Project Stabilization AgreementSmall Business Boot Camp

Los Angeles Unified School District

Introductions

Elvis Tran

Project Labor Coordinator Project Stabilization AgreementLos Angeles Unified School District

Collective Bargaining Agreement

PSA’s Relationship to State Labor Code & Prevailing Wage Compliance

Scope of the Agreement▪ The LAUSD PSA applies to all projects funded over the

applicable thresholds by Proposition BB, Measure K and Measure R.

▪ Any projects funded by future bond money.

▪ All project work that meets the above criteria and is not expressly excluded in the PSA.

▪ All construction work pursuant to prime multi-trade construction contracts that exceed $175,000.

▪ All prime specialty contracts that exceed $20,000 and all subcontracts flowing from these prime contracts.

▪ All Job Order Contracts (JOCs) are covered by the PSA regardless of the dollar amount of the job order.

Scope of the Agreement: Exclusions

▪ Work of non-manual employees such as superintendents, supervisors, staff engineers, quality control, time keepers, mail carriers, clerks, office workers, safety personnel, emergency medical and first aid technicians, and management employees.

▪ All employees of the District or the Project Labor Coordinator (Parsons Constructors Inc.)

Letter of Assent▪ All contractors and subcontractors of any tier that have been

awarded PSA-covered work are bound to the PSA and must execute a Letter of Assent.

▪ The Letter of Assent is a one-page document that confirms a contractor’s acceptance of the LAUSD PSA on a per contract basis.

▪ One Letter of Assent must be executed by a contractor for each PSA-covered LAUSD construction contract where covered work is performed. (one Letter of Assent per contract).

▪ Does not bind the contractor to anything outside the scope of the PSA.

▪ The Letter of Assent must be received by LAUSD a minimum of 48 hours before starting work.

Letter of Assent (cont.)

▪ Effective April 12, 2010, all Letters of Assent are submitted electronically:

Log into the Labor Compliance Department Online Certified Payroll System.

Proceed to the “My Contracts” tab in the upper right hand corner.

Select the correct Contract # that you wish to submit the Letter of Assent

Once you select the Contract #, you should see this screen:

Corresponding to the row for “Letter of Assent”, select “Submit Form” and follow procedures on how to complete the submission.

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Letter of Assent (cont.)

Labor Compliance Department

Technical Support Line: (213) 241-4647www.laschools.org/contractor/lc

Schedule A’s

▪ Schedule A’s are the local collective bargaining agreements of the signatory unions. They are also referred to as Master Labor Agreements.

▪ The rules and policies of the applicable union Schedule A apply to contractors performing PSA-covered work to the extent that those rules and policies do not conflict with the PSA.

▪ Where a subject is covered by the provisions of the PSA is also covered by the Schedule A, the provisions of the PSA shall apply.

▪ Where a subject is covered by the provisions of the Schedule A and not covered by the PSA, the provisions of the Schedule A shall apply.

Schedule A’s

▪ Schedule A’s include a broad range of subjects relating to the PSA. Examples are:

Union and employee rights.

Procedures for hiring, laying off and terminating employees.

Information about the contribution of benefits and the registration of employees, which may also be contained in the trust fund documents.

Information about what type of work an individual union performs.

Participation/Subscription Agreements▪ No contractor is or will be required to sign any other agreement with a

union as a condition of performing work within the scope of the PSA, with the exception of a participation agreement, also referred to as a subscription agreement.

▪ Cannot bind the contractor beyond the terms and conditions of the PSA – contractor is only bound to the trust fund for the PSA-covered work they are performing.

▪ Contractors may sign participation agreements with multiple trust funds if they assign the work to more than one union. (see Work Assignments)

▪ Most trust funds require this document to be signed before they accept employee benefit contributions.

▪ LAUSD produced a memorandum to all bidders of LAUSD PSA-covered work ensuring that participation agreements do not commit the covered contractor to obligations beyond those contained in the provisions of the PSA.

Community Workforce Development

• PSA Section 3.5 requires 50 percent of each contractor’s workforce by craft to reside within the LAUSD list of zip codes

• Employee Craft Request Form

• How the local hire data is monitored = Certified Payroll Records and number of hires, transfers and referrals

Core Workforce and Hiring Procedures

Contractors have the right to determine the competency of all employees, the number of employees required, the duties of such employees within their craft jurisdiction, and which employees are to be laid off, consistent with Article 4 Section 4.3.

