Posts Tagged ‘President Obama’

Louisiana Gearing Up For Green Boom? Is it Finally True?

On April 3, 2009 Author By Seth Smiley        

The New Orleans Times Picayune ran a story last week that lead off with these two paragraphs:

Louisiana is expected to get $122.3 million in federal economic recovery money to improve the energy efficiency of homes, government buildings and public transportation over the next three years and to jump-start renewable energy projects for electricity generation.

The money should create scores of new jobs for tradesmen willing to learn green building practices. It also will help moderate-income households around the state improve the energy-efficiency of their homes and lower their utility bills.

Over the next three years, authorties estimate that over 6,000 homes will be weatherized under the program.

In addition to this, President Obama has recently come out to designate New Orleans as the “U.S. Blueprint” for green construction and environmental protection, invigorating urban centers and stressing volunteerism.

Perhaps the promise of the Global Green USA’s Build It Back Green program, Brad Pitt’s Make It Right Foundation and other similar programs are finally making its impression, and the New Orleans area will see real investment in green building over the next few years.

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Posted in:     Green Building  /  Tags: , , , ,   /   2 Comments

Federal Works: Obama Pushes Use of Organized Labor

On March 10, 2009 Author By Wolfe Guest        

On February 6, 2009, President Obama overturned previous Bush administration policy regarding labor usage on federal projects, by passage of an executive order. The order eliminates the Bush prohibition of the use of “project labor agreements” on federally-funded projects. In the past, the Bush administration had sought to limit the use of these agreements to lessen Union strength in the bargaining process.

“Project labor agreements” (“PLA”) are similar to collective-bargaining agreements but they are issued prior to the initiation of work on a project. The Associated Builders and Contractors, Inc., states that a typical PLA requires that all contractors become bound to:

  • recognize unions as the representatives of their employees on that job
  • use the union hiring hall to obtain workers
  • obtain apprentices exclusively from union apprenticeship programs
  • pay into underfunded and mismanaged union benefit plans
  • obey costly, restrictive and inefficient union work rules

In the end, the alleged benefit to the federal government, and to the contractors down the chain, is that labor rates are set, benefits are provided, and strikes are prevented.

Duane Morris LLP, a San Francisco multi-purpose firm, first reported the effect of the order against large construction firms:

“……many construction firms may be compelled to agree to PLAs on federally-funded construction projects for the first time. Not only will these firms face likely difficulties in navigating the uncharted waters of participating in the negotiations for a PLA, but they may also be forced to pay higher, union-level wages and benefits to their workers than they are otherwise accustomed to paying on projects. Many construction firms may be compelled to agree to PLAs on federally-funded construction projects for the first time. Not only will these firms face likely difficulties in navigating the uncharted waters of participating in the negotiations for a PLA, but they may also be forced to pay higher, union-level wages and benefits to their workers than they are otherwise accustomed to paying on projects.”

Duane Morris also finds that the order will only promote the use of PLAs on projects over $25 Million. However, the order opens the gate for the use of PLAs on lesser projects, where they are no longer prohibited.

While several organized units are certainly thrilled at the reinstatement of PLAs on federal projects, construction companies raise considerable concern. The Associated Builders and Contractors states:

“ABC strongly opposes union-only PLAs on construction projects. These agreements not only exclude merit shop contractors from bidding on projects paid for by their own tax dollars, but also drive up the cost of construction by reducing competition for the work.”

Construction companies who engage in federal projects should be keen to new changes in labor law. One thing is for certain, President Obama aims to bring swift changes to the way the U.S.A. does business with private interests.

Posted in:     Construction News, Labor Law  /  Tags: , , ,   /   Leave a comment

World Wide Green Frenzy

On March 9, 2009 Author By Scott Wolfe Jr        

With a weak economy, no jobs in sight and an incessant media frenzy, the White House has gone GREEN! Wouldn’t that make it a Green House? President Obama’s stimulus package aims to put about 20 billion dollars into greening the economy.

“Greening the economy” sounds like the US government is trimming hedges, planting bulbs and whacking weeds.  In all seriousness, the focus is on improving the current economic situation while simultaneously reversing the damage done to the environment. Genius! Obama’s goal is to create 2.5 million new jobs in the green sector of the economy by 2011.

Obama’s green stimulus package will also likely include tax breaks for clean tech projects like solar panels, wind farms, biofuels, and carbon capture and sequestration.  Therefore employment opportunities that are categorized as “green- collard jobs” such as green building, LEED certified construction professionals, wind turbine mechanics and jobs pertaining to energy efficiency and production will be in high demand.

All over the world from London to Hong Kong, governments are coming to the realization that “going green” is a necessity for creating jobs and saving the economy. You can read more about the world wide efforts to “go green” at the UN News Centre.

Right here in the the United States of America, states are adopting laws that provide individuals and developers with tax incentives to incorporate Green Building standards into their homes and/or commercial properties. The more emphasis placed on Green Building in the near future, construction professionals with knowledge and certification in Green Building will find themselves at the forefront of an upturned economy.

There are many opportunities for former construction workers in the green sector. In fact, the number of jobs in “renewable or energy efficient” industries is climbing at a fast rate and government support is only going to boost the speed!  Going green on a construction job encompasses using both renewable resources and energy efficient methods. Wolfe Law Group published a series of blog articles relating to Green Building for contractors. To read the Green Building article series click here.

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A New President…A Labor Law Shakedown?

On February 18, 2009 Author By Scott Wolfe Jr        

The National Law Journal published an article last week titled “Stage is Set for Legal Labor Brawl,” and the opening line of the article sums it up perfectly, stating:

Business calls it “Armageddon.” Labor says it’s “a modest step.”

The article discusses one of the hot topics in labor law these days, the Employee Free Choice Act.  Around the blogosphere and news agencies, discussion of the EFCA is on fire.   A Google Video search of the topic yields propaganda from both sides, and on Chris Hill’s Construction Law Musings, I recently published a guest post summarizing argument from both proponents and opponents of the bill.

While the EFCA is certainly on the forefront of the labor law debate, its clear that its not the only argument in town.

To the contrary, since the recent inauguration of President Obama, there has been a substantial shift in labor law issues facing the construction industry, and it’s expected that more is on the way.

One of the most controversial actions by President Obama in the construction industry is the repeal of Executive Order 13502, which prohibited project labor agreements (PLAs) on federal and federally funded construction.   ABC issued a press release specifically directed at this action, contending that it opposes PLAs because they “eliminate merit shop contractors from competing for and winning construction projects.” The ACG also came out against the repeal of 13502 here.

Another labor-law related act already performed by President Obama is the signing of the Lilly Ledbetter Fair Pay Act of 2009.  The act was signed by the President on January 29, 2009, and extends the time period allowed for employees to seek compensation for unequal pay practices.  The act is retroactive to May 28, 2007, and applies to all claims of pay discrimination on or after that date.  Read more about the act at the AGC website here, or on CNN, which covered the Act as “Obama’s First Law.”

From the perspective of the construction industry, it’s a love/hate relationship with President Obama thus far, just one-month into his tenure.

On the one hand, as the Wall-Street Journal reported in mid-January, the construction industry has counted on Obama to put together a strong stimulus package that invested in federal contracting projects (and he pulled through).

On the other hand, however, President Obama is leading a potentially historic shift in employment and labor law matters that will seriously impact construction businesses.

Time will tell how the relationship between President Obama and the construction industry will fare.  So far, however, it’s been a mixed bag.

Posted in:     Construction News, Labor Law  /  Tags: , , , ,   /   Leave a comment
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