Southern California Floor Covering Crafts Joint Apprenticeship and Training Committee

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Training Proposal for: Southern California Floor Covering Crafts Joint Apprenticeship and Training Committee Agreement Number: ET13-0900 Panel Meeting of: September 28, 2012 ETP Regional Office:

1 Training Proposal for: Southern California Floor Covering Crafts Joint Apprenticeship and Training Committee Agreement Number: ET Panel Meeting of: September 28, 2012 ETP Regional Office: North Hollywood Analyst: N. Weingart PROJECT PROFILE Contract Attributes: Priority Rate Retrainee SB <100 SET Apprenticeship Industry Sector(s): Construction Green Technology Counties Served: Statewide Priority Industry: Yes No Repeat Contractor: Yes No Union(s): Yes No Resilient Floor and Decorative Covering Local Union 1247 Turnover Rate: 20% Managers/Supervisors: (% of total trainees) N/A FUNDING DETAIL Program Costs + Support Costs = Total ETP Funding $282,912 $19,635 (8%) $302,547 In-Kind Contribution: 50% of Total ETP Funding Required Inherent ETP MEC (07/13/12) 1 of 7

2 TRAINING PLAN TABLE Job No. Job Description Type of Training Range of Estimated Hours No. of Trainees Class / CBT Lab Average Cost per Trainee Post- Retention Wage 1 Retrainee SET Priority Rate Commercial Skills Business Skills OSHA 10/ Weighted Avg: 24 $462 $ Retrainee SET SB <100 Priority Rate 3 Retrainee SET Apprentice Commercial Skills Business Skills OSHA 10/30 Commercial Skills OSHA Weighted Avg: Weighted Avg: 144 $667 $30.85 $2,002 $18.86 Minimum Wage by County: Job Numbers 1 & 2: Journeyman Union Scale. Job Number 3: Union scale wages per Collective Bargaining Agreement. Health Benefits: Yes No This is employer share of cost for healthcare premiums medical, dental, vision. Used to meet the Post-Retention Wage?: Yes No Maybe $4.98 per hour may be added to Job Number 3 to meet wages. Wage Range by Occupation Occupation Titles Wage Range Estimated # of Trainees Journeyman Carpet & Resilient Floor Covering Installer 50 Apprentice Carpet & Resilient Floor Covering Installer 136 INTRODUCTION In this proposal, the Southern California Floor Covering Crafts Joint Apprenticeship and Training Committee (SCFC JATC) ( seeks funding for retraining as outlined below: The SCFC JATC was founded in 1953 pursuant to the collective bargaining agreement between Carpet, Linoleum, and Soft Tile Local Union 1247 (of the Brotherhood of Painters, Decorators and Paperhangers of America) and the Floor Covering Contractors Association of Orange County, Harbor Floor Covering Institute, and San Gabriel Valley Floor Covering. Local 1247 now represents over 490 floor covering installers in Southern California (approximately 136 apprentices and 354 journeymen). The SCFC JATC is a non-profit, training organization dedicated to providing better job opportunities, up-to-date industry skills, and more secure employment for its members. It is a joint labor-management committee representing the floor covering industry (a Panel priority) ETP MEC (07/13/12) 2 of 7