▪ A core employee is defined as an employee who:

Appears on the contractor’s active payroll for 50 of 100 working days prior to contract award.

Possesses required licenses.

Performs work safely.

Is a District resident as of October 1, 2003 or for the 100 working days prior to the contract award date to the prime contractor.

Workforce and Hiring Procedures (cont.)

▪ Prime contractors may employ their core workforce without hiring anyone from the union, as long as those workers qualify as core employees.

▪ Subcontractors and specialty prime contractors must follow an alternating hiring procedure if they intend to use members of their core workforce.

▪ All members of the contractors’ core workforce MUST qualify as core employees and are NOT excluded from any PSA requirements.

Workforce and Hiring Procedures (cont.)

▪ When a “prime specialty” contractor or subcontractor employs a maximum of 5 members of its core workforce the contractor must then hire exclusively from the appropriate union’s referral system.

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Contractor’s Core Workforce

Union Referral

1st employee (core) 2nd employee (union)

3rd employee (core) 4th employee (union)

5th employee (core) 6th employee (union)

7th employee (core) 8th employee (union)

9th employee (core) 10th employee (union)

Workforce and Hiring Procedures (cont.)

▪ What defines a District resident?

A District resident is someone who resides within the District’s designated zip codes. The zip code list is in Section 10 EXHIBIT C.

▪ Core employees are not required to join any union, however, the contractor is required to ensure that all employees are registered with the appropriate union.

▪ The applicable Schedule A’s may require a contractor’s core workforce and any other persons employed other than through the union hiring hall to pay monthly working dues or fees that are uniformly required for membership in the union.

Workforce and Hiring Procedures (cont.)▪ If a union fails to supply a worker within 48 hours,

(excluding Saturdays, Sundays, and holidays), the contractor may hire from other sources and, upon doing so, must inform and register these employees with the appropriate union hiring hall.

▪ Contractors have the right to oversee and manage construction operations.

▪ Contractors shall not employ on Project Work, when minors may be present on or around the site during working hours, a person who would not be eligible for employment by the District under California Education Code section 45123.

Employee Benefits (Fringe Benefits)▪ The employee benefit portion of a covered employee’s prevailing wage must be paid into the appropriate employee benefit trust fund by the contractor – even if your company has its own benefit plan. For example: Health and welfare, vacation, apprenticeship, training funds, pension and annuity etc…

▪ It is the contractor’s responsibility to inform the employees of their trust fund benefits. The District intends to make this a contract obligation in the future.

▪ Benefit contributions are not to exceed the amounts set forth in the applicable prevailing wage determinations. The benefit contributions are part of the prevailing wage rate.

▪ Employer fringe benefit contributions to the trust fund accrue to the direct benefit of the employees, but be aware of vesting periods, benefit due dates and individual union requirements for benefit coverage.

▪ It is imperative that contractors contribute employee benefits to the trust funds in a timely manner. Typically, the contributions are due to the trust funds on a monthly basis. When employee benefit contributions are not made in a timely manner, it can result in PSA, Trust Fund and/or State Prevailing Wage Law violations and penalties.

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Section 5Employee Benefits (Fringe Benefits)

More about Core Employees

▪ No employees are required to join any union as a condition of being employed or remaining employed for the completion of Project Work.

▪ All employees must register with the appropriate union hiring hall and ensure that the trust fund has correct information. This information may include names, addresses, social security numbers and any other pertinent information requested by the trust fund. This is very important. The trust fund must be provided with accurate identity and contact information for all employees to receive benefits.

▪ All employees are encouraged to contact the union directly with their information or if they have any questions. The contact information for all unions signatory to the PSA is included in Section 10 Contact Information.

PSA Pre-Job Conference

▪ The PSA Pre-Job Conference is a meeting for prime contractors awarded PSA-covered construction contracts.

It is in addition to LAUSD job start or pre-bid meetings. The purpose of a Pre-Job Conference is to address labor problems prior to work beginning and convey information about the project to local unions.

