Laborers' Training and Retraining Trust Fund for Southern California

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Training Proposal for: Laborers' Training and Retraining Trust Fund for Southern California Agreement Number: ET13-0907 Panel Meeting of: September 28, 2012 ETP Regional Office: North Hollywood

1 Training Proposal for: Laborers' Training and Retraining Trust Fund for Southern California Agreement Number: ET Panel Meeting of: September 28, 2012 ETP Regional Office: North Hollywood Analyst: N. Weingart PROJECT PROFILE Contract Attributes: Counties Served: Priority Rate Retrainee SB <100 SET Apprenticeship Statewide Industry Sector(s): Construction Green Technology Priority Industry: Yes No Repeat Contractor: Yes No Union(s): Yes No Southern California District Council of Laborers and its affiliated Local Unions of the Laborers International Union of North America (LIUNA): Local 89 San Diego; Local 220 Bakersfield; Local 300 Los Angeles; Local 507 Lakewood; Local 585 Ventura; Local 652 Santa Ana; Local 783 San Bernardino; Local 802 Wilmington; and Local 1184 Riverside. Turnover Rate: 20% Managers/Supervisors: (% of total trainees) N/A FUNDING DETAIL Program Costs + Support Costs = Total ETP Funding $324,240 $22,498 (8%) $346,738 In-Kind Contribution: 50% of Total ETP Funding Required Inherent ETP MEC (07/13/12) 1 of 8

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 Priority Rate SB <100 3 Retrainee Priority Rate SET Apprentice Commercial Skills Business Skills OSHA 10/30 Commercial Skills OSHA Weighted Avg: Weighted Avg: 144 $667 $24.86 $2,002 $19.63 Minimum Wage by County: Job Numbers 1 & 2: Journeyman Union Scale. Job Number 3: SET Priority Industry wage of $19.63/hour. 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 Health benefits of up to $6.81 per hour may be used to meet wages. Wage Range by Occupation Estimated # of Occupation Titles Wage Range Trainees Journeymen 80 Journeyman Construction Craft Laborer Journeyman Cement Mason Journeyman Landscape & Irrigation Fitter Apprentice 149 Apprentice Construction Craft Laborer Apprentice Cement Mason Apprentice Landscape & Irrigation Fitter ETP MEC (07/13/12) 2 of 8

3 INTRODUCTION In this proposal, Laborers Training and Retraining Trust Fund for Southern California (SoCal Laborers Trust) ( seeks funding for retraining as outlined below: According to the Trust, in 1970 the Southern California District Council of Laborers and its affiliated local unions of the Laborers International Union of North America (LIUNA) entered into a collective bargaining agreement with the Southern California General Contractors Association which created the Laborers Training and Retraining Trust of Southern California. Today, this joint labor-management fund includes nine Southern California locals (see Page 1) whose training sites are collectively called The Laborers School. The Laborers School provides training for members in these locals covering 12 counties. The SoCal Laborers Trust meets the basic ETP contracting eligibility requirements as a group of employers under Title 22, California Code of Regulations (CCR), Section 4400(j)(3). This training proposal is designed to help workers upgrade their skills to perform jobs in demand for commercial and industrial construction, especially green construction in California. Participating employers will be part of the Southern California General Contractors Association, which is comprised of construction contractors and property owners that belong to the Associated General Contractors of California, Inc.; the Building Industry Association of Southern California, Inc.; and Southern California Contractors Association, Inc. The SoCal Laborers Trust anticipates that approximately 30% large companies and 70% small business will request training for their employees. Employers are eligible for training under the Special Employment Training (SET) provisions of Title 22, CCR, Section 4409(a) and are not required to demonstrate out-of-state competition. Trainees must be earning at least the statewide average hourly wage at the end of the 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 $19.63 per hour. 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. ETP MEC (07/13/12) 3 of 8

