Masonry Magazine September 2001 Page. 8
WHY THE UNION OP
by Randall G. Pence, Esq, Capitol Hill Advocates, Inc.
Lobbyists for the Building and Construction Trades Department, an arm of the AFL-CIO, are making the rounds on Capitol Hill, fighting to stop a tax credit bill that would give tens of thousands of dollars in tax relief to mason contractors who train new masons. Both labor and open shop contractors stand to benefit tremendously from the legislation. Nonetheless, the BCTD is working hard to kill it. Why?
Background: Coursing through Congress is HR877, the Skilled Workforce Enhancement Act (SWEA). It would provide a substantial tax credit to employers who train new workers in key skilled trades. Capitol Hill Advocates requested that the trade of masonry be specifically included as one of the targeted trades to qualify for the credit. Mason contractors who fund the training of new masons would be eligible for a sizable tax credit up to $15,000 per qualified trainee, per year, up to a maximum of 4 years.
The purpose of HR877 is to address the growing shortage of skilled workers. All indications are that many trades are developing a mini baby boom effect in their workforces; a large cluster of inevitable retirements in the next ten years could generate labor shortages nearing crisis proportions. Spiraling labor costs as a result of shortages may make some industries uncompetitive against alternative construction products and methods. The looming labor shortage may be the single greatest threat to the masonry industries and has executives across the country justifiably concerned.
One would think that labor unions would be equally chagrined about such a turn of events, but that is not necessarily the case. There is a point of view, albeit narrow and risky, that mason shortages will merely increase the demand for each individual mason, raising wages. While this might be good for the paltry number of masons in 2010, it would be devastating for contractors who will not be able to satisfy customer demands, or worse, will lose business altogether to competing construction systems.
Protestations by labor representatives that there are no shortages, that current training programs are meeting demand and that there is no skilled workforce problem, belies an obvious truth. Even Alexis Herman, Secretary of Labor under President Clinton, acknowledged on numerous occasions the growing shortage in skilled workers.
Existing training programs, both union and non-union, do an adequate job of training the people they train. They simply aren't training nearly enough of them. The silver bullet in HR877 is that it will enlist the vast army of small business contractors who cannot currently afford to recruit and train new workers, but they could with the help of the SWEA tax credit to offset the huge costs and risks in funding long-term apprenticeships.
HR877 is labor neutral. Both union and non-union programs would qualify, benefit, prosper. The goal is only to stop the workforce hemorrhage, generate more skilled workers, and change nothing else.
Labor union membership continues to drop as a percentage of America's workers, but SWEA would generate large numbers of new union masons. This factor alone should attract union support, should it not?
Unfortunately, other matters seem to be at play. The BCTD has offered a few issues to justify their opposition. Judge for yourself whether these arguments hold water. I will paraphrase somewhat to save space.
"HR977 would allow a $15,000 tax credit per eligible employee, per year, up to 4 years. This could amount to as much as $60,000 of taxpayer-financed instruction per employee."