(TEXT
OF THE SPEECH DELIVERED DECEMBER 9, 2009 BY BCTD PRESIDENT
MARK AYERS TO THE 2009 WINTER MEETING OF THE ASSOCIATION OF
UNION CONTRACTORS)
Thank
you for that warm welcome. I really appreciate it.
It’s
always nice to be welcomed by, and to be among, friends.
And
what better friends do America’s Building Trades Unions have
than our contractor partners.
In
preparing for this meeting, my staff told me that one of the
things that was expected of me was to provide an update on
the current status of the Building Trades.
Well,
you all know this better than me, it’s bad out there!
Many of you are hurting…and many of our members are hurting.
Unemployment in our industry is now approaching 20% nationwide.
Some of our unions are reporting a ten percent reduction in
their membership numbers. It’s probably the most difficult
situation I can remember in my lifetime.
But,
in response to these troubling times, I can tell you that
the Building and Construction Trades Department is singularly
focused on doing all that it can to secure work for our contractors
which will put our people back to work.
The
picture is not pretty right now. And it is especially
painful at this time of year…when we gather with family and
friends to celebrate the Holiday season…knowing that hundreds
of thousands of good, honest, hard-working American craftsmen
and women are struggling to tell their children that Christmas
may not be a reality for them this year.
That
disturbs me terribly.
That
is the image that I have in my head from the moment I awake
until the moment I fall to sleep.
And
yet, in spite of this extreme detraction, and in spite of
the current economic situation that we are enduring, I have
a passionate optimism for the future.
It’s
not just because I believe we have begun to turn the corner
on this recession.
It’s
true that home sales in October were at their highest levels
in two and a half years. And that capital spending and
investments are starting to creep back up.
All
of that is, indeed, good.
But
my optimism is rooted in a long-term view of the world in
which we live and work. Because I see good things happening
on both the supply and demand side of the equation that both
defines the union construction industry and dictates the level
of shared success that we are able to achieve.
On
the demand side, my optimism can be summed up in three words…CLEAN.
ENERGY. ECONOMY.
And
on the supply side, the optimism is reflected in five words…VALUE.
ON. DISPLAY. EVERY. DAY.
Let’s
talk first about the clean energy economy.
Despite
a lack of any coordinated or sustained policy attention and
investment, the emerging clean energy economy has grown considerably.
According to the Pew Charitable Trust, between 1998 and 2007,
the growth of clean energy jobs grew at a faster pace than
jobs in general. And despite the severity of the current
economic downturn, investments in clean energy technology
have fared far better than venture capital overall.
Whether
we are talking about the solar, wind, nuclear, geothermal,
hydro, or other forms of renewable energy, the growth potential
is tremendous. And that does not even include the prospect
of achieving greater energy efficiencies through existing
institutional and commercial building retro-fits.
Overall,
the increased attention and financial support from Congress,
state legislatures and private industry indicate that an American
clean energy economy is poised to expand significantly.
Venture capital investment in clean energy innovations and
technology totaled $12.6 billion in the last three years.
What
that means is this:
Now,
more than ever, the clean energy economy represents the greatest
opportunity for the union construction industry in our lifetimes.
And America’s Building Trades Unions are putting their combined
attention, resources and influence into securing these opportunities
for our contractors and our members.
The
American Recovery and Reinvestment Act of 2009 included an
array of provisions to spur clean energy generation and energy
efficient businesses, jobs and investments. Included
are almost $21 billion in tax incentives for wind, solar and
other renewable energy manufacturers. There is also
a down payment of $11 billion to modernize our nation’s electrical
grid and $5 billion for the weatherization of low-income homes.
At
the same time, the Building Trades are working with the nuclear
industry to push for federal loan guarantees for the construction
of the next generation of nuclear power plants. I’m
particularly proud of the work that the building trades has
done to place nuclear back on the radar screen.
Without
our efforts, we would not be talking about nuclear today.
And, in fact, with a little more luck our efforts will produce
the construction of the first nuclear power plant in the U.S.
in over 20 years at nearby Calvert Cliffs in Southern Maryland.
And
we have made it clear to the utility industry that we are
able, ready and willing to partner with them in cooperative
fashion, as evidenced by the development by the Building Trades
Department of a 21st century Nuclear Construction labor agreement
that is totally innovative in its scope and the specific provisions
contained within.
