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PRESS RELEASE

Daily Pacific Builder

“UNIONS 2003” EDITION

CEA Represents Union Builders

By John Stripe, President, Construction Employers’ Association and Vice President, Central-West Region, McClone Construction Company

July 29, 2003

John Stripe, President, Construction Employers' Association

For the past 18 years, the Construction Employers’ Association (CEA) has represented the interests of Northern California unionized building contractors in collective bargaining and labor relations matters. This year, following our longstanding pattern, CEA again entered into early non-binding informal discussions with the Carpenters to explore modifying and extending our Master Agreement. The Carpenters and CEA agreed to extend the Carpenters Master Agreement through June 30, 2008. CEA’s experienced staff continues to assist members in avoiding labor disputes and associated liabilities by providing professional advice and quality representation. Due to the staff’s experience and ability to engage in open dialogue with union representatives, most issues are settled before grievances are filed or prior to formal arbitration.

Beyond labor relations, there has been an increased need by members for technical assistance with regard to prime contractors’ and subcontractors’ prevailing wage and payroll reporting responsibilities due to the implementation of AB 1506. This bill requires school districts receiving bond monies for school construction to implement labor compliance programs. This year, in addition to personalized educational compliance sessions, CEA launched a series of well-attended regional public works/prevailing wage training seminars.

Despite the ongoing State budget crisis, CEA continues to be an effective legislative force. Our success in the state legislative arena is based on the strong relationships we have built and maintained with our labor partners. In the mid-90’s when our membership had grown to represent “who’s who in the Northern California building construction industry,” one of the key stabilizing factors of the unionized construction industry, the public works prevailing wage system, was under serious attack by lawmakers at both the state and federal levels. At the request of the Carpenters union and for purposes of self-preservation, CEA launched its Building Industry Legislative Program to provide a cohesive voice for the unionized builder. Since that time, working closely with labor unions, we have successfully sponsored and passed a number of bills that have contributed to improving the environment for unionized public and private construction in our state.

In the current 2003-2004 legislative session, CEA is sponsoring or co-sponsoring several bills, including a measure aimed at prohibiting public entities from disgorging funds from contractors if a public works contract is later declared void due to a defect in the bidding process. Despite heavy opposition from public agencies, the bill has continued to move through the legislative process. CEA has also been very active in working with Assembly Member Steinberg’s office, organized labor, the contractor community, the insurance industry, the consumer attorneys, and the California Building Industry Association on a bill to clean-up last year’s construction defects legislation, SB 800, and bring insurers back into the multi-family housing market.

In addition to representation in the primary areas of collective bargaining, labor relations and governmental advocacy, CEA has been offering quarterly safety forums to its members for the past six years, providing useful training on a variety of topics as well as networking resources for safety officers, executives and key jobsite personnel.

CEA is also active in supporting and promoting quality construction management education programs. For several years, CEA has awarded annual grants to the following universities to directly promote higher education in our industry: UC Berkeley; California Polytechnic State University, San Luis Obispo; CSU Chico; CSU Sacramento; and Stanford University.

This has been a tough economic year in the construction industry with a 10 to 15 percent decline in the commercial building sector. Many contractors in the private sector have been hit much harder. Compounding this problem has been the burden levied on us by the insurance and bonding industries. Now more than ever, we need to continue to collectively address the challenges we all face in this tightening economy. CEA is fortunate to have the best and the brightest from the majority of mid- to large-size building contractors representing the ever-changing needs of our dynamic industry. We are also fortunate to have an excellent working relationship with our key labor partners - the Carpenters and Laborers - as well as the support of numerous other building trades leaders throughout Northern California. CEA salutes our friends and hard working partners in the labor community.