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After months of failed negotiations, a strike by members of the International Longshoremen’s Association began Oct. 1. As ILA members walked off the job without a new contract from the United States Maritime Alliance, more than 35 ports shut down along the East and Gulf coasts. In their first strike since 1977, the ILA has pledged to strike ‘as long as necessary’ seeking higher wages and a new language on automation in a six-year contract with the U.S. Maritime Alliance.
According to estimates, the economic loss from the strike will cost billions of dollars each day. It will also affect businesses large and small that are not party to the negotiations, but rely upon the free flow of goods, both imports and exports, through these critical ports.
In a statementon Oct. 1, ABC vice president of legislative & political affairs Kristen Swearingen said, “President Joe Biden must invoke his powers under the Taft-Hartley Act to restore operations at the ports and bring parties to the negotiating table so a contract can be reached with the help of a federal mediator. If the Biden-Harris administration is serious about rebuilding America––and maximizing hundreds of billions of dollars in taxpayer investments in infrastructure, clean energy and manufacturing––the construction industry simply can’t afford any more supply chain disruptions and additional costs on critical materials.”
“The price of construction materials has already increased by almost 40% since February 2020 and there have been reports of widespread shortages of key construction materials. Coupled with the construction industry’s skilled labor shortage topping half a million in 2024, these industry headwinds needlessly inflate the cost of construction projects and are exacerbated by the Biden-Harris administration’s weak leadership and anti-competitive executive actions.”
On Oct. 2, ABC joined a coalition of 270 federal, state and local trade associations in a letter calling upon President Biden to immediately use his authorities to end the strike and, resolve this situation expeditiously to protect businesses and consumers from further harm. The letter also explains that while the coalition prefers parties reach agreements on their own, the closures’ devastating economic impact requires intervention by the administration.
Several members of Congress have also commented on the port strike, including House Speaker Mike Johnson’s, R-La., statement calling for leadership from the administration and for the parties to return to the table as well as a letter from Transportation and Infrastructure Committee Chairman Sam Graves, R-Mo., and Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster, R-Fla., urging President Biden to use the authority of his office to bring an end to the strike at U.S. East and Gulf Coast ports.
Prior to the strike, on Sept. 29, President Biden was asked about his intentions on whether to exercise his powers under the Taft-Hartley Act to keep the ports open and longshore workers on the job, responded, “No … because it’s collective bargaining, and I don’t believe in Taft-Hartley.” Notably, President George W. Bush applied the act in 2002 to halt an 11-day lockout of union members at West Coast ports.
On Oct. 1, when the strike began, the White House issued a statement: “President Biden and Vice President Harris are closely monitoring potential supply chain impacts and assessing ways to address potential impacts, if necessary. The President and Vice President were briefed on Agency assessments that show impacts on consumers are expected to be limited at this time, including in the important areas of fuel, food, and medicine.
“The President has directed his Supply Chain Disruptions Task Force to meet every day and prepare to address potential disruptions, if necessary. He has also directed his team to continue engaging extensively with labor, industry, state and local officials, ocean carriers, and rail and trucking companies. The Administration has already conducted dozens of meetings with industry on their plans, including multiple meetings with retailers, grocers, manufacturers, agriculture.”
USMX issued a statement yesterday noting its support for collective bargaining and said, “Our current offer of a nearly 50% wage increase exceeds every other recent union settlement, while addressing inflation, and recognizing the ILA’s hard work to keep the global economy running.” The ILA responded to USMX, saying, “The ILA has rejected their so-called “nearly 50% wage increase” because it fails to address the demands of our members adequately.” The ILA has also created a strike update website.
Meanwhile, Acting Secretary of Labor Julie Su issued a statement yesterday on the negotiations. The statement seems to favor labor’s position on wages, saying that the shipping companies “have refused to put an offer on the table that reflects workers’ sacrifice and contributions to their employer’s profits.”
