Pennsylvania

Pennsylvania is plagued by many obstacles when it comes to building public structures. One of the worst culprits is the Pennsylvania Separations Act of 1913.

This archaic act requires separate bids to be awarded for a minimum of four (4) prime contract packages; general trades, electrical, plumbing, and HVAC. Under the Mandate Waiver Program, established by Act 16 of 2000 and administered by the Department of Education, a school entity may apply for a waiver from these provisions to utilize single prime contracting. Doing so allows them to enjoy the same efficiency as a developer building a neighborhood of homes or a local business erecting their new office complex.

Unfortunately, the legislation that created the mandate waiver program is set to expire in June 2010, and school districts, legislators and state policymakers are being told by an ad hoc collection of “concerned” contractors and trades groups that the multiple prime delivery system is the only way to build schools safely, on time and on budget. Of course, this isn’t the case.

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A recent decision to move Pennsylvania inmates to other states has editorial boards calling for Pennsylvania policymakers to address the problem of prison overcrowding. Sentencing mandates and parole policies certainly play a role in causing prisons to be filled beyond capacity, but the General Contractors Association of Pennsylvania (GCAP) believes there is another issue that continues to go unnoticed – the Commonwealth has been unnecessarily hampered from increasing the capacity the Department of Corrections so sorely needs.

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As labor negotiations with the City’s unions continue, Mayor Nutter froze salary increases for union workers and non represented civil service employees.

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On June 19th, the Philadelphia Inquirer reported that several hundred unionized municipal workers crammed into LOVE Park this past thursday to warn Mayor Nutter that they are in no mood to give up anything in their contracts.

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According to the Philadelphia Inquirer in an article dated June 18th, Mayor Nutter planned to send legislation to City Council that would change the city pension plan for new workers.

The proposed plan would combine a traditional pension – at a lower benefit rate than current employees receive – with a 401(k) plan into which workers pay.

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On Friday the Philadelphia Business Journal reported that Pennsylvania’s unemployment rate rose to 7.8 % from 7.5 % in March, according to seasonally adjusted regional and state unemployment rates.

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According to the Philadelphia Inquirer, the Rendell administration and the state’s largest public employee unions reached a tentative agreement on Thursday.  The state will temporarily reduce its contribution to the fund that administers worker health-care benefits by 20 % over the next 15 months, saving the state up to $200 million.

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After months of preparation and an unprecedented amount of public input, Mayor Nutter is now officially delivering his $3.84 billion budget and five-year plan to City Council.

The document appears to be a direct challenge to city labor unions.

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United Steelworkers Union Local 10-901 said that its members overwhelmingly ratified a three-year contract with Sunoco last week.

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SEPTA‘s buses, subways, trolleys and trains are still operating despite  the expiration of the union contract for 4,700 city operators and mechanics. Both sides remain far apart on wages, benefits and subcontracting.

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