We
cold not have done this without the 13 Presidents who were
willing to step outside the box with Sean McGarvey and I to
create a game changing agreement for the low density areas.
We
have also launched this year, in partnership with the American
Petroleum Institute, an Oil and Natural Gas Labor/Management
Committee.
This
committee is designed, in large part, to re-introduce the
union construction industry to the oil and natural gas industry.
Over the years, as you all know, our unions and our contractors
lost a significant amount of market share in the petroleum
industry.
And
we believe that it is high-time that the industry sees us
for who we are today…not what we were thirty years ago.
Recently, we convened a field trip of sorts for this committee.
Several executives from major oil and gas corporations…along
with Jack Gerard, the CEO of the American Petroleum Institute…traveled
to the greater Chicago area to familiarize themselves with
the 21st century story of our unions and our industry.
They
saw firsthand what we are about today. And believe me,
they were taken aback by what they saw and heard.
First,
they visited the state-of-the-art apprenticeship training
facilities of UA Local 597 and IBEW 134. They now have
a better understanding of the degree to which we go to invest
in the training and education of the skilled workforce of
tomorrow.
Secondly,
they were given a presentation on national project labor agreements
by me and the success of local project labor agreements by
Tom Villanova of the Chicago Building Trades. Tom presented
to them in compelling fashion the jobsite efficiencies and
competitive advantages that are built into the project labor
agreements of today – not to mention the public relations
and brand image enhancements that the industry could realize
when they structure and utilize a project labor agreement
that builds pathways to career training opportunities for
local residents and/or disadvantaged communities.
It
was, indeed, an eye-opener for these industry representatives.
And
it is indicative of the need for America’s Building Trades
Unions to put more effort into telling our story to everyone
and anyone who will listen. Especially the leaders associated
with the existing energy and emerging clean energy industries.
You’re
going to hear from Jack Gerard a little later in your program
and let me say this about Jack. Our union contractors
and union building trades workers couldn’t have a more vocal
and loyal advocate than Jack. It has been my privilege
to know him and work with him on our labor-management initiative,
and I’m sure you’re going to enjoy his presentation.
Let
me give you another brief example of where our new story is
taking hold.
As
you all know, Congress has been deliberating for well over
a year now on climate change legislation. The House
of Representatives passed its version of a bill earlier this
year…and the Senate is in the middle of deliberating the issue
as we speak.
When
the House bill began to move, we were confronted by an unexpected
hurdle. Members of the congressional Black, Asian, and
Hispanic Caucuses…known as the tri-caucus…let it be known
that they were uncomfortable with having federal stimulus
money, as well as federal clean energy investments be directed
to what they called, “business as usual” in the construction
industry.
The
between-the-lines interpretation is that these members of
Congress were concerned about stimulus money being used to
benefit “those white union guys in the building trades.”
Again, they were not aware of today’s story of our industry
and our unions and how we are working to create opportunities
in many minority and disadvantaged communities.
Now,
I am not claiming that we are perfect when it comes to diversity
and inclusion. There is more work that needs to be done.
And I told these members of Congress that. They were
grateful to hear it.
As
a result, we have since worked with the tri-Caucus in successfully
getting language included in the House climate change bill
that would ensure Davis Bacon coverage for any clean energy
projects that receive federal dollars.
Additionally,
we secured the inclusion in the House bill of a “Green Construction
Jobs Demonstration Projects” provision. This section
of the bill was specifically designed to ensure that federal
investments in the clean energy economy would embrace a “high
road” approach to construction. Under this provision,
the Secretary of Labor, in consultation with the Secretary
of Energy will have the discretion to utilize project labor
agreements for any construction funded through this legislation.
In
a similar vein, let me also mention how very proud we are
of our Native Construction Career Institute and our Cooperative
Agreement initiatives. This program is designed to offer
work opportunities for tribal members, union contractors and
Building Trades workers in Indian Country. Over $400
billion of construction work will be performed on or near
Indian lands in the next few years, and we hope to work with
the tribes and federal agencies to secure tribal labor agreements
or project labor agreements to secure that work.
