REMARKS
Mark H. Ayers
President
Building and Construction Trades Department, AFL-CIO
To
Associated General Contractors 91st Annual Convention
March 17, 2010
Thank you, for that kind introduction.
I want to spend my time today sharing some thoughts I have on the economy, our industry, on innovation and on the legislative and regulatory agenda of America’s Building Trades Unions.
Now, if I’m not mistaken this session was billed as an opportunity for you to learn more about the political influence of America’s Building Trades Unions and how we may be using that influence with our friends in the White House and the Democratic Congress. And it’s true we do have access to many Members of Congress and Administration officials. And I am happy to say that we are using whatever access and influence we have to encourage the enactment of policies that address one central goal: That goal is to provide a significant jump-start to the U.S. construction industry!
Implicit in that objective is getting our members and our signatory contractors back to work. Not surprisingly we have been extremely active in pursuing policies that, unfortunately, have been mischaracterized as “special interest giveaways.” It is truly unfortunate that these characterizations are being bandied about because they are not accurate. And further, they misconstrue our true intentions.
So, today I would like to engage in a discussion of some of these policy initiatives and in so doing I hope that I leave you with a better and more complete understanding of the reasoning behind them. I also hope to leave here knowing that I have given you a more accurate and realistic picture of America’s Building Trades Unions as we exist and operate today which is so far removed from the stereotypes and perceptions of a bygone era.
I want to impress upon you how our unions are committed to the implementation of an entirely new brand identity and culture for the union construction industry. And how that identity is centered upon the creation of value and developing strong partnerships with the end result being the delivery of unsurpassed customer service.
So, let’s begin. First, let me start by sharing with you the fundamental view of our unions about the building of economic prosperity. We all know that the American economy is in trouble. It’s been battered and bruised by the collapsing housing and commercial construction markets, and credit bubbles not to mention high energy costs.
Contrary to the claims of those with a political axe to grind with the Obama Administration or those who can’t see the forest through the “tea parties”, the dose of stimulus medicine that was administered over the past 15 months has been a relative godsend. Yes, I know that more could have, and should have, been done to invest in modernizing and re-building our nation’s infrastructure. But, the fact of the matter is that the injection of stimulus funds helped to keep our economy from falling into an economic abyss.
The question that is now before us is this: Where do we, as a nation, go from here? Are we prepared to jettison the debt-laden, consumption-based approach of the last decade or so and instead adopt a long-term economic recovery program…One that is based upon “investment” in American infrastructure, American innovation, American education and training, American manufacturing capacity, American content and American workers?
From our perspective, the primary goal of a new, long-term economic recovery program must be to avoid falling back into the “bubble economy” trap where consumption is valued and promoted at the expense of sound economic investment. The overriding goal of a new economic growth program, and this is a message that I deliver to the White House and the Congressional leadership on a regular basis, is that our nation needs to focus on finding big sources of new growth that can replace personal consumption as the main driver of a new economy. That is why our unions have been aggressively pressing for a national energy policy that will ignite investments in the development of domestic energy sources which include both traditional and renewable sources of energy.
The recent awarding of federal loan guarantees for the construction of two new nuclear reactors at the Plant Vogtle nuclear facility in Georgia is an excellent case in point. As I said, our unions are pushing the Congress and the Administration to pivot away from a consumption-based economic model to one that is grounded in a renewed emphasis upon investment, innovation and productivity. And we are using whatever leverage we may have to pursue such an agenda.
The issue of Project Labor Agreements is a case in point. Because when our unions and most of our contractors talk about investment we don’t limit that discussion to just monetary and capital investments. We are also concerned about community and workforce investments. That is why we pushed the Administration to reverse the Bush prohibition of project labor agreements on federal projects. And here is our reasoning. For federal, state and local agencies looking to invest taxpayer dollars in today’s construction market two distinct business models are available.
The first is a business model that embraces the use of PLAs. It is a business model that offers increased jobsite efficiencies through a 21st century labor-management approach based upon cooperation, productivity and partnership. And it is an approach that ensures that contractors and owners will have a steady, LOCAL supply of the safest, most highly skilled and productive skilled craft workforce. And that workforce, in turn, receives a pay and benefit package reflective of their skill and productivity levels.
Further, the PLA model promotes the idea of workforce development where local residents particularly women and minorities are given access to career training opportunities in the skilled trades. This PLA model lies in stark contrast to the “other” business model in which success is – at least in part based on the ability of some—not all—contractors to assemble a low-wage, low-skill and sometimes an exploitable workforce. The hidden socio-economic costs of that business model are tremendous.
Consider this for a moment…today the construction industry has one of the highest rates of injury and occupational illness in America. Yet, it also has one of the lowest rates of health insurance coverage. That is an abominable statistic!
So, when these workers get hurt or ill. They seek treatment at our nation’s emergency rooms. And those costs are shifted onto the backs of responsible employers, taxpayers and communities. So, yes America’s Building Trades Unions are vigorously promoting Project Labor Agreements at the federal, state and local levels and we don’t apologize for it. Because we contend that PLAs will prevent taxpayer dollars from being used to sustain a business model that does no justice to our nation and our communities.
