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TO: Board of Supervisors
FROM: John Sweeten, County Administrator
DATE: March 21, 2001
SUBJECT: Family Law Center Project, 751 Pine Street, Martinez
Authorization No. 4033-4408; Project No. 0928-WH408B
RESOLUTION NO. 2001/ 179
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION(S)
A. RATIFY issuance of the bid addendum extending bid opening date to April 19,2001 forthe above
project.
B. Forthe reasons listed below, DIRECT the County Administrator or his designee(with assistance
from County Counsel) to prepare, for the Board's consideration, an additional bid addendum
requiring the negotiation of a project labor agreement on the terms described below.
FINANCIAL IMPACT
There is no anticipated impact to the General Fund. Bond proceeds of$11.5 million have been set aside
for this project. The debt service for these bonds is covered primarily from revenues generated from
Courthouse Construction and Criminal Justice Construction Funds.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On January 23,2001,the Board approved plans and specifications forthe Family Law Center and directed
the solicitation of construction bids for the project. The project consists of a two-story steel frame structure,
approximately 40,000 square feet in area,and is estimated to cost$11.5 million. Pursuant to the Board's
direction, the project was advertised, and bids originally were schedule to be submitted and opened on
March 22, 2001.
On March 15, 2001, Addendum No. 2 was issued to extend the bid opening date to April 19, 2001. It is
recommended that the Board ratify that bid addendum.
This Board has directed the preparation and presentation of this resolution for its further consideration
concerning the above subject and related matters. For the following reasons, it is desirable to require the
negotiation of a project labor agreement for this project:
CONTINUED ON ATTACHMENT: X YES SIGNATURE
_ RECOMMENDATION OF COUNTY ADMINISTRATOR _ RECOMMENDA ON OT BO E
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON marcri 27 , 2001 APPROVED AS RECOMMENDED X A OTHER
See the attached Addendum for Board action .
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
XX UNANIMOUS(ABSENT — — — — — ) AND ENTERED ON THE MINUTES OF THE BOARD
AYES: NOES: OF SUPERVISORS ON THE DATE SHOWN.
ABSENT: ABSTAIN:
ATTESTED: JOHN SWEETEN, CLERK OF THE BOARD OF
Contact: George Roemer,(925)335-1055 SUPERVISORS AND COUNTY ADMINISTRATOR
Orig.Dept.: County Administrators Office
cc: County Counsel
Auditor/Controller
GSD Accounting-Terry Mann 0 n March 27 , 2001
Contra Costa Building&Construction Trades Council
O'Brien Kreitzberg(Via CAO)
Depu y lerk`.
Family Law Center Project, 725 Court Street, Martinez Authorization No. 4033-4408
March 21, 2001 Project No. 0928-WH408B
BACKGROUND/REASONS FOR RECOMMENDATIONS (continued)
(a) It is estimated that this construction project will require 17 months and will involve numerous
contractors and employees in different trades.
(b)Satisfactory performance will require a skilled and properly trained workforce to construct the
project because the project must be completed on time so that the courtwill be available to provide much-
needed judicial services to the citizens of the County.
(c)Satisfactory performance will also require that construction proceed without the disruptions that
can occur on long-term projects both from external labor relations problems and from the frictions that often
arise when a large number of contractors and their employees work in close proximity to one another on
a job site.
(d)In the private sector, project laboragreements have been used foryears on large constructions
projects to achieve satisfactory performance and the economic benefits that result from having a
guaranteed source of skilled workers and from avoiding disruptions in work.
(e) The United States Supreme Court held in Building & Construction Trades Council v.
Associated Builders& Contractors of Mass./R.l., Inc. (1993)507 U.S. 218 (Boston Harbor), that public
entities can enjoythe substantial benefits that project labor agreements can provide and the public entities
may"choose a contractor based on that contractor's willingness to enter into a pre-hire [project labor]
agreement." The validity of project labor agreements also has been upheld by the California Supreme
Court in Associated Builders & Contractors, Inc. v. San Francisco Airports Commission (1999) 21
CalAth 352.
(f)In order to ensure satisfactoryand timely completion of the project, itis necessary that County
staff charged with the fiscal administration and responsibility for this construction project take all
appropriate actions necessary to assure that this construction project will not exceed its budget in any
manner because of the requirements of this resolution.
(g) Based upon testimony and materials previously received and matters otherwise know to the
Board and its members, the is an urgent need to expeditiously construct this court facility.
In order to implement project labor agreement for this project, it is recommended that the Board direct
the County Administrator and project staff(with the assistance of the County Counsel's office)to prepare
for the Board's further consideration a further bid addendum with substantially the following provisions:
(a)The apparent lowest responsible monetary bidder,as a condition of being awarded the contract,
shall negotiate a project labor agreementwith the Contra Costa Building and Construction Trades Council
("Council") so that the contractor and its subcontractors can utilize the hiring halls maintained by the
Council's constituents and can utilize the Council and its constituents for resolving labor disputes during
the term of the project. The project labor agreement shall be negotiated with the Council within 14 days
after the bidder (general contractor) has been notified of its apparent status by the County;
(b)The project labor agreement shall cover all work on the project that is within the scope of the
contract between the County and the general contractor and shall run for the duration of the project;
(c) The project labor agreement shall include provisions for the following:
(1)recognition of the Council and/or its affiliates as the exclusive bargaining agent(s)for all workers
on the job so that the general contractor knows who to deal with regarding any labor matters that may arise
during the course of construction;
(2)referral of workers from the hiring halls maintained by the constituents of the Council in order to
ensure a reliable source of skilled workers for the project;
Resolution 2001 /179
-2-
Family Law Center Project, 725 Court Street, Martinez Authorization No. 4033-4408
March 21, 2001 Project No. 0928-W H408B
(3) a no-strike provision for the duration of the project and a final and binding grievance and
arbitration procedure in orderto prevent disruptions and delays of the project arising from internal/external
labor relations disputes, including jurisdictional disputes.
(d)The general contractor shall require all of its subcontractors, as a condition of working on the
project, to become parties to the project labor agreement.
(e)(1)In the eventthat the general contractor and the Council are unable to agree upon the terms
of a project labor agreement within the time limits set forth in paragraph 4(a)above,they shall immediately
proceed with arbitration of the matter in a timely fashion. The general contractor and Council shall
schedule a hearing before the arbitrator which shall be held within 10 days. The primary arbitrator to be
utilized will be specified in the bid addendum. The hearing shall be completed within a single day and if
post-hearing briefs are requested by either party they shall be filed within 3 days of the hearing. The cost
of the arbitrator and any court reporter shall be borne equally by the general contractor and the Council.
(2) The arbitrator shall decide the terms of the project labor agreement which shall include
provisions as described in paragraphs(c)and(d)above. In deciding the other terms of the project labor
agreement,the arbitrator shall select in toto either the last proposal made by the general contractor or the
last proposal made by the Council.
(3)The arbitrator shall issue his written award within 7 days of the completion of the hearing and
send copies of it to the general contractor,the Council,and the County. The arbitrator's decision shall be
final and binding on the general contractor and the Council.
(4) If the general contractor refuses to proceed to interest arbitration or to be bound by the
arbitrator's award, it will not be awarded the contract and the County may select a new general contractor.
If the Council refuses to proceed to interest arbitration or to be bound by the arbitrator's award,the general
contractor shall be excused from the requirement that it negotiate a project labor agreement with the
Council in order to be considered for award of the project contract.
Resolution No . 2001 /179
-3-
ADDENDUM TO ITEM SD.2
March 27, 2001
On this date, the Board of Supervisors considered ratifying the issuance of a bid
addendum extending the bid opening date for the Family Law Center Project, at
751 Pine Street, Martinez , and directing the issuance of a bid addendum requiring
negotiation of a project labor agreement. (Authorization No. 40033-4408; Project
No. 0928-WH408B).
Supervisor Uilkema opened the public hearing before the staff report on this item,
since members of the Judiciary were due back in court. The Board was in
agreement. The public hearing was opened, and the following people appeared to
speak:
The Honorable Peter Spinetta, Contra Costa County Superior Court;
Tom Steiner, Pacific Construction Corps., 1238 Laurel Lane, Lafayette;
Aram Hodess, Plumbers and Steamfitters Union 159; 1308 Roman Way,
Martinez;
Greg Feere, Contra Costa Building Trades Council, 935 Alhambra Avenue,
Martinez;
Bruce Fisher, West Coast Contractors, 2320 Courage Drive, #111, Fairfield;
Kevin Dayton, Golden Gate Chapter, Associated Builders and Contractors,
11875 Dublin Blvd., Ste C — 258, Dublin;
Eric Christen, Coalition for Employment in Construction, 2320 Courage
Drive, #110 Fairfield;
Derek Daymond, Sierra Bay Contractors, Inc., 4021 Port Chicago Highway,
Concord;
Frank Stephens, Western Electrical Contractor Association, 9719 Lincoln
Village, Sacramento;
Dale Peterson, IBEW 302, 1875 Arnold Drive, Martinez;
Tom Baca, V.P. Contra Costa Labor Council, 213 Midway Drive, Martinez;
Jim Hein, P.O. Box 6530, Concord; and
Linda Valdez, Horizon Sheet Metal, 4881 Sunrise Drive, Ste B, Martinez.
The public hearing was closed, and the Board discussed the issues. Following the
Board's.discussion, Supervisor Gioia moved the staff report and Supervisor Gerber
seconded it.
The Board offered further comments, following those comments, the Board took
the following action:
CLOSED the public hearing; and APPROVED staff's
recommendations A and B.
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does U leN -�ra ( L a �or Cou �uC � �
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• i,
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RECEIVED
CONTRA COSTA COUNTY
BOARD OF SUPERVISORS MEETING MAR 2 7 2001
CLERK BOARD OF SUPERVISORS
MARCH 27, 2001 CONTRACOSTACO.
Good morning Supervisors and Staff. My name is Bruce Fisher.
I am one of the owners of West Coast Contractors out of
Fairfield, California. West Coast primarily constructs public
projects and has built and bid County projects. Approximately
twenty (20%) of our workforce resides in Contra Costa County.
I am here today to ask you NOT to approve the use of a union-
only project labor agreement on any County projects. Project
labor agreements or PLAs, as they are often referred to, usually
require that all workers join or be part of a union in order to work
on a project. In a number of cases, however, PLAs state that the
PLA does not discriminate against the non-union worker or non- .
union contractor.
THAT IS NOT TRUE. All PLAs, as a minimum, require that non-
union employees pay union dues and have their benefit
contributions paid into union trust funds which they will
probably never see unless they join the union.
A PLA will do the County no economic good as is shown in the
recent study that the Los Angeles Unified School District has
done. The LA school district probably has built as many, if not
more, projects as anyone else under a PLA. The District hired
PriceWaterhouse to do a study on their use of a PLA on 46
completed projects and 113 projects in progress. The study was
summarized with the following statement:
"We are unable to conclusively determine whether the PSA has
to date had either a net positive or net negative economic impact
on the District."
Based upon this study the question is what good reason is there
for a public entity to use a PLA? Currently all workers and
contractors, regardless of union status----union and non-union---
1
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-can work on County projects and have done so for decades.
Why use a PLA now?
Simply put, project labor agreements are used because they are
the most effective labor organizing tool ever used in this
country. Unions no longer have to organize the workers. There
is no longer a need for strikes, worker elections, or salting. A
majority of the members on this Board can simply require that
all workers must join a union in order to work on County
projects.
If you decide to implement a PLA on your work, you will take
away the right of the worker to choose or not to choose, to have
a union represent him/her with his/her employer. THAT IS NOT
RIGHT. Only the workers should have that right to choose to be
union or non-union. It is totally unfair that workers be excluded
from working on public projects that their taxes are paying for
simply because they choose to be non-union.
In closing, I am asking you to keep all County projects open to
ALL workers, regardless of their union status.
Thank you for this opportunity to speak.
