PRESS RELEASE: African American Chamber of Commerce of New Jersey and Associated Builders and Contractors New Jersey Chapter Issues Statement on Passing of Bill S-3414/A-5378 Through State Assembly

The African American Chamber of Commerce of New Jersey (AACCNJ) and Associated Builders and Contractors New Jersey (ABC NJ) continues their fight against the state Legislature’s revision of the definition of public work projects. Their joint press release on the matter follows:

Yesterday, the New Jersey State Assembly voted to pass Bill S-3414/A-5378, which revises the “public work projects” definition to require a government-mandated project labor agreement to any public works contract exceeding $5 million. The Bill has now passed both the State Senate and Assembly, moving the legislation to Governor Murphy’s desk. 

A PLA is a project-specific collective bargaining agreement unique to the construction industry. Typically, PLAs force contractors to recognize unions as the representatives of their employees on a given project, discouraging merit shop contractors from bidding on taxpayer-funded construction activities. According to the U.S. Bureau of Labor Statistics (2019), only 17.8 % of New Jersey’s private construction workforce is represented by a union.

“It is beyond disappointing that our legislators voted to pass a Bill that shuts out 80% of the construction workforce, many of which are minority and female-owned businesses. 98% of Black and Hispanic construction companies are non-union and this legislation will limit any possibility of these businesses competing on public projects,” said Samantha DeAlmeida, Second Vice President and Government Affairs Liaison. 

“We share our disappointment along with Associated Builders Contractors, due to the passage of this Bill, although, not surprising given that this Legislature has advanced every union sponsored Bill that I can recall during this session,” said John E. Harmon, Sr., IOM, Founder, President, and CEO of the African American Chamber of Commerce of New Jersey. “We are not opposed to unions; they perform a significant role in New Jersey's economy, however, when it comes to taxpayer dollars; there must be a level playing field with fair and open access to compete,” Harmon continued. “There is no doubt that Black People, and Black Business owners will realize very little benefits if this Bill is signed into Law by Governor Murphy, based on the historical record of minimal inclusion in the trades and public construction projects. Now, our only hope is that Governor Murphy will remember that Black People and Black Business owners held an equitable stake (94%) in electing him to office when the Bill arrives at his desk for signature.” 

On July 25th, 2002, The Project Labor Agreement Act was signed into law. Section C:52:38 of the Act required an annual report be provided to the Governor and Legislature detailing the effectiveness of all PLAs entered pursuant to the act. Parameters of the required report were outlined including a requirement that the first report is prepared and submitted on December 31, 2003, and each year thereafter. Additionally, the Act requires that in the 2006 report an analysis should be included detailing the overall effectiveness of the Act. To date, the only study that has been conducted took place in 2010, based on data from 2008. 

“Our organization represents over 450,000 workers throughout New Jersey and vehemently opposes this piece of legislation,” said Sam Fiocchi, President of ABC-NJ. “According to the State’s own study, enforcing PLAs on public school projects resulted in increased costs of 33%, and slowed project timelines by 6-8 weeks. We are at a point in time where job growth and workforce diversity should be the priority, not restricting who can bid on jobs. We are asking Governor Murphy, on behalf of our members, taxpayers in the State of New Jersey, and the vast majority of the construction workforce to have an equitable opportunity to work on these public projects,” Fiocchi continued.

About Associated Builders and Contractors: ABC is a national association representing 21,000 merit shop construction and construction-related firms in 69 Chapters across the United States. Our membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors of the industry. ABC NJ is the industry's liaison to federal, state, and local governments and the public at large. For more information, please visit our website at www.abcnjc.org.

PRESS RELEASE: African American Chamber of Commerce of New Jersey and Associated Builders and Contractors New Jersey Chapter Issue Joint Opposition Statement on Bill S-3414/A-5378

Regular readers of the blog may recall Associated Builders and Contractors New Jersey (ABC NJ) has been fighting a bill, S-3414, that has worked its way through the state Senate and is coming up for a vote in the Assembly later this week. The bill, A-5378 in the Assembly, would add even more costs to “public work projects.” Now it appears ABC NJ has an ally in their fight, African American Chamber of Commerce of New Jersey(AACCNJ). Yesterday afternoon a joint press release from the two organizations landed in our inbox. The joint release follows:

Later this week, the New Jersey Assembly will vote on bill S-3414/A-5378, which revises the “public work projects” definition to permit government-mandated project labor agreements on additional categories of jobs. Under the existing Project Labor Agreement Act, if a public works contract is for the construction, reconstruction, demolition, or renovation of buildings over $5 million, it is subject to a government-mandated Project Labor Agreement (PLA). S-3414/A-5378 will extend the PLA requirement to any public works contract exceeding $5 million. 

A Project Labor Agreement is between an owner of a specific construction project and applicable labor unions.  It is an agreement that union rules must be followed throughout the course of the project, making it very difficult for non-union contractors to participate. Union wages, union-level medical benefits, union dues, and pension contributions must all be paid, even by a non-union contractor, though that money will not be credited to the non-union employees.  Typically, PLAs are only used on local, state, and federal projects as private corporations find them wasteful and too expensive. According to the U.S. Bureau of Labor Statistics (2019), only 17.8 % of New Jersey’s private construction workforce is represented by a union.

“98% of Black and Hispanic construction companies are non-union shops.  Thus, a Project Labor Agreement greatly limits the opportunities for Black and Hispanic firms,” said John Harmon, Sr., IOM, Founder, President & CEO of the African American Chamber of Commerce of New Jersey.  “The possibility of Black and Hispanic labor is greatly suppressed. It is beyond disappointing when we see diversity clauses added to legislation that is fundamentally harmful to minority communities” Harmon continued.  “The diversity language within this bill is a guise of permissive language that has absolutely no benefit to the African American community within the state.” 

