and the chambers of government,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York.
Perhaps Mr. Malloy's proudest moment was serving as grand marshal of the St. Patrick's' Day Parade in 2001. But he was a driving force for private economic development and public infrastructure improvements throughout the city and state, promoting measures to contain construction costs and maximize employment opportunities for his members.
“He worked tirelessly with public officials, investors and labor leaders to get major infrastructure projects off the ground and create jobs in every corner of the state,” said Gov. Andrew Cuomo.
“What was unique about Eddie was he was not only a labor leader, but an industry and civic leader,” said Louis Coletti, president of the Building Trades Employers Association. “He cared deeply about the future direction of the city.”
Sunday, May 13, 2012
Page Six
We hear...THAT on Friday May 4th, the Manufacturing Woodworking Association (MWA) won in arbitration a lawsuit it brought against the District Council, having to do with a sweetheart deal made in 2007 by Dennis Sheils, (former disgraced Vice President of the corrupt Forde administration) with Gilbert Displays, an out-of-Association contractor.
According to the Most Favored Nations clause of the MWA Agreement, the arbitrator found that the District Council is liable for the difference MWA shops paid to their employees going back to 2007, and now all MWA members will be given the same deal, which amounts to a $10 pay cut, and diminished benefit package.
Executive Secretary-Treasurer Mike Bilello did not report on the loss at Wednesday's Delegate meeting until a Local 2790 delegate brought the subject up towards the end of the meeting. When questioned Bilello estimated the liability to be at $10 million dollars. When asked if the rank and file will be informed about the loss on the District Councils website, Bilello replied "No, there's nothing to report."
Saturday, May 12, 2012
Many Irish helping One World Trade Center reach new heights in New York City
Meeting the Irish -- and my family -- on the sacred site of the World Trade Center and Tower 4
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| The Irish working at the One World Trade Center site |
By KERRY O’SHEA, IrishCentral Staff Writer
In many ways, the Irish working at the One World Trade Center today can parallel the Irish helping to build New York City over a century ago.
Rebuilding the World Trade Center is a massively symbolic act, a gesture of defiance in the face of al-Qaeda and those who gave us the worst days of our lives on September 11 and in its aftermath. I am very proud to have a brother and father involved in the reconstruction of what many Americans consider a sacred site.
Out of the ashes of the WTC has come a new series of buildings; bigger, better, a defiant symbol in the sky of American determination to move on from the shattered past and create a brighter future.
Now just over ten years since tragedy struck on September 11th, lower Manhattan is being reshaped as the new World Trade Center rises into the skyline. Among the hundreds of construction workers lending their skills to help raise the several new buildings, many are Irish and of Irish American descent.
I’m proud to say I have two close connections to the construction of the new World Trade Center. My father, John O’Shea, a foreman with Eurotech Construction and member of the Local Carpenters Union 157, and my brother Patrick, a fourth year apprentice with the NYC District Council Carpenters, are both employed down at Tower Four at the site.
Sunday, May 6, 2012
The Powers of New York
(John's note: this article was in Sundays paper and features Steven Ross as one of the power players in New York City real estate. )
Influence in New York is now wielded by a larger and more diverse array of people. As part of a special issue of Metropolitan, here’s a look at who is at the top and who may be on the way, as identified by the reporters of The New York Times.
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| Steven M. Ross |
It is unclear if he will win, but it is hard to bet against him. Mr. Ross and his partners at Related built the $1.7 billion Time Warner Center — twin 80-story towers at Columbus Circle with shops, a hotel and luxury apartments — after a 16-year battle over the site, and he is trying to revive the long-stalled transformation of the James A. Farley Post Office into Moynihan Station. In his latest scheme, he has offered to build Borough of Manhattan Community College a larger campus inside the post office in exchange for the school’s land downtown.
In fact, Related is juggling six projects in the city right now, including the first phase of Hunters Point South, the largest affordable-housing complex built in New York since the 1970s. On the weekends, Mr. Ross has been trying to turn the Miami Dolphins, the N.F.L. franchise he bought for $1.1 billion, into a championship team.
