Showing posts with label Local Hire. Show all posts
Showing posts with label Local Hire. Show all posts

Wednesday, January 13, 2016

Bill filed to nullify the Metro Nashville local hire amendment

From Senator Jack Johnson: Preview of the 2016 Legislative Session 

Local Hiring– A bill has been filed to stop local governments from enacting any charter provision, ordinance, resolution, referendum or regulation which requires a company bidding on a public construction project to employ individuals that reside within their jurisdiction. The legislation comes after the adoption of a charter amendment pushed by labor unions in Nashville that requires at least 40 percent of work hours of local companies bidding on contracts come from Davidson County workers on Metro construction projects that cost $100,000 or more. The amendment does not affect companies outside of Tennessee, which can hire as many out-of-county or out-of-state workers as they choose. The practical effect of the bill would be to nullify the Metro Nashville amendment and prevent other local governments from taking similar action in the future.

My comment: Thank God for a common sense State legislature that is stopping Nashville form becoming the San Francisco of the South. I expect this bill to pass and hopefully if Nashville should pass a proposed inclusionary zoning ordinance that the State legislature will also nullify it. 

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Saturday, October 03, 2015

The Tennessean: Nashville local hire amendment impractical (and illegal)

The Tennessean today featured an "Our View" editorial written by opinion editor David Pazas addressing the opinion from the State Attorney General in which he said the "local hire" charter amendment approved by Nashville voters on August 6th is invalid because it conflicts with State law.  The local hire amendment mandates that 40 percent of the work on Metro-funded construction projects exceeding $100,000 must be performed by Davidson County residents. Here is a link and some excerpts from that editorial:

 ....Days before the AG’s opinion, Mayor Megan Barry seemed to have recognized the difficulty of executing the measure because she ordered a delay to implementing it. ....
While the unemployment rate is 5.1 percent overall in Davidson County, that rate among African Americans is 9.9 percent.
Nearly 20 percent of Nashville’s 650,000-plus residents live in poverty. Of those, 16,000 are men between the ages of 18 and 44 — prime working years.
While a good job is a remedy to lifting those men out of poverty, it cannot be done unless they are able to do the job.
One positive consequence of Slatery’s opinion is that it avoided Metro the embarrassment and uncertainty of having the local-hire amendment nullified in the Tennessee General Assembly next year.
I am in agreement with this editorial. Hopefully this ends the local hire issue. I am unsure where that leaves us legally. Could someone still bring suit to force Metro to follow the charter or does an opinion from the AG end it?  Must a court rule it is illegal or is the attorney General's opinion sufficient?  Even if "local hire"  did not violate the specific law cited by the State Attorney General, it probably violated the Tennessee and U. S. Constitution.  I hope this ends it and we are still not under a cloud of uncertainty due to this charter amendment.

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Friday, October 02, 2015

AG: "Local Hire" amendment invalid, violates State law

by Joey Garrison, The Tennessean, October 1, 2015 - Tennessee's attorney general says a charter amendment that Nashville voters approved in August to create a new local-hire rule for Metro-funded construction projects violates state law and is therefore invalid. ....perhaps delivering a major blow to Nashville Mayor Megan Barry's ability to enforce a local policy that had already faced possible nullification via state legislation backed by state Republicans. ..... Metro's local-hire amendment violates Tennessee's Contractors Licensing Act of 1994 .... prohibits counties and municipalities from imposing additional requirements on top of those imposed in the act and from discriminating against contractors licensed by the state "on the basis of the licensee's nonresidency within the county or the municipality." (link)

Follow this link to read the full opinion.

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Thursday, October 01, 2015

Megan Barry sees the light and flip flops on "Local Hire."

Today Mayor Megan Barry committed the first flip flop of her term as mayor.  I don't know if she saw the light after being elected or was just pandering while a candidate and knew better all along, but candidate Barry supported the local hire amendment to the Metro Charter and Mayor Barry says we must wait before implementing it and that it may cause some problems. In a letter to the Metro Council she said that after talks with union leaders and the business community and legal counsel that she reached a conclusion that the new procedure might hinder Metro's ability to move forward with construction projects and thus be "counterproductive towards the intended goals of putting more Davidson County residents to work." (link)

Really?  It was convenient for her that she waited until after the election to reach that conclusion.  The Chamber of Commerce opposed the amendment and could have told her that.  The Tennessean editorialized against it. Many people look at Barry's election victory as third term for Karl Dean and a continuation of his policies, but  Karl Dean opposed the local hire amendment. The legal and the economic problems with Amendment 3 were well known before the election.

Barry is quoted in the Tennessean as saying: "Like the majority of voters in the Aug. 6 election, I supported Amendment 3 because I believe strongly in workforce development and expanding access to good-paying jobs. My commitment to these principles has not (wavered) and I believe that we can find a path forward that satisfies our desire to promote economic prosperity for working families while also being fiscally responsible and continuing to move forward with important Metro projects. This delay in implementation will give us all a chance to research best practices in other cities and for my office to meet with members of the Metro Council, the business community, labor leaders and other stakeholders to develop guidelines that will meet our goals of training and hiring more Davidson County workers for jobs funded with their tax dollars."

Amendment 3 was not simply setting goals of expanding access to good paying jobs for local people or stating principles or expressing  desires; it was very specific. Here is the wording as it appeared on the August 6th ballot:

That is pretty specific.  Informed people knew this was a bad charter amendment when it was proposed. It is not a mere suggestion; it is the law.  Barry may get by with a delay of implementing the amendment because the amendment does not state the date it is to takeeffect, but a delay can not change the law.  It really does not matter what "best practices" show us. Barry should have looked at best practices before advocating for passage. A leader of the city should have done her due diligence before the election.

