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| December 30, 2019 |
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Featured Content
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Supreme Court Denies City of Cleveland’s Motion for Reconsideration
On Christmas Eve, the Supreme Court denied the City of Cleveland’s Motion for Reconsideration. The Court sent mandates that same day to the clerks of the Court of Appeals for Cuyahoga County and the Court of Common Pleas for Cuyahoga County directing them to reverse the prior judgments regarding the statute. Local hiring requirements for public works can no longer be enforced. This goes into effect immediately. If a situation arises where a political subdivision still attempts to apply a local hire requirement, an injunction would be sought and immediately granted on the basis of the statute because of the Supreme Court’s decision.
Please make the OCA office aware of any attempt by a local public entity to apply a local hire mandate on contracts that have not been executed as of this date. The Court’s ruling did not specifically address contracts that are currently in effect.
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Multi-employer Pension Reform Update
"Following is a year-ending update on multi-employer pension reform provided to OCA by the AGC. We will keep our membership advised of any significant developments in the new year."
All-
Despite growing public awareness of the troubled multiemployer pension system, Congress has not enacted a comprehensive reform package that addresses the current funding challenges or offered an alternative plan design such as composite plans for the future.
Congress did pass retirement related legislation as part of the FY20 full-year funding bill that was signed into law late last night. Included in the $1.4 trillion package is a provision supporting a coal miner multiemployer pension plan, the Bipartisan American Miners Act addresses the $6.5 billion underfunding of the UMWA 1974 pension plan and maintains health care coverage for those participants. Absent this legislation, the UMWA plan would have been insolvent by 2022 and jeopardized the retirement of 92,000 participants and the health care benefits of 13,000. The bill is significant in it is the first time that the federal government will provide financial assistance to a private pension fund. On a positive note, the removal of the UMWA’s liabilities will make broader multiemployer pension reforms less costly and put that much less pressure on massive future PBGC premium increases or other funding needs. *The PBGC is still projected to become insolvent in 2025 when the teamsters Central States Pension Fund goes insolvent.
Congress also passed the SECURE Act as part of the funding bill. The SECURE Act includes dozens of retirement provisions and encourages adoption of multiple employer retirement plans largely for non-unionized workers. The bill also allows 529 Education Savings Plans to be used for expenses related to registered apprenticeship programs. The Groom Law Group has provided a detailed analysis on many of the provisions in the SECURE Act.
Other AGC priorities in the year-end funding package include repeal of the 40% tax on employer-provided health benefits known as the “Cadillac Tax” and repeal of the health insurance tax for fully insured insurance.
On Friday, AGC joined other construction employer stakeholders in a letter to the Senate Finance Committee providing the industry’s perspective on their recently released White Paper on multiemployer pension reform. The White Paper was presented by Republican Senators as an alternative to the largely Democrat supported House-passed Butch Lewis Act earlier this year. Among the most controversial provisions in the White Paper are the mandating conservative discount rates, massive increases in PBGC premiums and associated co-payments and fees, changes to withdrawal liability, and some restrictions on composite plans. Nevertheless, the White Paper may offer a general framework for future legislation and shows a serious attempt to address the looming multiemployer pension crisis. AGC will continue working with Congress to find bipartisan solutions while ensuring modifications to the current system consider the impact on contributing employers. Recently the Segal Group provided a high level overview of the White Paper.
Looking ahead to 2020, the impending November election and ongoing impeachment proceedings will very quickly complicate any major legislation from advancing and present an even smaller window for legislative action than a typical election year. The key to advancing multiemployer pension reform will be to avoid relitigating the past and keeping stakeholders unified. Currently, there is nearly unanimity among the various industry employer stakeholders on reform priorities, while many unions have divergent priorities. One strong tailwind for reform in 2020 is that it is in President Trump’s best political interest to address the issue early to gain as much political capital ahead of the November election. The ability to message “saving the retirement of 1 million participants” is powerful and should not be understated. It is well documented that many of the participants in failing plans reside in battleground states. Look for the Administration to become more involved in 2020.