In response to the strike, the Federal Maritime Commission issued a release yesterday highlighting consumer assistance, enforcement and litigation services that individuals and companies could find helpful in seeking relief from current supply chain challenges.
ABC will continue to provide updates in Newsline.
On Sept. 27, California Gov. Gavin Newsom, a Democrat, issued a veto on SB 894, a bill that centered around the imposition of mandated project labor agreements on state construction projects. When introduced, the bill originally was crafted to mandate PLAs on all state projects over $35 million in total project costs, directly mirroring President Joe Biden’s Executive Order 14063, which mandates PLAs on all federal construction projects over the same $35 million threshold.
Due to ABC-led advocacy, the bill’s negative impacts were first significantly mitigated through the legislative process and amended to apply to only a handful of projects within the California State University system or overseen by the state’s Judicial Council. This amended bill was passed by the legislature and sent to Gov. Newsom for his assumed signature and enactment.
However, Gov. Newsom vetoed the bill outright and sent an accompanying letter to the legislature explaining that “while … generally supportive of PLAs as an option,” he was wary of the budgetary impacts and the lack of prudence in spending taxpayer money on important projects under this mandate. Newsom wrote, “The new requirements proposed in this bill could result in additional cost pressures that were not accounted for in this year’s budget.”
He said that he aimed to “[avoid] deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on.” Through the veto and letter, Newsom acknowledged that the unnecessary added costs of PLAs would not only affect the bottom lines of the much-needed projects the state aimed to build, but also have negative impacts on other important goods and services funded by California taxpayers.”
This veto follows similar recent actions and statements from other state and local leaders on government-mandated PLAs, including Washington, D.C., Democratic mayor Muriel Bowser, who declined to sign a city council ordinance this year that would have expanded pro-PLA policies on District of Columbia projects.
It also comes amidst executive action in other states pushing forward with the imposition of PLAs on public projects, and subsequently those states’ elected officials deciding how to implement the policies and navigate the budget implications sure to come. In Maryland, Democratic Gov. Wes Moore implemented a PLA mandate earlier this year on all state projects over $20 million dollars, while Hawaii Gov. Josh Green, also a Democrat, issued a directive mandating PLAs on all state projects over $1.5 million. Pennsylvania’s Democratic governor, Josh Shapiro, also issued a directive urging general PLA use on state projects where feasible.
On Sept. 30, ABC launched an important survey to obtain ABC member contractor feedback on OSHA’s Heat Injury and Illness Prevention in Indoor and Outdoor Settings proposed rule. OSHA’s proposed rule would apply to all employers conducting outdoor and indoor work in all general industry, construction, maritime and agriculture sectors where OSHA has jurisdiction and require employers to develop programs and implement controls to protect employees from heat hazards.
Elements of the proposal include the following:
For more information about the proposed rule, see OSHA’s fact sheet and heat webpage as well as ABC’s Regulatory Roundup.
OSHA is accepting comments on the proposed rule from public stakeholders until Dec. 30. ABC will utilize the anonymous survey data and anecdotes to inform our efforts. Understanding the impact of these requirements on ABC members is critical.
ABC contractor members who are interested in participating in the survey should email Karen Livingston at [email protected] to receive the survey link. The survey will close at 5 p.m. ET on Oct. 11.
ABC has added Empire State chapter member Diane Cahill of Cahill Strategies LLC to the Beam Club Presidential Level. The Beam Club was established in 1966 to recognize ABC’s top membership recruiters for their commitment to growing the association. By recruiting five new members, ABC members are automatically enrolled in the Beam Club by their chapter. Members receive one point for each new member recruited. Beam Club activity is ongoing from year to year, with members’ point totals continually accruing and advancing members to the next Beam Club award level.
To reach the Presidential Level of the Beam Club, ABC members must recruit 25 new members.
For more information on the Beam Club, contact Kayli Lewis at [email protected].
