On October 13, AGC formally weighed in against a Federal Highway Administration鈥檚 (FHWA) one-size-fits-all proposed rule that would have the effect of delaying or halting certain road and bridge projects - including the construction of new roads and highways 鈥 forcing them to instead focus on reducing greenhouse gas emissions.
On October 3, the U.S. Supreme Court granted a petition for review supported by AGC in Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174. Ready-mix concrete supplier Glacier Northwest had asked the Court to review a Washington Supreme Court decision holding that National Labor Relations Act preemption prevents the company from suing a union under state tort law for intentionally destroying company property in the course of a labor dispute. As previously reported, AGC and five other employer groups jointly submitted an amicus brief supporting the petition in June. Oral argument has not yet been scheduled.
In its latest Settlements Report, the AGC-supported Construction Labor Research Council (CLRC) advises that construction-industry collective bargaining agreements settled from January through September of 2022 provide an average increase in wages and benefits of 3.8 percent in the first contract year. First-year increases negotiated during the period grew by 1.0 percent since 2020, which CLRC notes is a steep rate of growth. The last time first-year increases grew by 1.0 percent, it took seven years 鈥 from 2012 to 2019 鈥 CLRC reports. Measured by dollar amount rather than percentage, CLRC found that the average first-year increase negotiated year-to-date was $2.33 鈥 a $0.53 jump from 2021 and $0.70 from 2020.
The Pension Benefit Guaranty Corporation (PBGC) has proposed a regulation regarding interest rate assumptions in determining a withdrawing employer鈥檚 liability to a multiemployer plan, which could have significant implications for the unionized construction industry.
The U.S. Department of Labor has put forth a new test for determining whether someone is an employee or independent contractor under the Fair Labor Standards Act that could tilt the balance in that determination towards employee status.
Price escalation and supply chain disruptions continue to register as the number one issue in construction contracts today. The absence of a price escalation clause is considered a 鈥渒iller clause鈥 for many general contractors working on private vertical construction. Public owners are taking notice as well.