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STOCKTON COMMUNITY WORKFORCE TRAINING AGREEMENT EXTENSION
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RECOMMENDATION
The Stockton Community Workforce Training Agreement (CWTA) is set to expire on August 25, 2024. Approval of this item, extends the agreement for five (5) years and accepts the terms of the Amendment provided in Attachment C.
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Summary
On July 26, 2016, by Motion No. 2016-07-26-1501, Council approved the implementation of the CWTA for the City (Attachment A). The CWTA specifies conditions that contractors and employers that are awarded City public works or improvement contracts valued at $1 million or more must follow and includes specific conditions that the City must follow.
On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024 (Attachment B). Approval of this item will extend the CWTA for another five (5) years subject to the terms of the Amendment in Attachment C.
DISCUSSION
Background
Any complex construction project requires the services of a variety of workers with diverse skill sets. A labor management system is needed to coordinate the labor force of employers and employees working side-by-side to construct a project. The CWTA is an example of a workforce management tool commonly referred to as a pre-hire collective bargaining agreement. Such agreements are known as Project Labor Agreements (PLA) but may be known by other names such as Project Stabilization Agreements or Local Hiring Agreements. These agreements establish working conditions and management rights, and typically prohibit work disruptions that can lead to costly project delays.
The two most common elements of this type of agreement include a union agreement not to strike or engage in disruptive activities and a contractor agreement that lockouts will not occur for the duration of the project. Other elements commonly found in this type of agreement include recognition of an exclusive collective bargaining agent, hiring through a local and centralized union job referral system or “hiring hall”, standardized wage and working conditions, management rights, expedited dispute resolution, and payment of union dues.
On July 26, 2016, by Motion No. 2016-07-26-1501, Council approved the implementation of the CWTA for the City (Attachment A). The CWTA was adopted and became effective 30 days following Council approval. Ther original CWTA term was three years and it was later extended for an additional five years on July 16, 2019, by Motion No. 2019-07-16-1403 (Attachment B).
The CWTA specifies conditions that contractors and employers that are awarded City public works or improvement contracts valued at $1 million or more must follow and includes specific conditions that the City must follow. These conditions include:
• limitations on work delays and stoppages,
• arbitration procedures and arbitrators,
• preconstruction conferences for coordination,
• prohibitions on discrimination,
• recognition of union(s) as the sole bargaining representative,
• requirements for contractors and employers to utilize union referral systems,
• agreement to pay wages and benefits as specified by the union,
• grievance processes,
• apprentice programs to develop adequate numbers of competent workers, including that 50% of apprentices employed on the project are from Stockton or San Joaquin County,
• programs to transition from the military to the trades,
• drug and alcohol testing requirements, and
• local hiring goals, including that Stockton or San Joaquin County residents work 50% of project hours.
Prevailing Wage
The prevailing wage is determined by the California Department of Industrial Relations (DIR). DIR regulations state that the “prevailing rate shall be the single rate paid the greatest number of workers in a particular craft in a locality”. It is typically a collectively bargained/union rate. The DIR maintains extensive lists of rates for various crafts for various locations in the State. All information is available on the DIR website. The City utilizes these wage rates in the bid documents for contracts that require prevailing wage, which includes construction projects that are over $25,000, as well as contracts for alteration, demolition, repair or maintenance that are over $15,000. In addition to these threshold requirements, there are other factors that must be applied to each project to make a final determination on whether a project may exempt a contractor from paying prevailing wages.
A primary goal of the CWTA is that 50 percent of work hours at all skill levels are to be completed by Stockton residents. The secondary local hire goal is that 50 percent of the reported hours at all skill levels are to be completed by either Stockton or San Joaquin County residents.
Present Situation
The CWTA is now set to expire on August 25, 2024, absent action by the Council to renew (Attachment C). Approval of this item will extend the CWTA for another five (5) years subject to the terms of the Amendment in Attachment C.
Attachment A - 2016 CWTA Agreement
Attachment B - 2019 CWTA Extension
Attachment C - 2024 Proposed CWTA Amendment