BRUCE FISHER
WEST COAST CONTRACTORS
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ftICEWATERHOUSECCOPERS
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Economic Evaluation of Project Stabilization Agreement
For Construction Projects Funded by Proposition BB
Report Submitted to the Los Angeles Unified School District
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I& by PricewatefiouseCoopers LLP
,2 7 2oo, November 2, 2000
Q�TA Cp VjSORS
W.)v-27-00 11 : 41A ABC LAVen Chapter 818 551 6759 P .03
1:1PJCtWATERH0USECC0PtRS 8
PrlcewaterbouseCoopers LLP
400 S.Hope Street
Los Angeles CA 90071-2999
Telephone(213)236 3000
November 2, 2000 Facsimile(407)236-5149
Direct phone(407)236-5146
Direct fax(703)322-3888
Mr. Robert Buxbaum, Chief Facilities Executive
Facilities Services Division, Room 1153
Los Angeles Unified School District
355 South Grand Avenue
Los Angeles, CA 90071
Re: An Economic Evaluation of the Project Stabilizzation Agreement for Construction
Projects Funded by Proposition BB
Dear Mr. Buxbaum:
PricewaterhouseCoopers LLP (`TwC") appreciates having had this opportunity to continue to
support the Los Angeles Unified School District ("LAUSD" or"District"). Pursuant to
LAUSD's July 30, 1999 RFP for an Economic Evaluation of Project Stabilization Agreement for
Construction Projects Funded by Proposition BB,our proposal of the same title dated August 27,
1999, our Agreement No. 0000431 with the District for the period November 10, 1999 through
November 9, 2000, and as modified as a result of our draft Interim Progress Report dated April
5, 2000, we hereby submit this report as our final deliverable and task under this contract.
BACKGROUND AND INTENT
The original intent of this work was to use existing District data and systems to define, design
and develop methods for evaluating the economic impact of the Project Stabilization Agreement
("PSA") and to work with District managers and staff to implement resulting methods and
reporting.
With regard to our April draft progress report to the District and subsequent discussions with
District management regarding the limited number of projects available and limited data,we
provided guidelines on what data we believed should be collected and agreed that the revised
intent of our work would be to return in August to develop and provide the District with an
independent assessment of the information that could be made available at that time.
We re-scheduled our work with District management in August, began our final fieldwork
September 11 th, completed our fieldwork as of October 13, 2000, and began finalising the results
of our work into a final report as of October Wit. This report presents a description of our work
along with our findings, conclusions and recommendations.
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At the heart of this work is Section 3.5 of the PSA:
"The parties recognize that the District has elected to enter into this Agreement in
expectation of projected cost savings. As such, the District shall enter into this
Agreement on a trial basis for the duration of the first identified set of projects
undertaken. This Agreement shall expire at the end of one year unless the District
and/or Council demonstrate.that expected economic savings to the District have
materialized at a level sufficient to justify continuing the Agreement. ..."
A primary focus of our work has been to independently investigate whether or not the
District has or can demonstrate that expected economic savings have materialized to date
at a level sufficient to justify continuing the Agreement. To complete our work, we have
reviewed electronic and manual file data, examined various reports and schedules,held
and attended meetings, and interviewed key persons involved in and knowledgeable
about the PSA program and its impacts (See Attachment A: Contact Lists).
Per District records and reports available to us, as of October 10, 2000:
> 5,618 projects (not contracts) are currently scheduled for completion with whole
or partial Proposition BB funding. '^
> 1,914 projects (34%) have been awarded through a competitive bid process.
1,774 of those formally awarded projects are under construction or completed.
B 3-- 159 of those under construction or completed projects (9%)are subject to the
* ,
PSA, with another 113 PSA projects awarded and ready to begin construction.
> Completed PSA projects number 46 at this time (4% of formally bid projects, and
I% of total Prop BB projects).
CONCLUSION
Through this work, and as presented in this report, we are unable to conclusively
determine whether the PSA has to date had either-a net positive or net negative economic
v impact for the District. This is primarily due to the relatively small number of projects
underway or completed under the PSA, the lack of performance tracking and comparison
data maintained by the District and the Building & Construction Trades Council,-and
other compounding and masking-impactsshatlocal.economic and other factors are having
on the data needed to measure the impacts of the PSA.
In the absence of adequate empirical data, we have compiled anecdotal evidence that
suggests that at least to date there has been neither a significant positive nor a significant
negative net impact as a result of implementing the PSA.
The resources closest to the pre and post PSA implementation contract work and
potential significant impacts are the District Construction Managers. Based on our
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November 2,2000
interviews and discussions with them covering each of the areas and measures we were
pursuing in the course of our work (cost, schedule, quality, safety, workforce
composition, etc.), the Construction Managers were consistent in their remarks that to
date the PSA has not had a noticeable favorable or unfavorable impact at the contractor
and work scene level (See Attachment B: Construction Manager Interview Results).
While the Construction Managers are unanimous in their opinion that the PSA has not
had a noticeable impact to date, it is important to note that their PSA related experience is
limited to only a small fraction of early PSA work and none of the major PSA related
construction contracting is yet underway. This anecdotal evidence is not sufficient to
reach a conclusion regarding what impacts the PSA may or may not eventually have.
Two other potential benefits of the PSA are the prohibition against work stoppages and
the elimination of shift differentials (additional pay) for multiple work shifts. There have
been no work stoppages either before or after the PSA implementation, thus the
continuity of work impact has had no benefit to date. However, work continuity benefits
are typically only material on very large blocks of contracts and over an extended period
of time, neither of which is yet the case with the District's Proposition BB PSA work.
Additionally, the District has not quantified forecasts for cost or benefits that may be
realized through the use of the PSA provision of not having to pay shift differentials.
District management expects not paying shift differentials to be of benefit once major
construction projects are underway and shiftwork is used to accelerate critical work.
(Additional more minor anecdotal points are presented in Attachment C:Additional
Anecdotal Points.)
If the District continues with the PSA, going forward it will be important for District staff
to formalize efforts to implement and enforce the agreement and to put in place
appropriate tracking to produce a basic set of periodic management reports.
LIMITATIONS Or USE OF OUR REPORT
This project has been completed and our report is intended solely for the information and
use of the Los Angeles Unified School District Board of Directors, management, and
other staff and advisors within the organization, in connection with assessing the
District's experience to date with the PSA trial, and is not intended to be and should not
be used by anyone other than these specified parties or for any other purpose. Our
analyses and conclusions are based on PSA related information available to us through
the end of our field work on October 13, 2000, and, as agreed with the District, this effort
was a review and an evaluation with much less rigor applied than would be the case with
more extensive investigations or audits. Furthermore, our report is intended to be used in
conjunction with a full range of input from the District's management, staff, legal,
contracting and advisory resources and should not be used in isolation separate from
these other information and advisory resources.
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November 2, 2000
We believe we have obtained sufficient appropriate evidence and that our examination
provides a reasonable basis for our representations in this report, and we further believe
we have applied sufficient professional judgment in expressing the report's findings and
conclusions. To the extent practical, we endeavored to collect evidence from different
sources to test for consistency. We did not find inconsistent evidence between the various
sources, i.e., differences between data points, differences between data points and staff
input, or differences between staff and outside sources. Should the Council or others
inside or outside the District prepare studies on this matter, they may have access to a
different range and depth of information, may use different assumptions and analysis
techniques, and therefore may reach different results and conclusions than are represented
in this report.
APPROACH, PHILOSOPHY, AND WORKPLAN APPLIED
Per agreements and discussions with District management, we developed and applied
objective systematic methodologies and techniques for evidence gathering and evaluation
to support a conclusion. Our review included such procedures as we considered necessary
in the circumstances. Although our investigation was independent. we did rely on District
mangers and staff to provide relevant data as requested and are not aware of any
instances where they failed to do so.
As we understand the background to this work, the anticipated cost savings of
implementing the PSA were based primarily`on undocumented prospective financial -)F-
expectations and assumptions. The original justification was based primarily on a general
assumption that in pursuing Proposition BB new school construction and major
rehabilitation efforts there would likely be significant cost and schedule overruns that
could be mitigated with a PSA/PLA. The District and/or Council are faced with
demonstrating that cost and schedule performance are significantly improved with the
PSA, and that incremental benefits more than offset any costs associated with
implementing and using the PSA. The two most significant areas for demonstrating
performance improvement are (1) areas where known problems existed and have been
successfully mitigated by the PSA, and(2) areas where new PSA policies, procedures
and practices have been successful in improving cost and schedule performance that
would not have otherwise been realized if it were not for the PSA.
We were most intent on demonstrations of cost benefit where pre-PSA baseline or
prospective cost data were available against which PSA performance could be measured
and improvements statistically demonstrated. We were also intent on finding
demonstrations where baseline or prospective data could be extrapolated or reasonably
assumed and PSA performance and trends could be directly or indirectly measured so as
to demonstrate cost benefits. In the course of our work, we also sought anecdotal
evidence and the opinions of various parties involved with or knowledgeable on the
benefits and costs associated with the PSA issues.
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We and District management at the beginning of this assignment believed that
information required to support this effort would for the most part be available from the
District's systems, staff, advisors and contractors. Our common belief was that criteria
could be set against pre-PSA baseline data and that available evidence, once evaluated,
would meet basic generally accepted requirements to measure PSA impacts against those
criteria, i.e., that source data would be relevantffeliable, neutral (free from bias),
understandable (not misleading) and complete.C�b�'hat we found once our work began was
that essential baseline data was not available and tracking processes and data were
insufficient or not available)
Given the approach, philosophy and expectations noted in the previous paragraphs, we
targeted our efforts on finding evidence in those areas that were expected to yield
significant benefits from implementing the PSA. Specifically,per a reading of the PSA,
benefit areas where PSA performance versus baseline or prospective performance was
expected to demonstrate significant improvement were:
Section 1.2: "reducing construction costs" by ensuring that all Project Work will
occur <more> "efficiently, cooperatively, economically and without interruption".
Section 1.4: "improved working conditions","improved delivery of medical care",
"reduction in the time and expense necessary to process and resolve disputes", and
"significant savings".
Section 4.5: "increased numbers of skilled construction workers from the residence
and population of the District", defined as "Los Angeles Unified School District High
School graduates and local community residents from the District's attendance area".
Section 6.4(b): work "...covered by this Agreement shall not be entitled to any
differentials.or additional pay based upon the shift or work schedule of the
employee."
Purported costs that might offset PSA benefits were noted to us as:
> Costs of setting up and administering PSA administrative and management
processes.
> Costs passed through to the District by contractors who might have to pay health
and welfare, pension and other benefits above and beyond what they would have
otherwise paid.
> Costs passed through to the District by contractors who might have to pay
working dues and non-initiation of application fees above and beyond what they
would have otherwise paid.
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.LAUSD PLA/PSA PwC Report
November 2,2000
Opportunity cost differentials of qualified bidders who might have bid, won and
completed at g lnYer cost except that they did not do so because of the PSA.
The primary aim of our Approach, Philosophy and Workplan was to independently
investigate whether or not the District can demonstrate that expected to-date net
economic savings have materialized at a level sufficient to justify continuing the
Agreement.
As reported herein, we compiled available experience-to-date benefit and cost
information per the guidelines above, solicited and compiled anecdotal evidence, and
exercised our judgement in evaluating the effects from the PSA versus effects from other
influences. Although we are unable to conclusively determine whether the PSA has had
either a net positive or net negative economic impact for the District, there is anecdotal
information which suggests that the PSA has to date had neither a significant positive nor
a significant negative net impact.
We appreciate having had this opportunity to provide additional services to the LAUSD
and look forward to additional future opportunities to assist the District in sustaining and
growing its operations. Please direct any questions regarding our work or report to
Mr. Mark Blumkin at (407) 236-5146, or Mr. Evandro Braz at (212) 259-2979.
Sincerely,
Evandro F. Braz, Partner
Engineering & Construction.
