ProjectProject Stabilization Agreement Stabilization AgreementTraining ClassTraining Class

Los Angeles Unified School Los Angeles Unified School DistrictDistrict

November 15November 15thth, 2006, 2006

Introduction

Dan SloanDan Sloan

LAUSD PSA CoordinatorLAUSD PSA Coordinator

626-440-4120626-440-4120

www.laschools.org/www.laschools.org/contractor/psacontractor/psa

dan.sloan@parsons.comdan.sloan@parsons.com

Introduction

Sima SalekSima Salek

Los Angeles Unified School Los Angeles Unified School DistrictDistrict

Orbach, Huff and Suarez LLPOrbach, Huff and Suarez LLP

Sections 2 and 3

Relationship to California Labor Code

Glossary of Training Terms

Section 4Scope 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.

Section 4Scope 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.)

Section 5Letter 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 Parsons Constructors Inc. a minimum of 48 hours before starting work.

Section 5Letter of Assent (cont.)

▪ A sample of the Letter of Assent is in the training manual and can also be viewed at the LAUSD website: www.laschools.org/contractor/psa

▪ How do contractors correctly submit a Letter of Assent?

The example Letter of Assent from the LAUSD website can be copied or typed onto the contractor’s company letterhead. Make sure all appropriate information is included in the body of the letter (i.e. company name, LAUSD construction contract #, and school site(s)).

▪ Prior to starting any Project Work, sign and submit original to:

Project Labor Coordinatorc/o Parsons Constructors Inc.100 W. Walnut StreetPasadena, California 91124

Section 5Letter of Assent (cont.)

Section 5Schedule 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.

Section 5Schedule 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.

Section 5Participation/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.

Section 5Participation/Subscription Agreements

Los Angeles Unified School District Facilities Services Division

Roy Romer Mark Hovatter Superintendent of Schools Director, Facilities Contracts James A. McConnell Jr. Chief Facilities Executive MEMORANDUM TO: All Bidders for Construction Work Covered by the Los Angeles Unified School District

Project Stabilization Agreement

FROM: Los Angeles Unified School District SUBJECT: Trust Fund Participation Agreements DATE: All bidders should carefully note that: 1. If you are not already party to the relevant Trust Fund Contract that establishes benefit coverage for the craft in which your employees are covered, in accordance with the terms of the PSA, successful bidders to "LAUSD contracts", may be requested by a Trust Fund representative to execute a Participation Agreement for one or more such funds; 2. While the PSA recognizes that Trust Funds may condition acceptance of contributions on a Covered Contractor's execution of a Participation Agreement, it does so ONLY on the condition that such agreement does not commit the Covered Contractor to obligations beyond those contained in other provisions of the PSA; 3. If a Covered Contractor wishes to limit itself to the PSA commitments, it may execute any Participation Agreement(s) through the use of the attached document; and 4. Covered Contractors must provide this same memorandum and Commitment Document to all of their subcontractors, of whatever tier. Attachment

Los Angeles Unified School District Facilities Services Division

Roy Romer Mark Hovatter Superintendent of Schools Director, Facilities Contracts James A. McConnell Jr. Chief Facilities Executive

MEMORANDUM

Commitment to the Attached Participation Agreement The undersigned contractor ("contractor") is a party to the Los Angeles Unified School District Project Stabilization Agreement ("Project Stabilization Agreement"). Pursuant to the Project Stabilization Agreement, Contractor has agreed to make benefit contributions on behalf of its employees working thereunder to each Trust Fund in which a Union representing a craft in which Contractor's employees is to work, and signatory to the Project Stabilization Agreement, participates. Therefore, by its signature below, the Contractor agrees to be bound by the attached Participation Agreement [Name of Agreement/Fund/Dated] subject to the limitation that (1) it is recognized by the Contractor and the Trust Fund that the appended Participation Agreement may contain provisions that are inconsistent with the terms of the Project Stabilization Agreement; (2) that the Contractor and the Trust Fund have mutually agreed that any provision of the appended Participation Agreement that is inconsistent with any term of the Project Stabilization Agreement shall be deemed unenforceable as against the Contractor, notwithstanding the Contractor's agreement otherwise to be bound; and (3) that any disagreement or dispute over the terms of this commitment shall be subject to the procedures of Article 10 of the Project Stabilization Agreement (in which authorized representatives of the involved Trust Fund may participate at the request of any Party to the Agreement participating in the procedure). ___________________________ (“Contractor”) ___________________________(“Trust Fund”) By:____________________________________ By:____________________________________ cc: PCI Attachment

Section 5Core 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.

Section 5Workforce 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.

Section 5Workforce and Hiring Procedures

(cont.)CONTRACTOR’S UNION

CORE WORKFORCE REFERRAL

1ST employee (core) 2nd employee (from union)

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

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

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

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

▪ 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.

Section 5Workforce 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.

Section 5Workforce 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.

Section 5Employee 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.

Section 5More 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.

Section 5Union Access/Stewards/Foremen

▪ Union representatives have access to PSA-covered jobsites, provided they do not interfere with the contractors’ work.  The PSA Coordinator and LAUSD should be notified immediately if any disruptions or onsite conflicts occur. 

▪ Union representatives accessing jobsites must comply with posted visitor, security and safety rules as required by LAUSD.