3 throughout Southern California, administered by a Board of Trustees made up of four labor and four management members. This organization meets the basic ETP contracting eligibility requirements as a group of employers under Title 22, California Code of Regulations (CCR), Section 4400(j)(3). According to staff, it is the JATC s responsibility to train floor covering installers. Its training center is located in Santa Fe Springs and serves Los Angeles, Orange, Kern, Inyo, Mono, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo counties. All retrainees are represented by Local The union was directly involved in the development of this curriculum and training plan, and is in full support of the training for its members. This proposal is designed to help workers upgrade their skills so they can perform jobs in demand for commercial and industrial construction, especially green construction in California. Participating employers are from the floor covering industry; the Contractor anticipates that approximately 30% large companies and 70% small business will participate. Employers eligible for training under Special Employment Training (SET) provisions of Title 22, CCR, Section 4409(a) are not required to demonstrate out-of-state competition, and trainees must be earning at least the statewide average hourly wage at the end of their retention period. Apprenticeship At its March 23, 2012 meeting, the Panel approved Apprenticeship Pilot Program Guidelines, which provides reimbursement for 144 class/lab hours of the Related & Supplemental Instruction (RSI) portion of a Division of Apprenticeship Standards (DAS)-approved apprenticeship training program. An additional 10 hours of OSHA 10 training may be delivered via class/lab or Computer-Based Training (CBT). The retention period will be 500 hours within 272 days with multiple employers, consistent with standard ETP criteria for occupations where it is not customary to work 90 consecutive days. Funding will be under the SET for industry sectors that do not face out-of-state competition. To ensure ETP does not displace Montoya Funds, Apprenticeship Pilot reimbursement is reduced by $5.00, moving the priority industry rate from $18.00 to $13.00 per hour. ETP funding will only apply to Apprentices in Year 2+ to ensure commitment. The post-retention ETP wage will be the SET Statewide rate as modified for priority industries or union scale may be accepted on a case-by-case basis if Year 2+ Apprentices do not meet this wage. ETP funding will be provided to a Joint Apprenticeship Training Committee (JATC) or other program sponsor registered with the DAS. Apprenticeship programs are typically created through collective bargaining, along with a trust fund to ensure delivery of training over the course of a multi-year apprenticeship. Signatory employers to the collective bargaining agreement pay into the trust fund for each hour worked by apprentices and journeymen. Labor and management appoint an equal number of representatives to the JATC as trustees. Need for Green Training According to the Contractor, the floor covering field is undergoing significant changes with a shift to new products, green materials, new installation techniques, more complex work requirements, and the rising cost of materials. Floor covering installers plan, prepare, install, and repair various types of floor covering in both residential and commercial locations. They need to know product characteristics and construction, and the best handling and installation techniques to perform quality work while keeping loss and waste to a minimum. Knowledge of job planning and material and supply requirements are also essential to cost control. As such, both contractors and the union encourage journeyman training to bring worker skills and ETP MEC (07/13/12) 3 of 7

4 knowledge up-to-date to meet current contractor and customer requirements. Experienced installers need training to utilize new products, interact with customers, work safely and efficiently, and help employers maintain profits to be competitive in an industry whose standards are evolving and becoming more stringent. At present, there are at least six major ongoing projects (and one proposal) in the Southern California area: Hoag Hospital; Los Angeles Airport; Los Angeles Unified School District; Los Angeles Community College District (various projects); University of California, Los Angeles; University of Southern California, and City of Hope that demand highly skilled floor covering installers. In order to be prepared, journeymen in Job Numbers 1 and 2 will receive Commercial Skills, Business Skills, and OSHA 10/30 training. Commercial Skills (85%) will teach new installation techniques for green flooring materials in demand by customers including: Green Floor Covering Installation, Armstrong Certification Training; Forbo Associate Training; Laminate Training; Vinyl Backed Carpet Installation; Advanced Installation; Sheet Goods Installation; Advanced Carpet Installation; Hard Surface Installation Testing; Carpet Installation Testing; Synthetic Turf; and Trade Math. For example, Armstrong Certification training will cover working with new water-based (instead of solventbased) adhesives, which involves a complete change to the installation process. Forbo Associate training explains how to work with all natural tile products. The tile installation process had remained essentially unchanged since the 1800s until the appearance of green products. All of the materials in these new tiles are grown (linseed oil, tree bark) instead of manufactured. Laminate training will focus on working with natural wood products as customers move from the traditional vinyl and carpet to wood, which is easier to keep clean and is less likely to harbor bacteria. Vinyl Backed Carpet Installation will cover installation of carpet made from recycled materials. Business Skills (5%) will focus exclusively on customer service, teaching trainees how to work well with internal and external customers to identify customer needs, handle customer requests, and resolve customer complaints. OSHA 10/30 Skills (10%) will cover safety issues in the workplace, as floor covering installers often work outside lifting and transporting heavy materials, creating the potential for immediate or chronic injury. Many employers are now requiring the workers take these class before they are allowed on a worksite. Apprentices The floor covering apprenticeship is a 4-year program that provides workers with the skills they need to work in several different areas of the industry. The program consists of 608 hours of classroom/laboratory RSI given in conjunction with four years (or 6,400 hours) of on-the-job training (OJT). Staff explained that before the construction slowdown, the JATC had about 300 apprentices; today they number 136. As journeyman installers retire and new work develops, a gap of qualified installers available to step into open positions has been created. ETP funding for apprentice training will help the JATC reduce this gap and create a solid pipeline of future, well-trained workers to replace retiring journeymen and facilitate industry expansion. In this proposal, 2 nd through 4 th year (3 rd thru 8 th term) apprentices in Job Number 3 will receive Commercial Skills and OSHA 10 training to prepare them to work on the aforementioned Southern California jobs and future projects statewide. Commercial Skills (93%) will teach trainees to plan, prepare, install and repair various types of floor covering including tile, carpet, wood, ceramic and resilient flooring (sheet vinyl, linoleum ETP MEC (07/13/12) 4 of 7