Nfanagement Consulting Services
Attachments:
A: Contact Lists
B: Construction Manager Interview Results
C: Additional Anecdotal Points
D: Typical Measures and Metrics
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LAUSD PLA/PSA PwC Report
November 2.2000-Attachment A:Contact Lists
Attachment A: Contact Lists
Interviews:
Buxbau.m, Robert __ _ LAUSD, Interim Chief Facilities Executive___ , ----
Crum, Julie _ - _i LAU SD.. Director_Facilities Support Services -
Curtis, Charla LAUSD, Labor Corn liance Coordinator _
^Hemingway. Karen _ LAUSD, Branch Director, Contract and Insurance Services
Holmes, Paul _ -_ _ LAUSD. Director-_Modernization_Existing Facilities _
Littman,Kathi - LAUSD, Director- School_Building Planning_
I Lorenzo, Rop_ —_ _ I LAUSD, Senior Project Manager-Existing Facilities
Martin, Kelly _ ; Paul, Hastings, Janofs_y & Walker LLP -
_Rascoe, Kirk _ _ _ ; LAUSD, Director- Equal Opportunity Programs
Reed, Bill ; Perspective Enterprises, Community Outreach Program
Smith, Geoffrey LAUSD, Prop BB Bond Manager _
Stetzer, Suzette Aon Risk Services, Vice President
Stevenson, Milton !_LAUSD, PSA Coordinator
Tang-Wong, Tybuoy ; LAUSD, Acting Labor Compliance Officer
Ventura, Tom LAUSD, Deputy Director- Modernization-Existing
Facilities
Additional Information Sources:
Adams, Joseph_ _ Perspective Enterprises, Comm�Outreach Program
Carter, Judy_ _ _ LAUSD, Computer Applications Specialist
Hamby, Beth LAUSD, Computer Applications Specialist_
Kajiya, Keith LAUSD, Assistant Program Manager- Program Controls i
i Leslie, Tom- _ LAUSD, Chief Construction Inspector -__`___ __-_
Merriman-Garrett, Yvette LAUSD, Assistant Chief-Public Works Contracts I
Perry. Pablo _ _ _ ; LAUSD, Data Reporting Systems Trainer _
Phillips, George LAUSD, Area Facilities Services Director
Roberts, Lynn ; _ - _! LAUSD, Director-Maintenance and Operations
Schweska, Regina -_: Perspective Enterprises,_Community Outreach Program ___J
Tsuno, Richard ; LAUSD, Chief-Public Works Contracts
- - - - - -.: ----- ---- --..- -- -- - -- - _. ------------... ---
Zepeda, Victor T-__ Perspective Enterprises, Commute Outreach Program
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LAUSD PLA/PSA PwC Report
Novernber 2,2000-Attachment A:Contact Lists
Focus Groups Participants:
Aja, Phillip _- LAUSD Project Manager
! Aziz, Emad ; Painters DC-#")6
Bauer, Mike ! Painters Apprenticeship -
Cadena, Ed Turrier Construction, Senior Project Manager --
' Hall,John C. _ Plumbers Local Union 78
Hensley, Bill " Vanir Construction
Hoggard, Shane _ Associated Builder Commission _
Irwin, Jim Painters DC#36
-...............- _..._;
_Kionka, Sandy _ --_`High Point
Kumar, Vijey -__ _ ; CRSS , Assistant Project_Director
Lacko, Robert JGM, Project Manager -- --_ - - - -
Lairson, Terry _ _ Plumbers Local Union 78
_Lopez, Alex '- Painters DC#36 -
Miller, Bob —_ CMTS, Project Manager_---__
Miller, Ralph Plumbers Local Union 78
O'Brien, Angus- _- Los Angeles Engineering_---__... -- - - -- -- - -
Oda, John : Bovis, Project Mana er i
Prunty,_James-- _ _Associated General Contractors of California
Rooker, Brad Sheet Metal Workers Local 108
i Santos, Joaquin Laborers Union 802 i
;__Schneiderman, Gerald _ Hollywood Damage Control & Recovery
`Selvaggio, Ron _ _ _ Helix Electric, Inc.__ -- ---__-- _ i
Shipp, Alex _ __ ;_HNTB/Yang, Bond BB Project Manager
Slawson, Richard Los Angeles/Orange Counties Building & Construction I
Trades Council, Executive Secretary_
Tyler, Wrn. Lam --! Terra-Cal Construction
Voight, Dave Painters DC#36
Wu William PMA_& CCG, Senior Construction Manager
Yang, Bill _ IiNTB/Yang, Bond BB Project Manavzer
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November 2,2000-Attachment B:Construction Manager Interview Results
Attachment B: Construction Manager Interview Results
The resources closest to the pre-PSA and PSA implementation contract work and potential
significant impacts are the District Construction Managers. Interviews with representatives from
the various District Construction Managers are consistent in their remarks that do date the PSA
has not had a noticeable favorable or unfavorable impact regarding project cost, schedule,
quality, safety, workforce composition, or any other noteworthy project component.
HoweveCwhile the Construction Nfanagers are unanimous in their opinion that the PSA has not /J0
had a noticeable impact to dateit is important to note that their PSA related experience is limited
to only a small fraction of early PSA work and none of the major PSA related construction
contracting is yet underway.
We interviewed representatives from ten of the eleven districts, administered the questionnaire
inserted below, and walked through a discussion of each of the areas and measures we were
pursuing in the course of our work. It is our understanding that the eleventh district was formed
after the implementation of the PSA and was not included in these discussions because
representatives would not have the necessary comparative information for projects prior to the
PSA.
We found consistent remarks from the District Managers that to date the PSA has not had a
noticeable favorable or unfavorable net impact, i.e., at the contractor and work scene the PSA
has so far been a non-event. The questions and responses are tabulated below [number of
responses are shown inside the brackets]. Tabulations shown here are the results of
conversations with the various District Construction Managers. Additional comments from other
focus groups are noted where applicable:
1. Approximately how much of your personal workload this calendar year has involved PSA
contracted work?
[2] None.
[2] No more than 10%
[5] No more than 50%
[2] More than 50%
2. How do you think PSA contracts have changed the District's administrative workload?
[0] Significantly less
[0] Somewhat less
[7] No real difference
[3] Somewhat more
[0] Significantly more
[1] No opinion
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LAUSD PLA/PSA PWC Report
November 2, 2000-Attachment 9:Construction Manager Interview Results
Representatives citing that there has been a slight increase in the administrative workload
associated with PSA projects noted that the increase was most likely an additional step of
paperwork required of contractors and their subcontractors during the bidding process.
Construction,Managers were not able to relate any notice of notable increases in District
responsibilities, and stated that their comments as to extra work on the part of contractors
were assumptions and not the product of observation. Any supposed additional steps taken
had no effect on subsequent contract requirements.
Do you believe the number of contractors bidding on projects since the inception of the PSA
has
[0] Gone up
[9] Stayed about the same
[2] Gone doA-n
N°
Additional comments regarding the static level of competition included the expectation that
the PSA would increase the number of contractors bidding on projects, and that there would
be "new blood" introduced into the mix. This desired increase in competition has, according
to the .Managers, not been realized yet and to date essentially the same contractors are
bidding on the same work
Two kJanagers citing a decrease in the number of contractors later qualified their responses
during open discussion, mentioning that they had each seen a single large contractor bow
out of LA USD bidding pools as a direct response to the PSA. However in each case they
noted a new contractor had been added to the bid list, resulting in a net gain ofzero, which
is in line xvith normal bidder turnover.
In similar discussions with the Associated Builders & Contractors and other Merit Shop
Contractor representatives, which we were not in a position to question or validate, the
unanimous response was that they had all refused to participate in District work under the
PSA. Representatives that commented agreed that the primary driver of this decision came
from their employees, who are reluctant to pay dues and fees to unions for services they may
not benef t from. One representative mentioned that, of the 90 contract members of one
organi=anon in the Los Angeles area, only one is involved in LA USD project work
4. Where PSA has been used in contracting, do you believe that the effect on change order
amounts has been to
[1] Decrease them
[1] Increase them
[9] No real change
Open discussion regarding change orders indicated that they are not connected to the PSA,
but rather the product of incomplete drawings and unknown conditions. The response that
change orders had decreased was later withdrawn, the representative mentioning that the
original response was based on the theoretic benefits of a Project Labor Agreement and not
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LAUSD PLA/PSA PvwC Repots
November 2.2000-Attachment B:Construction Manager Interview Results
actual L4 USD project experience. Comments that there was an increase were specific to a
single project and not indicative of a trend or impact of the PSA.
Associated Builders & Contractors members commented that they believed there has been an
increase in change order amounts.
5. Generally speaking, where PSA has been used in contracting, do you believe that instances of
building code violations and/or re-inspections has
[0] Significantly gone down
[2] Somewhat gone down
(9] Not really changed
[0] Somewhat gone up
[0] Significantly gone up
The expectation was that building code violations and re-inspections would decrease, as
reflected in nvo of the responses. However, during open discussion it was unanimously
agreed that to date there has been no change as a result of the PSA; the same contractors are
performing the same work with the some recurring problematic areas. A comment was also
made that inspectors are still bound to uphold building codes, meaning that they would
continue to use the same procedures and standards to examine both pre-PSA and PSA
project work
6. Where PSA has been used in contracting,do you believe that instances of schedule slippage
and overruns has
[0] Significantly gone down
\Q [1] Somewhat gone down
[10] Not really changed
/ [0] Somewhat gone up
[0] Significantly gone up
Schedule overruns vary bti•trade and are believed by the District Construction Managers to
be consistent throughout the entire Proposition BB program. Changes in schedule ivere
considered to be predominantly the result of scope changes, errors and omissions, and
unknown conditions, as is typical of the construction industry.
Examples of work stoppages were non-existent, as agreed upon by the District Construction
Afanagers, the Associated Builders & Contractors, and the Building Trades Commission.
The Building Trades Commission and other Union representatives attribute the absence of
work stoppages to the Continuity of Work Agreement, dated June 1, 1987,
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November 2.2000—Attachment B:Construction Manager Interview Results
7. Do you think there have been or are likely to be any changes in claims and/or liquidated
damages with the use of the PSA?
[0] Significantly gone down
[0] Somewhat gone down
[10] Not really changed
[1] Somewhat gone up
[0] Significantly gone up
if'hile there has not been sufficient time to adequately determine whether or not PSA projects
will experience increases or decreases in claims, the Construction Managers feel that overall
no change is expected. Again, it was mentioned that to date the same contractors are having
the same problems with little or no attention to extraordinary improvement.
8. With the use of PSA in contracting, do you think there have been any changes to the
frequency of delays associated with the availability of labor to meet workforce composition
requirements(LAUSD graduates, M/WBE, etc.)?
[1] Significantly gone down
[8] Somewhat gone down
[2] Not really changed
[0] Somewhat gone up
[0] Significantly gone up
(?Vote: Based on the subsequent discussion, we suspect that the respondents were confused by
the wording of this question. It seems that they intended to report that "availability"had
somewhat gone down, although the question was aimed at 'frequency of delays
The representatives stated that the shortage of labor, regardless of workforce composition, is
a fc{nction of the rising economy. As for workforce composition, attention is paid to ASL,"WBE
issues, as per contract requirements, but we were told that LA USD graduate information is
not considered a responsibility of the contractors and is therefore not tracked.
Conversations with the Associated Builders & Contractors cited that the union hiring halls
were empty and were of little service to the contractors.
The Building Trades Commission and other Union representatives mentioned that non-union
contractors performing under the PSA were not requesting additional labor from the union
hiring halls beyond the required core workforce. They were all in agreement that not a
single referral had been made to a non-union contractor under the PSA. Later in the
conversations, however, they were not able to provide us with referral records for any PSA
A or non-PS.A basis as their procedures do not track referrals on a per project basis. In
O addition, the union groups do not track LA USD graduate information or community
residence data per the PSA, but indicated that they are waiting for the District to provide
guidplce as to how this is to be done.
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LAUSD PLA/PSA PwC Report
November 2,2000-Attachment B:Construction Manager Interview Results
9. Do you think there has been an increase or decrease in safety violations after the PSA
implementation?
(0) Significantly gone down
;4] Somewhat gone down
7] Not really changed
(0] Somewhat gone up
[0] Significantly gone up
104ile violations are thought to leave decreased, several of the District Construction
Managers agreed that the decreases were not tied to the PSA but were the result of a more
realistic schedule and workload imposed by the District. Earlier schedules were often
aggressively compressed, creating an unusually high density of trades and laborers 'at a
single project.site.
Related anecdotal point: Statistical information tracked by the OCIP administrators at Aon
4-- Risk Services indicates that safety violations have actually risen over the last several months.
However this data does not include comparative pre-PSA project information.
10. Do you believe your dealings with PSA contractors are
[0] Significantly better
[1) Somewhat better
[10] Not really different
[0] Somewhat worse
(0] Significantly worse
The one respondent regarding-"somewhat better" indicated that the improvement was not
attributable to the PSA but was simply a matter of normal changes in contractor
relationships from time to time.
�1. Does it appear to you that, all things considered, the overall cost of work performed has
changed as a result of using the PSA in contracting?