You’ll
hear more about these initiatives from Dr. Bob Middleton later
in your program.
Folks,
what I want all of you here today to understand is this:
we are doing all that we can…with the White House, the Congress,
and the federal agencies…to level the playing field and create
opportunities everywhere we can for the union construction
industry.
My
time is limited, so let me now turn to the supply side of
the equation.
There
are a number of equally exciting things occurring within our
unions that are having a dramatic impact on our industry.
If you have been paying close attention to what is happening
with America’s Building Trades Unions today, you will note
that we have collectively embarked upon a new journey.
And
it is a journey with a specific objective in mind:
To
fundamentally re-define, re-position and re-vitalize the union
construction industry brand.
To
put it simply, we are evolving into a new organization, with
a new culture. And it is a culture that is being designed
specifically to meet the challenges of our time. Most
notably, the emerging productivity and skilled manpower needs
of an increasingly cost-conscious community of owners, contractors,
and government agencies all across North America.
We
recognize that in today’s world, it is very dangerous not
to evolve. Being flexible and attuned to the ever-changing
needs of a market or an industry is an absolute necessity
for achieving success in today’s world.
And
today, our unions are making a commitment to become more customer-focused,
and more value-oriented.
I
hope you are experiencing a difference because we know our
two year effort is being validated across the country in many
areas.
Two
cases in point are Chicago and New York City. I point
these two out specifically because I know they conjure up
visions of inflexibility and old school practices.
But
the reality today is quite different than what you have come
to expect in these markets. Because today, Chicago and
New York are now models of success spurred by union leaders
making common sense “business” decisions.
The
new brand mantra for America’s Building Trades Unions sums
it up quite nicely: “Value on Display. Every Day.”
At
first this was just another catchy marketing slogan but now
those five words represent a revolution. They represent
a sea-change in thinking within our unions. And we are
driving that message home to all of our local building trades
councils and local unions so that they internalize it and
make it the barometer for every decision and action that they
take.
Because
all of us in the trades must embrace, and we are embracing,
a new reality; one that suggests that we FINALLY recognize
and understand the core fact that we offer a premium product
for a premium price. And that premium product just happens
to be the world’s safest, most highly skilled and productive
craft workforce in the world.
But,
just like any premium product or service on the market today,
our success (which is measured by the level of market share
for our product) will be dictated solely by the level of VALUE
that our customers believe they receive in exchange for the
investment they have placed in us.
Therefore,
value has become the central theme in the re-positioning of
the Building Trades brand. It drives everything we do.
Our
mission is to showcase and expand the union construction advantage.
And that advantage is centered upon the fact that we produce,
through our apprenticeship and training programs, the most
highly skilled and productive workforce known to man.
That
is what makes us a VALUE-ADDED entity in the eyes of owners,
contractors, governmental agencies, and community leaders.
If
we stop for a moment and examine the changes that are happening
in our industry today, it is very easy to see why our apprenticeship
and training programs are so very critical for our strategic
objectives. Because as I speak to owners or contractors
all over the nation, they all seem to be worried about one
simple question once the economy begins to turn around:
Can
we get enough skilled crafts people to man their jobs?
And
governmental agencies and community leaders are searching
for ways to leverage their construction investments in order
to achieve certain societal objectives relating to workforce
and career development.
It’s
kind of like a perfect storm for the re-emergence of the union
construction industry.
And
think about this for a moment:
As
you all know, we continue to experience tight credit markets
today. These tight markets, as well as a host of other
macro-economic factors are forcing owners and project managers
to be as focused on bottom-line productivity like never before.
Therefore,
and I know I am preaching to the choir here, they are not
only concerned about the supply of skilled manpower, but they
are also very, very concerned about the quality of the work
that is produced by that manpower. They worry about
whether the skilled crafts people on their jobs are sufficiently
trained in the latest technologies…the latest installation
processes…and the most current safety procedures.
And
just as importantly, they want to be certain that we offer
a value proposition – not a proposition composed of headaches
and grief!
All
of this has tremendous implications for their bottom-line
concerns. That is where our competitive advantage truly
comes into play.
Folks,
I just want you to know that the General Presidents of all
13 of our affiliated unions, along with Sean and I, are doing
all that we can to take advantage of this current economic
downturn to help re-structure and re-position America’s Building
Trades Unions for future sustained growth.
