A Sustainable Workforce Starts With You

Jim Kollaer's blog

The Great Reset

For anyone wondering who hit the reset button on the economy and also wondering just exactly what is going on, I recommend that you order a copy of The Great Reset: How New Ways of Living and Working Drive Post-Crash Prosperity written by Richard Florida, the author of The Rise of the Creative Class: And How It's Transforming Work, Leisure, Community and Everyday Life and Who's Your City?: How the Creative Economy Is Making Where to Live the Most Important Decision of Your Life about the nature of particular cities and their economic development.

For the reader interested in the construction industry, The Great Reset looks at the three epochal economic upheavals in the US economy – the Great Crash of 1873, the Great Depression of 1929 and the Great Recession of 2008 that we currently see around us everyday.  He describes the construction and growth of the major cities, the economic drivers of those cities and how they were changed by massive job and industry losses during the economic shifts. 


Are Worker Misclassification and Wage Theft Laws the Solution?

With the advent of the Arizona Immigration law, SB 1070, the filing of Amicus Briefs by 27 states, and the challenge to the Arizona law, many of us are not watching the Wage Theft and Employee Misclassification movement underway in a large number of states.

This movement involves religious organizations like Interfaith Worker Justice and Centro de Trabajadores Unidos.  It has spread through Florida, New York, Chicago, Iowa, New Jersey, New Mexico and New Hampshire.  Most of the laws focus on the misclassification of workers as temporary or independent contractors where the result on the workers can be devastating and substantial.  The laws impose stiff penalties on employers in a broad range of industries who have a history of wage theft through misclassification.   [node:read-more:link]


Razing Arizona?

SB 1070, the Arizona immigration bill passed and is in force, almost.  The US Department of Justice filed suit and won a restraining order to stop certain parts of the bill.  Last week, Judge Sharon Bolton ruled that some things like mandatory questioning about immigration status were not legal under the Federal law. She did not go so far as to say that they could not question a person’s status and so there will be a de facto immigration bill in effect.  The State of Arizona and Governor Brewer are filing an appeal with the 9th circuit and the Governor has now proposed a special session to correct the issues in the restraining order.

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Tomorrow is a BIG Day for Arizona

The BP oil spill has taken a positive turn in the Gulf and the next issue for the major news media and all of the bloggers will be the happenings in Arizona.  The Arizona Immigration law goes into effect tomorrow and all of the rhetoric, rallies, protests, Presidential intervention and Judges orders will come to a head.  The construction industry is but one part of the economy in Arizona that will be impacted.

As you probably know by now, the issue is that the Federal government is supposed to take care of the immigration issue, but so far Washington has refused to take it on and do something about it.  Arizona got tired of the open borders, sanctuary cities and lack of action by the Federal government so they passed the law that goes into effect tomorrow.  That is if the courts do not intervene further.  The policing agencies in Arizona have been training, the ACLU has been running anti-ads and the volume continues to rise. 

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What Is IPD anyway?

We made mention of this subject in an earlier blog post and we have seen several other discussions that talk about the pros and cons of Integrated Project Delivery (IPD) as part of the LEAN movement.  The publication of one particularly relevant publication Integrated Project Delivery for Public and Private Owners was sponsored by several organizations including Associated General Contractors (AGC), National Association of State Facilities Administrators (NASFA), Construction Owners Association of America (COAA), APPA: The Association of Higher Education Facilities Officers, and the American Institute of Architects (AIA). 

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IRS to Audit 6,000 Companies

Construction company owners listen up.  According to an article in Finance Review, the IRS is undertaking 6,000 additional random audits over the next 3 years in order to recoup part of the $14 billion that they estimate owners in a wide variety of industries like construction have underpaid on their taxes by misclassifying their employees as independent contractors.  Even though they say that the audits will be random, you can bet that they will concentrate on those business where the workforce is filled with “independent contractors” in order to avoid the tax and benefits burden.

According to the article, the last time that the IRS made an estimate of the magnitude of the misclassification problem they estimated that 15% of the owners misclassified 3.4 million workers.

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A Lean Mean Construction Machine

We recently attended the annual update meeting staged by Kiley Advisors in Houston.  One of the most interesting sessions had three speakers who discussed the plusses of Lean Construction and the legal changes underway as this process is integrated into the industry.  Interestingly I found a very good description of the overall process in Wikipedia.

Basically the Lean Construction Management System is an adaptation of the Lean Production System utilized by Toyota in its production plants. [node:read-more:link]


Wage Theft – A Widespread Issue

Last year a survey of over 4,000 low-wage workers in New York, Chicago and Los Angeles was released in the report, Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America’s Cities.  The work was completed by three groups – The Center for Urban Economic Development at the University of Illinois, The National Employment Law Project, and the UCLA Institute for Research on Labor and Employment.

The purpose of the study was to take a look at the status of labor violations among the low-wage workers in those three cities. [node:read-more:link]


Ideas For The Future Workforce

Mike Salsgiver, executive director of the Oregon-Columbia chapter of the Associated General Contractors of America (AGC), recently wrote an interesting article about the state of the construction industry in Oregon (not so good) in which he talks about new efforts to create the future workforce for the industry (promising).  He writes about the “Baby Boom Bubble” coming in the industry over the next 8 years or so when many in the industry plan to retire, and the need for Oregonians to develop programs to reemploy, teach and train a new workforce in the industry. 

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GAO Employee Misclassification Report

"The number of independent contractors in the total employed workforce grew from 6.7 percent in 1995 to 7.4 percent in 2005.  In 2005, there were 10.3 million independent contractors.  Independent contractors, in 2005, had an average age of 46 years, were almost twice as likely to be male than female, and almost two-thirds had some college or higher education.  Independent contractors were employed in a wide range of industries (such as professional services and construction) and occupations (including sales and management)."

That is the opening paragraph from the United States Government Accountability Office (GAO)’s study on independent contractor misclassification in the construction industry (GAO-07-859T) released on May 8, 2010 in a hearing before the [node:read-more:link]