�0 [0] Significantly gone down
(0] Somewhat gone down
[7] Not really changed
(4] Somewhat gone up
[0] Significantly gone up
In conjunction with responses recorded in previous questions, there has been an overall
perceived recent increase in project cost. This increase, however, is attributable to the
economic trends for construction in the area. There has been no change in production,
although the Construction Managers mentioned a desire for change order expenditures to
decline.
Representatives of the Associated Builders & Contractors and other Open Shop Contractors
mentioned that, in addition to the rising economy, District project costs were likely
escalating as a result of inefficiencies generated by multiple trade groups performing work
simultaneously,particularly on small projects. They also represented that they expected that
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LAI:SO PLAMSA PWC Repon
November 2,20013-AlXWh Ment B:COMCW ion MWater IMM Wiew RCAIRS
there has been an increase in overhead costs piecipirated by the mandatory rve of single-task
oriented labor versus the open shop labor practice of cross-trained labor.
i [ices it appear to you that, all things considered,the Qvgiall itv o.f Lwrk 2afattned has
changed as a result of using the PSA in contracdng't
(0) Significantly gone down
C til) Somewhat gone doom
[!OJ Not really changed
C [1 j Somewhat gone up
(0] Significantly gone up
Y ne quahty of work was nor repvrtrd by�Iic Drad to Co�unz rriv.,�ks�ragerr to ho.�c
i,icreased or decreased, particularly si'nce there has been no change in the.standards to
which the contractors mutt adhere. They pottered ow than owner, architects, and Inspectors
cannot interpret and apply building codes and work standards any differently. Problematic
contractor, and sub-contractors still cause the sama kJnds of difjrculties. The Ditcrtet
C muirucrion Managers took the opporttutiry to reiterate that to date the PSS[has truly been
c.• "non-event'.
Union rrpre-rentatives were adamant that the District has benefited from an increase in work
quality resul ring from the greater p4nccipatlon of unton contractors in District work
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LAUSD PLAIPSA PwC Report
November 2. 2000-Attachment C:Additional Anecdotal Points
Attachment C: Additional Anecdotal Points
Analysis of the Pick data was extremely limited by the available data breadth and depth and
the limited data relating to PSA contracts versus non-PSA contracts. We did not find any
material trends or variances in the data available to us. What minor differences we did find
can be explained by any number of contracting variables, and none could be traced to direct
impacts from the PSA.
Given allowances for normal bidder turnover and general bidding activity in the LA area, the
increases and decreases in bidding firms by type of contract appears to be normal activity and
tumover and do not appear to have been impacted by the PSA, i.e., to date there has been no
notable PSA impacts on bidding competition and therefore by inference contract award
values.
Interviews with management at the LAUSD and at the various district construction offices
yielded no comments regarding any significant additional administrative or management
workload with respect to the PSA.
r Within the limited PSA activity to date and the limited information available to us for a
cursory review•, we did not find instances that might suggest that any PSA related
extraordinary contractor costs are being passed through to the District by contractors. Such
extraordinary costs to consider in this regard include any mix of health and welfare, pension,
working dues, and non-initiation of application fees that some contractors and subcontractors
might pay above and beyond what they would have otherwise paid without the PSA.
Given the limited PSA contract bidding and limited statistical data available to us during this
work, we were not able to evaluate whether there might be any notable opportunity cost
�o differentials to date of qualified bidders who might have bid, won and completed work at a
lower cost except that they did not do so because of the PSA. Such an assessment will require
a study of substantial contract bidding activity, which has not yet taken place, and will likely
require research and substantiation of analysis assumptions with contractors who would be
expected to bid but did not.
We requested and reviewed selected contract files. Under the scope of this work our review
was not large enough to be statistically significant; however, we did not observe any apparent
favorable or unfavorable PSA impacts to date.
r We reviewed a limited number of workforce records. Within the scope of this work our
review was too small to be statistically significant; however, we did not observe any apparent
favorable or unfavorable PSA impacts on workforce composition, especially with regard to
alumni and local residents.
Page 15
• tvov-27-00 11 :49A ABC LAVen Chapter 818 551 6759 P . 17
LAUSD PLAMSA PwC Report
November 2.2000 Attachment D:Typical Measures and Metrics
Attachment D: Typical Measures and Metrics
The primary aim of our Approach, Philosophy and Workplan was to independently investigate
whether or not the District can demonstrate that expected to-date net economic savings have
materialized at a level sufficient tojustify continuing the Agreement. To that end we set out to
acquire available baseline and tracking data on typical measures and metrics such as:
Metric, Metric Comments Implication as to I Factors to consider
Calculation PSA Impact 1 during data analysis
and Unit of that may mask PSA's
Measure influence
Administrative Ratio of administrative A decreasing ratio Would need to
Cost ratio = and oversight costs implies decreased distinguish between
defined incurred by the burden placed on marginal costs to
administration District that are in construction consider (increased staff
and oversight addition to contract management and positions, increased paid
costs /total costs as a burden rate oversight as a result overtime, etc.) versus
contract costs on top of actual of using the PSA increased workload
contract costs is an covered by existing staff
indicator of how at no marginal cost
effective and
cooperative the
contracting
arrangements are
' Bidding The number of bid A declining indicator
Credibility protests per total implies higher
indicator = bidders is a general likelihood of quality
Number of bid indicator of the bid bidding and
protests process clarity and contracting as well as
/number of rigor as well as the lower bid process
bidders) quality of bidders costs
being attracted
Bidding Quality Poor bidding quality If the Bidding If the construction
_ #qualified implies greater bid Quality rating economy is growing,
bidders/ process costs due to increases with PSA, it fewer qualified and
#unqualified having to screen and implies that the PSA ; unqualified bidders will
bidders justify eliminating is a cost saving bid on work, and visa
unqualified bidders, device versa, which masks the
i.e., the higher the PSA influence
Bidding Quality rating
the lower the bid
processing costs for a
given bid award
Page 16
Nov-27-00 11 : 50A ABC LAVen Chapter 818 551 6759 P _ 18
LAUSD PLA/PSA PttiC Report
November 2,2000-Attachment D:Typical Measures and Metrics
Metric, Metric Comments Implication as to Factors to consider
Calculation PSA Impact during data analysis
and Unit of that may mask PSA's
Measure influence
Change Order Cost delta between If smaller rate of CO Multiple factors
Variance = original and final increase is influence this rate: poor
Final contract contract as driven by encountered for PSA original estimate, poorly
cost/ initial the results of all based contracts, scoped and priced bid,
contract cost change order types implies PSA is a cost poor execution against
saving device I plan, etc.
because there are less
unknown costs at the
time of issuing the
contract.
Competitivenes Competitive pressure If a greater number of ' The construction
s per bid = # of toward lowest possible contractors are business activity for the
bidders per RFP bid by virtue of bidding, it implies trade at the time the
number of contractors that the PSA is project is put out to bid
bidding on a given increasing the level also impacts the number
contract, i.e., the more of competition and of bidders, i.e., if the
bidders the more thereby implies that market is growing fewer
intense the overall costs should contractors will bid on
competition for the be lower the project
work and presumably
the lower the final
qualified bid for the
work
Cost Variance = Final cost at project If smaller rate of Differences between
Final cost/ completion vs. increase over estimated and final cost
estimated cost estimated cost of estimate is are also driven by the
project (as adjusted by encountered, implies accuracy of the estimate
approved scope PSA is a cost saving and ability to update
changes) device estimates for each type
of change order.
Estimating techniques
must remain consistent
and up-to-date for
meaningful comparison
of the metric.
Page 17
-Nov-27-00 11 : 50A ABC LAVen Chapter 818 551 6759 P _ 19
LAUSD PLA/PSA PwC Report
November 2,2000-Attachment D:Typical Measures and Metrics
Metric, Nletric Comments Implication as to Factors to consider
Calculation PSA Impact during data analysis
and Unit of that way mask PSA's
Measure influence
Default Cost Default Cost factor is Defaults, litigation or
factor=Default an indication of required mediation
costs / total contract oversight costs increases the
costs costs relative to costs of final
general reliability of construction, a lower
contractor selection, factor implies lower
contracting, work total absorbed costs
relations and program
oversight
Default Index = Default Index is a i Generally speaks to Default, litigation,
Default general reliability ' contract/labor mediation are also a
instances/total indicator over stability. If there are function of contract
costs contractor selection, excessive defaults, complexity and project
contracting, work litigation or required difficulty. One would
relations and program mediation, it implies expect more issues with
oversight based on the needed improvements larger, more complex
number of instances in contractor and/or projects.
when the contractor labor relations
defaults on the stability
agreement or a dispute
between contractor
and LAUSD requires
either mediation or
litigation.
Discrepancy Ratio of punch list A decreasing ratio Cost and schedule
factor = discrepancy items implies improved impacts are captured
Discrepancy (contract punch lists + project quality and elsewhere, this is a
count/contract code violations)to reduced project pseudo measure of
price contract price oversight workload, quality of work and a
is also an early pseudo indicator of
indicator of future future warranty and
warranty and maintenance impacts
maintenance impacts and costs
and costs
Page 18
,1l,?ov-27-00 11 : 51A ASC LAVen Chapter 818 551 6759 P - 20
LAUSD PLA/PSA PwC Report
November 2.2000—Attachment D:Typical Nteasures and Metrics
Metric, Metric Comments ' Implication as to Factors to consider
i Calculation PSA Impact during data analysis
and Unit of that may mask PSA's
Measure I influence
Diversity index Ratio of identified As ratio increases, Especially relevant if
= Total minority hours to total implies social goals exceeding minimum
identified hours is an indicator of of program being requirements is a benefit
minority meeting and exceeding better served to the District,
hoursitotal j minority involvement especially sensitive to
project hours i compliance objectives data capture
effectiveness
Grievance Cost Costs of dealing with A decreasing rate
factor= Direct grievances and would imply
and indirect arbitration per project improved labor
costs associated is an indicator of management and
with grievances ineffective labor relations and
management and decreased non-value
relations and a adding costs for the
measure of non value District
adding costs against
the work
Grievance Rate Occurrence of A decreasing rate
= Grievances grievances/arbitration would imply
files per total per project is an improved labor
costs (or total indicator of ineffective management and
labor hours) labor management and relations
relations
LAUSD Ratio of LAUSD As ratio increases, Especially sensitive to
Graduate graduate hours worked implies social goals data capture
Participation vs. total labor force of program being effectiveness
index= hours is an indicator of better served
Graduate hours achieving the
worked/total District's desire to
workforce hours provide employment
opportunities for its
graduates
Page 19
Nc,v-27-00 11 : 51A ABC LAVen Chapter 81B 551 6759 p _ 21
LAUSD PLA-PSA PwC Report
November 2,2000-Attachment D:Typical Measures and Metrics
Metric, Metric Comments Implication as to Factors to consider
Calculation , PSA Impact during data-analysis
and Unit of that may mask PSA's
Measure influence
Liquidated Ratio of liquidated I A decreasing Supporting data to
damages factor damages + processing liquidated damages evaluate PSA influence
= Liquidated costs compared to factor would indicate may take many months
damages + contract price reduced costs for the to finalize, ratio must
processing costs indicates the overall District, generally as include administrative
/contract price burden of coordination a result of improved and legal costs and may
and control breakdown : project planning, involve settlements.
costs above and coordination and
beyond those lanned control
Lost Time Due Occurrence of lost A decreasing ratio
to Accidents time due to accidents would indicate that
ratio = hours and injuries is a worker safety and
reported lost serious issue due to its resulting well being ,
due to accidents direct impact on the is improving as a
/total costs (or well being of contract result of the PSA
,
total labor t workers
hours
MWOB Ratio of MWOB As ratio increases, Especially relevant if
Participation 1 entity participation vs. implies social goals exceeding requirements
index = MWOB total project costs is an of program being is a benefit to the
entity indicator of meeting + better served District, especially
participation and exceeding ivfWOB ; sensitive to data capture
costs/total costs compliance effectiveness
NLRB Occurrence of NLRB A decreasing rate
Occurrence rate filings per project would imply
=NLRB filings hours is an indicator of improved labor
per total cost (or ineffective labor management and
total labor management and relations
hours) relations
Prevailing Prevailing wage A declining index
Wage Violation violations are a would suggest a
Index = general indicator of better quality of
Number of contractor contractor
prevailing wage management quality management and
violations/ total and reliability and improved District
labor hours reflect on the reputation in the
District's reputation in contractor and
the contractor and general public
general public arenas
Page 20
Nov-27-00 11 : 52A ABC LAVen Chapter 818 551 6759 p _ 22
LAUSD PLA/PSA P%vC Report
November 2.2000-Attachment D:Typical Measures and Mdrics
Metric, Metric Comments Implication as to Factors to consider
Calculation PSA Impact during data analysis
and Unit of that may mask PSA's
Measure influence
Residence Ratio of school district As ratio increases, Especially sensitive to
Participation residence employed implies social goals data capture
index = Total hours (includes of program being effectiveness
local residence resident graduates) vs. better served
hours/total total labor force hours
workforce hours i on proj.ect
Safety Violation ( Occurrence of A decreasing ratio Violations refers to
Rate =reported violations per contract would imply that checklist items and
safety violations cost (or total labor safety conditions are warnings, not lost time
/total costs (or hours) is an indication improving. due to accidents which
total labor of how safe the is captured separately
hours) working conditions are
on the work premises
Schedule Ratio of original If the ratio decreases, Ratio reductions can
Adherence = (scope adjusted) it would imply benefit the District if
Final duration project duration to improved schedule returning the work area
days/Original final project duration performance to needed District uses
duration days (excluding scope more quickly benefits
(after scope changes, any delays the District. Must factor
change + for work stoppage or out any delays due to
adjustments) extraordinary - work stoppage
circumstances) , (measured elsewhere) or
extraordinary work prior
to calculating ratio.
