Workforce Concerns? Construction Career Collaborative (C3) – a Workforce Solution Presented by: Chuck Gremillion Executive Director – C3 Workforce Concerns? Construction Career Collaborative (C3) – a Workforce Solution Presented by: Chuck Gremillion Executive Director – C3

Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Mission As an alliance of socially-responsible Owners, Contractors and Specialty Contractors, we will positively affect the growth of a sustainable workforce for the commercial construction industry.

Brandon Meyers Spaw Glass Glenn Rex Mechanical Contractors Association John Roberts Jones Lang LaSalle Americas Inc. Tom Vaughn Vaughn Construction Bud Walters Pieper-Houston Electric Bo Bartlett W.W. Bartlett Kevin Camarata Camarata Masonry Systems Darlene East Holes, Inc. Russell Hamley ABC Greater Houston Jerry Nevlud AGC Houston Steve Mechler Balfour Beatty Construction C3 Board of Directors Jim Stevenson, Chairman McCarthy Building Companies Mike Holland, Vice Chairman Marek Brothers Systems Spencer Moore, Treasurer MD Anderson Cancer Center Pete Dawson, Secretary Texas Children's Hospital

Financial Security, Health, and Well Being + Safety Training + Craft Training Mission Supporters

What C3 Isn’t: ✓ We are an industry taking control of our issues and therefore, we are not advocating for a legislative solution. ✓ We promote craft training for all craft workers, and we are not advocating for union shops or merit shops. ✓ We promote training for all craft workers, and we are not advocating for or taking a position on immigration.

Financial Security, Health, and Well Being + Safety Training + Craft Training The Problem: Why C3? Average Age of Craft Worker: 47 Craft Training at an all time low 20% of workforce is expected to retire in 3 years

Financial Security, Health, and Well Being + Safety Training + Craft Training The Bottom Line While the construction workforce is aging and less productive due to lack of training, the demand on our industry increases and becomes more technical every year. We must do more to recruit, train and retain craft workers to meet the demands of our industry.

Financial Security, Health, and Well Being + Safety Training + Craft Training Craft & Safety Training reduced or eliminated for many trades Misclassification of non-exempt (hourly) workers resulting in the improper elimination of overtime, social security, federal & state unemployment taxes, as well as employee benefits, all in an effort to reduce cost in pursuit of low bid Push in K-12 schools to prepare everyone for college resulting in the elimination of wood/metal shop classes which sowed the seeds of interest in construction The seeming limitless supply of undocumented workers who labor in the shadows thereby depressing wages The perception among young people that construction is dirty, unsafe and for undocumented workers How did we get into this mess?

The Impact Lower quality craftsmanship resulting in greater waste and inefficiency Lower quality buildings resulting in higher maintenance costs Ever increasing labor unit costs without any increase to the wages & benefits of the craft workers Young people are not attracted to construction making the industry more dependent upon undocumented workers thereby depressing wages… …and the cycle continues

Financial Security, Health, and Well Being + Safety Training + Craft Training Approach 1. Financial Security, Health, and Well Being of Craft Workers ▪Paying a fair wage by the hour with applicable overtime and not misclassifying the worker as a subcontractor ▪Provide worker security by paying unemployment taxes, providing workers’ compensation insurance and contributing to social security for the workforce. 2. Safety Training ▪Construction industry safety training standards for the workforce as follows: All craft workers have OSHA 10 hour card All on-site supervisors have OSHA 30 hour card (We are developing a safety refresher for OSHA 10 & 30 since it is required only once in a career.) 3. Craft Training ▪ Participate in and support industry craft training leading to portable training credentials for the craft worker

C3 Strategy: This must be OWNER DRIVEN!

