Building obstacles to employment

Wednesday, the City Council is expected to pass legislation that will dramatically change the training standards for many construction workers in New York City. This bill fails to address several basic problems that, if left unaddressed, will result in many fewer construction job opportunities for New Yorkers.

Contrary to the misstatements and distortions put forward by several interest groups, including the building trade unions, the Real Estate Board of New York and our members believe that all workers deserve safety training.

Last April, we at the Real Estate Board worked with the Council to develop bills that were subsequently passed, including one requiring safety plans and personnel on smaller sites where most construction-related accidents and fatalities occur.

We oppose this legislation because we know that it is possible to increase safety standards without putting thousands of hardworking New Yorkers out of a job. We have been joined in our opposition by a coalition of civil rights organizations, minority- and women-owned business enterprises, affordable housing advocates and independent contractors.

Since early in the process, our coalition has repeatedly voiced concerns — but the bill still fails to address them.

First, how will thousands of workers pay for the safety training required under this legislation? The latest census says there are nearly 185,000 construction workers in New York City. It is estimated that nearly two-thirds of them are nonunion. A substantial portion of these workers do not have an ongoing relationship with a contractor — meaning they freelance from job to job, working for many contractors over a period of time.

For these workers, the cost for the new training will come out of their own pockets. Using the Council’s own estimate, the cost of receiving the training will be $1,250 per worker. That is an incredibly steep price for the almost 46,000 workers who earn less than $50,000 a year. And while the Council has allocated $5 million for a training fund for 4,000 workers — less than 10% of the lower-income workforce — much more is needed to ensure that all workers have access to safety training.

Second, how will all these workers be trained? Currently, there are only 22 training providers approved by the city Buildings Department that can train nonunion workers. Federal regulations limit certain class sizes to only 40 students. According to the last census, more the half of the city’s construction workers are not native English speakers, and 20% have less than a high school degree.

For this legislation to successfully train all workers and not result in significant displacement of the workforce or pricegouging, there will need to be a dramatic increase in the number of training providers. Those providers will also need to demonstrate that they can service the many challenges presented by the city’s construction workforce.

Third, what steps are being taken to curb fraud? Under the legislation, every worker will be required to carry a site-safety training card issued by the training provider in order to work. While the Buildings Department may require uniformity in the card’s appearance and information, the agency will not be able to verify the cardholder’s training certification. The bill does not call for any independent third party to verify the training of the cardholder.

This lack of oversight, particularly in the wake of recent reports about fraud and abuse surrounding federal Occupational Safety and Health Administration training cards, could lead to abusive practices by training providers and a proliferation of fraudulent safety cards.

Finally, why aren’t all workers subject to the bill’s safety training requirements? The bill excludes all new building projects four stories and below, even though these projects accounted for 80% of all permits and 35% of all the construction-related fatalities between 2010 and 2015.

During this period, projects five to nine stories, which will need federal training known as OSHA 10 immediately, represented only 13% of the work.

Moreover, the legislation establishes a different set of rules for union workers without assessing whether or not such workers have obtained the specific training the legislation is expected to call for. Six of the last 12 construction workers to die in New York City belonged to a union.

Union officials are quick to argue that 90% of construction-related fatalities were on nonunion projects — but they ignore the fact that nearly 98% of the private-sector construction work done in New York City is nonunion or open shop, according to the permits issued by the Buildings Department. The facts warrant that we ensure all construction workers receive basic safety training.

We share building trade unions’ optimism that this bill could lead to better safety practices among the construction workforce. Unfortunately, it could also divide the workforce into the haves and have-nots — with the have-nots heading to the unemployment line.