As a final reminder, earlier this year AGC led a coalition effort of over 100 national, state and local employer organizations, labor unions, plans, and large and small employers on a letter outlining the necessary broad reforms necessary to solve the multiemployer pension crisis. The adage that there will be opportunities for those well-organized has never been truer.
Happy Holidays!
Jim
James Young
Senior Director, Congressional Relations, HR, Labor and Safety
Associated General Contractors of America
ODOT Plan Reading Courses Friday, January 31 & March 13, 2020
OCA’s Chris Engle will be instructing this plan reading course once again. Before joining OCA, Chris spent 22 years with ODOT, with several years overseeing Construction in District 5. Training for this informative course covers reading, understanding and using ODOT plans. Includes sections, profiles, quantity take-offs, and relationships between components of the plans. The course is designed for someone who is just getting familiar with how to read plans. Includes lecture discussions and in-class use of plans. Class space will be limited. $125 OCA members / $150 non OCA members. Includes lunch. To register, visit our website at www.ohiocontractors.org or contact David Rule to register.
Don't Miss Out on Two Prime Sponsorship Opportunities
There is still time to get you company name in front of industry leaders in the coming months.
Annual Convention - There is no better time then a relaxed environment where over 180 industry leaders are at a casual networking event. Multiple chances to have your company front and center.
• Sponsor all of the available events (Welcoming Arrival Party, Morning Prayer Breakfast, Theme Event and the Monday Evening Reception and Induction Dinner - $1,100
• Sponsor any one of the individual events - $300
Conaway Conference - An annual collaborative effort between OCA and ODOT. We bring together over 600 people to attend sessions led by ODOT staff, OCA experts and other professionals. This is THE partnership conference to learn and network. Sponsors will have their company names and logos in the program (if received by Feb. 7), on the introductory screen before the opening session and the individual sessions. Great exposure for $500.
To learn how to get your spot, contact David Rule, Director of Member Events at (614) 488-0724.
ODOT to Provide Training for Updated Commercially Useful Function (CUF) Requirements
ODOT will be offering training classes to inform contractors and consultants of the upcoming update to ODOT Policies and Procedures to address DBE Commercially Useful Function (CUF) requirements. This training will provide an overview of how ODOT identifies issues and red flags in order to ensure compliance. The training will also address new required documentation requirements by ODOT for CUF reporting on a project by project basis. There will be two sessions on February 10, 2020. For more information, click here.
Make Sure your Team has the Communication Skills to Best Represent your Company
OCA is offering two, three-hour interactive communication workshops on Wednesday, Jan. 29. Leading the programs will be Anthony Huey, President of Reputation Management Associates, national key-note presenter and consultant to numerous construction firms. Participants have the option to attend one or both sessions, held at OCA, 1313 Dublin Rd., Columbus, 43215. Registration cost per person is $249 for one session or $399 to attend the full day. Lunch is included for all participants.
Making your message clear: speeches, presentations and meetings will be held from 9:00am to 12:00pm
Communicating in a Crisis will be held from 1:00pm to 4:00pm
For complete session details or to register, click here or contact Director of Chapter Development, Melanie Kitchen at [email protected]or 614-488-0724.
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OCA members invited to attend Ohio Laborers’ Union Workforce Development Presentations being held around the state
Ohio Laborers' Union is holding workforce development presentations around the state and would like to extend an invitation to OCA members for the dates listed below. Discussion topics are relevant to workforce development, safety, and health programs such as:
- Laborers' Health & Safety Fund
- Fair Contracting staff
- Apprenticeship standards and recruitment
- Health and Pension benefits available
Please click on the area you would like to attend for a link to register:
Ashtabula – 1/22/20
Akron – 1/28/20
Cleveland – 2/3/20
Canton – 2/18/20
Marion – 3/12/20
Feel free to contact Laborers’ Statewide Apprenticeship Coordinator, Vincent Irvin at 740-504-2707 or [email protected] with any questions about the sessions.
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Quick Links to On-line OCA Resources
• Current Ohio Contractor Magazine
• Safety Resources
• Labor & Employment Information
• OCA President's Commentary
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