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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 7f STAFF BRIEFING Date of Meeting March 8, 2016 DATE: March 3, 2016 TO: Ted Fick, Chief Executive Officer FROM: Ralph Graves, Senior Director, Capital Development David Freiboth, Senior Director, Labor Relations SUBJECT: Construction Labor Relations Policy SYNOPSIS The Port and its tenants construct facilities to support public and commercial activities. This briefing presents a draft Construction Labor Relations Resolution to set policy governing employment on projects constructed on Port property. The purposes of the proposed policy are to expand access to construction jobs; ensure fair treatment of workers; promote labor harmony and uninterrupted work progress; and improve safety at construction sites. BACKGROUND Port of Seattle facilities support regional transportation, job creation and economic development. Labor harmony is essential to ensure uninterrupted delivery of critically needed facilities. State prevailing wage standards help ensure equitable pay for construction workers. Apprenticeship utilization requirements, along with aspirational hiring goals for women and minorities, promote access to construction jobs. Project labor agreements (PLAs), and related construction workforce agreements (CWAs), provide means to align the interests of public owners such as the Port with those of construction labor unions. In 1999 the Port entered into a broad PLA with regional construction unions that governed employment on many of the construction contracts for airport terminal expansion, construction of the Third Runway and creation of the Smith Cove Cruise Terminal. In 2009 the Port clarified criteria for determining when a PLA would be required and began negotiating and administering PLAs with in-house staff. In the past five years, 28 of 109 Port major construction contracts have been covered by PLAs. This 26% of contracts has encompassed 80% of dollars and 66% of jobs during the period. While PLAs provide the benefits described above, the Port is aware that PLAs may adversely affect small businesses that are less likely to employ union labor. Construction at Port properties may be funded and administered by the Port, administered by tenants with Port financial support or administered and funded by tenants. The Template revised May 30, 2013. COMMISSION AGENDA Ted Fick, Chief Executive Officer March 3, 2016 Page 2 of 2 proposed resolution affirms criteria for determining when the Port will enter into PLAs on projects the Port administers, requires prevailing wages to be paid on construction contracts funded entirely or in part by the Port and directs encouragement of tenants to employ similar criteria and procedures on construction contracts that they administer. PLA DECISION CRITERIA Project needs for labor continuity and stability Project complexity, cost and duration Value of having uniform working conditions Potential impact of PLA on small business Past labor disputes or issues Potential impact on project cost Specific public safety concerns Value of PLA processes to resolve disputes LABOR POLICY PROPOSAL FOR 3 TYPES OF CONSTRUCTION CONTRACTS Port Contracts o Largely continues per recent practice o Add presumption of using PLA for contracts exceeding $10M o Continue apprenticeship goals and consider locality hiring Port Reimbursed o Employ PLA per Port practice o Require paying and reporting prevailing wages o Encourage hiring goals for apprenticeship and locality as part of a regional program Tenant Funded o Encourage employing PLA per Port practice o Make construction labor measures and element of lease competitions and incorporate proposed measures into leases o Encourage hiring goals for apprenticeship and locality as part of a regional program ATTACHMENTS TO THIS BRIEFING Powerpoint presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None
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