The Hot Topics section of the ABC web site includes information highlighting the accomplishments and recognition of ABC's monthly newsletter, various chapter awards programs, Community Service Projects, and media highlights.

Changes to this site will be made frequently. Be sure to return here often.

New, informative and informational video postcard created!

ABC of Wisconsin just produced a short video postcard to send out to prospective members outlining the services and benefits of membership. If you would like to see it just click here.

The Union Agenda

The Wall Street Journal just published an article about unions and the democratic party. This is information you should read. For the article please go here. To learn more about how the unions will be going after you, make sure you attend one of the ABC RoadShows that will be held in Wisconsin in the 2nd and third quarters. Keep your eye on the Upcoming Events/Training page for more information.

Nonresidential Construction Employment Now in Decline

On April 4, 2008, the Bureau of Labor Statistics (BLS) released employment data for March and the data are sobering. Nonresidential construction employment is now clearly in decline, both from monthly and year-over-year perspectives. Nonresidential construction employment declined by 20,500 jobs in March compared to the prior month and is now down by 70,500 jobs over the past 12 months.

On a year-over-year basis, nonresidential building employment (please see graph) turned negative beginning in December 2007. By contrast, employment in residential building construction turned negative precisely one year earlier and the number of jobs supported by residential construction activities overall declined by 31,000 jobs in March on a monthly basis and by 285,500 jobs year-over-year. Total construction employment was down by 51,000 jobs on a monthly basis and down by 356,000 jobs compared to March 2007.

Job declines within nonresidential construction are broad-based. Industrial building construction generated a 5,900 employment decline on a monthly basis while commercial building employment decreased by 5,100 jobs. Heavy and civil construction employment was down by 35,000 jobs and is positioned to continue to decline given the state of various government budgets.

Of course, construction is not alone in generating job declines among major U.S. sectors. Total U.S. nonfarm employment was down by 80,000 jobs in March, the worst one-month performance in five years. Construction, manufacturing, trade/transportation/utilities, information, finance and professional and business services all reported negative growth in March compared to February.

What This Means  

Given the ongoing risk aversion apparent in the financial services sector, the state of government budgets and the generally slow to non-existent growth in the overall economy, nonresidential construction activities are set to slow further in the months ahead. Bidders for private and government contracts alike will find their macroeconomic environment becoming increasingly competitive, something already happening in many geographic markets, with an associated squeeze on margins.

Douglas County recently passed an ordinance encouraging the use of Project Labor Agreements

The ordinance contemplates Douglas County using Project Labor Agreements on public works projects in the county in excess of $150,000.  

Project Labor Agreements typically contain provisions that require:

  • Merit Shop companies pay their workers’ health and welfare benefits to union trust funds, even though those companies have their own benefit plans. Thus companies have to pay benefits twice: one to the union and once to the company plan.
  • PLA’s require Merit Shop companies to obtain their workers from union hiring halls. This means the Merit Shop company has to send its workers to the union hiring hall and hope that the union sends the same workers back.
  • Non-union workers are required to pay union dues or join a union.
  • Many other provisions that exclude or discourage Merit Shop companies from bidding on these projects.

In a Daily Reporter article reporting on the action of the Douglas County Board, a labor official was quoted as saying “We’re entertaining the idea of sending it to all the city and county governments to make their competitive-bidding process more competitive”.

Only 20% of the nation’s construction workers are represented by a union. The vast majority of workers are not union. So how can elected officials adopt policies that discriminate against the vast majority of people they were elected to represent?

 Local elected officials are often sold a bill of goods by union officials regarding all the “benefits” of Project Labor Agreements. Without input from Merit Shop contractors and their employees, local elected officials may enact these discriminatory policies effectively locking your company out of public works projects in your county. By the way, union activists argue “that if PLA’s are good for public projects, they are good for private projects too. So don’t relax just because you don’t work on public works projects.

What Can Merit Shop Contractors Do?

  1. Visit www.opencontracting.com to educate yourself about Union-only Project Labor Agreements.
  2. Use information on that website to draft a letter to your County Board Representative and City Council member.
  3. Copy this article and share it with other Merit Shop contractors in your area asking them to do the same. Ask them to join in the fight against Project Labor Agreements by becoming a member of Associated Builders and Contractors of Wisconsin.

Make no mistake. Organized labor is actively seeking policies that will prevent your firm from competing in marketplace. If Merit Shop contractors don’t act, these policies will spread rapidly.

ABC of WI Reminds Contractors to Post Injury, Illness Log Summaries Beginning Feb. 1

Beginning February 1, employers must post a summary of the total number of job-related injuries and illnesses that occurred last year. Employers are only required to post the Summary (OSHA Form 300A) -- not the OSHA 300 Log -- from February 1st to April 30th, 2008.

Employers with ten or fewer employees are exempt from federal OSHA injury and illness recordkeeping and posting requirements.

Exempted employers may still be selected by the Labor Department's Bureau of Labor Statistics to participate in an annual statistical survey. All employers covered by OSHA need to comply with safety and health standards and must report verbally within eight hours to the nearest OSHA office all accidents that result in one ore more fatalities or in the hospitalization of three or more employees.

Copies of OSHA Forms 300, 300A and 301 are available on the OSHA web page  www.osha.gov.

If you have any questions, please contact Safety Director Don Moen or Construction Safety Specialist Craig Carder at your ABC of WI office, 608 244-5883.