Responsible Employer Ordinances

The Merit Construction Alliance (MCA) is a non-profit, non-partisan association of contractors who believe construction contracts should be awarded on merit. MCA members believe that quality, budget, schedule, and safety should be the factors used to determine which construction firm is selected; not union membership. The MCA supports the intent of a responsible Employer Ordinance the reality is that many of the provisions it seeks to address are already covered under existing law.

Where these specifications deviate from current State Law will pose serious problems for many local open-shop contractors. Open-shop or non-union contractors make up the vast majority in the construction industry. According to the latest U.S. Department of Labor figures, less than 20% of the construction workers in this country belong to unions. That''s four (4) out of five (5) workers that have no union affiliation.

When a city or town passes a Responsible Employer Ordinance it limits the ability of many of these local firms and their employees from participating in public projects. In doing so the Ordinance will negatively impact the community by limiting the number of potential bidders with a corresponding increase in prices. There are several good examples of this in and around the Boston area. When projects were found to be unlawfully restrictive and the courts ruled they had to be re-bid, the number of bidders increased substantially and the prices dropped dramatically.


Apprenticeship

The Apprentice training requirements of these Ordinances are clearly beyond the State''s legal requirements as a precondition to doing public work. The most significant problem with this requirement is that it requires even the smallest of firms to have a formal apprentice-training program. A family run business, a father, a couple of sons, with a nephew thrown in, for example, does not have the need or the ability to bring on apprentices. Their operation is as large as it will ever be and their training has been on the job, one on one, father to son. Yet under a Responsible Employer Ordinance even if this business is well qualified and in full compliance with all laws it will be prevented from bidding on public work simply because of this unrealistic apprenticeship requirement.

In summary, addressing apprenticeship issues in the public bidding statute is in conflict with current apprenticeship law.


Health Insurance

In the area of health benefits, these Ordinances are not only unfair and unworkable, they are illegal. Existing law preempts state governments from regulating any employee welfare benefit plan. Legality aside, under the Prevailing Wage Law the hourly rate for each trade includes a pre-determined rate for health and other benefits. Some employees, who are covered under a spouse''s plan, would rather have the cash amount, since they do not need the coverage. This kind of flexibility is not possible with these Ordinances.


Prevailing Wage

The prevailing wage language is redundant with the State Statute but is in conflict with it in one important area; liability of general contractors for wage violations of sub-contractors. Just recently the Massachusetts Legislature passed a revision to the law to enhance the enforcement of the wage law, which expressly states that the general contractor will not be held liable for his subcontractors.


Workers Compensation Insurance

The provisions of these Ordinances as they pertain to Workers Compensation insurance are a complete redundancy with State Law.


Home Town Recruiting

We have such a tight employee market today that even the unions will admit this type of quota system cannot be met.


Worker Classification

This provision is another example of complete redundancy with existing law.


Summary

In summary, the intent of these Responsible Employee Ordinances (REOs) is to encumber the public bidding requirements even more so than they presently exist, in order to lessen competition for union only contractors. We understand that the unions are looking to all levels of government in order to maintain their ever-dwindling numbers and market share. Don''t become a party to this deceptive, unfair, and redundant Ordinance that will do nothing for your community but drive up the cost of every project you propose.