Remarks by
Mark H. Ayers
President
Building and Construction Trades Department
To
CURT Tripartite Initiative Meeting
January 18, 2012
Hollywood, Florida
When we look back upon 2011, many will see it as the "year of the Occupy Movement."
In many respects, aside from the more radical elements of the movement, the central themes of this social unrest amount to an awakening.
And that awakening is centered upon a desire to re-define the meaning of capitalism in order to create a value model where both economic and societal benefit is generated. All across America today, cultural and societal trends are forcing corporations and their brands to rethink the fundamental relationships they have with their customers.
Today, companies like yours, and organizations like mine...are becoming more and more transparent - whether we like it or not.
The problem for you in the business community is that research consistently indicates that corporations are today being viewed as prospering at the expense of the broader community...which, according to a global business membership and research organization, is contributing to rising income inequality in the United States and stifling economic growth.
And because consumers continue to expect more from the brands with which they associate themselves, it makes sense, at least in my mind...for us to at least explore a greater collaboration that, in the end, will help you build greater brand equity for your companies.
Such collaboration can produce tangible societal and cultural benefits that go beyond achieving "on time, on budget" construction results...benefits like career training and employment opportunities for the next generation of skilled craft professionals that includes women, minorities, and military veterans.
There is a growing school of thought that believes that far too many companies today still harbor the mistaken view that value creation results from optimizing short-term financial performance...while completely missing the most important customer needs, and by ignoring the broader influences that determine long-term success in today's business climate.
Several well-known companies that are members of CURT, like Intel and Johnson & Johnson...have already embarked on important efforts to create shared value by re-conceiving the intersection between society and corporate performance.
And I applaud those efforts.
Many of you probably continue to harbor skepticism as to what, exactly, the Building Trades can bring to this equation of creating shared value.
Well, the short answer to you is this: Plenty. Since the day I took the helm of the Building and Construction Trades Department over three years ago...we continue to make great strides in cementing a new institutional culture for the union construction sector...one that is centered upon collaboration, cooperation and generating value-added results.
And I am proud to say to you today that we are achieving results.
In 2011 alone, roughly 200 project labor agreements were in place across the United States with an accumulated value of approximately $200 billion [dollars]. Now, in the midst of what is the worst construction market we have seen in a generation, I think those are numbers that speak for themselves.
And we have achieved those results by focusing on the delivery of bottom-line value...and by differentiating our business model from the "race to the bottom" business model that all too often permeates throughout our industry...and which exacts a troubling social and economic toll in communities all across America today.
The bottom line is this:
Moving away from your endorsement and embrace of the ABC's "race to the bottom" approach...
and instead co-branding with our business model and value proposition can help all of you to address the increased pressure that you will face not only on your bottom lines...
but also to align your brands with new consumer ideals that center upon creating shared value.
What we need to be asking ourselves is this:
Are we ready to embrace this new consumer uprising and make it work to our benefit through the development of new collaborations that create shared value for society at large?
America's Building Trades Unions harbor the ideal that capitalism is the single most effective vehicle for meeting human needs, improving efficiency, creating jobs, and building wealth. To us, there is no getting around the fact that businesses, acting responsibly , are among the most powerful forces for tackling the pressing issues we face as a nation.
Our country’s needs today are large and growing...And there now exists a new generation of consumers, employees and younger Americans that are demanding that business step up to the plate.
To be clear, when I talk about creating shared value...I'm not speaking about personal values.
Nor am I referring to "re-distributing" the value that has already been created.
Rather, I am talking about cutting the crap and getting away from this silly and unproductive "arms length" dance that we have been doing with each other for so many years.
What I'm talking about is taking concrete steps to find ways in which our organizations can, and should, collaborate in a manner that expands the total pool of economic and social value in this great nation...while delivering tangible benefits for our members and for the contractors that employ them.
We should be able to find more common ground on political, legislative, regulatory and development policy.
And we should be able to more aggressively promote our model of cooperation and counter those who seek short term gain at the expense of the long term viability and sustainability of our industry.
I trust you all share my sense of urgency in these turbulent times.
Can't we agree that the competitiveness of each of your companies and the health of the surrounding community in which you choose to invest construction dollars are closely intertwined?
And can't we all agree that every business needs a successful community, not only to create demand for your products or services...but also to provide critical public assets and a supportive environment?
And, if we are all honest with ourselves, wouldn't we all agree that a community can only thrive when businesses provide decent jobs and wealth creation opportunities for its citizens?
The old, narrow view that suggests that business contributes to society simply and only by maximizing its profit...is an archaic mindset that simply does not fit the circumstances of today.
Just as we have shed old mindsets within our ranks, I ask all of us here to challenge the status quo—not only as individual organizations or companies, but collectively.
Further, we can make these meetings more substantive and meaningful if we can liberate these proceedings from the constant veiled threat that permeates from the open shop. If we are able to do that, then I could assure you that future CURT Tripartite meetings would be filled to capacity and reenergized with a spirit of innovation, cooperation and collabotration.
What the demands of our society require of us in this day and age, ...is a commitment to broad, shared value strategic thinking. But that can never be achieved in an atmosphere infused with implied threats and repercussions.
And I would further submit to you that such a change in thinking is critical for the health of your brands, and to your bottom lines.
Because a continuing focus on holding down wages, reducing employee benefits, sanctioning and even encouraging the use of undocumented or illegal workers, and the off-shoring or "in-sourcing" of skilled craft work...is not getting anyone anywhere.
What we need to cultivate within our relationship...is an awareness of the positive effects that a living wage, safety on the job, wellness programs, and job and career training can have on worker productivity and community vitality.
In turn, this will provide ever more opportunities for our contractors to expand profitable operations.
So, to all my friends in the owner community and to our signatory contractors I say this to you:
a new generation of consumers, armed with only a laptop and an Internet connection, can negatively affect your brands...should your companies be perceived as not contributing to finding solutions to the needs and concerns of society at large or if a labor organization is not attentive to their members or the customers they serve, .
But the opposite is also true.
So, I simply ask you here today to join us in consideration of how a shared value lens can, and should, be applied to your construction procurement needs.
It's a rather simple equation:
Can the construction of new facilities, plants, developments, etc. be done in such a way that is both mindful of your bottom line budgetary concerns...
while also achieving greater community and societal impact?
I am here to tell you today that the answer to that question is an emphatic YES!
And our unions stand ready, willing and able to work with you to explore every avenue and opportunity to collaborate with the contractor and owner community to achieve those ends.
Thank you for your time and attention and I look forward to a frank and productive meeting.