5 and other materials). Classes will include Cove Vinyl and other Sheet Goods; Glue Down Borders; Sheet Vinyl Seaming Techniques; Rubber Flooring Products; Hand Sewing; Carpet Stair Installation; Conventional Borders; Carpet Banding; Skirts, Treads, and Risers; Vinyl Composition Tile (VCT); Conventional Carpet; Glue-Down Carpet; Linoleum Installation; Self- Leveling; Heat Welding; Synthetic Turf; and Foreman Training. OSHA 10 Skills (7%) will address workplace safety issues as indicated above. Impact/Outcome Workers that successfully complete training may receive Armstrong, Forbo Associate Mechanic, Mondo Rubber, OSHA 10, and OSHA 30 certifications. Training Logistics Training will begin upon ETP approval at the Santa Fe Springs training facility. Nearly all of the training will be delivered by highly skilled journeymen trainers that are expert level members of the trade with the relevant skills. Manufacturers representatives may also deliver some product-specific material. Four JATC staff will assist with marketing, recruitment, needs assessments, and scheduling. California Labor Federation and Strategy Workplace Communications staff will help administer the program (see Training Vendors below). PROJECT DETAILS Commitment to Training The SCFC JATC represents that training will be funded by ongoing signatory employer trust fund contributions for journeyman and apprentice training, the latter of which will also be supported by some Montoya funds and informal employer OTJ. ETP funds will supplement rather than displace employer contributions to training, and will enhance the provision of greenrelated course offerings to journeymen during a time when JATCs have been faced with reduced resources for journeymen training. The SCFC JATC represents that safety training is, and will continue to be, provided in accordance with all pertinent requirements under state and federal law. Marketing and Support Costs The SCFC JATC publicizes the availability of training through direct mailings, brochures/flyers, personal contacts, telephone calls, and public service and announcements. It will also promote this training program at labor-management meetings and industry assemblies. Application announcements for union apprentice programs are sent to government agencies as well as to local high schools, community colleges, and community-based classes. The SCFC JATC is requesting 8% support costs to fund marketing to employers, for journeyman training to recruit apprentices; and to conduct ongoing assessments of employerspecific job requirements. While many participating employers are already on board, additional recruitment and assessment activities with employers and the JATC must occur to support apprenticeship training. The projected budget costs for personnel alone will exceed the ETP support cost funding and the JATC has agreed to cover these additional costs. ETP MEC (07/13/12) 5 of 7

