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A policy on obligations of developers and contractors to seek local employees, service providers and businesses to meet their needs.
An ordinance requiring contracting companies to maintain, to the greatest extent possible, a workforce composed of 40% qualified Newark residents.
A fact sheet summarizing local hiring policy for San Francisco.
Most targeted hiring programs include mechanisms that do two things: 1) Maximize the chances that workers from the targeted category who are already in the construction industry will get called to work on that job. 2) Create opportunities for new workers - aspiring apprentices who want training and a construction career - to get trained and hired. Calling up workers who are already on the bench is sometimes referred to as zip-coding (meaning the hiring hall determines which workers meet geographical targeting) or name-calling (the hiring hall tags specific workers who meet other kinds of targeting criteria). Achieving the right balance of these two elements of a targeted hiring program requires local leaders to work together. How many workers are on the bench (and out of work), how many targeted workers are already in the construction workforce, how many apprenticeship openings the targeted projects will create - all of these considerations help determine the right balance.
Over the past decade, the community benefits movement has emerged as a powerful mechanism for challenging the political and economic realities that undermine urban communities. Community benefits campaigns strive to build new political relationships among unlikely allies, uniting labor, community, environmental and faith-based groups behind broad-based agendas focused on economic development that prioritizes high-quality jobs, creates new career paths for low-income workers, marshals resources for environmental cleanup and sustainability, and avails residents of access to more affordable housing options. In many cities where community benefits coalitions work, research has shown that, too often, new development fails to generate high quality jobs and career paths for residents of the poorest parts of the city. Local hire requirements are a critical component of the community benefits agenda because they create concrete mechanisms for ensuring that investment of public funds in economic development will direct resources into low-income neighborhoods. The point is not only to hire local residents, but to use local hire requirements to target opportunities to low-income residents and people of color who might otherwise not benefit from new development. Local hiring programs are on the strongest legal footing, and are likely to produce the most meaningful outcomes, when they are rooted in efforts to reduce poverty rather than merely to hire city residents.
Los Angeles is currently embarking upon one its largest investments in infrastructure in decades. Through these investments, we will be modernizing our port, fixing our roads, and undertaking the largest expansion of public transit in recent history. These investments, representing over $12 billion dollars in construction, will also result in the creation of thousands of jobs in communities slowly recovering from the Great Recession. In 2008, a broad coalition of community members, faith leaders, workers and labor leaders successfully passed a Construction Careers Policy at the Community Redevelopment Agency-Los Angeles, the first of its kind in the nation. This policy approach aimed to increase workplace standards in publicly-funded construction projects and increase access to quality construction careers for communities struggling under the weight of poverty and chronic unemployment. The policy met these goals by coupling a Project Labor Agreement with a targeted hire program. Project Labor Agreements (PLAs) are collective bargaining agreements made between contractors, government agencies, and construction trade unions creating quality jobs that guarantee prevailing wages and health benefits, in exchange for a guarantee of labor peace to protect the public investment. Targeted hire programs ensure that good jobs are created where they are most needed. When paired, PLAs and targeted hire programs can create a much needed pathway out of poverty for workers with limited education and career opportunities in low-income communities.
This report discusses the progress of the Utility Pre-Craft Trainee (UPCT) program since its launch in 2011. The UPCT program, jointly operated by the Los Angeles Department of Water and Power (LADWP) and the International Brotherhood of Electrical Workers (IBEW) Local 18, is an earn-and-learn, pre-apprenticeship training program in which entry-level trainees work full time weatherizing homes and small businesses while learning skills and preparing for civil service exams and career opportunities in the utility. Trainees receive $16 per hour plus health and retirement benefits, considerably better compensation than most entry-level workers earn for weatherization work, and are union members represented by IBEW Local 18. In addition to classroom training, trainees receive on-the-job training to install energy efficiency measures for LADWP’s Home Energy Improvement Program1 and Small Business Direct Install program,2 as well as solar installations on properties owned by LADWP. Trainees also rotate through the water, power, and support services sides of the utility to gain broad exposure and try out different types of work before selecting a career path.
The Construction Careers and Project Stabilization Policy, which defines a local hiring program and project labor agreement terms that would be applied to all Board-approved projects that meet certain thresholds. The key goals of the Policy are to ensure that (1) CRA/LA-created job opportunities benefit local residents, particularly those living in or adjacent to CRA/LA project areas; (2) residents with barriers to employment have access to job opportunities; and (3) new entrants to the construction field have access to training and support to advance their careers. Covered Projects would include Public Improvement contracts of $500,000 or more; construction projects on CRA/LA-owned land; and development projects in which the CRA/LA has invested $1,000,000 or more. Covered Development Projects with fewer than 75 units of housing and less than 50,000 square feet of nonresidential floor area would be exempted. The local hiring program will require that developers and contractors take specific enumerated steps to ensure that 30% of all project work hours and 50% of apprentice work hours go to Community Area Residents and Local Residents (defined in the Policy), and 10% of all construction work hours go to Local Low-Income Residents (defined in the Policy). The 10% and 50% may be applied towards the 30% requirement.
First source hiring ordinances, contract clauses, and related agreements seek to provide meaningful employment opportunities to residents living within communities most directly impacted by local development projects. Local development projects are typically undertaken based on broad representations that the project will create a multitude of good-paying jobs within the local community. However, municipalities often find that the very residents intended to benefit are instead left out of the employment opportunities that arise from the project. First source hiring initiatives seek to ensure that local residents receive a fair share of the economic benefits of public development projects.