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NUCA of NM has partnered with several other industry leaders to stop the implementation of the CWA in the city of Santa Fe. This legislation was voted into law on February 29, 2012 without notice for or input from industry related leaders and associations.
At this time, the CWA's effective date has been stalled until October 1, 2012 as we are working for full repeal. The best evidence we have as an industry is testimony from you in regards to how this CWA will affect your decision to bid on work in the city of Santa Fe if this CWA is ultimately implemented.
Synopsis of CWA
If you bid on a public works project over $500,000 in the city of Santa Fe
- You must sign a collective bargaining agreement for the duration of the project. This means that Once the CWA is signed, all fringe benefit amounts are paid directly to the representing union and not to the employee. For instance if the prevailing wage is $25 per hour plus a $5 fringe benefit, that $5 will now go directly to the union and not directly to the employee. The fringe is typically used to pay insurance, 401K benefits, etc. After the project is finished, the employee will never see that amount of money unless they stay a union member until retirement.
- You must use 50% of the workforce employed on the project used by the contractor (or sub-contractor) from the local union hiring halls. This could mean that you will have to lay-off your currently employed workforce and hire others to complete the job.
- You will have to deduct from employee's pay application fees and dues.
- You will have to pay an additional 5 cents per employee/hour payable to NM Building Trades for administration costs associated with running this program.
With less than 4% of construction companies in Santa Fe affiliated with a union, this leaves the other 96% of construction companies and their employees out of the competitive bidding market unless they agree to sign the CWA agreement as a condition to bid on the public works project.
The CWA stresses that the unions will guarantee certified Apprenticeship programs and highly trained employees; however, construction companies with in-house apprenticeship and training programs are highly skilled and trained.
The CWA stresses that this ordinance will guarantee a safe workplace. OSHA is the regulating agency for safety, and all contractors must meet the safety requirements established by OSHA. In addition, a contractor must be safe to be able to work on many job sites. If their experience modifier for Worker's Compensation is over 1, they will not qualify for many public works projects. An experience modifier is determined by jobsite accidents.
The CWA stresses that there will be no strikes or labor disputes because of this ordinance. Only union workers are able to strike on job sites, so this does not apply to contractors who choose not to join a union.
The CWA states that this ordinance will guarantee accurate pricing. Typically, contractors are pre-qualified to perform on construction projects, and those who are not competent are deemed unable to perform the work prior to any pricing information exchanging hands.
The CWA states that this ordinance guarantees that projects will be completed in a timely manner. In all public works projects contracts there are provisions for penalties if projects are not completed in a timely manner.
Finally, the CWA ordinance will drive the cost to build up by as much as 20%. In this economic downturn, now is not the time to drive up the cost of construction.
Contact the Santa Fe City Council and voice your opinion on this legislation. CLICK HERE for contact information for the Santa Fe City Council.
CLICK HERE to read the CWA in its entirety.
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