ABC-SEMI Southeast Michigan Contractors Issue 4, 2021

2 Associated Builders and Contractors, Inc. Dear ABC Friends, We were expecting that as Q4 of 2021 approached, we would be done with COVID-19 talk. Despite the majority of adults being vaccinated, viral mutations are causing new spikes even in many vaccinated adults. That fact notwithstanding, many project owners are requiring construction companies to force all construction workers to social distance and wear masks on the construction site. Now, some owners are even demanding that all jobsite workers be vaccinated. Therein lies a conundrum. Many construction company owners have personally been vaccinated. But, they are opposed to vaccine mandates for their employees. They are also opposed to asking employees vacci- nation status because they believe it violates their health privacy. So, construction company owners are now faced with the prospect of either going against their personal conscience or refusing to bid on certain projects. There’s irony baked into this dilemma. At a time when construction companies have an opportunity to fully mitigate their pandemic financial losses, and as the well-documented material and skilled labor shortages were expected to subside, company owners are faced with the prospect of refusing profitable work or violate closely-held ethical principles. Expect significant price fluctuations and work flow disparities over the next year, as the impacts of COVID-19 recovery aren’t going to disappear any time soon. Finally, you may have heard that the Biden administration recently provided an $83 billion bailout for multi-employer union pension funds as part of the “American Rescue Plan.” One might rightly question whether taxpayers should be guaranteeing a benefit that only a small percentage of all U.S. private industry workers are eligible for—an employer-paid pension. Ironically, there may be silver lining in this union pension bailout. Companies who have long desired to leave their union may find that their pension withdrawal liability has been dramati- cally reduced, providing them an unexpected and unintended gift from President Biden. Sincerely, Keith Ledbetter | President and CEO ABC Southeastern Michigan Chapter KEITH LEDBETTER ABC SEMI President President’s Letter