On Aug. 15, the U.S. Department of Defense issued a proposed rule, Assessing Contractor Implementation of Cybersecurity Requirements, which seeks to implement contractual requirements for DOD contracts related to the recently proposed Cybersecurity Maturity Model Certification 2.0 Program.
While ABC recognizes and supports the DOD’s need to protect national security through cybersecurity efforts, as currently proposed the rule raises serious concerns regarding a lack of clear definitions and flexibility for federal contractors on DOD projects.
ABC members can take action now by submitting pre-generated comments to DOD through ABC’s Action Center or the ABC Action app, calling on DOD to clarify and streamline CMMC 2.0 regulations. Comments on the proposed rule are due Oct. 15.
Previously, on Dec. 26, 2023, the DOD released a proposed rule and guidance documents to establish CMMC 2.0. As proposed, CMMC 2.0 would require federal contractors and subcontractors competing for DOD contracts to demonstrate continued compliance with a range of cybersecurity measures to maintain eligibility for performing and winning new federal awards. ABC joined coalition comments on that rule, submitted on Feb. 26, 2024, calling for more clarity and urging a flexible implementation of CMMC requirements. This rule has yet to be finalized.
The Aug. 15 proposed rule largely defers to CMMC 2.0 as previously proposed, with a focus on providing guidance to contracting officers as well as standard contracting clauses and solicitation provisions to incorporate CMMC 2.0.
However, the proposed rule includes new provisions of note, including:
For more information on the proposed rule and cybersecurity requirements impacting federal contractors, see Wiley Rein’s legal analysis of the proposal and ABC’s Cybersecurity Resource Guide.
On Sept. 19, Rep. Nick Langworthy, R-NY., introduced the CTE Student Mental Health and Wellness Act. This legislation would make area career and technical education schools eligible for mental health and substance use disorder services grants provided by the Garrett Lee Smith Campus Suicide Prevention grant program. Notably, institutions of higher education already have access to GLS grant dollars, and this bill would expand the list of covered institutions eligible to receive GLS grant dollars to include CTEs. Reps. Glenn Thompson, R-Pa., and Suzanne Bonamici, D-Ore., joined Rep. Langworthy in introducing the legislation.
Rep. Langworthy stated, “Western New York and the Southern Tier are proud to have so many hardworking men and women pursuing a technical career education, but despite them being a vital part of our workforce, too many of these students face mental health challenges without access to the same federal resources available to others—this legislation will change that. I’m proud to lead this bill to ensure our CTE students have the tools they need to navigate mental health and substance abuse challenges, keeping them on track for new careers where they can continue to build their own futures and the future of our nation.”
“ABC is committed to creating a safe and healthy industry for the millions of people who make construction their career. By providing the current and future workforce access to resources to improve total human health, employers and workforce development providers can equip workers with the tools they need to prioritize mental health and protect their emotional well-being. ABC's commitment to advancing total human health is why ABC strongly supports the CTE Student Mental Health and Wellness Act,” said Kristen Swearingen, ABC vice president of legislative & political affairs. “It is vital that CTE schools have access to the same resources as other institutions of higher education to help workers enjoy the abundance life has to offer through their careers and beyond.”
ABC is joined by 13 other organizations in supporting the CTE Student Mental Health and Wellness Act.
ABC recently participated in a White House-sponsored roundtable discussion, “Recovery in the Workplace: Investing to Build the Workforce of Tomorrow,” which convened a dozen leading corporations and business groups to highlight the importance of recovery-ready and recovery-friendly workplaces and share best practices. Greg Sizemore, ABC vice president of health, safety, environment and workforce development, discussed ABC’s Total Human Health Initiative and more at the White House Office of National Drug Control Policy’s National Recovery Month Roundtable.
At the roundtable, ABC committed to a Recovery Friendly Workplace Certification, explored incorporating it into ABC’s industry-leading STEP Safety Management System® and encouraged its 67 chapters and more than 23,000 member companies to also become certified as recovery-friendly workplaces.
