[November 07, 2007]

Builders to fund Tucson training programs

(Arizona Daily Star, The (Tucson) (KRT) Via Thomson Dialog NewsEdge) Nov. 7--Builders who contract large projects with the city now are required to pay for training in construction trades.

A new ordinance requires that a portion of city construction contracts worth $250,000 or more be paid to one of nine state-approved apprenticeship programs in Pima County.

Apprenticeship organizers hope the payments -- which amount to about one-third of 1 percent of a contract's value -- will give builders an incentive to get involved in apprenticeship training.

"This is the carrot-and-the-stick kind of approach," said Jay Tripp, business representative for Local 469 of the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry.

If builders have to write a check for job training, maybe they'll get more involved, said Tripp, who lobbied for the law.

Tripp said his union local will use its share of the money to expand its free-apprenticeship program. Three of the registered programs in Pima County are operated by unions.

Tripp said most builders don't have other incentives to train apprentices because high competition demands cost controls and training is expensive, but they are in desperate need of skilled workers.

"I think the ordinance is going to be very helpful because we have a huge shortage of trained individuals in the construction industry in every specialized field. We need to get people trained," said Mary Lujan, apprenticeship coordinator at Kazal Fire Protection Inc.

The company has offered an in-house apprenticeship program since 1998 that reimburses students who complete the four-year program.

Some companies don't offer apprenticeship programs because they are expensive, time-consuming and require a lot of paperwork to federal and state oversight agencies, Lujan said.

Now that there is funding available, contractors can band together to start training programs, said Jim Kuliesh, executive director of the Alliance of Construction Trades, a subcontractors group.

While subcontractors will pay some of the new fees, they will likely include them as an overhead cost in their bids to prime contractors. And the new ordinance actually could save builders money in the long run if programs produce more qualified workers, saving the expense of on-the-job training, Kuliesh said.

The ordinance, which passed the council without debate as a consent-agenda item Oct. 16, helps solve a problem for local builders, said City Councilman Steve Leal, chairman of the economic-development subcommittee.

Local companies are having a hard time finding adequately trained workers for projects, so more out-of-town firms are getting city contracts.

"We needed to figure out how to get more really well-trained people -- members of our community -- out there" to help local companies regain a competitive edge, Leal said.

How the new ordinance works

The city awards a $1 million contract to a construction firm. The firm does half of the work and subcontracts the other half to two companies at $250,000 each. The prime contractor pays about one-third of 1 percent (0.35 percent) of its share of the contract, or $1,750, and each subcontractor pays $875, for a total job-training contribution of $3,500.

Projects that receive federal funds and Regional Transportation Authority projects are exempt from the requirement.

Source: Tucson City Council memo

Who benefits

There are nine agencies registered with the Arizona Department of Commerce to provide apprenticeships in Pima County. Only registered programs may benefit from the new city ordinance.

--Arizona Plumbing-Heating-Cooling Contractors Association

--B&R Electric Inc.

--Granite Construction Co.

--Independent Electrical Contractors of Southern Arizona

--Kazal Fire Protection Inc.

--Plumbers & Pipe Fitters Joint Apprenticeship Program

--Southern Arizona Painting & Decorating Contractors

--Tucson Sheet Metal Joint Apprenticeship Program

--Tucson Electrical Joint Apprenticeship Training Program

Source: Arizona Department of Commerce

--Contact reporter Becky Pallack at 573-4224 or at bpallack@azstarnet.com.

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