New local hiring legislation could significantly increase demand for ‘City Build’ trained labor

By Isaiah Kramer
The Guardsman

In order to combat joblessness and spur the city’s economy, a San Francisco supervisor has introduced legislation that would mandate contractors to hire at least 50 percent local workers on publicly funded construction jobs.

“San Francisco’s unemployment rate is holding steady at 10 percent,” District 11 Supervisor John Avalos said. “We are in the worst economic crisis since the depression. There are certain neighborhoods where it is much higher.”

The legislation was spawned as a result of the $25 million that the city will spend on construction over the next five years, and concerns from the city’s unemployed laborers about the current hiring policy.

The existing policy requests “good faith efforts” on behalf of contractors to hire 50 percent local, but studies have shown that collectively there is an average of only 20 percent hired for publicly funded construction jobs.

“I’ve experienced 40 years of good faith efforts. We’ve always had faith, but nothing good has come out of it,” Hunters Point resident Espanola Jackson said at a public hearing on the proposed legislation.

Under the current policy, there are no penalties for falling short of the 50 percent expectation. The proposed mandate would reward contractors who meet the goal and penalize contractors who do not.

“The fact is, 80 percent of the work is going to people outside San Francisco,” labor advocate Masio Lyons said. “That is not fair. We’re looking for an equal distribution. That would make all the difference for our construction work force.”

The mandate would phase in over a three-year period beginning at the 20 percent mark, where it stands now, and instituting a requirement of 10 percent more local hiring per year, according to Avalos.

By staggering the number of local hires that are required, the legislation hopes to realize its goal of 50 percent local hiring without harming the labor market.

“You can’t just flood the market with unskilled labor,” local contractor Kent Lim said.

A comprehensive study of the local construction work force’s composition indicated that it is indeed possible to reach the 50 percent mark.

“We’ve never done an in-depth look at availability of construction workers in San Francisco,” work force development consultant Chris Iglesias said. “Now we have a very good snapshot of the local construction work force.”

However, the legislation’s critics are skeptical of its implementation and lack of emphasis on hiring local contractors.

There are various loopholes within the legislation. For instance, out-of-state workers are not considered when factoring in the 50 percent local hires, which Avalos explained, is necessary in order for the law to be constitutional. The constitution prohibits laws that block interstate commerce, including jobs.

Iglesias mentioned that part of the plan to prepare for an increase in the number of local workers is to ensure there are adequate training and apprenticeship programs.

Another study of the worker training programs in San Francisco yielded positive results.

“It seems that City Build, the city’s construction work force program, does provide the requisite construction work force infrastructure to support expanded local hiring,” labor market analyst Laura Lester said.

Partnered with City College, City Build offers classes at the Evans campus. If the legislation passes, there will be a demand for skilled construction workers who live in San Francisco and subsequently, an increase in students who are working toward apprenticeship in a trade.

The legislation will go before the Land Use Committee on Nov. 22.