6 Curriculum Development The training curriculum was developed by SCFC JATC with input from both union and employer representatives. It has been customized to address the needs of its members, participating employers, and the industry. Feedback comes directly from employer and union representatives based on workplace performance, as well as student course evaluations. Wage and Retention Modifications In Job Number 3, the SCFC JATC is requesting a modified wage for apprentices who currently earn $13.88/hour plus $4.98/hour in health benefits, or a total of $18.86 per hour, so that these apprentices may be included in the program. These are union scale wages for apprentices in year 2. The goal of this training is to upgrade skills for construction workers from apprentices to journeymen. Once part of the apprenticeship program, workers wages progress at regular intervals until they reach the well-paid journey level. The SCFC JATC is also requesting a modified retention period of 500 hours within 272 days with one or more employers, since it is not customary for workers in the building trades to be employed for 90 consecutive days with one employer. RECOMMENDATION For the reasons set forth above, staff recommends approval of this proposal including the wage and retention period modification. PRIOR PROJECTS The following table summarizes performance by the SCFC JATC under an ETP Agreement that was completed within the last five years: Agreement No. City Term ET Santa Fe Springs 5/05/2008 5/04/2010 Approved Amount Payment Earned $123,200 $15,246 (12%) The ETP online Class/Lab Tracking System shows that 67 trainees were enrolled and received from 8 to 56 hours of class/lab training; however, only 42 met the ETP 24-hour minimum to be eligible for reimbursement. In the end, the Contractor was reimbursed for 24 trainees that met all performance requirements. SCFC JATC reports that performance was lower than expected for two primary reasons: (1) initial training was done by outside vendors, many of whom were not immediately available; and (2) the construction industry was just starting to feel the effects of the economic downturn when the program started. In addition, five trainees went to work for the government and were, therefore, ineligible for payment. To improve performance in the new proposal, SCFC JATC is focusing on training apprentices who should easily meet the 24-hour minimum and the retention period based on work that is currently available. The number of journeyman training hours has been reduced from the prior Agreement, and they do not anticipate any scheduling issues with outside vendors. ETP MEC (07/13/12) 6 of 7

7 DEVELOPMENT SERVICES This project was developed with the assistance of the California Labor Federation (Workforce Economic Development) and Strategy Workplace Communications in Oakland at no charge. ADMINISTRATIVE SERVICES Strategy Workplace Communications will also perform administrative services in connection with this proposal for an amount not to exceed 13% of payment earned. TRAINING VENDORS To Be Determined ETP MEC (07/13/12) 7 of 7

8 SCFC JATC ET Exhibit B: Menu Curriculum Journeyman Class/Lab Hours (Job Number 1) 8-60 (Job Number 2) Trainees may receive any of the following: COMMERCIAL SKILLS (Green Floor Covering Installation) Armstrong Certification Forbo Associate Advanced Carpet Installation Advanced Installation (other than carpet, by product & location) Vinyl Backed Carpet Installation Carpet Installation Testing Laminates Sheet Goods Installation Hard Surface Installation Testing Synthetic Turf Trade Math BUSINESS SKILLS Customer Service Identifying Customer Needs Handling Customer Requests Resolving Customer Complaints OSHA 10/30(Certified Instructor) OSHA 10 (requires completion of 10 hours) OSHA 30 (requires completion of 30 hours) ETP 100 Exhibit B Menu Curriculum (02/13/12) 1 of 2

9 SCFC JATC ET Apprentice Class/Lab Hours (Job Number 3) Trainees may receive any of the following: COMMERCIAL SKILLS Cove Sheet Goods Cove Sheet Vinyl Glue Down Borders Sheet Vinyl Seaming Techniques Rubber Flooring Products Hand Sewing Conventional Carpet Glue-Down Carpet Carpet Stair Installation Conventional Borders Carpet Banding Skirts, Treads, and Risers Vinyl Composition Tile (VCT) Linoleum Installation Self-Leveling Heat Welding Synthetic Turf Foreman Training OSHA 10 (Certified Instructor) OSHA 10 (requires completion of 10 hours) Note: Reimbursement for journeyman retraining is capped at 200 total training hours per trainee for large employers, and 60 hours per trainee for small businesses, regardless of the method of delivery. Reimbursement for all apprenticeship training is capped at 144 hours per trainee in the RSI curriculum plus 10 hours of OSHA 10 for a total of 154 hours. ETP 100 Exhibit B Menu Curriculum (02/13/12) 2 of 2

CVS Pharmacy, Inc. dba CVS Caremark

Training Proposal for: CVS Pharmacy, Inc. dba CVS Caremark Agreement Number: ET13-0280 Panel Meeting of: January 25, 2013 ETP Regional Office: Sacramento Analyst: W. Atkinson PROJECT PROFILE Contract Attributes: