In late August, President Trump’s Department of Transportation canceled $679 million in federal funding for 12 offshore wind projects across the country. That included fully taking back hundreds of millions of dollars in grant money for infrastructure work at Humboldt Bay Harbor District in Northern California — immediately throwing Local 104 members’ work opportunities into question, in the short and long term.

“As long as this administration makes decisions that directly impact our members, I’m going to keep calling balls and strikes. This decision is clearly a ball,” said SMART General President Michael Coleman. “For our members in Northern California, this was a once-in-a-lifetime project — one that was going to create dozens of jobs in the short term, and keep employing Local 104 sheet metal workers for the long haul. Taking back that grant money, which was already awarded, just makes zero sense.”

The DOT had originally awarded a $426 million infrastructure grant to the Humboldt Bay Harbor District, allowing the Harbor District and the Building and Construction Trades Council of Humboldt and Del Norte Counties — which includes Local 104 — to agree to the very first project labor agreement in the region. Around 90% of that grant was earmarked for the development of a heavy-lift marine terminal to support offshore wind; money that has since been pulled back, putting construction in jeopardy.

When SMART members hear “offshore wind,” they may not immediately think “sheet metal jobs.” But the fact is, the Humboldt offshore wind development would have turned a brownfield site into a full-blown, brand-new facility, expected to include multiple new buildings. That means sheet metal work: duct fabrication, facility construction and potentially up to dozens of Local 104 members on-site at various project phases. And that was just the immediate opportunity. The offshore wind company, RWE, had signed a memorandum of understanding that committed to using union labor for long-term operations and maintenance of the facility, guaranteeing work for years to come. 

“In short, this project represented a generational opportunity for our members in an area that doesn’t see many large infrastructure projects,” said Local 104 State Legislative Director Vince Sugrue. “The cuts are a devastating blow to the immediate construction jobs that would have put our members to work, but also to the long-term union maintenance and operations jobs that were guaranteed under the MOU.”

The Humboldt Bay Harbor District is just one example of many jeopardized jobs across the country. In Massachusetts, the DOT canceled $34 million in federal funding for the Salem Wind Port Project, where work had already started. The project was expected to create 800 construction jobs over the next couple years.

“Our government leaders have the power to do things that directly benefit our members. Federal funding for these port projects is a great example of that,” General President Coleman said. “Taking that funding away, and threatening our members’ jobs by doing so, is just not the right thing to do for members, our families or our country.”

Additional projects impacted:

Withdrawn funding:

  • Sparrows Point Steel Marshalling Port Project (Maryland)
  • Bridgeport Port Authority Operations and Maintenance Wind Port Project (Connecticut)
  • Wind Port at Paulsboro (New Jersey)
  • Arthur Kill Terminal (Staten Island, New York)
  • Gateway Upgrades for Access, Resiliency & Development at the Port of Davisville Project (Rhode Island)
  • Norfolk Offshore Wind Logistics Port (Virginia)

Terminated funding:

  • Redwood Marine Terminal Project Planning (Northern California)
  • Lake Erie Renewable Energy Resilience Project (Michigan)
  • Radio Island Rail Improvements in Support of Offshore Wind (Maryland)
  • PMT Offshore Wind Development (Virginia)

Davis-Bacon prevailing wage rates set minimum pay and benefit standards on federal construction projects, based on surveys of wage rates in the area. This ensures that contractors bidding on those jobs can’t undercut area standards — putting skilled, well-trained construction workers (including SMART members) on projects. In many places, prevailing wage laws provide union-won pay and training standards to local workers, benefiting local communities and working families.

Prevailing wage rates also help SMART members at the bargaining table. When contractors across a local area are required to provide strong, family-sustaining pay and benefits, local unions can negotiate for the contracts members deserve without worrying about bad-faith companies pricing out high-road employers and lowering area working standards.

That’s why SMART fights for strong prevailing wage laws at the local level, and to strengthen the Davis-Bacon and Related Acts in the federal government. Because unfortunately, SMART members are just as impacted when prevailing wage rates are lowered.

A recent example from Florida: For decades, the United States Department of Labor has used one Davis-Bacon wage determination for construction work at the Cape Canaveral Air Force Station, Patrick Air Force Base, Kennedy Space Center and Malabar Radar Site — known altogether as Cape Canaveral — and another for Brevard County, Florida. The Cape Canaveral wage determination reflected union-won rates for all classifications, ensuring contractors bidding on work were paying strong, union-negotiated packages (and helping signatory contractors and members win more work). The Brevard County wage determination does not reflect those rates. Most of the rates on the Brevard County wage determination are low rates that haven’t increased substantially for more than 10 years.  

Earlier this summer, the new administration’s Department of Labor announced that the Cape Canaveral prevailing wage rate would be replaced, effective July 4, 2025, by the lower Brevard County rate.

“Unfortunately, this is a decision that will affect SMART members in the near future and for many years ahead,” said SMART General President Michael Coleman. “The high standards contractors previously met at Cape Canaveral have now been lowered, opening the door for companies to bid on work without paying workers what they deserve. That’s the immediate impact. And in future negotiations, local unions in the area won’t have the foundation of strong prevailing wages to stand on when bargaining for the pay and benefits that our members earn.”

“SMART members and their fellow construction workers at Cape Canaveral are doing vital work to support our nation,” he added. “Undermining that just doesn’t make sense.” 

Canada sets the standard

The disappointing actions by the United States Department of Labor and Congress contrast sharply with the current policy that SMART members enjoy in Canada.

