California's Construction Employers Association Cautious, Hopeful in Face of State Budget Cuts.

News Editors/Business Editors

CONCORD, Calif.--(BUSINESS WIRE)--Jan. 14, 2004

Recent Agreement between Builders and Carpenters

Spurs Positive Outlook for Skilled Labor

The Construction Employers Association's annual membership meeting this week included warnings about the future of public works projects affected by pending state and local budget cuts and a renewed sense of security based on a new four-year agreement between builders and 32,000 carpenters from Fresno and Monterey counties north to the Oregon state line.

"Our partnership with the carpenters has to remain one of our top priorities in 2004," said Kip Trexel, newly elected President of the Construction Employers Association (CEA). "We need to work together to do a better job of promoting the building industry both to Sacramento, our new governor and the general public."

Concerns about increased workers' compensation and health care costs, as well as the daunting prospect of having a $15 billion deficit reduction bond and a $12 billion school construction bond both on the March 2004 ballot, are among the issues on the minds of contractors and unionized construction labor.

"Labor is committed to working with management in order for both of us to survive these challenging economic times," assured Robert Alvarado, Executive Director of the Northern California Carpenters Regional Council. "We realize that if the builders can't stay competitive and get the projects, then we won't have projects to build. This next year will be a tough one, but there are deals out there to be had and we want to land them together."

Alvarado also vowed to work with the CEA in solving the workers' compensation crisis facing California.

Other new officers of CEA elected Tuesday include: CEA First Vice President Karen Rudolph, CAO of Rudolph and Sletten, Inc., Foster City; CEA Vice President John Bowles, Senior Vice President of Webcor Builders, San Mateo; and CEA Past President/Treasurer John Stripe, Vice President, McClone Construction Company, Shingle Springs. Michael Walton of Employers' Advocate, Inc. continues to serve as the association's secretary.

The Construction Employers Association (CEA) is comprised of approximately 100 contractors -- mostly general contractors -- who perform building construction work in Northern California. CEA's membership base performs over eight billion dollars in public and private construction volume annually in the State of California.

Building Industry Launches Public Campaign

One of the issues discussed last night was the need for the building industry to better promote itself and the positive role it plays in California's economy.

A unique partnership created by the bargaining parties of the Carpenters Master Labor Agreement for Northern California seeks to improve work opportunities for the union members and unionized building contractors performing work in the 46 Northern California counties. Formed in 2001 and supported by a trust through employer and employee contributions, the Building Industry Trust (BIT) has begun a marketing campaign to promote the value and benefits of union construction.

Already the Building Industry Trust has helped some real estate developments win approvals, and it has approved grants to assist women in getting started in the Carpenters' apprenticeship program. Among new initiatives is the development and implementation of a comprehensive marketing and public relations program. This program will counteract "anti-growth" activism by promoting the societal need for "smart growth" to ensure continued employment opportunities and economic vitality. This program is slated to hit the airwaves next month on several Northern California radio stations.

The trustees of the Building Industry Trust have identified the superior training and skill of the union workforce as a differentiating benefit worthy of increased awareness. BIT endorses the quality of workmanship and superior productivity of union workers and the record of on-time and on-budget completion by unionized contractors. The trustees also expect the safety practices and other professionalism of the union building trades to gain increased recognition during the current period of crisis and soaring premiums in workers' compensation and liability insurance.