We
are singularly focused on taking effective and full advantage
of the opportunities coming our way. We know that once
the U.S. economy gets back on track, there will be tremendous
skilled manpower needs across this nation in a host of industries.
And
that will especially be true in the areas of institutional
and heavy, commercial and industrial construction. In
fact, once the economy starts to rebound, there are estimates
that the pace of construction in the next quarter century
will eclipse anything seen in previous generations.
In
fact, the Brookings Institution has estimated that nearly
half of the structures that will be in existence in America
in 2030 have not even been built yet.
We
also know that today the average age of a skilled construction
craft professional is somewhere around 47 years of age, while
the average age of a skilled maintenance professional is in
the neighborhood of 53 years.
Projections
are that by 2014 the United States will be in need of one
million additional skilled craft workers in the building and
maintenance industries. And with the investments being
made by the Obama Administration and the US Congress in infrastructure
and a clean energy future, these projections will probably
be revised upward.
America’s
Building Trades Unions are cognizant of all of these factors
and we are taking steps to address them.
First,
we intend to maintain and protect the stringent standards
associated with our training programs and to aggressively
recruit the next generation of skilled craft workers.
But,
we are also looking at ways to streamline and accelerate the
process by which apprentices move to journeymen status without
compromising our standards.
Secondly,
we are working feverishly…and I believe to great effect…to
instill a new, value-oriented mindset into our network of
local building trades leaders in order to convince them that
the strategies and attitudes of yesteryear are of no use today.
We
are forcefully making the case with our local leaders that
our focus must be on demonstrating value to our customers.
Not once in a while…but consistently.
Value
on Display. Every Day. It’s a way of life for
us now.
And
there are strategic advantages for us in launching this initiative
now. Because at the same time we are taking forward
steps to re-position the union construction industry brand,
we are simultaneously working to pull the veil off of our
competition’s brand.
There
is an old saying about reaping what you sow…and it applies
to our industry today.
Now,
I am not going to stand here and engage in the demonization
of the open shop sector because, frankly, the “us vs. them”
rhetoric that we hear so much today in politics and elsewhere
just doesn’t serve much of a purpose anymore. In fact,
I will go even further and say that the best way for us to
beat the open shop
is
to stop competing with the open shop.
You
heard me right.
The
best way for us to beat the open shop…is to stop trying to
compete with the open shop.
Our
business model is entirely different from theirs.
Because
of all that we have been through as a nation over the last
two years, the United States is in the midst of a national
culture change. And it is one that is moving us towards
the embrace of a more responsible form of capitalism.
This
cultural evolution suits OUR business model…not the open shop’s.
I
firmly believe that our success will ultimately boil down
to three simple truths:
Developing
friendship; developing loyalty; and developing a belief in
one another. Because for America’s Building Trades Unions,
personal relationships form the backbone of our success.
It is incumbent upon us to cultivate friendships with the
contractors we work with, the customers we work for (and those
that we want to work for), if we want to re-capture significant
market share for the union construction industry brand.
Likewise,
if we cannot, through our performance, attitudes and actions,
inspire a high level of loyalty among the members we represent
and the customers for whom we serve, then we are doomed to
a future of irrelevancy and eventual non-existence.
That
is why we are re-defining ourselves…and re-defining our strategic
approach for taking back market share.
That
is why we are elevating a new business model that people want
to be associated with.
And
that is why we are striving to create a newly energized and
robust demand for the products and services that we have to
offer…and the values that we represent.
Our
desired end result is new, uncontested market space for the
union construction industry. We can do that by expanding
the notion of what is important and what is possible in our
industry…and in our society.
That
is the key to our success, and it is one I am confident we
will accomplish with distinction. There is no place
in our industry for those that just can’t change.
In
closing, let me just say how proud I am to represent the most
trusted and effective skilled craft professionals in the world.
And I am equally proud to say that I consider the members
of The Association of Union Contractors as valued friends.
None
of us should be satisfied with what we have accomplished over
the years.
To
the contrary, our undivided attention and energies should
be directed toward the potential to achieve great things in
the very near future.
Because
that future is in OUR hands.
Thank
you, and God Bless you.
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