Project Stabilization Agreement
Training Class
Los Angeles Unified School District
December 11, 2008
Introductions
Dan Sloan
Los Angeles Unified School District’s
PSA Coordinator
Sections 2 and 3
Relationship to Labor Code
Glossary of Training Terms
Section 4
Scope of the Agreement
▪
The LAUSD PSA applies to all projects funded over the applicable
thresholds by Proposition BB, Measure K and Measure R.
▪
Any projects funded by future bond money.
▪
All project work that meets the above criteria and is not expressly excluded
in the PSA.
▪
All construction work pursuant to prime multi-trade construction contracts
that exceed $175,000.
▪
All prime specialty contracts that exceed $20,000 and all subcontracts
flowing from these prime contracts.
▪
All Job Order Contracts (JOCs) are covered by the PSA regardless of the
dollar amount of the job order.
Section 4
Scope of the Agreement: Exclusions
▪
Work of non-manual employees such as superintendents, supervisors, staff
engineers, quality control, time keepers, mail carriers, clerks, office
workers, safety personnel, emergency medical and first aid technicians, and
management employees.
▪
All employees of the District or the Project Labor Coordinator (Parsons
Constructors Inc.)
Section 5
Letter of Assent
▪
All contractors and subcontractors of any tier that have been awarded PSAcovered work are bound to the PSA and must execute a Letter of Assent.
▪
The Letter of Assent is a one-page document that confirms a contractor’s
acceptance of the LAUSD PSA on a per contract basis.
▪
One Letter of Assent must be executed by a contractor for each PSAcovered LAUSD construction contract where covered work is performed.
(one Letter of Assent per contract).
▪
Does not bind the contractor to anything outside the scope of the PSA.
▪
The Letter of Assent must be received by Parsons Constructors Inc. a
minimum of 48 hours before starting work.
Section 5
Letter of Assent (cont.)
▪
A sample of the Letter of Assent is in the training manual and can also be
viewed at the LAUSD website: www.laschools.org/contractor/psa
▪
How do contractors correctly submit a Letter of Assent?
The example Letter of Assent from the LAUSD website can be copied or
typed onto the contractor’s company letterhead. Make sure all appropriate
information is included in the body of the letter (i.e. company name,
LAUSD construction contract #, and school site(s)).
▪
Prior to starting any Project Work, sign and submit original to:
Project Labor Coordinator
c/o Parsons Constructors Inc.
100 W. Walnut Street
Pasadena, California 91124
Section 5
Letter of Assent (cont.)
Section 5
Schedule A’s
▪
Schedule A’s are the local collective bargaining agreements of the signatory
unions. They are also referred to as Master Labor Agreements.
▪
The rules and policies of the applicable union Schedule A apply to
contractors performing PSA-covered work to the extent that those rules and
policies do not conflict with the PSA.
▪
Where a subject is covered by the provisions of the PSA is also covered by
the Schedule A, the provisions of the PSA shall apply.
▪
Where a subject is covered by the provisions of the Schedule A and not
covered by the PSA, the provisions of the Schedule A shall apply.
Section 5
Schedule A’s
▪
Schedule A’s include a broad range of subjects relating to the PSA.
Examples are:

Union and employee rights.

Procedures for hiring, laying off and terminating employees.

Information about the contribution of benefits and the registration of
employees, which may also be contained in the trust fund documents.

Information about what type of work an individual union performs.
Section 5
Participation/Subscription Agreements
▪
No contractor is or will be required to sign any other agreement with a union as
a condition of performing work within the scope of the PSA, with the exception
of a participation agreement, also referred to as a subscription agreement.
▪
Cannot bind the contractor beyond the terms and conditions of the PSA –
contractor is only bound to the trust fund for the PSA-covered work they are
performing.
▪
Contractors may sign participation agreements with multiple trust funds if they
assign the work to more than one union. (see Work Assignments)
▪
Most trust funds require this document to be signed before they accept
employee benefit contributions.
▪
LAUSD produced a memorandum to all bidders of LAUSD PSA-covered work
ensuring that participation agreements do not commit the covered contractor to
obligations beyond those contained in the provisions of the PSA.
Section 5
Core Workforce and Hiring Procedures

▪
Contractors have the right to determine the competency of all employees, the
number of employees required, the duties of such employees within their craft
jurisdiction, and which employees are to be laid off, consistent with Article 4
Section 4.3.
A core employee is defined as an employee who:

Appears on the contractor’s active payroll for 50 of 100 working days prior
to contract award.

Possesses required licenses.

Performs work safely.

Is a District resident as of October 1, 2003 or for the 100 working days prior
to the contract award date to the prime contractor.
Section 5
Workforce and Hiring Procedures (cont.)
▪
Prime contractors may employ their core workforce without hiring anyone
from the union, as long as those workers qualify as core employees.
▪
Subcontractors and specialty prime contractors must follow an alternating
hiring procedure if they intend to use members of their core workforce.
▪
All members of the contractors’ core workforce MUST qualify as core
employees and are NOT excluded from any PSA requirements.
Section 5
Workforce and Hiring Procedures (cont.)
CONTRACTOR’S
CORE WORKFORCE
1ST employee (core)
3rd employee (core)
5th employee (core)
7th employee (core)
9th employee (core)
▪
UNION
REFERRAL
2nd employee (from union)
4th employee (from union)
6th employee (from union)
8th employee (from union)
10th employee (from union)
When a “prime specialty” contractor or subcontractor employs a maximum
of 5 members of its core workforce the contractor must then hire exclusively
from the appropriate union’s referral system.
Section 5
Workforce and Hiring Procedures (cont.)
▪
What defines a District resident?
A District resident is someone who resides within the District’s designated
zip codes. The zip code list is in Section 10 EXHIBIT C.
▪
Core employees are not required to join any union, however, the contractor
is required to ensure that all employees are registered with the appropriate
union.
▪
The applicable Schedule A’s may require a contractor’s core workforce and
any other persons employed other than through the union hiring hall to
pay monthly working dues or fees that are uniformly required for
membership in the union.
Section 5
Workforce and Hiring Procedures (cont.)
▪
If a union fails to supply a worker within 48 hours, (excluding Saturdays,
Sundays, and holidays), the contractor may hire from other sources and,
upon doing so, must inform and register these employees with the
appropriate union hiring hall.
▪
Contractors have the right to oversee and manage construction operations.
▪
Contractors shall not employ on Project Work, when minors may be present
on or around the site during working hours, a person who would not be
eligible for employment by the District under California Education Code
section 45123.
Section 5
Employee Benefits (Fringe Benefits)
▪
The employee benefit portion of a covered employee’s prevailing wage must be paid into
the appropriate employee benefit trust fund by the contractor – even if your company has
its own benefit plan.
For example: Health and welfare, vacation, apprenticeship,
training funds, pension and annuity etc…
▪
It is the contractor’s responsibility to inform the employees of their trust fund benefits.
The District intends to make this a contract obligation in the future.
▪
Benefit contributions are not to exceed the amounts set forth in the applicable prevailing
wage determinations. The benefit contributions are part of the prevailing wage rate.
▪
Employer fringe benefit contributions to the trust fund accrue to the direct benefit of the
employees, but be aware of vesting periods, benefit due dates and individual union
requirements for benefit coverage.
▪
It is imperative that contractors contribute employee benefits to the trust funds in a
timely manner. Typically, the contributions are due to the trust funds on a monthly basis.
When employee benefit contributions are not made in a timely manner, it can result in
PSA, Trust Fund and/or State Prevailing Wage Law violations and penalties.
Section 5
More about Core Employees
▪
No employees are required to join any union as a condition of being employed
or remaining employed for the completion of Project Work.
▪
All employees must register with the appropriate union hiring hall and ensure
that the trust fund has correct information. This information may include
names, addresses, social security numbers and any other pertinent information
requested by the trust fund. This is very important. The trust fund must be
provided with accurate identity and contact information for all employees to
receive benefits.
▪
All employees are encouraged to contact the union directly with their
information or if they have any questions. The contact information for all
unions signatory to the PSA is included in Section 10 Contact Information.
Section 5
Union Access/Stewards/Foremen
▪
Union representatives have access to PSA-covered jobsites, provided they
do not interfere with the contractors’ work. The PSA Coordinator and
LAUSD should be notified immediately if any disruptions or onsite
conflicts occur.
▪
Union representatives accessing jobsites must comply with posted visitor,
security and safety rules as required by LAUSD.
▪
Unions may dispatch a steward for each shift in accordance with the
appropriate Schedule A’s.
▪
The selection of foremen is the responsibility of the contractor.
Section 5
PSA Pre-Job Conference
▪
The PSA Pre-Job Conference is a meeting for prime contractors awarded
PSA-covered construction contracts.