“The construction industry has long been influenced by the outdated mentality that workers should simply ‘suck it up,’ creating a barrier for employees to discuss personal challenges while on the job,” said Sizemore. “Additionally, many older construction workers turn to both legal and illegal substances as a means of coping with pain or musculoskeletal injuries accumulated over their careers.
The Biden-Harris administration also released new guidance for employers, through its Recovery-Ready Workplace Toolkit: Guidance and Resources for Private and Public Sector Employers.
ABC congratulates Baker Concrete Construction Inc. of Fort Lauderdale, Florida, a member of the Florida East Coast and several other chapters, and Bald Hill Builders of Walpole, Massachusetts, a member of ABC’s Massachusetts chapter, for earning the Accredited Quality Contractor credential.
The AQC program recognizes and honors construction firms that document their commitment to excellence in key areas of corporate responsibility: quality, safety, craft and management education, talent management and community relations. A company that meets the criteria set forth in the program and has earned Gold, Platinum or Diamond status in ABC’s STEP Safety Management System® is formally designated an Accredited Quality Contractor.
As an AQC, you have the opportunity to:
If you would like to see your company achieve this value, visit abc.org/aqcapp for more information and to get started. The application window for 2024 closes Wednesday, Oct. 23.
On Sept. 4, ABC joined industry partners in filing an amicus brief with the U.S. Supreme Court in the case Seven County Infrastructure Coalition v. Eagle County, Colorado, as the court considers whether the National Environmental Policy Act requires that agencies consider environmental impacts beyond the immediate effects of their regulatory decision.
The petitioner in the case, the Seven County Infrastructure Coalition in Utah, is before the court concerning approval of construction of a new rail line by the Surface Transportation Board. At issue is whether the Board must consider distant environmental effects such as increased oil drilling and refining activities facilitated by the rail line. Seven County argues that the Board should instead be limited to considering the direct effects of approving or denying a permit for the rail line.
ABC’s brief supports the petitioner, arguing that consideration of environmental factors not directly related to the permit would improperly expand NEPA reviews beyond congressional intent.
A favorable outcome in the case could help preserve a more reasonable scope for NEPA reviews, ensuring that federal agencies properly consider important environmental protections without causing unnecessary delays and increased costs for critical infrastructure projects.
On Sept. 3, Associated Builders and Contractors joined 150 members of the Small Business & Entrepreneurship Council in a letter of support for H.R.9278, introduced by Rep. Zach Nunn, R-Iowa. This legislation would provide small businesses with an additional year to file the beneficial ownership information required by the U.S. Department of Treasury’s Financial Crimes Enforcement Network’s Corporate Transparency Act implementing regulation.
The CTA requires millions of small businesses, including nearly every employer with 20 or fewer employees, to report personal information of their beneficial owners and update that information periodically throughout the life of the business. Failure to comply with the onerous reporting requirements could subject small business owners and employees to potential fines and jail time.
“Although filing under the CTA began at the start of this year, FinCEN reports it has received just 10% of required submissions. This compliance rate can be attributed directly to the general lack of awareness among the small business community when it comes to the new rules. Given this massive education gap, it is clear additional time is needed for regulators and other stakeholders to continue their outreach to affected small businesses,” the letter stated.
In the letter, ABC and the SBE Council urged Speaker Johnson to bring H.R. 9278 to the U.S. House of Representatives floor for a vote to provide business owners and employees with more time to comply with the CTA.
A similar bipartisan bill to H.R.9278, sponsored by Reps. Nunn and Joyce Beatty, D-Ohio, passed the House late last year, 420-1. However, U.S. Senate Banking Committee Chair Sherrod Brown, D-Ohio, stalled the legislation, putting small businesses at risk.
For more on the CTA Beneficial Ownership Requirements, see ABC’s Compliance Update published on Aug. 5. ABC encourages members and small business owners to discuss FinCEN’s BOI reporting requirements with counsel.