▪ Unions may dispatch a steward for each shift in accordance with the appropriate Schedule A’s.

▪ The selection of foremen is the responsibility of the contractor.

Section 5PSA 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.

Section 5PSA 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.

Section 5Important 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.

Section 5Important 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.

Break TimeBreak Time(15 minutes)

Section 6Union Roles and Responsibilities

▪ Unions agree to abide by the terms and conditions of the PSA and will not engage in strikes, slowdowns or disruptions of Project Work.

▪ No onsite work disruptions are permitted.

▪ Local unions will make their best effort to recruit and refer sufficient numbers of skilled craft workers to fulfill the labor needs of the contractors and District.

▪ Work with “We Build” Program to train and dispatch local workers to LAUSD jobsites, both journeymen and apprentices.

Section 6Union Roles and Responsibilities

(cont.)▪ Unions shall comply with all applicable federal and state laws.

▪ Unions must adhere to the grievance procedures and dispute resolution procedures outlined in the PSA. (Will be covered in the next section).

▪ The Council or Union shall refer all complaints regarding any potential violations of the PSA to the PSA Coordinator.

▪ The Council or Union shall refer all complaints regarding any potential prevailing wage violations to the District’s Labor Compliance Program.

Section 6District/PSA Coordinator Roles and

Responsibilities

▪ The PSA Coordinator, Parsons Constructors Inc., will actively administer the PSA. The PSA Coordinator will:

Monitor compliance with the PSA.

Assist the “We Build” Program and the Small Business Program.

Act as mediator or facilitator when requested.

Advise and educate contractors and unions about the PSA when requested.

Facilitate and monitor PSA dispute resolution procedures between contractors, unions and the District.

Section 6District/PSA Coordinator Roles and

Responsibilities

▪ The District has the right to award contracts or subcontracts to any contractor notwithstanding the existence or non-existence of any agreements between such contractor and any union parties.

▪ The PSA Coordinator will work with contractors who are delinquent in payments to assure that proper benefit contributions are made, to the extent of requesting the District or the prime contractor to withhold payments otherwise due such contractor, until such contributions have been made or otherwise guaranteed.

▪ The District (or any party to the PSA) may invoke an “Expedited Enforcement Procedure” to resolve a violation regarding work stoppages (Section 7.1), lockouts (Section 7.5), work disruptions over jurisdiction (Section 8.3), or any type of work stoppage (Section 21.4). (PSA Section 7.7 paraphrased)

▪ The PSA Coordinator will process and monitor Letters of Assent.

Section 6District Rights

▪ Inspect any construction site or facility to ensure that the contractor is following the applicable safety and work requirements.

▪ Require contractors to establish different work weeks or shift schedules in order to meet the operational needs of Project Work and accommodate the instructional schedules of District students.

▪ Terminate, delay or suspend project work in order to accommodate the operations of the District’s educational facilities and/or to mitigate the effect of project work on the surrounding community. Note: If it is not possible to provide advance notice of a work termination or suspension, show-up pay will be required as defined in PSA Section 6.6.

▪ Approve any work methods, procedures or techniques used by contractors, even if they are not standard industry practices.

▪ Investigate and process complaints, through the PSA Coordinator, in the manner set forth in PSA Article 7 Work Stoppages and Lockouts, Article 8 Work Assignments and Jurisdictional Disputes and Article 10 Settlement of Grievances and Disputes .

Section 7Grievance 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.

Section 7Grievance 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.

Section 7Grievance Procedure for Contractors and

UnionsSTEP I

Involved unions or Contractors have 10 working days after the disputing party knew or should have known of the violation to meet.

If a settlement is not reached within 5 working days, either party may request, in writing, a Step II meeting.

STEP II

Representatives from the involved local unions, contractors, and the PSA Coordinator shall meet within 7 working days after the date of the written request for a Step II meeting.

STEP III: Arbitration

If grievances are not resolved at the Step II level, any of the involved parties may request, in writing to the PSA Coordinator within 7 calendar days, that the grievance be submitted to an arbitrator.

The PSA Coordinator shall schedule the arbitration and choose an arbitrator from the agreed upon list in the PSA.

Section 7Grievance Procedure for EmployeesSTEP I

Employees have 10 working days from the alleged violation to, through their union steward or representative, notify the Contractor of their grievance.

The union steward or representative has 10 working days after notifying the Contractor of the grievance to meet in an attempt to settle the grievance.

If a resolution is not reached within the prescribed time period, the grieving party has 10 working days to request, in writing, a Step II meeting.

STEP II

Representatives from the involved local unions, contractors, and the PSA Coordinator shall meet within 7 working days after the date of the written request for a Step II meeting.

STEP III: Arbitration

If grievances are not resolved at the Step II level, any of the involved parties may request, in writing to the PSA Coordinator within 7 calendar days, that the grievance be submitted to an arbitrator.

The PSA Coordinator shall schedule the arbitration and choose an arbitrator from the agreed upon list in the PSA.

Section 7Jurisdictional 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”.

Section 7Jurisdictional Disputes/Work

Assignments▪ The work assignment determines the prevailing wage

classification that must be paid to the employee.

▪ 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.

Section 9Section 9Small Business Enterprise Small Business Enterprise

ProgramProgram