It is in addition to LAUSD job start or pre-bid meetings. The purpose of
a Pre-Job Conference is to address labor problems prior to work
beginning and convey information about the project to local unions.

The contractor should be prepared to identify their subcontractors,
discuss work assignments and other matters of coordination for the
upcoming project. This is the opportunity to resolve any potential
problem before the start of construction so the project goes smoothly.
Section 5
PSA Pre-Job Conference (cont.)

The prime contractor is required to attend and conduct the PSA Pre-Job
Conference. Subcontractors are welcome to attend.

Prime contractors will use the “Pre-Job Conference Form”, Section 10
Exhibit D, which is also available on the LAUSD website:
www.laschools.org/contractor/psa

The PSA Coordinator will assist the contractors in the proper
completion of the Pre-Job Conference form when requested.
Section 5
Important for Contractors
▪
READ AND UNDERSTAND THE PROJECT STABILIZATION
AGREEMENT AND UTILIZE LAUSD RESOURCES PRIOR TO BIDDING.
▪
A contractor that does not sign a Letter of Assent cannot do Project Work.
▪
Execute a participation/subscription agreement.
▪
Make accurate employee benefit contributions to the appropriate trust fund
on behalf of your employees.
▪
Register your “core employees” with the appropriate hiring hall and follow
proper hiring procedures.
Section 5
Important for Contractors (cont.)
▪
The PSA does not permit lockouts or work disruptions due to labor
problems.
▪
Utilize the “We Build” Program and assist LAUSD with local hiring and
use of apprentices.
▪
All labor compliance and prevailing wage questions should be directed to
the LAUSD Labor Compliance Program.
▪
Involve PSA Coordinator immediately if any PSA problems occur.
15 Minute Break
Linda Thong
Los Angeles Unified School District’s
PSA Coordinator
Section 6
Union Roles and Responsibilities
▪
Unions agree to abide by the terms and conditions of the PSA and will
not engage in strikes, slowdowns or disruptions of Project Work.
▪
No onsite work disruptions are permitted.
▪
Local unions will make their best effort to recruit and refer sufficient
numbers of skilled craft workers to fulfill the labor needs of the contractors
and District.
▪
Work with “We Build” Program to train and dispatch local workers to
LAUSD jobsites, both journeymen and apprentices.
Section 6
Union Roles and Responsibilities (cont.)
▪
Unions shall comply with all applicable federal and state laws.
▪
Unions must adhere to the grievance procedures and dispute resolution
procedures outlined in the PSA. (Will be covered in the next section).
▪
The Council or Union shall refer all complaints regarding any potential
violations of the PSA to the PSA Coordinator.
▪
The Council or Union shall refer all complaints regarding any potential
prevailing wage violations to the District’s Labor Compliance Program.
Section 6
District/PSA Coordinator Roles and Responsibilities
▪
The PSA Coordinator, Parsons Constructors Inc., will actively administer
the PSA. The PSA Coordinator will:

Monitor compliance with the PSA.

Assist the “We Build” Program and the Small Business Program.

Act as mediator or facilitator when requested.

Advise and educate contractors and unions about the PSA when
requested.

Facilitate and monitor PSA dispute resolution procedures between
contractors, unions and the District.
Section 6
District/PSA Coordinator Roles and Responsibilities
▪
The District has the right to award contracts or subcontracts to any contractor
notwithstanding the existence or non-existence of any agreements between such
contractor and any union parties.
▪
The PSA Coordinator will work with contractors who are delinquent in
payments to assure that proper benefit contributions are made, to the extent of
requesting the District or the prime contractor to withhold payments otherwise
due such contractor, until such contributions have been made or otherwise
guaranteed.
▪
The District (or any party to the PSA) may invoke an “Expedited Enforcement
Procedure” to resolve a violation regarding work stoppages (Section 7.1),
lockouts (Section 7.5), work disruptions over jurisdiction (Section 8.3), or any
type of work stoppage (Section 21.4). (PSA Section 7.7 paraphrased)
▪
The PSA Coordinator will process and monitor Letters of Assent.
Section 6
District Rights
▪
Inspect any construction site or facility to ensure that the contractor is following the
applicable safety and work requirements.
▪
Require contractors to establish different work weeks or shift schedules in order to
meet the operational needs of Project Work and accommodate the instructional
schedules of District students.
▪
Terminate, delay or suspend project work in order to accommodate the operations of
the District’s educational facilities and/or to mitigate the effect of project work on the
surrounding community. Note: If it is not possible to provide advance notice of a
work termination or suspension, show-up pay will be required as defined in PSA
Section 6.6.
▪
Approve any work methods, procedures or techniques used by contractors, even if
they are not standard industry practices.
▪
Investigate and process complaints, through the PSA Coordinator, in the manner set
forth in PSA Article 7 Work Stoppages and Lockouts, Article 8 Work Assignments
and Jurisdictional Disputes and Article 10 Settlement of Grievances and Disputes .
Section 7
Grievance Procedures
▪
The grievance procedure in the PSA ensures communication
between labor and management. The procedures provide orderly
expedited steps to solve potential problems.
▪
Failure of the grieving party to follow the established time limits
may cause that party to lose its right to file a grievance.
▪
Notify the PSA Coordinator if the grievance procedure is to be
implemented.
Section 7
Grievance Procedures
▪
Examples of common PSA grievances:

