SMACNA-SOCAL UPDATE NEGOTIATIONS AND NAVIGATING A PANDEMIC SMACNA-SoCal has been hard at work preparing for contract negotiations, which began in early March. We are hopeful our labor partners recognize the current market conditions and that their proposal is reasonable and responsible. Although the United States is working hard toward seeing the other side of COVID-19, contractors are still in the midst of experiencing the effects, especially on productivity. According to a New Horizons Foundation study titled, “Pandemics and Productivity: Quantifying the Impact,” a random sample of over 20,000 labor hours collected from sheet metal, HVAC, and mechanical contractors indicates 8.7% of hours available on projects to do productive work are lost due to mitigation requirements, such as PPE management, cleaning and disinfection, access rules, and extra administration time. An additional overall 9.2% average COVID-19-related productivity impact on the industry results in a total productivity impact of 17.9%. It is essential that our contractor members plan accordingly and take the right precautions considering the uncertainty of the economy as a result of COVID-19. While certain sectors of the market were put on hold, the remaining sectors have seen an increase in competition, and sadly enough, the majority is from non-signatory contractors. According to New Horizons Foundation, contractors should use this information to price an equitable adjustment, properly
By / Hector Vargas, SMACNA-SoCal President
employing both the pandemic change order calculator provided with the study and the study itself as backup verification for the impact. Email info@newhorizonsfoundation.org to receive a copy of the New Horizons study. Companies least affected are those who have established, organized, and trained their teams with new pandemic mitigation processes and procedures. They have monitored and shifted work activities to accommodate required distance between team members. On a more positive note, more than 30 million (9.5%) Americans, including 3.4 million (8.6%) Californians, have been vaccinated against COVID-19, and estimates expect herd immunity by the end of the summer. We are optimistic that our members and our industry can get back to normal by the end of this year. I would like to thank those companies who took the time to respond to our negotiations survey. The information collected will be very helpful during negotiations. ▪
IN THIS ISSUE ...
FEATURES
Winter 2021
4
6
Contractor Profile: GES Sheet Metal Inc.
Women in Construction: Carmen Koo
DEPARTMENTS
2
2 3 4 6 6
SMACNA-SoCal Update Meet the Board SMACNA-Socal Events Local 105 2021 Holiday Calendar SMACNA-SoCal News
SMACNA-SOCAL INDUSTRY REPORTER
14
Official Journal of Record for SMACNA-SOCAL