“It is beyond disappointing that our legislators continue to support this exclusionary legislation that shuts out 80% of the construction workforce in New Jersey, many of which are minority and female-owned businesses,” said Samantha DeAlmeida, Second Vice President and Government Affairs Liaison. “The Project Labor Agreement Act mandated the creation of a yearly report analyzing the effectiveness of project labor agreements and a comparison of the performance of public works projects with PLA’s to those public works projects without PLA’s. New Jersey has been non-compliant for 13 years, only having followed their law once.”

On July 25th, 2002, The Project Labor Agreement Act was signed into law. Section C:52:38 of the Act required an annual report be provided to the Governor and Legislature detailing the effectiveness of all PLAs entered pursuant to the act. Parameters of the required report were outlined including a requirement that the first report is prepared and submitted on December 31, 2003, and each year thereafter. Additionally, the Act requires that in the 2006 report an analysis should be included detailing the overall effectiveness of the Act. To date, the only study that has been conducted took place in 2010, based on data from 2008.

“This is simply unacceptable. Until the State complies with its own law, it should not be creating additional laws to expand PLAs, without understanding the impact on the State. Our organization which represents over 450,000 workers in the State vehemently opposes this action. We are asking on behalf of our members, taxpayers in the State of New Jersey, and the entire construction workforce that the majority of the construction industry have an equitable opportunity to work on these public projects,” DeAlmeida continued.

About the African American Chamber of Commerce of New Jersey: AACCNJ performs an essential role in the economic viability of New Jersey. While providing a platform for New Jersey’s African American business leaders, to speak with a collective voice, the AACCNJ advocates and promotes economic diversity fostering a climate of business growth through major initiatives centering on education and public policy. The Chamber serves as a proactive advocacy group with a 501(c) 3 tax exemption, which is shared by the National Black Chamber of Commerce. For more information, visit https://www.aaccnj.com/.

About Associated Builders and Contractors: ABC is a national association representing 21,000 merit shop construction and construction-related firms in 69 Chapters across the United States. Our membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors of the industry. ABC NJ is the industry's liaison to federal, state, and local governments and the public at large. For more information, please visit our website at www.abcnjc.org.

PRESS RELEASE: Associated Builders and Contractors New Jersey Chapter Issues Statement On Passing Of Bill S-3414

The New Jersey Senate voted today to add even more costs to “public work projects.” Associated Builders and Contractors New Jersey (ABC NJ) issued a statement on the matter today. Their statement follows:

Today, the New Jersey Senate voted to pass Bill S-3414, which revises the “public work projects” definition to permit government-mandated project labor agreements on additional categories of jobs, by a vote of 29-6. Under the existing Project Labor Agreement Act, if a public works contract is for the construction, reconstruction, demolition, or renovation of buildings over $5 million, it is subject to a government-mandated Project Labor Agreement (PLA). S-3414 legislation will extend the PLA requirement to any public works contract exceeding $5 million.

A PLA is a project-specific collective bargaining agreement unique to the construction industry. Typically, PLAs force contractors to recognize unions as the representatives of their employees on a given project, discouraging merit shop contractors from bidding on taxpayer-funded construction activities. According to the U.S. Bureau of Labor Statistics (2019), only 17.8 % of New Jersey’s private construction workforce is represented by a union.

“The expansion of PLAs will directly and negatively impact our membership base which accounts for more than 450,000 workers in the state of New Jersey,” said Samantha DeAlmeida, Second Vice President and Government Affairs Liaison. “More pointedly, this legislation, that claims to promote diversity in public work projects, does just the opposite. It is exclusionary to 80% of the construction workforce, many of which are minority and female-owned businesses.”

“In fact, according to the National Black Chamber of Commerce, 98% of Black and Hispanic construction companies are non-union and this legislation will limit any possibility of these businesses competing on public projects,” DeAlmeida continued. “Furthermore, existing PLA-driven legislation has been in non-compliance since its inception. Elected officials decided to move forward with this legislation anyways even though we do not have a thorough understanding of the impact that this will have on our state.”

On July 25th, 2002, The Project Labor Agreement Act was signed into law. Section C:52:38 of the Act required an annual report be provided to the Governor and Legislature detailing the effectiveness of all PLAs entered pursuant to the act. Parameters of the required report were outlined including a requirement that the first report is prepared and submitted on December 31, 2003, and each year thereafter. Additionally, the Act requires that in the 2006 report an analysis should be included detailing the overall effectiveness of the Act. To date, the only study that has been conducted took place in 2010, based on data from 2008.

“We are at a point in time where job growth and workforce diversity should be the priority, not restricting who can bid on jobs,” said Sam Fiocchi, President of ABC-NJ. “We simply ask on behalf of our members, taxpayers in the State of New Jersey, and the entire construction workforce that the vast majority of the construction industry have an equitable opportunity to work on these public projects.”

“According to the State’s own study, enforcing PLAs on public school projects resulted in increased costs of 33%, and slowed project timelines by 6-8 weeks. This bill will simply cost taxpayers more, exclude the vast majority of construction workers from these jobs, and harm those it claims to help,” Fiocchi concluded.

About Associated Builders and Contractors: ABC is a national association representing 21,000 merit shop construction and construction-related firms in 69 Chapters across the United States. Our membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors of the industry. ABC NJ is the industry's liaison to federal, state, and local governments and the public at large. For more information, please visit our website atwww.abcnjc.org.