Questions involving the interpretation or application of the PSA.

Alleged violations of the PSA, including but not limited to:

Non-payment or incorrect wages paid to a worker.

Non-payment of employee benefits to an appropriate trust fund.

Failure to follow proper hiring procedures and/or register core
employees with the appropriate union.

Failure to submit the Letter of Assent prior to work beginning.

Failure to sign a trust fund participation or subscription agreement.
Section 7
Grievance Procedure for Contractors and Unions
STEP I

Involved unions or Contractors have 10 working days after the disputing party knew or should
have known of the violation to meet.

If a settlement is not reached within 5 working days, either party may request, in writing, a Step II
meeting.
STEP II

Representatives from the involved local unions, contractors, and the PSA Coordinator shall meet
within 7 working days after the date of the written request for a Step II meeting.
STEP III: Arbitration

If grievances are not resolved at the Step II level, any of the involved parties may request, in
writing to the PSA Coordinator within 7 calendar days, that the grievance be submitted to an
arbitrator.

The PSA Coordinator shall schedule the arbitration and choose an arbitrator from the agreed upon
list in the PSA.
Section 7
Grievance Procedure for Employees
STEP I

Employees have 10 working days from the alleged violation to, through their union steward or
representative, notify the Contractor of their grievance.

The union steward or representative has 10 working days after notifying the Contractor of the
grievance to meet in an attempt to settle the grievance.

If a resolution is not reached within the prescribed time period, the grieving party has 10 working
days to request, in writing, a Step II meeting.
STEP II

Representatives from the involved local unions, contractors, and the PSA Coordinator shall meet
within 7 working days after the date of the written request for a Step II meeting.
STEP III: Arbitration

If grievances are not resolved at the Step II level, any of the involved parties may request, in
writing to the PSA Coordinator within 7 calendar days, that the grievance be submitted to an
arbitrator.

The PSA Coordinator shall schedule the arbitration and choose an arbitrator from the agreed upon
list in the PSA.
Section 7
Jurisdictional Disputes/Work Assignments
▪
A work assignment is the identification of the craft and union responsible
for performing a task.
▪
A jurisdictional dispute is when one or more unions disagree with a
contractor’s work assignment.
▪
The PSA utilizes a jurisdictional dispute resolution procedure known as
“The Plan”, which details how jurisdictional disputes are to be settled.
▪
The contractor determines work assignments and which craft and union to
choose. These assignments must be made in accordance with the
procedures described in “The Plan”.
Section 7
Jurisdictional Disputes/Work Assignments
▪
The PSA Coordinator will work with contractors and unions to prevent the
occurrence of jurisdictional disputes and will assist in resolving any that
may occur, consistent with PSA Article 8.
▪
Pre-Job Conferences give the contractor the opportunity to assign work and
resolve jurisdictional disputes prior to work beginning.
▪
There will be no work stoppages or slowdowns over jurisdictional disputes.
▪
The PSA Coordinator will never make jurisdictional assignments.
Section 9
Small Business Enterprise Program
Section 9
“We Build” Program
Conclusion
Thank You!!!
Dan Sloan
LAUSD PSA Coordinator
Parsons Constructors Inc.
dan.sloan@parsons.com
(626)440-4120
Linda Thong
linda.thong@parsons.com
(626)440-3323
www.laschools.org/contractor/psa