The contractor should be prepared to identify their subcontractors, discuss work assignments and other matters of coordination for the upcoming project. This is the opportunity to resolve any potential problem before the start of construction so the project goes smoothly.

PSA Pre-Job Conference (cont.)

The prime contractor is required to attend and conduct the PSA Pre-Job Conference. Subcontractors are welcome to attend.

Prime contractors will use the “Pre-Job Conference Form”, Section 10 Exhibit D, which is also available on the LAUSD website:

www.laschools.org/contractor/psa

The PSA Coordinator will assist the contractors in the proper completion of the Pre-Job Conference form when requested.

Grievance Procedures

▪ The grievance procedure in the PSA ensures communication between labor and management. The procedures provide orderly expedited steps to solve potential problems.

▪ Failure of the grieving party to follow the established time limits may cause that party to lose its right to file a grievance.

▪ Notify the PSA Coordinator if the grievance procedure is to be implemented.

Grievance Procedures▪ Examples of common PSA grievances:

Questions involving the interpretation or application of the PSA.

Alleged violations of the PSA, including but not limited to:

Non-payment or incorrect wages paid to a worker.

Non-payment of employee benefits to an appropriate trust fund.

Failure to follow proper hiring procedures and/or register core employees with the appropriate union.

Failure to submit the Letter of Assent prior to work beginning.

Failure to sign a trust fund participation or subscription agreement.

Grievance ProcedureSTEP I

Contractor and union representatives confer in an attempt to resolve the grievance

STEP II

If unable to resolve at Step 1, the dispute may be elevated to Step II

Contractor and union meet with a representative of the Project Labor Coordinator to resolve the grievance

STEP III: Arbitration

If the grievance is not resolved at Step 2 then either party may file for arbitration

List of arbitrators included in PSA and selected by arbitrator wheel

Jurisdictional Disputes/Work Assignments

▪ A work assignment is the identification of the craft and union responsible for performing a task.

▪ A jurisdictional dispute is when one or more unions disagree with a contractor’s work assignment.

▪ The PSA utilizes a jurisdictional dispute resolution procedure known as “The Plan”, which details how jurisdictional disputes are to be settled.

▪ The contractor determines work assignments and which craft and union to choose. These assignments must be made in accordance with the procedures described in “The Plan”.

Jurisdictional Disputes/Work Assignments (cont.)

▪ The PSA Coordinator will work with contractors and unions to prevent the occurrence of jurisdictional disputes and will assist in resolving any that may occur, consistent with PSA Article 8.

▪ Pre-Job Conferences give the contractor the opportunity to assign work and resolve jurisdictional disputes prior to work beginning.

▪ There will be no work stoppages or slowdowns over jurisdictional disputes.

▪ The PSA Coordinator will never make jurisdictional assignments.

Important for Contractors

▪ READ AND UNDERSTAND THE PROJECT STABILIZATION AGREEMENT AND UTILIZE LAUSD RESOURCES PRIOR TO BIDDING.

▪ A contractor that does not sign a Letter of Assent cannot do Project Work.

▪ Execute a participation/subscription agreement.

▪ Make accurate employee benefit contributions to the appropriate trust fund on behalf of your employees.

▪ Register your “core employees” with the appropriate hiring hall and follow proper hiring procedures.

Important for Contractors (cont.)▪ The PSA does not permit lockouts or work disruptions

due to labor problems.

▪ Utilize the “We Build” Program and assist LAUSD with local hiring and use of apprentices.

▪ All labor compliance and prevailing wage questions should be directed to the LAUSD Labor Compliance Program.

▪ Involve PSA Coordinator immediately if any PSA problems occur.

Conclusion - Thank You!

Tybouy Tang-Wong, Project Labor AdministratorPhone: 213-241-7077Email: tybouy.tang-wong@lausd.net

Elvis Tran, Project Labor CoordinatorPhone: 213-241-4666Email: elvis.tran@lausd.net

Ronice White, Admin AnalystPhone: 213-241-4686Email: ronice.white@lausd.net

Rita Rule, Senior SecretaryPhone: 213-241-4653Email: rita.rule@lausd.net

www.laschools.org/contractor/psa