2012 Construction Goals

Minnesota Department of Human Rights

May 24, 2012

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Overview

• 2012 Goals• Minority opportunity in the marketplace• Minority participation in the construction

industry• Substantial projects• Transition to a proactive approach• Good faith efforts and best practices• This is a goal, not a quota

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Goals

Data Sources: U.S. Census, workforce & other data relevant to geographical areas.

2000 – 2011 Goals 2012 – 2020 Goals

HENNEPIN & RAMSEY COUNTIESMinority: 32%Female: 6%

ANOKA, CARVER, DAKOTA, SCOTT & WASHINGTON COUNTIESMinority: 22%Female: 6%

7 COUNTYMETRO AREAMinority: 11%Female: 6%

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Goals2000 2006 2010

11% minority 18% minority(Metropolitan Council, Central Corridor)

11% minority

• Data used to set 2000-2010 goals: 2000 Census data, construction occupation data and labor force data.

2011 2020

11% minority (7 county area) 32% minority (Hennepin, Ramsey)22% minority (Anoka, Carver, Dakota, Scott, Washington)

• Data used to set 2012 goals: American Community Survey (ACS) data 2006-2010, construction occupation data and labor force data.

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Minority Participation and Opportunity in the Marketplace

The goals are meant to address systematic discrimination within the construction industry which affect minority recruitment, hiring, and participation.

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Minority Participation and Opportunity in the Marketplace

Factors which determine entry into a job field:

• Education/certification gap• Skills gap• Individual choice• Discrimination

- Professor Algeron Austin, Economic Policy Institute

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Minority Participation in the Construction Industry

Question: What would the expected participation rate be in the absence of discrimination?

Answer: ?

Fact: US Census Data 2010 tells us that 32% of the minority workforce identifies themselves as being a member of the construction industry.

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Minority Participation in the Construction Industry

MnDOT8.5%

MDHR16.7% MPLS

18.5%St. Paul16.5%

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Substantial Projects

• Prototype for success• One or two substantial projects per partner

every two years will demonstrate a commitment to equity and provide models for others to emulate.

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Substantial Projects

Prototypes for Success• Light Rail 18%• TCF Bank Stadium 25%• Target Field 25%• Union Depot 20%

Future Substantial Projects:• Vikings Stadium• St. Croix Bridge• Light Rail

Projects

Substantial Projects (at 18% goal or higher)

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Transition to a Proactive Approach

Reactive Approach

Affirmative Action – Incremental (old model)• Invites annual legislative approach• Requires more aggressive enforcement model• Overemphasizes attainment of goal as a

predominant factor in determining elimination of discrimination

• Strains enforcement resources

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Transition to a Proactive Approach

Proactive Approach

Diversity – Inspirational (new model)• Decade approach• Avoids perception of micromanagement by

government • Allows enforcement agencies to focus on

egregious bad actors• Consistent with good faith effort legislative

scheme

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Good Faith Efforts & Best Practices

• Good faith efforts are specific actions a contractor takes to provide equal opportunities for minorities and females.

• A contractor's good faith efforts are determined by whether it takes prompt corrective action when it becomes aware of disparate treatment.

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Good Faith Efforts & Best Practices

• Database list of Targeted Group Business (TGB) vendors to all general contractors (e.g., LRT Works/Met Council)

• Develop a system and methodology to unbundle all contracts

• Strategic career planning and elimination of bicycling

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Good Faith Efforts & Best Practices, Cont.

• Commitment to outreach activities and diversity/equity initiativesoMet CounciloDiversity Council

• Expand apprenticeship programs • Plan for recruiting and hiring minorities

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This is a Goal, Not a Quota

• Quota: In the old model, success is determined by meeting the number

• Goal: In the new model, success is determined by the extent to which participation in the construction industry is driven by individual choice

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The Goal Does Not Equate to Good Faith Efforts

• The criteria the Commissioner is to use in determining good faith efforts is found in Minn. Rule 5000.3570

• The goal set by the Commissioner is not a criteria to be used to establish good faith efforts