Schedule Ratio of original If the ratio decreases, Ratio reductions can
Quality = Final project duration to i.e., fewer changes benefit the District if
duration days! final project duration and surprises, it returning the work area
Original (includes all scope would imply to needed District uses
duration days changes, any delays improved bid more quickly benefits
for work stoppage or schedule quality and the District. Must factor
extraordinary adherence out any delays due to
circumstances) work stoppage
(measured elsewhere) or
extraordinary work prior
to calculatingratio.
Page 21
Nov-27-00 11 : 52A ABC LAVen Chapter 81B 551 6759 P . 23
LAUSD PLA/PSA PWC Report
November 2,2000-Attachment D:Typical Measures and Metrics
Metric, Metric Comments Implication as to Factors to consider
Calculation PSA Impact during data analysis
and Unit of that may mask PSA's
Measure influence
Unit Cost = Cost per each, cost per If unit cost is lower Unit costs vary over
Total cost/ total ft2, cost per linear ft, for PSA-based time based upon
units etc. where total cost projects, implies PSA material costs and
includes overheads t cost saving market conditions, also
and absorption vary due to different
f i situations and conditions
t at the point of work
Warranty index Ratio of warranty A decreasing ratio Supporting data to I
_ Warranty costs (direct and implies improved evaluate PSA influence
costs /contract indirect costs) to project quality, ratio may take many months
price contract price increases may be an to evolve
indicator of poor
contractor
performance
Work Stoppage Ratio of worker A decreasing factor N1ay require adjustments
factor = stoppages (lost labor would imply a more for partial work
Stoppage days) to total labor continuous and stoppages or secondary
duration/total days under contract is effective stream of impacts on other work
project duration , a measure of work work efforts.
continuity j
effectiveness
Workers comp Ratio of worker comp A decreasing ratio
ratio = workers claims costs to would indicate that
comp claim contract price is a worker safety and
costs/contract serious issue due to its resulting well being
costs direct impact on the is improving as a
well being of contract result of the PSA
and District workers
Page 22
F&4%
Associated Builders and Contractors
Golden. Gate Chapter
Vic
ASSOCIATED BUILDERS
AND CONTRACTORS,INC. RECEIVED
GOLDEN GATE CHAPTER
MAR 2 7 2001
Agenda Item S]D.2 CLER":P0'RD OF SUPERVISORS
f'*.A COSTA CO.
viscriminatorY Provisions
Included in
Project Labor Agreements
J
Attached is a list of union-only provisions included in the
January 2001 Richmond Middle School PLA for the
Contra Costa Building and Construction Trades Council.
These provisions are unnecessary for a public works project
to be completed on-time, on-budget, and safely.
Hundreds of public works projects worth $10 million are
successfully completed each year in Northern California
without Project Labor Agreements.
11875 Dublin Boulevard, Suite C-258 Dublin, California 94568-2842
Tel (925) 829-9230 e Fax (925) 829-5743 e www.abc.org/gate
WeSt' Co�fir� C�st�. SD - R, 4A..'d /1:Ore Sc goo
Recitals
WHEREAS, the Contractors will be engaged in construction of the Project; and
WHEREAS, a skilled labor pool represented by Building Trades Unions will be required to
complete the work involved; and (AA-'V^ fe i a,rt AeAt,
6.1 All Contractors and subcontractors shall stipulate to and have the responsibility for
making work assignments in accordance with the rules, regulations and procedures
of the Plan for Settlement of Jurisdictional Dispute in the Construction Industry
approved by the Building& Construction Trades Council AFL-CIO, June 14, 1984,
or any successor plan. Un v� Wo/ !►�f.5 nn(�'f's ,
12.1 The West Contra Costa Unified School District Board of Education is a firm
believer that Union membership is important in the successful completion of school
construction projects. (, 'p,. (f"-P j'Q^Ce, ,
(a) Employees hired by the Contractor(s) shall, as a condition of employment, be
responsible for the payment of the applicable monthly working dues and any
associated fees uniformly required for union membership in the local union
which is signatory to this agreement. Further, there is nothing in this
Agreement that would prevent non-union employees from joining the local
union.
12.2 The Contractor(s) recognizes the Unions signatory hereto as the sole and exclusive
collective bargaining representatives for its craft employees on the Project.
Un.h.. f��rGSQnl�1�"0•► . .
13.1 Contractors performing construction work on the Project described in the
Agreement shall, in filling craft job vacancies, utilize and be bound by the
registration facilities and referral systems established or authorized by the Unions
signatory hereto when such procedures are not in violation of Federal lay. The
Contractor(s) shall have the right to reject any applicant referred by the Union(s), in
accordance with Article 19.
Ii1n:o� tiP�ren��Glsl..� P"5/��.f..
16.2 During the period of construction on this Project, the Contractors.agree to
recognize and put into effect such increases in wages and recognized fringe benefits
as shall be negotiated between the various Unions and the historically recognized
local bargaining unit on the effective date as set forth in the applicable agreement.
The Unions shall notify the Contractors in writing of the specific increases in wages
and recognized fringe benefits and the date on which thgy become effective.
U..°o„ wascs SkPG�sca�G S��'� �re�u;r;s �►RS�S.
16.3 The Contractors hereby adopt and agree to be bound by the written terms of the
legally established local trust agreements specifying the detailed basis on which
payments are to be made into, and benefits paid out of, such appropriately qualified
employee fringe benefit funds established by such appropriate local agreements.
The Contractors authorize the parties to such local trust agreements to appoint
Trustees and successor Trustees to administer the trust funds, and hereby ratify and
accept the Trustees so appointed as if made by the Contractors.
iil::nQi .,
l
RECEIVED
MAR 2 7 2001
CLERK BOAR Q 0.•SUPERVISORS
�4NTRAPGNSTA CO.
PROJECT AGREEMENT OF FAIR
EMPLOYMENT AND WORK STABILIZATION
FOR
(NAME OF PROJECT)
f
a Better
Drafted By
THE COALITION FOR FAIR EMPLOYMENT
IN CONSTRUCTION
12/18/00
l \
a
Associated Builders& 9 s Betta C500<
Contractors www.gmpla.org
Asian American
Contractors
Aztec Consultants
Bay Area Black PROJECT AGREEMENT OF FAIR
Contractors
Riviera Electric of California EMPLOYMENT AND
G&H Electric
WORK STABILIZATION
D.M.Jepsen Inc.
Gentry Brothers Inc. The Coalition for Fair Employment in Construction (CFEC) has
H&D Electric prepared this document to assist owners, contractors and unions in
Helix Electric drafting a project labor agreement or labor stabilization agreement that is
fair to all workers and respects their freedom of association. The fonnat
Hensel Phelps on the
b
ll
and content of this document has been substantially aseu
Construction Co, p
J.I.Garcia Construction "Project Agreement of Fair Employment and Work Stabilization for
Denver International Airport."
JX. Roberts Construction
Mauldin-Dorfineier This document is in no way intended to be a complete and finished
Construction product. It is assumed that the reader may want to delete, modify, or add
National Association of text in order to tit the Owner's specific local needs. It is recommended-
Minority Contractors that the reader obtain legal counsel in the final drafting of any agreement.
National Federation of
independent Businesses The law fine of Cook, Brown & Prager, LLP helped CFEC develop this
Pacific Construction document. For the reader who wants additional insight into this
Corps.
document, Cook, Brown & Prager can be retained for additional advice by
Plumb-PAG contacting Dennis B. Cook or Jessavel Y. Delumen at (916) 442-3100.
R.J. Lanthler
Rex Moore Electrical At the back of this document, a list of"unfair" clauses in union-only
Contractors&Engineers project labor agreements or labor stabilization agreements has been
Rainbow Construction attached in order to alert the reader to restrictions in such agreements that
Riese&sons Inc,
prevent non-union workers and contractors from working on a project.
5unwest Electric If you have any questions, please do not hesitate to contact Eric Christen
Terra Cal Construction with the CFEC at (707) 432-0676.
West Coast Contractors
Western Electrical
Contractors Association
Western Engineering
Contractors
Women Construction Owners
&Executives
Coalition for Fair Employment in Construction - 2320 Courage Drive,5uite 110,Fairfield,California 94533 • Phone bbb/479-2332 Fax 7071432 0682
THIERMAN LAW FIRM
LABOR RELATIONS AND EMPLOYMENT LAW
120 GREEN STREET
SAN FRANCISCO,CA 941 11
MARK R.THIERMAN TELEPHONE(415) 391.9200
FACSIMILE(415)434-2867
ROBERT FRIED E-FAX (415)723-7078
CARRIE L. FREESTONE December 19, 2000
ALICE K. CONWAY email: thiermnl@tvil.com
LARA L. MYERS
www.thierman.com
MORGAN M. MACK
Via Facsimile (707) 432-0682 and U.S. Mail
Eric Christen
Coalition for Fair Employment in Construction
2320 CouTaae Dn*Ve, S!»te 1110
Fairfield, CA 94533
Re: Project Agreement of Fair Employment and Work Stabilization
Dear Eric:
As requested, I have reviewed the above document, labeled in this letter as the
"Fair Employment Project Agreement". The assumptions on which this review is based
are as follows: (1) the individual substantive components of the "Fair Employment
Project Agreement" are illustrative principles only, and are not to be considered a specific
proposal for a project labor agreement; (2) the intent of the "Fair Employment Project
Agreement" is to address the concerns of non-signatory contractors, while, at the same
time, facilitating adoption of a project labor agreement.
The question presented is whether such an agreement is a viable option for a
public entity already considering a project labor agreement. This letter sets out our
response in summary form. We have concluded, as explained below, that the inclusion of
such "fairness" elements is not only permissible, but is an important element in the
adoption of any project labor agreement.
Litigation on the issue of project labor agreements, while extensive, has largely
been limited to assessment of anticipated impact on non-signatory contractors of project
labor agreements which impose union wages and working conditions on all bidding
contractors. As articulated in those cases, the non-signatory community views such
agreements as limiting their ability to bid or work on public sector projects.
Since the decision of the United States Supreme Court in Building & Constr.
Trades Council v. Associated Builders & Contractors of Mass./R. I., Inc. (1993) 507 U.S.
218 [113 S. Ct. 1190, 122 L. Ed. 2d 5651 (Boston Harbor), challenges based on labor law
preemption have been generally unsuccessful. A public entity, as long as it was not
engaging in regulatory activity, could function as if it were a private owner, a so-called
"market participant" in negotiating construction contracts.
Eric Christen
Coalition for Fair Employment in Construction
December 19, 2000
Page 2
More recently, challenges based on the anti-competitive effects of union-only
project labor agreements have been subject to attack under state competitive bidding
statutes. Courts have split. A representative case, the decision of the California Supreme
Court.in Associated Builders & Contractors, Inc. v. San Francisco Airports Com., 21
Cal. 4th 352; 376, 981 P.2d 499 (1999), while upholding a project labor agreement,
limited its decision to the agreement before it, requiring analysis on a case by case basis
to ensure fairness. The Court specifically urged non-signatory contractors to be specific
and vocal in the consideration of these proposals by the public entities, in order to
facilitate appellate review. See Associated Builders & Contractors, Inc, 21 Cal. 4th at
371.
