AGC NM Raises Concerns Over Proposed Apprenticeship Ordinance
AGC New Mexico, a statewide trade association representing the entire commercial construction industry, recently submitted a letter to the Albuquerque City Council expressing concerns over the proposed "Apprenticeship Empowerment Ordinance" (0-24-39), introduced by Councilors Fiebelkorn and Champine. While AGC commends the intent to increase apprenticeship opportunities on public construction projects, we warn that several aspects of the ordinance could have unintended consequences, potentially disrupting the construction sector's efficiency and accessibility.
Key Concerns Raised by AGC:
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Workforce Shortage: The ordinance could exacerbate an already significant disparity in New Mexico's construction workforce. Data from the Bureau of Labor Statistics (May 2022) and the NM Apprenticeship Assistance Act reveal that there are 42,098 construction workers in the state, but just over 2,500 registered apprentices. The proposed ordinance, which mandates that 15-25% of labor hours on projects be performed by apprentices, would require roughly 10,524 apprentices to meet industry demands. This would result in a deficit of approximately 8,000 apprentices, potentially leading to numerous waiver requests and project disruptions if apprenticeship programs cannot meet these requirements. Additionally, smaller subcontractors operating with limited crews could be adversely affected, straining long-standing working relationships.
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Administrative Burdens: The ordinance introduces new administrative requirements, including monthly payroll reporting and detailed labor hour estimates. These added burdens may deter contractors, particularly larger firms, from bidding on city projects. This reduction in bids could lead to higher costs for public construction projects, ultimately impacting taxpayers.
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Penalties for Non-Compliance: The proposed one-year suspension from public construction projects for non-compliance is seen as excessive by AGC NM. The association points out that there are already remedies in place for honest mistakes and suggests a more balanced approach that allows for corrective actions rather than outright disqualification.
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Exemptions and Clarity: While AGC appreciates the ordinance's provision for exemptions if sufficient apprentices are not available, it emphasizes the need for clear and practical guidelines for obtaining these exemptions to ensure feasibility and fairness.
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Sensitive Pricing Information: The requirement for contractors to provide detailed labor hour estimates raises concerns about exposing sensitive pricing information. AGC argues that this could affect transparency and fairness in the bidding process, potentially putting smaller or less experienced contractors at a disadvantage.
Proposed Alternatives: Instead of imposing rigid requirements, the city should consider setting flexible targets for apprentice utilization and offering incentives such as tax breaks for hiring local apprentices. This approach could encourage contractors to invest in apprenticeships without placing undue strain on existing workforce structures or project timelines.
In Conclusion: While AGC NM acknowledges the ordinance's goals of enhancing apprenticeship opportunities, we urge the City Council to adopt a more nuanced approach that considers the current workforce realities and administrative challenges.
Our letter ends by urging the City Council to explore alternative measures that balance the need for workforce growth with the practicalities of project execution, thanking them for their consideration of this important matter.
DOWNLOAD LETTER HERE