The recent editorial, “Constructing a stronger Hawaii” (Star-Advertiser, Our View, March 3), offered one viewpoint on an important issue — yet there are other factors contributing to the problem that are often ignored. Addressing these issues offers opportunities for Hawaii to develop a more robust, resilient economy.
Hawaii has a shortage of construction workers, experiences significant project delays, and public works costs run well over budget. Two main factors contributing to this situation include unnecessary limitations on creating and approving pre-entry and new apprenticeship programs and the pervasive use of project labor agreements (PLAs).
Associated Builders and Contractors, Hawaii Chapter, has represented nonunion contractors since 1989. These contractors are part of 61% of all Hawaii state-licensed contractors who believe qualified contractors should compete to build long-lasting, quality projects at the best price. We also believe solving the labor shortage involves developing solutions with the support of the greater community, our residents and community groups, and avoiding “silos” managed by special interest groups.
One example of an initiative to address the labor shortage issue is our “Building Hawaii Together” skilled crafts project. Working with community groups such as the Castle Foundation, we go out into rural communities, working with nontraditional partners to train applicants, enabling them to gain accelerated entry into one of five apprenticeship programs. Successful completion of the program can lead to employment opportunities. It’s open to anyone interested in exploring the construction trades, whether in the field or a supportive role; they don’t have to commit to entering a specific field or apprenticeship program to apply.
To address the labor shortage issue, we must create more “place-based” training opportunities that allow entrants to choose between nonunion, union or other trade school programs.
Gov. Josh Green’s recent directive on project labor agreements discriminates against local workers and businesses. Many view it as an attack on open, fair and competitive bidding on public projects. The directive sets the threshold for state projects requiring work under PLAs at $1.5 million, disproportionately affecting local businesses. These businesses are the backbone of Hawaii’s economy, with many being minority and women-owned and historically underrepresented in trade unions. It’s worth noting that the federal order for PLAs is $25 million or more, and only two other states have blanket PLA requirements, with New Jersey’s being the lowest at $5 million.
The directive is irresponsible and harmful, especially given the ongoing efforts to rebuild Lahaina and increase the availability of affordable housing throughout Hawaii.
Many of our neighbors are skilled trade professionals who have chosen to offer their expertise to nonunion contractors. These individuals are now forced to work under the PLA requirements, negatively affecting their income. For example, these nonunion employees would have a portion of their earnings directly contributed to union benefit programs they are not eligible for, nor will their contributions be refunded upon project completion.
We believe it is vital for the community to ask more questions and gain a deeper understanding of how these issues affect the cost of affordable housing and the increasing cost of living in our state.
We need to reduce the procurement and construction obstacles by promoting open competition and rewarding efficiency and innovation to the lowest qualified bidder. This will allow Hawaii to invest and rebuild effectively at this critical time in our state’s history. Instead of selectively awarding pieces of the economic pie to specific groups, we should combine our resources and work toward “Building Hawaii Together.”
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Learn more: For information on skilled crafts programs, workforce enrollment in apprenticeships and more, call 808-845-4887.
Jeffrey Alameida is president/CEO of Associated Builders and Contractors, Hawaii Chapter.