In shortthe "Fair Employment Project Agreement" seeks to present, for
consideration by public entities as part of their fundamental fact finding responsibilities,
contract clauses which would facilitate equitable and efficient participation of the non-
signatory contractor in project labor agreements. In this context, we conclude that
presentation and consideration of the "Fair Employment Project Agreement" will help
ensure, consistent with the express mandate of the California Supreme Court, that all
issues impacting the non-signatory contractor are made an explicit part of the
consideration of the project agreement at issue.
We trust that the foregoing will prove a useful summary for use in connection
with presentation of the conceptg of a "Fair Employment Project Agreement" to public
entities. You may provide a copy of this letter on firm letterhead in connection with any
such presentation. The undersigned may be contacted directly for further information.
Very truly yours,
PrtRMAN LAW F
Frie
PROJECT AGREEMENT OF FAIR EMPLOYMENT
AND WORK STABILIZATION FOR
(Name of Project)
THIS PROJECT AGREEMENT OF FAIR EMPLOYMENT AND WORK
STABILIZATION (hereinafter referred to as "Agreement") is made and entered into this
day of , 2000, by and between the (Name of Owner), a public entity of the
State of California(hereinafter referred to as "Owner") together with the contractors who
perform construction work at the (Name of the Project) (hereinafter referred to as
"Contractors") and the (Name of•organized labor's organizations) and the local unions
affiliated therewith. The term "Union" or "Unions" as used in this Agreement shall refer
to all of the unions listed on the signature page(s) of this Agreement and the (Name of
Organized Labor's Council) collectively,while the term "Council" shall apply to the
(Name of Organized Labor's Council).
Intent and Purpose
WHEREAS, it is essential that the construction work required to build the (Name of the
Project) be done in an efficient and economical manner so as to secure optimum
productivity and to eliminate delays in the construction operations, thus ensuring timely
completion in the work undertaken by the contractors, and
AWHEREAS, the Owner has concluded that the adoption of certain requirements for, and
uniformity in,wages,hours, and working conditions for work on the Project, as reflected
in this Agreement, will promote stability, efficiency, and economy of performance, and
WHEREAS, all parties"have as their goal the optimization of opportunities for minority
and women employees as well as for Disadvantaged Business Enterprises including
Minority, Women, and Disabled Veterans Owned Business Enterprises, and
WHEREAS, it is the intent and purpose of this Agreement to provide, establish and put
into practice effective methods for the settlement of labor disputes which may arise on the
Project described herein without strike, lockout, work stoppage, or slowdown, to the end
that the Project shall be assured of continuity of operations, and
WHEREAS, it is the intent and purpose of this Agreement to provide fair employment
and work stabilization without discrimination in any manner, either for or against Union
or non-Union contractors, and nothing in this Agreement shall be construed to require any
contractor to become signatory to a collective bargaining agreement, or any employee to
become a member of any Union,
NOW, THEREFORE, in consideration of these premises, it is agreed as follows:
3
i
' ARTICLE I
Definitions
' 1.1 "Project" shall be defined as the construction of the (Name of the Project), which
construction as presently planned shall consist of(Description of the Project),
scheduled for initial completion in (Year), consisting of all work done by
Contractors under contract to the Owner, and their subcontractors, at the (Name of
the Project) site._
1.2 "Owner" hall be fined as a of the Owner).
s 1c (Name
1.3 "Contractor" or "Contractors" shall be defined as all companies or entities
performing construction work under contract with the Owner for the Project, and
employing any construction workers. However, this Agreement shall not apply to
any contract, the total cost of which is less than (Dollar Amount).
1.4 "Subcontractor" or "Subcontractors" shall be defined as all companies or entities
performing construction work under a subcontract at any tier which work is also
covered under a contract between a Contractor and the Owner for the Project.
1.5 "Manager" shall be defined as the Manager of Public Works for the Owner or his
or her designated representative.
1.6 "Union" or "Unions" shall be defined as all of the Unions listed on the signature
page(s)of this Agreement and the (Name of Organized Labor's Council).
1.7 Signatory Contractors shall be defined as those contractors working on the
Project who are signatory to any collective bargaining agreement or agreements
(excluding project only agreements)with any of the Unions.
1.8 "Nonsignatory Contractors" shall be defined as all contractors working on the
Project who are not signatory to any collective bargaining agreements (excluding
project only agreements)with any of the Unions.
1.9 "Employer" or "Employers" shall be defined as any Contractor or Subcontractor
who employs employees to perform work at the Project.
1 ARTICLE II
Scope of Agreement
2.1 This Agreement shall apply and is limited to the recognized and accepted
definition of construction work under the direction of the Employers at the site of
the Project. The Owner, Unions, and Contractors agree to abide by the terms and
conditions contained in this Agreement with respect to the administration of
construction work at the Project during the duration of the Contract's work at the
�I
� 4
Project. This Agreement represents the complete understanding of the parties
with respect to the issues covered hereunder and any Contractors and
Subcontractors at any tier shall not, by virtue of this Agreement,be required to
j sign any agreement with the Unions or any other Union insofar as work on the
Project is concerned. With regard to Signatory Contractors and Subcontractors,
the provisions of this Agreement shall control the construction of this Project and
take precedence over the provisions of local or national agreements, which may
conflict, with the terms of this Agreement.
2.2 This Agreement shall be limited to work historical) recognized as construction
g Y
work, and nothing contained herein shall be construed to prohibit, restrict or
interfere with the performance of any other operation, work or function which
may occur at the-site of the Project or be associated with the development of the
Project.
2.3 Contractors obligated under this Agreement shall be required to incorporate the
Agreement into all subcontracts of whatever tier.
i
2.4 Nothing in the Agreement shall be construed to limit the rights of the Contractor
to select any qualified person for employment, except as provided in applicable
Collective Bargaining Agreements for those who are Signatory Contractors.
2.5 Nothing in this Agreement shall be construed to limit the Owner's right to select
the lowest responsive bidder pursuant to state contract statutes for the purposes of
awarding construction contracts.
2.6 Nothing in this Agreement shall be construed to require any individual to be or to
become a member of any union except as provided for in applicable collective
bargaining agreements. The parties agree that all employees shall have the right
to decide whether they want to join a union or refrain from joining a union.
r2.7 Nothing in this Agreement shall in any way interfere with MBE./WBE or DVBE
programs applicable to the Project.
2.8 An Non-signatory Contractor of an tier shall be bound to all of the terms and
Y g ry Y
conditionsof this Agreement except those specifically noted as applying to
' Signatory_Contractors only.
2.9 Items specifically excluded from the scope of this Agreement include but are not
limited to the following:
1 a. Work of non-manual employees, including but not limited to
superintendents, supervisors (except foremen and general
foremen), engineers, inspectors, quality control personnel, quality
assurance personnel, timekeepers, mail carriers, clerks, office
5
workers,janitors, messengers, guards, emergency medical and
first-aid technicians, and other professional, engineering,
administrative, and management employees;
b. All deliveries to and from the Project site and all work performed
off the Project site except as otherwise provided for in Prevailing
Wage or Public Works Determinations and regulations issued
pursuant thereto;
C. Equipment and machine in the care custody and control of
machinery � Y
companies other than Contractors, or Subcontractors;
d. The removal of scrap, surplus, spoilage, and waste materials from a
common scrap location to a location off the Project site except as
otherwise provided for in the Prevailing Wage Determinations and
regulations issued pursuant thereto;
e. Any work performed on or near or leading to or into the Project
site by state, county, city (other than the (Name of the Owner) or
similar governmental bodies or their contractors, and/or utilities or
railroads or other similar organizations or their contractors; and
f. Work that is not within the recognized jurisdiction of the Unions.
2.10 As items, areas and systems of the Project are inspected and construction tested by
the Contractor and finally accepted by the Owner, this Agreement will not have
further force or effect on such items, areas, or systems except when the Contractor
is directed by the Owner to engage in repairs, modifications, checkout and
warranty functions required by its contract. Warranty work by the manufacturer
of the equipment shall be at the Owner's discretion.
2.11 Delivery of equipment, apparatus, machinery and construction materials to the site
shall not be within the scope of this Agreement until in the possession and control
of the Owner or a Contractor except as otherwise provided for in the Prevailing
Wage Determinations and regulations issued pursuant thereto.
2.12 The(Name of Owner)will prominently indicate on bid documents and bid
announcements that this Project is covered under the terms of a Project
Agreement for Fair Employment and Work Stabilization between the (Name of
Owner) and the (Name of Organized Labor's Council).
6
ARTICLE III
Management Rights
3.1 The Employer retains full and exclusive authority for the management of its
operations. The Employer shall direct its working forces at its prerogative,
including but not limited to hiring, promotion, transfer and layoff. No rules,
customs or practices shall be permitted to be observed which limit or restrict
production, or limit or restrict the working efforts of employees. Suspension or
discharge of employees will be subject to just cause.
3.2 The designation or determination of the number of foremen or general foremen is
' the sole responsibility of the Employers. However, Signatory Contractors will be
subject to any applicable collective bargaining provisions relating to the
designation and determination of foremen or general foremen.
3.3 The Employer, in its sole discretion, shall schedule work and shall determine
when overtime will be worked.
3.4 The foregoing enumeration of management rights shall not be deemed to exclude
+� other functions not specifically set forth. The Employer retains all management
rights not specifically limited by the terms of this Agreement.
3.5 The Employer may utilize any method or technique of construction, tools or other
labor-saving devices, and there shall be no limitation or restriction regardless of
source or location on the use of machinery, pre-cast, tools or other labor-saving. .
devices, nor shall there be any limitation upon choice of materials, design, or
source of materials, provided that the installation, fabrication, assembly, or
application of materials at the site of the Project shall be performed by labor or
mechanic classifications traditionally and customarily having jurisdiction over
such work.
3.6 The Employer shall have the right to terminate any employee who fails to
satisfactorily, competently, and diligently perform his/her assigned work. Unless
other required by law, all grievances, complaints, disputes or controversies
involving the termination of an employee performing work at the site of the
Project shall be resolved pursuant to Section 11.3 of this Agreement.
ARTICLE IV
Craft Training
4.1 This Agreement recognizes the need to maintain continuing support of programs
designed to develop adequate numbers of competent workers in the construction
industry. Employers may employ apprentices of the respective crafts to perform
such work as is within their capabilities and which is customarily performed by
the craft in which they are registered, and subject to any limitations imposed by
r
State of California, Department of Apprenticeship Standards and regulations
issued pursuant thereto.
4.2 All Contractors must be approved by the State of California Department of
Apprenticeship Standards to train apprentices prior to the start of work.
4.3 Employers must comply with applicable apprenticeship statutes and regulations
and employ state-certified apprentices within all apprenticeable crafts on this
Project. Employers will be required to comply with the Division of
Apprenticeship Standards' rules and regulations on the use of apprentices.
Employers may use apprentices from any program approved by the Division of
Apprenticeship Standards. Employers must provide documentation of compliance
with this requirement to the (Name of Owner) prior to the start of work.
ARTICLE V
Wages and Benefits
5.1 Minimum wage rates and fringe benefit contributions paid on behalf of employees
on the Project shall be paid in accordance with the provisions of the State
Prevailing Wage law for building, highway and heavy construction work.
5.2 Employers shall provide fringe benefits to their employees, which, as a minimum, shall
include the following benefits for each employee covered by this Agreement:
1. Health and welfare,and
' 2. Pension.
The health and welfare benefit shall not be paid as wages unless the employee already
has health and welfare coverage through their spouse, domestic partner or another
employer.
5.3 The Owner has the obligation to initiate and carry out reasonable and appropriate
procedures to enforce compliance with Article V of this Agreement. The Owner
reserves the right to require the Contractor and every Subcontractor to provide
certified payroll reports and any other documentation necessary to verify
compliance with this Agreement.
5.4 In the event the Owner has reasonable cause to believe that any Contractor or
Subcontractor has failed to or is failing to comply with prevailing wage
obligations, the Owner shall notify the Contractor to correct the error. If the
failure to comply is not corrected within 15 days, the State of California and the
Contractor's bonding company shall be notified.
5.5 The Owner may take any other appropriate action provided for by local, state, or
federal law relating to the payment of minimum wages and fringe benefits.