4 Need for Green Training According to the Trust, the construction industry finds itself in the midst of significant changes that include a shift to new green building standards; more technologically complex, energy efficient projects; the evolution of higher quality standards; and the increasing cost of materials. These changes affect construction craft laborers, cement masons, and landscape and irrigation workers, their employers, and their customers. Experienced journeymen laborers need training to utilize new products, interact with customers, work safely and efficiently, and help employers reduce waste and finish under budget to control rising costs to maintain profits and be competitive in an industry whose standards are evolving and becoming more stringent. As such, both contractors and the union encourage journeyman training to update worker skills and knowledge. At present, there are several major ongoing and/or proposed projects in the Southern California area that will require highly skilled journeyman in all three classifications: Construction Craft Laborers will be in demand for: the Exposition LRT Phase 2 in Los Angeles; Abengoa Solar Plant, Hinkley; Ivanpah Solar Electricity Generating System, Mojave Desert; Metro Gold Line Foothill Extension Phase 2A Alignment Design Build, Azusa; SR 91 HOV Lanes Freeway Widening & Bridge Replacement, Riverside; Waste Water Treatment Plant Expansion, in San Jacinto; and Southland Waste Water Treatment Plant, Nipomo. Cement Masons will be working on: Duarte High School, Duarte; Sewer Rehabilitation D, Pomona: Karmeria Ave. Sidewalk Project, Riverside; Road Improvements on Briggs & Baxter Roads, Riverside; Osborne PL Apartment, Pacoima; 2012 Pervious Concrete Gutter Program, Ontario; College Park-Tracts 16837,16838 & 16998, Chino; University of SB Robertson s Field Renovation, Santa Barbara. Landscape & Irrigation Fitters will be needed for: Highway 76 & East Vista Way, Vista: Hamner & 62nd Street, Riverside; and City of Mission Viejo Margarite Pkwy Center Medians, Mission Viejo. Journeymen in Job Numbers 1 and 2 will receive Commercial Skills, Business Skills, and OSHA 10/30 training. Commercial Skills (80%) will cover advanced techniques created by green technology and energy efficient building requirements. For example, laborers will learn Photovoltaic installation concepts such as mechanical integration and solar dynamics, as well as Weatherization to perform punch list work prepared by clean energy auditors. Workers also need advanced cutting, welding, and pipe layout techniques, as moving from Mechanical Pipe II to Mechanical Pipe IV. Business Skills (10%) classes will train workers to follow certification guidelines; use more collaborative bidding and project development practices; interact well with other workers; and implement green solutions in traditional work environments. Trainees will also be given the tools to plan, organize and manage construction projects efficiently and timely. Training will include teambuilding and leadership skills to enable workers to lead teams at the worksite. OSHA 10/30 (10%) will cover workplace safety, as laborers often work outside lifting and transporting heavy materials and directing traffic. The potential for injury or even death can be greatly decreased through industry-focused safety classes, and many employers are now ETP MEC (07/13/12) 4 of 8

5 requiring that workers take these classes before they are allowed on a worksite. This training will help local employers be competitive by giving workers up-to-date skills to be hired on new and stalled construction projects as they are funded. The program will improve job security and reduce periods of unemployment for unionized laborers. Apprentices The Apprenticeship Program's Board of Trustees is committed to assisting apprentices become journeymen, and preparing them for work that is both strenuous and dangerous. The Laborers School s highly structured program takes responsibility for placing apprentices with employers and keeping the apprentices working. The School has an 83% graduation rate: 245 apprentices in 2010 and 251 in The Laborers' Apprenticeship Program is for those with little or no experience in the construction trades who want to begin a career as a Construction Craft Laborer. Apprenticeship is a 3-year program that provides skills to work in several different areas of the industry. Apprentices must attend class one week each semester (a total of 72 hours per year) for three years. In the classroom, apprentices learn general laborer skills; on-the-job apprentices can practice any of the work listed in journeyman classifications, which helps trainees narrow down their choices to a particular scope of work and prepare to pick a specialty area. In this proposal, 2 nd and 3 rd year (3 rd thru 6 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, to bolster a slowly recovering construction industry, and replace retirees to answer a major challenge for staffing California s unionized workers in the laborer industry. Commercial Skills (93%) classes will train workers to set up, build, and maintain commercial, industrial and residential construction sites. Trainees will learn to use pneumatic tools, weld, organize and carry heavy materials, read plans, and properly use construction tools and equipment. They will also learn to lay pipe; pour, remove, and replace concrete; lay asphalt; install storm drains and water mains, work on bridges and driving tunnels, and analyze project site plans for water filtration and erosion control. Class material will cover how to work around and safely remove hazardous waste, lead and asbestos; how to perform safety-related duties such as proper scaffolding, flagging, and traffic control, and drive skid steers and forklifts. OSHA 10 (7%) The laborer outdoor, year-round work is physically demanding and requires heavy lifting and long hours of bending, sitting, climbing, standing and crouching, all of which must be done correctly and safely. The work requires hand/eye/foot coordination and finger dexterity. Training workers in proper movement, and equipment usage and material handling can prevent immediate and future isolated and chronic injury and extend worker longevity in the industry. Impact/Outcome Certifications that may be earned include: OSHA 10, OSHA 30, Rigging and Lifting, Traffic Control, Flagging, Hazardous Waste Removal, Scaffold User, Scaffold Builder, Confined Space, Forklift, and Welding. ETP MEC (07/13/12) 5 of 8