The same is true of our advocacy for federal and state prevailing wage statutes as well as our pursuit of the Merkley Amendment during the current debate over Health Care Reform legislation in the United States Senate. Now, let me assure you that our support for these policies is coupled with the knowledge that our own business model needed to be tweaked as well.
America’s Building Trades Unions have spent over two years instituting a new internal culture based upon providing “Value on Display…Every Day”. Make no mistake about it, today our unions know unquestionably that we are in a business. And our primary business function is to provide a value proposition to owners and contractors, who are our partners in this industry.
We are creating much of that value by embracing innovation. And that innovation is reflected in our national construction agreements which are increasingly being structured to address the realities of the market today as well as the ever-evolving priorities of owners and contractors.
You know, I am continually amazed at the pace of innovation that occurs in this nation on a daily basis. In spite of everything that has happened within our economy the U.S. is still the world leader in innovation. Our universities are the envy of the world. And the American workforce is the most productive on the planet. Especially construction contractors and the skilled craft professionals and the joint labor-management training infrastructure that defines the union construction sector.
I firmly believe that the onset of what is being called the “reset economy” will require both management and labor to re-commit ourselves to the principles of cooperation, innovation, and productivity. We cannot move forward as a nation when our primary business model is a race to the bottom. What will fuel a long-term, sustained recovery is capital AND human investment. Investments in new, clean energy technologies. Investments in new modes of transportation. Investments in America’s infrastructure. Investments in education. And investments in American workforce development.
If America can come together and agree, if unions and contractors can agree that a combined capital and human investment approach is the right approach for sustained economic growth then we will strengthen our ability as individuals, organizations, and as a nation to tackle many of the pressing problems of society today. Problems like education, health care, and energy independence. And at the same time, we will have done wonders to enhance the overall productivity and economic competitiveness of this great nation.
But, in order to get there we first have to get past the divisive nature of our politics which increasingly fosters a destructive “us vs. them” mentality that stifles economic growth. A good example is the current back and forth over climate change. While our leaders engage in a sometimes boorish debate about whether the issue is real or not we are forced to watch what is arguably the greatest economic opportunity of our lifetime slip through our fingers.
Think about it: Members of Congress and other political leaders are engaged in a destructive back and forth bickering among themselves along with the media filling people’s heads with gloom and doom scenarios about “cap and tax.” And all the while, the Chinese, the Germans, the French and the Dutch among others are saying “thank you very much” for the opportunity to seize control of the many markets associated with a cleaner energy future.
Fortunately, it’s not too late. There is still time for America to be the world’s leader in solar, wind, nuclear, geothermal, hydro, and other forms of clean energy and in the large-scale “green” retrofit of the building stock in our cities. It seems pretty simple to me. The development of both traditional and renewable sources of domestic energy coupled with a massive effort to increase the efficiency of America’s building stock will hasten a transition away from foreign energy sources which are so intertwined with our national security and economic development.
But, perhaps most importantly the implementation of these domestic energy policies will go far in getting America back on the economic “high road” and foster renewed growth in our middle class which is deteriorating rapidly.
Now, before anyone here starts to think that I have socialist leanings, let me divest you of that notion right off the bat. I am a capitalist. And I support the free-market system of America. As I have stated repeatedly our unions fully understand that the success of the union construction sector is predicated upon our ability to adopt the basic attributes of efficiency, value and customer service.
For us, there is one very simple bottom line: We have a product to sell. And that product just happens to be our labor and skills. We provide the best workforce in the industry at a price that reflects the costs of developing it. Therefore, the focus of America’s Building Trades Unions is demonstrating the value of our product every minute, every hour, every day, over and over and over. Value on Display…Every Day.
That’s our brand positioning statement. And it is a declaration of what our real business is. We're not in the contracting business, although we are builders. We’re not strictly in the labor supply business, although we certainly do supply labor.
Instead, America’s Building Trades Unions are in the contractor/customer service business. “Value on Display…Every Day” is a promise that we intend to deliver consistently. “Value on Display…Every Day” implies a partnership between our unions and the owner and contractor with whom we have the pleasure of working for.
Ladies and gentlemen we are in the throes of a once-in-a-lifetime economic crisis. But, it's also a once-in-a-lifetime OPPORTUNITY to think about our priorities again and make the necessary investments that will get us back on the right path to shared prosperity for all.
Again, that is the thrust behind our legislative and policy agenda. This country has what it takes to succeed. And our unions have what it takes to bring quantifiable value to contractors and owners. We have talent we have technological know-how and we have a training infrastructure that is the envy of the world. And in recent years, we have amassed a pretty good track record.
For several years now, our unions have been brutally honest about where we are and what it will take for us to reclaim the high credibility and public acceptance to which we aspire. We have taken bold steps in terms of instituting local union accountability measures as well as membership codes of conduct and codes of excellence.
But, we also know that, in this economic climate, we certainly have to roll up our sleeves to do more. It’s a path that will drive the kind of economic success that we all want.
The only thing I ask is for each and every one of you in this room today to look at America’s Building Trades Unions with a fresh eye, one that is unencumbered of the outdated stereotypes and characterizations of long ago. Because a new day has dawned in America and in our industry. And it is a bright day premised upon value, honesty and the delivery of promises made and promises kept.
All we ask for is the opportunity to prove ourselves. Thank you very much. It's been my pleasure to be with you today.
I would welcome any questions you may have.
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