Flashings

OSHA's maximum penalties to increase Aug. 1, 2016

Higher maximum penalties for Occupational Safety and Health Administration (OSHA) violations will take effect by Aug. 1, 2016.

A provision increasing OSHA fines was included in the budget agreement (H.R. 1314) passed by Congress at the end of October. President Obama signed the bill into law Nov. 2, enabling OSHA to increase its maximum penalties for the first time since 1990.

David Michaels, assistant secretary of labor for OSHA, has repeatedly emphasized the importance of increasing the maximum fines since taking his post in 2010. While addressing a House of Representatives subcommittee in October, Michaels said: "The most serious obstacle to effective OSHA enforcement of the law is the very low level of civil penalties allowed under our law, as well as our weak criminal sanctions.

"For example, the Environmental Protection Agency can impose a penalty of $270,000 for violations of the Clean Air Act and a penalty of $1 million for attempting to tamper with a public water system. Yet the maximum civil penalty OSHA may impose when a hardworking man or woman is killed on the job—even when the death is caused by a willful violation of an OSHA requirement—is $70,000."

The new law enables OSHA to make a one-time "catch-up" penalty fine increase to compensate for more than two decades of no increases. The increase cannot exceed the inflation rate from fiscal year 1990 through fiscal year 2015 as measured by the Consumer Price Index. After the one-time catch-up increase is implemented, OSHA will annually increase its maximum penalties by the amount of the inflation rate for the previous fiscal year. The additional penalty fines will not directly benefit OSHA's budget because the penalty dollars pay for all government operations, not just OSHA's operations.

OSHA officials now must decide whether to increase the maximum fines by the full amount permitted by Congress. According to former OSHA Chief of Staff Deborah Berkowitz, the maximum fines increase doesn't mean the agency will select the maximum option each time a company is cited.

Before OSHA can increase its maximum fines, the agency must work with the White House's Office of Management and Budget (OMB) to follow steps stipulated by the law.

OMB must first issue guidance by Jan. 31, 2016, regarding the process of making changes to the maximum fines. OSHA will be required to publish an interim final rule by July 1, 2016, allowing the adjustment to take effect by Aug. 1. OSHA also can choose a lower catch-up increase that is less than the inflation rate from fiscal year 1990 through fiscal year 2015 if the agency determines increasing the penalty by the full amount will have a "negative economic impact" or if "the social costs" of using the largest penalty increase outweigh the benefits. If OSHA opts to use a lower increase, OMB must agree with OSHA's decision for the lower increase to be approved.

Alliance sponsors student competition

The Roofing Industry Alliance for Progress is sponsoring its second student competition that will culminate with presentations during the 2016 International Roofing Expo^® (IRE).

The Alliance's 2016 Construction Management Student Competition is a hallmark competition that promotes careers in roofing industry management. In addition to providing a significant learning opportunity, the competition fosters an environment that is meant to bring out the best in each team, encourage dialogue among the students and foster team spirit.

The competition is designed to challenge students' roofing knowledge, construction management skills, time management, and organizational and presentation skills. This year, the Alliance has invited 11 schools to participate. Each team member must be an undergraduate enrolled in the college or university he or she represents at the time of the competition.

The teams will bid on installing a roof system on the Orange County Convention Center in Orlando, Fla., the site of the 2016 IRE. They must research the project, review plan specifications, and assemble a full estimate and proposal to submit a qualified bid package. Teams must submit a written proposal; project bid; project schedule; project planning, equipment and methods; and materials that will be used. A roofing contracting company will be assigned to each team to serve as an industry mentor. The team also may consult with other roofing industry professionals and experts.

A panel of judges composed of roofing industry professionals representing the contractor and supplier communities will review all written materials and select four finalist teams to give their oral presentations in Orlando.

The presentations will take place Thursday, Feb. 18, 2016, from 7:45 to 11:15 a.m. at NRCA's 129th Annual Convention and 2016 IRE at the Orange County Convention Center. Each team will make a maximum 15-minute presentation summarizing its proposal and management concepts. The judges will conduct a 10-minute question-and-answer period following each proposal presentation.

The successful team solution will be based on the team's understanding of the project; realistic construction schedule and man-loading; financial proposal; written proposal; and presentation. The winning team will receive a team trophy and individual awards; a $5,000 L.B. Conway scholarship for their school; recognition in press releases sent to local and national media and roofing industry trade press; and acknowledgement in Professional Roofing magazine and on the Alliance's website.

Following the oral presentations, the four teams will have the unique opportunity to visit the rooftop of the Orange County Convention Center with the roofing contractor and general contractor involved with the project. For more information, visit www.roofingindustryalliance.net/Student-Competition.

Report reveals worker injuries remain prevalent

Private-industry employers reported nearly 3 million nonfatal workplace injuries and illnesses in 2014, according to the Bureau of Labor Statistics' Survey of Occupational Injuries and Illnesses. The report also reveals the total recordable cases incidence rate decreased 0.1 cases per 100 full-time workers, but the rates for cases involving days away from work and the rates for cases of job transfer or restriction were unchanged.

"[The] Bureau of Labor Statistics report shows too many workers are still being injured or sickened on the job," says David Michaels, assistant secretary of labor for the Occupational Safety and Health Administration (OSHA). "Every year, millions of workers are injured at work, and that is simply unacceptable. We must redouble our efforts to make sure employers provide workers with the protections and training they deserve.

"Everyone benefits when there are fewer injuries and illnesses," he continues. "OSHA is committed to continue increased efforts to ensure every employer is fulfilling its responsibility to protect the safety and health of its workers."

Construction confidence rises during first half of 2015

Associated Builders and Contractors' (ABC's) Construction Confidence Index indicates contractor confidence will continue to increase, according to www.abc.org.

The diffusion index measures forward-looking construction industry expectations in sales, profit margins and staffing levels; readings above 50 indicate growth. The results reflect construction contractors' perceptions of the industry during a six-month period.

During the first half of the year, sales expectations rose from 67.3 to 69.4; profit margin expectations increased from 61 to 62.9; and staffing level intentions decreased from 66.3 to 66.2.

Most respondents expect sales will continue to expand and profit margins will continue to widen. ABC's weighted diffusion index for profit margins now is approaching the highest reading in the index's three-year history. Nearly 75 percent of respondents expect an increase in sales. The pace of hiring is not expected to increase during the next six months as a result of a lack of available skilled labor, an ongoing issue that continues to plague the industry.

"Although the U.S. economy refuses to boom, the pace of growth has been enough to allow the average contractor to secure more work at higher margins," says Anirban Basu, ABC's chief economist. "Interestingly, the pace of hiring is not set to accelerate, which may be a partial reflection of the lack of appropriately skilled construction workers available for hire. The expectation is for construction compensation costs to continue to rise given expanding skills shortages but apparently not by enough to preclude steadily expanding margins.

"While the decline in commodity prices has helped to slow construction in parts of the country, including in portions of Texas, Oklahoma and North Dakota, low fuel prices have induced faster investment elsewhere, including in the U.S. auto industry," Basu continues. "The result appears to be that the average construction decision-maker is more confident than six months ago when commodity prices were higher. A stronger U.S. dollar has served to suppress U.S. export growth, however, and business investment growth remains mediocre by historic standards. The implication is the U.S. economy is not poised to break out anytime soon, and stakeholders can continue to expect frustratingly unexceptional growth close to 2 to 2.5 percent."