8
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ARTICLE VI
Safety,Health, & Sanitation
6.1 Employees must use diligent care to perform their work in a safe manner and
protect themselves and the property of the Employer and the Owner. Failure to do
so may result in immediate termination.
6.2 In order to protect the safety and health of employees, all parties agree to comply
with..the applicable provisions of state and federal laws and regulations relating to
job safety,health and safe work practices, as well as those specific Project safety
rules enacted by the Employers and the Owner in its overall Safety Program.
6.3 All employees will use required safety equipment and protective clothing. Willful
' failure or refusal by an employee to use such protective equipment or clothing is
cause for termination.
6.4 Substance abuse: The possession of alcohol or illegal drugs or being under the
influence of alcohol or illegal drugs on the site is subject to discipline up to and
including termination. Any employee who reports for work under the influence of
alcoholic beverages or illegal drugs, or who drinks alcoholic beverages or uses
illegal drugs on the job site, or who reports to the job site with alcoholic
beverages or illegal drugs in his/her possession, shall be subject to discipline up to
and including termination. All Contractors shall have a drug testing prop-ram
effect that includes pre-hire drug screening, random drugtesting,esting, post accident
. ... .......
druk screening and "for cause" drug testing and a provision requiring the
tEmployer to reasonably accommodate any employee who wishes to voluntarily
enter and participate in an alcohol or drug rehabilitation program, provided that
this reasonable accommodation does not impose an undue hardship on the
Employer. Nothing in this Article shall be construed to prohibit an Emplo}_er
from refusing to hire, or discharging an employee who, because of the employee's
current use of alcohol or drugs, is unable to perform his or her duties, or cannot
perform the duties in a manner which would not endanszer his or her health or
safety or the health or safety to others.
ARTICLE VII
No Discrimination
' 7.1 The Contractors agree to engage in active recruitment of minority and female
applicants and to make every effort to employ sufficient numbers of minority and
female.applicants to assist in meeting employment goals pursuant to this
Agreement.
9
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7.2 The following employment goals are a part of this Agreement:
A.) African American %
B.) Hispanic %
C.) Asian %
D.) -° Female %
E.) American Indian %
7.3 No party to this Agreement shall discriminate against any employee or applicant
for employment because of religion, marital status, veteran status, disabled status,
race, creed, color, sex, age, national origin, sexual orientation, or union or non-
union affiliation. In addition, the parties hereto agree to take positive affirmative
action to ensure full compliance with the rules of all applicable equal employment
opportunity statutes, ordinances, and regulations.
ARTICLE VIII
Local Hiring
8.1 The Owner has every desire to maximize the use of local residents as employees
on this Project. "Local" shall mean any resident or business located within the
Owner's jurisdiction. Asa minimum, the following minimum goals are to be
established relative to local hire on this Project:
A. Journe ersons %
YP (hours)
B.) Apprentices (hours) %
8.2 To the extent permitted by law, at least one (1) local apprentice shall be employed
in each apprenticeable craft used on this Project.
8.3 It is the goal under this Agreement that at least (%) of all
subcontracted work should be subcontracted to local businesses.
ARTICLE IX
Working Conditions
9.1 The Employer shall be the sole judge as to the numbers of foremen and general
iforemen to be employed, as well as the number of employees to be assigned to
any crew, operation or piece of equipment subject to this Agreement and, for
Signatory Contractors, subject to applicable Collective Bargaining Agreements.
9.2 There shall be no limit on production by workers nor restrictions on the full use of
tools and/or equipment. There shall be no restriction, other than that which may
be required by safety regulations or state Prevailing Wage determination, on the
number of employees assigned to any crew or to any service, except as provided
for in applicable Collective Bargaining Agreements for Signatory Contractors.
10
9.3 Procedures for the control of tools, equipment and materials shall be established
by the Contractors and shall be observed by all employees in accordance with
applicable-jurisdictional standards contained in Article XIII.
9.4 The Employer shall use clock or other accountability systems for all employees
checking in or out of the Project on a daily basis. All employees shall be at their
designated reporting place for work at the starting time and shall return to their
designated reporting place at quitting time. Special consideration may be given to
unusual conditions. All employees will be at their work places at the conclusion
of the lunch break and authorized rest period.
9.5 Employees shall be allowed ten minutes prior to the end of each shift to put up
their tools and leave their place of work. Clean-up time shall be as specified in
applicable Collective Bargaining Agreements for Signatory Contractors.
Employees shall not stop work prior to the times designated herein for putting up
tools or cleaning-up, or prior to the commencement of the lunch period, without
the consent of their employers, except that employees may take authorized rest
periods scheduled by the Employer. Repeated infractions of this rule, after
appropriate warnings, shall be grounds for termination.
9.6 Each employee is expected to give a full day's work for a full day's pay and any
violation of the work starting and stopping times will be grounds for termination.
9.7 If an re employee is unable to ort for work as scheduled, he/she is expected to
P P
notify the Employer's job office; failure to do so without good reason will be
' cause for discharge. Automatic termination will take place after three (3) days of
unexcused.failure to report to work or failure to notify the Employer's job office,
unless such failure was caused by circumstances beyond the control of the
employee. If an employee is late for work,the time will be deducted from his/her
pay.
9.8 Chronic absenteeism and tardiness without sufficient verified reason is a cause for
termination. The Employer shall be the sole judge of whether there is good
reason for a worker's absenteeism or tardiness.
9.9 Slow-downs, stand-by crews and featherbedding practices will not be permitted.
Neither the Unions nor the Owner will impose conditions, which require the
Employer to employ more individuals than the Employer deems necessary to
perform the work.
9.10 Vendors and suppliers will deliver supplies, equipment, tools, and materials to
points on the Project site as designated by the Contractor. There shall be no
iinterferences with vendor and/or supply deliveries to the Project.
1
1
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9.11 A mutually agreeable procedure will be established whereby upon the completion
of the installation of any equipment including construction component testing and
prior to system operation testing,the equipment may be tagged as being turned
over to the Owner. The determination of completion shall be by the Owner. All
work subsequent to the tagging of the equipment may be performed at the
discretion of the Owner with personnel of its choice; provided, however, that the
employees performing construction work shall not test nor operate equipment,
apparatus or machinery unless specifically requested to do so by the Owner or an
Employer or a representative of the manufacturer, or some other management
technician authorized to give such work order. Persons of its choice shall perform
all inspection by the Owner or by the Employer of incoming shipments of
requipment, apparatus,machinery, and construction materials of every kind, at the
sole discretion of the Owner or the Employer. Such inspection personnel shall
perform no repair, alteration, assembly, disassembly or installation of said
equipment or materials, unless such personnel are covered by this Agreement.
9.12 Any employee who willfully damages the work of any other employee, or any
material, equipment, apparatus, or machinery shall be subject to immediate
termination.
9.13 Any termination of an employee or other personnel action shall be subject to the
right of the employee or the Union on behalf of its members to initiate a grievance
under the procedures established herein. As for Signatory Contractors, either the
employee or the Union acting on behalf of its members may initiate a grievance
under the procedures established herein.
r
9.14 Copies of Contractor and Project work rules will be posted in the appropriate
locations at the Project site and provided to employees prior to the
commencement of work on the Project. All employees will abide by these rules
and the appropriate posted rules of respective Employers. Infractions of work
rules may be grounds for termination.
ARTICLE X
' No Strikes & Lockouts
10.1 During the life of this Agreement, the Unions agree that they will not collectively
or individually engage in or participate in any strike, work slowdown, work
stoppage, sympathy strike, refusal to work or picketing against any Employer
signatory to this Agreement.
r .
10.2 The Owner and the Signatory Contractors agree that they will not lock out any of
the employees working under this Agreement.
10.3 If any strike, work slowdown, work stoppage, sympathy strike, refusal to work or
picketing against any employer working on the Project is not immediately
' 12
... .......... .
resolved within twenty-four(24)hours of said strike, work slowdown, work
stoppage, sympathy strike, refusal to work or picketing, the striking Unions,
jointly and severally, and any Unions acting in concert with them, agree to pay
Owner a sum equal to one percent(1%) of the Prime Contract value for each day
said strike, work slowdown, work stoppage, sympathy strike, refusal to work or
picketing continues. Because the injury resulting from such a violation of this
Agreement would be impractical or extremely difficult to ascertain or estimate,
this sum is agreed upon as liquidated damages and is intended as compensation
for this injury and not as a penalty. The liquidated damages provided by this
Section shall be in addition to any other available remedy, and not in lieu thereof.
ARTICLE XI
Hours of Work, Overtime,Reporting Time Pay & Holidays
11.1 Production Shifts: The standard work day and work week for production crews
shall consist of either five (5) consecutive days at eight(8) hours per shift Monday
through Friday or, to the extent permitted by law, four(4) consecutive days at ten
(10)hours per shift. Nothing herein shall be construed as guaranteeing any
employee eight (8) or ten (10)hours of work per day or forty (40)hours of work
per week. Regular work hours will be between 6:00 A.M. and 6:00 P.M. There
shall be a 30-minute unpaid lunch period, which shall, insofar as practicable, be at
the midpoint of the shift or within one-half hour before or one-half hour after the
midpoint of the shift. There shall be required rest periods which shall be
scheduled by the Employer.
11.2 Make-up Day: In the event the employer is unable to work forty (40) straight time
hours during the scheduled work week due to inclement weather, Saturday may be
1 utilized as a make-up day and all hours worked up to forty (40) in a work week
shall be paid at the straight time rate of pay.
11.3 An effort will be made to keep overtime work to a minimum but where such work
is judged necessary it will be worked at the direction and discretion of the
Employer. The Employer will designate which employees will work over-time.
If overtime is worked the Employer will make every effort to distribute overtime
on an equitable basis wherever practicable and possible.
11.4 Overtime: All hours worked in excess of eight (8) hours per shift on the five (5)
day eight(8) hour shift or in excess of ten(10) hours per shift for the four(4) day
ten(10)-hour shift, shall be paid at a minimum of one and a half(1'/Z) times the
straight time rate. Hours worked on Holidays listed in paragraph 11.8 shall be
paid at a minimum of one and a half(1'/2) times the basic straight time hourly
wage rate. Hours worked in excess of twelve (12) hours in a day or in excess of
eight (8)hours on any seventh consecutive day of work in a workweek shall be
paid at-'db uble the employees' regular rate of pay.
13
' 11.5 Service Shifts: On operations including but not limited to dewatering, curing and
protection of concrete, equipment servicing and maintenance, maintenance of
climatic protective devices, and similar operations,the Employer may establish
shifts with days off other than Saturdays and Sundays. On such operations, all
overtime hours shall be paid at a minimum of one and one-half(1'/2) times the
basic straight time hourly wage rate.
11.6 Multiple Shifts: Multiple shifts may be established when considered necessary
by the Employer. The Employer reserves the right to implement different shift
schedules for different operations.
I) Signatory Contractors shall notify the Union of the starting and quitting
time of all second or third shifts two (2) days before the initiation of said
' shifts.
2) If two (2) five (5) day, eight(8) hour shifts are utilized, employees in both
shifts will work eight (8)hours for eight (8)hours' pay, exclusive of lunch
and authorized rest periods.
3) On a three (3) shift operation, shift hours and rates will be as follows:
First Shift: 8 hours' work plus %hour for lunch for 8 hours' pay.
Second Shift: 7/Zh ur ' work plus /z hour for lunch for 8 hours' pay.
Third Shift: 7 hours' work plus '/2 hour for lunch for 8 hours' pay.
On a three (3) shift operation eight (8) hours shall be credited as time
worked for each shift for purposes of fringe benefit payments and
overtime calculation.
All hours worked in excess of the established shifts shall be paid at a
minimum of one and a half(1'/z)times the basic straight time hourly wage
rate.
4) No additional shift premiums shall be required.
5 Shifts shall be established for a minimum of five 5 consecutive
workdays.
6) Safety regulations for the Project may limit the number of hours worked
by an individual within a specified time period.