Owners Demand: ✓ Owner participation and support is imperative. ✓ Owners are the driving force of construction industry. ✓ Owners are critical to workforce development. ✓ Owners make workforce standards mandatory, not optional. ✓ Owners specify C3 criteria in General Conditions of contracts – which levels the playing field for all contractors

Like LEED: CompetentQualifiedSkilled

Tomorrow’s Workforce Studies show that investing in training significantly enhances performance and project execution. Trained. Safe. Sustainable. 24% 43% Productivity Turnover Jobsite OSHA First Aid Absenteeism Recordables Cases 59%90%

Owners’ Benefits:

C3 Owners

Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Beta Projects Center for Advanced Biomedical Imaging Research Phase III Owner: MD Anderson Cancer Center General Contractor: Vaughn Construction Zayed Building - Center for Personalized Care Owner: MD Anderson Cancer Center General Contractor: Vaughn Construction Mid-Campus Administration Building Owner: MD Anderson Cancer Center General Contractor: Linbeck Multi-Phase Project Build Out Owner: Texas Children's Hospital General Contractor: WS Bellows Construction St. Mary's Seminary - Borski Athletic Center Renovation Owner: Archdiocese of Galveston-Houston General Contractor: Brookstone Pavilion Owner: MD Anderson Cancer Center General Contractor: McCarthy Building Companies

Financial Security, Health, and Well Being + Safety Training + Craft Training First Non-Beta C3 Projects The Woodlands Campus Owner: Texas Children’s Hospital General Contractor: Tellepsen Feigin Building, Level 18, OB/GYN Renovation* Owner: Texas Children’s Hospital General Contractor: W.S. Bellows *completed December 2014

Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Accredited Employers ACS Flooring Group Ace Services Astro Fence Balfour Beatty Const. Big City Access Bonded Lightning Protection Brochsteins Camarata Masonry Chamberlin Roofing & Waterproofing Construction Eco Services D.E. Harvey Builders DPR Construction EMCOR, Gowan FGH Insulation F&S Floors FireTron Fisk Electric Haldeman-Homme Holes Incorporated Honeywell International Humphrey Company J.M. Maly Joslin Construction Kauffman Co. Karsten Interior Services Linbeck Marek Brothers Systems McCarthy Building Cos. McCorvey Sheet Metal Mid-West Electric MLN Company NetVersant Solutions Northstar Fire Protection O’Donnell/Snider Construction P&Z Logistics Pieper Houston Electric Polk Mechanical Sitesecure Schneider Electric Buildings Americas Slab Services Slack & Co. SolarNet Power the Future SpawGlass Stanley Security Solutions TD Industries Tellepsen Builders Triangle Insulation J.T. Vaughn Construction W.S. Bellows Const. Way Engineering Winco Masonry Wingo Service Co.

Financial Security, Health, and Well Being + Safety Training + Craft Training

We need a significant core of Leaders to INFLUENCE the market. ✓ Leaders have a long range view of the industry. ✓ Leaders have the courage to lead by example when it may be unpopular to do so.

Contractors: ✓ Become an Accredited C3 Employer ✓ Use influence to encourage Owners to specify C3 criteria in contracts ✓ Encourage Specialty Contractors to become Accredited ✓ Lead by example ✓ Invest in our greatest asset – our employees! ✓ Higher quality work, increased job satisfaction, elevated employee morale, lower employee turnover ✓ Invest in the future of the construction industry

Specialty Contractors: ✓ Become Accredited Employer ✓ Lead by example ✓ Invest in our greatest asset – our employees! ✓ Higher quality work, increased job satisfaction, elevated employee morale, lower employee turnover ✓ Invest in the future of the construction industry ✓ Provide middle class opportunities that attract young people and create a sustainable workforce

In order to achieve a sustainable workforce... C3 Must Be: ✓ Conduit for development and delivery of craft training ✓ Conduit for delivery of safety training ✓ Advocate of construction curriculum with secondary schools and community colleges  to generate interest among students in construction  to attract young people to the industry ✓ Advocate of C3 criteria with owners ✓ Auditing organization for accountability and integrity

C3: Together we… Create a sustainable construction workforce Attract a verifiably qualified workforce Recognize a healthy and safer construction industry Increase efficiency for better built projects in less time Contribute to a better insured and trained population

Financial Security, Health, and Well Being + Safety Training + Craft Training Owners, General Contractors, Specialty Contractors, and Champions, who have a clear vision of the future of a healthy construction industry, MUST LEAD and exert their influence in the market to solve this problem. The need for C3 has never been greater!

Make an immediate impact! Specify C3 criteria in your contracts.