6 Training Logistics Training will be provided at one or more of the center-based training locations listed below. Training will be given by any of 20 full-time and four part-time JATC trainers with expertise in their fields. Hacienda La Puente, the JATC s Local Educational Agency (LEA), helps keep track of the trainers credentials that are issued by the state. Pre-apprentice, apprentice, and journeyman training is given year round, primarily at the central training center in Azusa, and 13 other training centers. The San Bernardino/Riverside County and Tri-Counties/Kern areas both have six training sites each; the Lakeside and Los Angeles areas each have one. Some training sites are co-located with the union offices; others are at offsite facilities and large public areas such as the Ventura and Orange Fair Grounds. The Laborers School refers to Lakeside, Los Angeles, and two locations under Local 1184 as fixed sites since they provide training on a regular, weekly basis; all other training sites are used as needed. The Laborers School also has a mobile school that travels to different locals and contractor jobsites. Many classes are held evenings and weekends since most of the trainees work. Sixteen JATC staff people at the nine locals will assist with employer marketing, recruitment, and needs assessments, as well as scheduling classes and program administration. Strategy Workplace Communications will provide ETP contract administration services (see Training Vendors below). PROJECT DETAILS Commitment to Training According to staff, the union was directly involved in the development of this training plan and curriculum, and is in full support of the training for its members. In the past, employer contributions ranging from $.64 to $2.04 per worker hour helped fund the apprenticeship program; but due to the recent downturn in construction, contributions have been at an historic low. This decline in contributions, along with greatly reduced Montoya funds, has created a hardship which ETP s pilot Apprenticeship Program will help alleviate. The SoCal Laborers Trust represents that ongoing employer contributions will continue, supported by some Montoya funds and informal employer on-the-job training. ETP funds will supplement rather than displace employer contributions to training, and will enhance the provision of green course offerings for journeymen during a time when JATCs have been faced with reduced resources. The SoCal Laborers Trust 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 Marketing will be done through newsletters, informational flyers, personal contacts, telephone calls, s, and websites. Class information will be disseminated throughout the year to all apprentice and journeyman laborers within the locals jurisdictions, and to contractors for whom they work. Application announcements for the apprentice program are sent to local, state, and federal agencies as well as local high schools, community colleges and community-based organizations. ETP MEC (07/13/12) 6 of 8

7 The Trust requests 8% support costs to fund its staff in recruiting and qualifying additional participating employers for this program. While many participating employers have already been recruited, additional recruitment and assessment activities with employers and the Laborers School must occur to support apprenticeship training. The projected budget costs for personnel alone will exceed the ETP support cost funding, and the school agrees to cover these additional costs. Curriculum Development The Laborers School, with input from labor and management representatives, has developed and customized the LIUNA curriculum to address the needs of its members and the industry. The journeyman curriculum is employer-driven, based on current Southern California hiring demands. Feedback is obtained directly from employers and union representatives based on workplace performance, customer and industry needs, and student course evaluations. OSHA 10/30 The Panel recently approved funding for OSHA 10/30 training. This is a series of courses bundled by industry sector and occupation. Typically, it is delivered to workers in the building trades. It consists of 10 hours of training for journey-level and 30 hours for frontline supervisors. This training is not required as a condition of doing business in California. However, the coursework must be approved by, and the instructors must be certified by Cal-OSHA. When delivery is by CBT all training hours must be delivered in a classroom over a finite amount of time, and the vendor must have a certified instructor present to confirm attendance. Completion of the training results in a certificate that expands employment opportunities. To ensure that each trainee receives certification, ETP will only consider payment earned upon completion of the full 10-hour or 30-hour course. In other words, six hours of OSHA 10 is not reimbursable and cannot be used to satisfy the minimum hours of training. OSHA 10/30 is not included in the 10% limitation on safety training, or in the 50% limitation on CBT. Journeymen will receive OSHA 10/30 and apprentices will receive OSHA 10. Wage and Retention Modifications The SoCal Laborers Trust is requesting a modified wage for apprentices in Job Number 3 of $19.63/hour, which is 25% below the SET frontline worker wage level. This decrease is allowed on a case-by-case basis for training in a priority industry (Title 22, CCR, Section 4409(a)(6)). 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 Trust 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 with the wage and retention period modifications. ETP MEC (07/13/12) 7 of 8