So what might happen if the law is ignored and some weak provision is put into place stating that companies must make a reasonable effort to hire local?  Government can get by without following the law for a long time until someone challenges governments failure to follow the law. Simply ignoring the law, I assume, would put a cloud over every contract bid and the uncertainty itself would drive up construction cost and then eventually someone would sue metro for not following the law and they would likely win.

Actually, there is no way to honestly follow this law.  There are not qualified construction people residing in Nashville to do the work we need done now, even without the local hire amendment. This is from a recent Tennessean article: 
Construction companies face worker shortage

Nashville’s recent development boom has sparked worries among construction industry leaders about a looming worker shortage.

With teens being pushed toward college and older workers entering retirement, many construction companies, such as Nashville’s Shaub Construction Co., are finding that there are not enough skilled workers to fill the positions available. (link)
Candidate Barry should have been aware of this. The only way a company can meet the requirements of the new charter provision is to simply hire a bunch of bodies to sit around and watch other people work.  There may be a lot of unemployed people in Nashville, but that does not mean they have skills or would be an asset to an employer. To hire enough unneeded people to fill the 40% local quota so you can hire the people you really need will drastically increase the cost of all Metro projects.

In addition to the law being costly, it is probably illegal.  It probably violates the privileges and immuniites provision of the constitution found in Amendment XIV, Section 1 of the Constitution which says, "No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States."  While this would be Metro doing it, not the State, Metro can not do anything that the State cannot do.  When the Constitution says "no sate" that applies to cities which get there authority from the State. So, while the law would allow Metro to discriminate against someone someone from Mt. Juliet or Watertown or Fairview without violating the U. S. Constitution, we could not discriminate against someone from Ohio or Michigan or Indiana. Also, even if it does not violate the U. S. Constitution, it very well may violate the Tennessee constitution and prohibit us from discriminating against that worker who lives in Mt. Juliet, Watertown or Fairview. (For more on the legal issues involved, follow this link.)

So, either we ignore the recently passed charter amendment and live with the uncertainty that we may be sued and have awarded projects stopped, or we follow the law and see all Metro projects cost considerable more than they should and live with the threat of a lawsuit challenging the law as a violation of the U.S. and Tennessee constitutions.  The other alternative is for the State to save us from out stupidity and nullify the law.  That is what I am hoping happens.  I bet secretly Megan Barry is also.

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Wednesday, August 19, 2015

Gov. Bill Haslam: 'Local Hire' Mandate 'Problematic for Nashville'

Tennessee Gov. Bill Haslam thinks it was a mistake for Nashville-Davidson County voters to approve a "local hire" amendment requiring that 40 percent of the labor on local projects be performed by locally residing workers. However, the governor said during a press conference on Aug. 13 that he's unsure what the state will do in response.

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Monday, August 17, 2015

Senator Jack Johnson: Nashville's 'Local Hire' Amendment 'Bad, Bad Economic Policy'


Senator Jack Johnson, who is chairman of the Tennessee state Senate Commerce and Labor Committee, tells TNReport that he is unequivocally averse to a new "local hire" charter amendment passed by Nashville voters on Aug. 6. Thankfully, we may be saved from becoming the San Francisco of the South by the State legislature. Thank God for men like Senator Johnson.

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Wednesday, July 01, 2015

Why the "local hire" amendment is a bad idea.

When presented with the opportunity to sign the petition to put the 'local hire' amendment on the August ballot, I declined.  I thought it was a bad idea at the time and I now think it is even a worst idea. It sounds good: What it would do is require than any Metro project valued at over $100,000 would have to have a work force made up of 40% local people.

I logically knew and intuitively knew this was a bad idea and that protectionism and "buy Local" programs seldom deliver the results they promise. Now, Ralph Schultz, President of the Chamber of Commerce has giving us specific reasons why it is a bad idea.

Writing in The Tennessean yesterday, Schultz pointed out that there is a labor shortage in Nashville. More than half of all current Nashville workers reside outside of Davidson County. A chamber report called "vital signs" published in 2014 projects a shortage of nearly 18,000 workers in Nashville by next year and a 35,000 worker shortage by 2021 unless steps are taken to change that.

While Schultz does not say it; I will.  It is possible to have a labor shortage and unemployed people at the same time. There  are people who dropped out of high school, have criminal records, have no skills, and do not have an aptitude for work.  There are people that are not qualified to do the jobs that need doing. Some people are not only not worth the minimum wage, some people have a negative work value- you would rather them not work for you even it they worked for free.

One thing that makes the "local hire" bill even worst than I originally thought it to be is that it cannot apply to out-of-state contractors. That is stated in Schultz's article but not explained. The reason "local hire" laws cannot apply to out of state contractors is due to the Privileges and Immunities Clause in Article IV of the US Constitution. This clause says, "The citizens of each state shall be entitled to all privileges and immunities of citizens in the several states." That means we cannot say that a job must be filed by someone from Tennessee. The effect of this is that if the amendment passes we could refuse to hire people from Mt. Juliet or Watertown or Fairview or Springhill but not people from New Jersey or Michigan.

Schultz also points out that if the charter amendment passes, it will require painstaking calculations on the part of contractors and construction delays and will lead to drastic increases in the cost of projects. In another article on the topic, someone pointed out that this amendment could force companies to hire unqualified people to work on their jobs which could present a safety issue.  Someone I spoke to about this said that in order to meet the 40% requirement that companies would simply hire "bodies" to fill the quota, thus drastically driving up the labor cost of tax-payer funded construction projects.

Amendment 3, the "local hire" amendment, needs to be defeated.

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