11.7 Reporting Time Pay (applies to all shifts): Any employee who reports for work at
a designated time and for whom no work is provided shall, unless notified as
14
1
herein provided, receive two (2)hours' pay provided the employee remains
available for work during the two (2)hour period. If after working two (2)hours
the employee is prevented from working a full shift by other than inclement
weather,the employee shall be paid for actual time worked but not less than four
(4)hours' pay if more than two (2)hours are worked. In the case of inclement
weather shutdown,the employee will be paid for two (2)hours or actual time
worked whichever is greater, provided that, at the discretion of the Employer the
employee remains immediately available to work the job for the said two (2)
hours. The Employer may implement a notification procedure to give prior
notification of work cancellation. Notice given to the employee through the
designed notification procedure at least two (2) hours prior to the beginning of the
1 employee's shift shall be deemed as timely notice and no reporting time pay
would then be required.
Any employee who leaves the job on his/her own accord will be paid for actual
hours worked only. Any employee who reports to work in a condition unable to
work will not be eligible for reporting time pay.
11.8 The recognized uniform non-paid holidays shall be as follows:
New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving, the
day.after Thanksgiving, and Christmas Day. No employee shall be required to
work on a holiday except in an emergency. In the event a holiday falls on
Sunday,the following day, Monday, shall be observed as such holiday. In the
event a holiday falls on Saturday, the preceding Friday will be a regular workday
at straight time pay.
ARTICLE XII
Disputes & Grievances
12.1. All parties to this Agreement realize the importance of maintaining continuous
and uninterrupted performance of the work on the Project, and agree to resolve
disputes in accordance with this Article. Nothing in this Agreement shall restrict
any remedies available to individual employees under applicable statutes.
12.2 Grievance Procedure and Arbitration. It is specifically agreed that in the event
any disputes arise out of the interpretation or application of this Agreement, they
shall be'settled by means of binding arbitration. Any grievances, complaints,
disputes and controversies of employees of Signatory Employers or the Unions
against Signatory Employers on this Project shall be resolved in accordance with
the grievance procedures set forth in their applicable Collective Bargaining
Agreement. Any grievances, complaints, disputes and controversies of employees
of Nonsignatory Employers.or the Unions against Nonsignatory Employers on
this Project shall be resolved by means of binding arbitration through the
American Arbitration Association. Such arbitration shall be final, binding and
15
' conclusive and shall be conducted in accordance with the Construction Industry
Dispute Resolution Procedures of the American Arbitration Association. in
accordance with applicable statutes.
The expenses of the arbitration, including the arbitrator's fee, shall be borne by
' the Nonsignatory Contractor and/or the Union, unless otherwise directed by the
arbitrator. Each party shall pay its own attorney's fees.
' 12.2 The arbitrator(s) shall not have authority to tender a decision involving a
jurisdictional dispute or a decision the effect of which would amend, modify,
alter, delete from, add to, or supersede any provision of this Agreement or its
intent.
' ARTICLE XIII
Jurisdictional Disputes
13.1 The assignment of work for Signatory Contractors will be solely the responsibility
of the Employer performing the work involved. In such assignment, the
Employer will assign work in accordance with historical practices for building,
highway and heavy construction work, and such assignments will be according to
area practices, decisions and agreements of record, and in compliance with
applicable provisions of Prevailing Wage regulations.
13.2 Signatory Contractors agree that all Jurisdictional disputes over division of work
with crafts affiliated with the California Building and Construction Trades
Council, AFL-CIO, will be settled in accordance with the procedural rules and
regulations of the Plan for the Settlements of Jurisdictional Disputes in the
Construction Industry, effective June 1, 1984, or any successor plan. All
Signatory contractors of this Project agree to assign work and be bound to the
terms and conditions of the Plan for the Settlement of Unions agree that the
assignments of the Employer shall be followed until the dispute is resolved in
accordance with the section. It is not the intent of this section to disregard the
Jurisdiction of Unions not a party to such resolution. Individuals violating this
article shall be subject to immediate discharge. Any Union violating this Article
shall forfeit any'further claim to the disputed work.
13.3 The assignment of work for Nonsignatory Contractors will be solely the
responsibility of the Employer performing the work involved. In such
assignments the Employer will assign work in accordance with historical practices
for building, highway and heavy construction work, and such assignments will be
according to area practices and in compliance with applicable provisions of
Prevailing Wage regulations. Should a Nonsignatory Contractor be unable to
resolve an assignment of work dispute, the Owner shall after investigation resolve
the dispute and the Nonsignatory Contractor agrees to abide by the Owner's
16
decision. The Employer's assignment of work shall be adhered to until the
dispute is resolved.
ARTICLE XIV
Construction
14.1 This agreement is deemed to be made, and shall be subject to, construed and
enforced in accordance with the laws of the State of California, and the Charter
' and Revised Codes of the Owner. Venue for any legal action relating to this
Agreement shall lie in the
ARTICLE XV
General Savings Clause
15.1 It is not the intent of the parties to this Agreement to violate any Federal, State or
local laws.governing the subject matter contained herein, and any final
determination that any provision of this Agreement violates any law or is
otherwise not binding and enforceable shall have no effect on the validity of the
remaining provisions of the Agreement. All parties who are signatory to the
terms of this Agreement agree that if any of the provisions contained herein is
finally held or determined to be illegal, unenforceable, not binding, or void by a
court of final and competent jurisdiction, an effort will be made by the parties
hereto to promptly enter into negotiations concerning the clauses affected by such
decision for the purpose of achieving conformity with the requirements of any
' applicable law or conflicting law so violated.
ARTICLE XVI
' Local Collective Bargaining Agreements
16.1 This Agreement recognizes that each individual Signatory Contractor, as defined
in Article 1.8, is currently signatory to one or more Collective Bargaining
Agreements'which would otherwise be applicable to and govern portions of the
individual Signatory Contractor's construction work performed at this Project. As
1 to each individual Signatory Contractor, this Agreement shall incorporate by
reference all provisions, not inconsistent with this Agreement, of said individual
Signatory Contractors' current Collective Bargaining Agreement(s) with a Union
' signatory to this Agreement and shall be binding upon said individual Signatory
Contractor and said Union. A copy of each current Collective Bargaining
Agreement along with a list of which agreement a Signatory Contractor is
currently signatory to shall be on file with the Manager and available for
inspection.
' 16.2 In the event the Local Area Collective Bargaining Agreement is revised by mutual
agreement of the Signatory Contractors and local Unions who are parties to such
agreement,then, if such revision is not inconsistent with the provisions of this
17
' Agreement, appropriate changes will automatically be made to reflect such
revision in the Local Area Collective Bargaining Agreement at such time as the
' local Union gives written notice to the Owner of such revisions, with an attached
copy of the duly executed Local Area Collective Bargaining Agreement and an
updated list of Contractors signatory to the revised Local Area Collective
Bargaining Agreement. Such changes shall be effective as of the effective date of
such revision of the Local Area Collective Bargaining Agreement.
16.3 In the event of any conflict between the provisions of this Agreement and those of
a Local Area Collective Bargaining Agreement, the provisions of this Agreement
shall take precedence. This Agreement shall not govern, and shall have no force
or effect with respect to any work other than work on this Project for the Owner.
No provision of this Agreement shall be construed to require any Contractor or
' Subcontractor to be bound by or to become signatory to any Collective
Bargaining Agreement which the Contractor or Subcontractor is not otherwise
bound to or signatory to, and no Nonsignatory Contractor is required to become
' bound to, abide by or, become signatory to any Local Area Collective Bargaining
Agreement by virtue of becoming bound to or signing this Agreement.
16.4 No provision in any Local Area Collective Bargaining Agreement shall be
incorporated pursuant to Section 16.1 which discriminates against the Project or
which was negotiated by the parties thereto to have special application to the
Project.
ARTICLE XVII
Amendment
17.1 No alterations, amendments or modifications hereof shall be valid unless executed
by an instrument in writing by the parties with the same formality as this
Agreement. Neither this Agreement, nor any term hereof, can be changed,
' modified or abandoned, in whole or in part, except by an instrument in writing,
and no subsequent oral agreement shall have any validity whatsoever. The Owner
shall furnish sufficient copies of such amendments or modifications to the other
parties.
ARTICLE XVIII
Entire Agreement
18.1 The parties agree that this Agreement is intended to cover all matters affecting
wages, hours, and terms and conditions of employment on the Project and that,
during the term of this Agreement, neither the Contractors, the Owner, nor the
Unions will be required to negotiate on any further matters affecting these or any
other subjects not specifically set forth in this Agreement except by mutual
agreement of the parties involved.
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' ARTICLE XIX
Term of Agreement
19.1 This Agreement shall be effective as of the date hereinabove written, and shall
remain in effect until (date of the final completion and acceptance of the
' Contractor's work at the Project).
ARTICLE XX
' Project Access
20.1 Duly authorized representatives of the Unions signatory to this Agreement shall
have access to the Project site,provided they do not interfere with the work of
employees or the delivery of supplies, equipment, tools or materials to the Project,
and provided they comply with job and safety rules established and posted by the
Employer(s) and/or the Owner.
' ARTICLE XXI
Signature Page
' IN WITNESS WHEREOF,these parties hereto have caused this Agreement to be
executed as of the day and year first above written.
ATTEST (NAME OF OWNER)
(NAME OF CONTRACTORS)
' (NAME OF UNIONS)
RECOMMENDED AND APPROVED:
(Signature,Name, Title, &Name of Each Organization for Owners representatives,
organized labor's representatives and Contractors or their representatives)
i
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"UNFAIR" CLAUSES IN
' PROJECT LABOR AGREEMENTS
' The following clauses or variations of these clauses are to be avoided in a Project Labor
Agreement (PLA) in order to make the PLA fair for all workers and their employers,
' regardless of union status:
' UNION SECURITY
7.1 The Contractors/Employers recognize the Union(s) as the sole bargaining
representative of all craft employees working on the project(s).
7.2 All employees who are employed by Contractors/Employers to work on the
' Project will be required to become members of and maintain membership in the
appropriate Union after seven (7)days of consecutive or cumulative employment
on a construction contract subject to this Agreement. Membership under this
section shall be satisfied by the tendering of periodic dues and fees uniformly
required to the extent required by law.
REFERRAL
8.1 The Union(s) shall be the primary source of all craft labor employed on the
project(s) at any given time. However, Contractors/Employers not already signed
' to an appropriate collective bargaining agreement shall be permitted to transfer
their Journeyman level key personnel, provided they have cleared through the
appropriate union hall, as provided in section 8.2, for a specific construction trade,
from one job to another into or.within any labor market area with the following
guidelines: (1) 15% of the positions, for any single Contractor/Employer, may be
journey level key personnel at any one point in time. (2) The Contractor is
allowed to have a maximum of fifteen(15) key personnel. (3) The Contractor
shall be allowed one (1) key personnel regardless of the calculation, as long as
one or more person(s)has been dispatched from the local Union Hiring Hall. (4)
An employee shall be considered a member of a Contractor/Employer's key
personnel for the purpose of this Article if the employee's name appears on the
Contractor/Employer's active payroll for 60 of the 100 working days before award
of the construction contract.
8.2 Contractors/Employers shall be bound by and utilize the registration facilities and
referral systems established or authorized by the signatory unions when such
procedures are not in violation of federal law.
' BENEFITS
9.1 Contractors/Employers agree to pay contributions to the established vacation,
pension or other form of deferred compensation plan, apprenticeship, and health
benefit funds in the amounts designated in the master agreements of the
appropriate local unions. Contractors/Employers shall not be required to pay
contributions to any other trust funds to satisfy their obligation under this Article
except respective trades shall continue to pay all trust fund contributions as
' outlined in such collective bargaining agreements.
9.2 By signing this Agreement, Contractors/Employers adopt and agree to be bound
' by the written terms of the legally established Trust Agreements, as described in
9.1, specifying the detailed basis on which payments are to be made into, and
' benefits paid out of, such Trust Funds.
APPRENTICESHIP TRAINING
11.1 On all construction projects undertaken by the [Name of Public Agency/Entity],
regardless of whether a PLA is used on the particular project, an employee from
each contractor's or subcontractor's regular workforce must be enrolled and
participating in an apprenticeship program which has graduated apprentices
' annually for at least the past five years.
The above clauses are some of the clauses that are usually utilized in union-only PLAstl
These provisions are objectionable to merit shop workers because these workers usually
' have to pay into union trust funds for benefits that they either already have with their
current employer or in which they will never vest because they will not stay with the
Union after the PLA project. These clauses also require workers to join the union or to
' make benefit contributions into the union trust funds along with paying union dues.
Under the referral provision of union PLAs, as much as 85%of workers are discriminated
against because they have chosen to work for merit shop contractors and are prohibited
' from working on a project.
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