8 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) 8 of 8

9 SoCal Laborers Trust ET Exhibit B: Menu Curriculum Class/Lab Hours (Job Number 1) 8-60 (Job Number 2) Journeyman Trainees may receive any of the following: COMMERCIAL SKILLS Above Ground Drilling Aerial Boom Lift Air Tools Anthrax Remediation Arc Welding Blue Print Reading Asbestos Abatement Brazing and Soldering Brick Tending California Class A Prep Concrete: Coring and Drilling, Cutting, Placement, R & R, Sawing &Wall Sawing Confined Space Entry Drilling Operations Energy Auditor Environmental Hazards Fence Installation and Repair Fork Lift Geothermal Energy Green Construction Hoisting and Rigging Jobsite Erosion Control Landscape Lead Abatement and Awareness Mechanical Pipe Nuclear Power Plant Worker Oxyfuel Cutting Paver Installation Pipeline Procedures: Polyethylene Pipe Fusion Photovoltaic PV Racking Systems, Service and Maintenance Quality Electrical Worker Radiological Worker Residential Construction Landscaping Sandblasting ETP 100 Exhibit B Menu Curriculum (02/13/12) 1 of 4

10 SoCal Laborers Trust ET Silica Awareness Scaffold Builder Scaffold User Skid Steer Thermal Solar Awareness Traffic Control 2 Trench Plate Protection Trencher Tunneling Underground Storage Tank Program Water Diversion Signal Person Weatherization Technician and Installer BUSINESS SKILLS Teambuilding Skills Green Awareness Training and Green Certifications Leadership Skills Customer Service Skills Conflict Resolution Problem Solving Decision Making Skills Inventory Checklist Advanced Time Management Filling Out Work Documents and Reports Accurately Project Management Creating Project Bids OSHA 10/30 (Certified Instructor) OSHA 10 (requires completion of 10 hours) OSHA 30 (requires completion of 30 hours) Apprentice Class/Lab Hours (Job Number 3) Trainees may receive any of the following: COMMERCIAL SKILLS-RSI Laborer: General Air Tools Asphalt Remove & Replace Builders Level Math Fractions and Decimals, Inches to Decimals Brick Tending Concrete ETP 100 Exhibit B Menu Curriculum (02/13/12) 2 of 4

11 SoCal Laborers Trust ET Hazardous Waste Worker Hand & Power Tools Landscape Lead Abatement Worker Mechanical Pipe Pipe Laying Steward Training Tilt-Up Construction Welding Laborer: Cement Mason Area and Volume, Calculating and Estimating Bulkheads, Batter Boards, Overhead Screed Concrete Placement and Finishing, Floors, Drives and Walk Behind Power Trowel Concrete Repair Construction Math Epoxy and Epoxy Injection Form Setting, Curb and Gutter, Alley Gutter, Pour in Place Walls From Setting, Sidewalk, Driveway, Approach, Handicapped Ramp Machine Operations and Concrete Sawing Placement and Finishing, Panel, Patios, Drives, Decks, Tilt-up Placement, Finishing Tools, Concrete Procedures, Control Joints Respiratory Awareness Scope of Work, Personal Protective Equipment, Materials and Tools Recognition and Hazard on the Jobsite Squaring Principles, Triangulation Sub-grade Preparation, Line Setting and Forming Techniques Survey, Station, Percentages Laborer: Landscape Environmental Hazards of Highway Work Environmental Passport Landscape 1: Planting & Maintenance Landscape 2: Construction Math & Irrigation Systems Landscape 3: Erosion Control, Grading & Drainage Landscape 4: Retention Walls, Dividers & Flatwork Mini Excavator Skip Loader Utility Trailer All: Aerial Boom Lift Safety Asbestos Abatement Confined Space Environmental Hazards Fall Protection Forklift and Forklift Safety Hazard Communications ETP 100 Exhibit B Menu Curriculum (02/13/12) 3 of 4

12 SoCal Laborers Trust ET Laser /Transit/Building Level Basics Lead Awareness Scaffold Builder Scaffold User Skid Steer Traffic Control and Flagging Trench Plates & Shoring OSHA 10 (Certified Instructor) OSHA 10 (requires completion of 10 hours) Note: Reimbursement for journeyman retraining is capped at 80 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. Safety training cannot exceed 10% of total training hours per trainee, excluding OSHA 10/30. ETP 100 Exhibit B Menu Curriculum (02/13/12) 4 of 4

Southern California Floor Covering Crafts Joint Apprenticeship and Training Committee

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: North