In the U.S., the spending bill President Trump signed into law gets rid of a variety of work-creating tax credits. In Canada, similar tax incentives known as Investment Tax Credits offer companies a 30–40% credit for investments in clean technology, hydrogen production and carbon capture. These green economy credits are designed to drive investment toward sustainable energy projects. What sets them apart, however, is their strong labour standards. To qualify, employers must ensure that at least 10% of total work hours are performed by registered apprentices and that all construction workers are paid the prevailing wage — which includes health and welfare benefits as well as pension contributions.

In other words, this represents the strongest definition of prevailing wage ever implemented in Canadian labour history, utilizing the union definition of prevailing wage.

“It’s simple: Thanks to these incredibly strong standards, SMART Canada members will be put to work and Canadian families will benefit. No question,” General President Coleman said. “We applaud the Government of Canada for putting working families first, and we will continue to work with state and federal governments in the U.S. to win policies that benefit our members and their families.”

On July 10, in a huge win for SMART members, the Department of Labor issued a memo stating that workers who perform testing, adjusting and balancing (TAB) work on HVAC systems that are involved in the construction, alteration and/or repair work on Davis-Bacon Act projects are entitled to prevailing wage coverage. This ensures ALL construction workers, including TAB technicians, get the pay they deserve, reversing decades of DOL interpretations that excluded TAB technicians from coverage.

“For far too long, the workers who perform testing, adjusting and balancing — crucial work that has only risen in profile since the COVID-19 pandemic — have been prevented from earning the prevailing wages they earned on projects covered by the Davis-Bacon Act,” said SMART General President Michael Coleman. “That ends now. This extremely important memo demonstrates how President Biden and his Department of Labor are working directly with SMART to make sure construction workers are paid in a way that corresponds to their essential labor.”

The July 10 All-Agency Memorandum (AAM) noted that workers performing TAB duties generally are considered “laborers or mechanics” within the meaning of the Davis-Bacon and Related Acts (DBRA) because TAB work generally involves duties that are primarily “manual or physical” in nature. The DOL notes, in the AAM, that TAB work has “traditionally been performed” by workers in the “sheet metal” trade. 

Some highlights of the AAM:

Coverage of all TAB work on a DBRA site prior to completion

Where manual or physical activities such as TAB HVAC work are performed at the DBRA-covered site during the construction or renovation of a building or work — and where they precede the acceptance of the completed building or work — those activities are subject to Davis-Bacon coverage.

Coverage of all TAB work that is “directly related and integral” to “contemplated” construction

Davis-Bacon labor standards may also be applicable where a contract calling for testing HVAC system functionality is a necessary but preliminary component of a contemplated federal or federally assisted repair or rehabilitation project — even when the testing work is in a separate contract, as a project consists of all construction necessary to complete the building or work, regardless of the number of contracts involved (so long as all contracts awarded are closely related in purpose, time and place). Where DBRA-covered HVAC system construction, alteration and/or repair work is already contemplated, contracts for testing work to identify HVAC repairs, renovations or replacements that may be needed for such projects will generally be considered directly related and integral to the project, and thus subject to the Davis-Bacon labor standards.

Coverage of all TAB work on “operations and maintenance” contracts when the task order or purchase order is “closely related and integral” to construction, alteration or repair work

To the extent that a task order or purchase under an “operation and maintenance” contract is for construction, alteration or repair of a building or work, including an HVAC system — or involves TAB work that is closely related and integral to construction, alteration or repair work that is already contemplated — Davis-Bacon labor standards would typically apply to the order. Examples of operations and maintenance contracts include contracts at military bases, Department of Energy sites and other large federal facilities.

Finally, the AAM clarifies the circumstances under which TAB work is not covered under the DBRA, such as when: 1) it is performed under federal contracts for “routine, scheduled maintenance or servicing of HVAC systems;” 2)  it is “uncertain” whether any “future” construction, alterations or repairs will take place at the location; or 3) a contract is “solely for inspection (i.e., testing) of HVAC installation or rehabilitation work.”

On August 8, United States Vice President Kamala Harris and Acting Secretary of the Department of Labor (DOL) Julie Su announced the publication of a rule that updates the Davis-Bacon and Related Acts, strengthening prevailing wage regulations and raising pay standards for SMART members and building trades workers across America. Among other provisions, the updated regulations would restore the DOL’s definition of prevailing wage – making it equivalent to the wage paid to at least 30% of workers in local communities (rather than the weakened 50%) – strengthen enforcement and modernize DOL’s definition of “site of the work” to account for current industry practices. It is expected to raise wage standards for more than one million construction workers.

In response, SMART General President Michael Coleman released the following statement:

“SMART commends the Biden administration and Acting Labor Secretary Julie Su for following through on their promise to our members. By updating Davis-Bacon prevailing wage regulations for the first time in more than 40 years, the Department of Labor is working to ensure that construction workers employed on public works projects are paid what they deserve, helping lift more workers into the middle class and boosting the economies in cities, towns and neighborhoods from coast to coast. This is especially vital as projects funded by the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act continue breaking ground – putting thousands of SMART members to work.

“It’s no coincidence that this announcement arrives just days after Acting Secretary Su joined us at our 2023 SMART Leadership Conference. This is an administration that understands the importance of putting working families first. The gutting of the Davis-Bacon Act under the Reagan administration set us back for decades – now, with this long-overdue update, we can finally ensure that the women and men building our nation receive fair compensation. We thank the Department of Labor and the Biden administration for their continued commitment to SMART members and workers everywhere.”

Pro-labor elected officials in Michigan restored workers’ right to collectively bargain and ensured workers are offered competitive wages, finally rewarding the efforts of union workers and allies. House Democrats voted on March 8 to repeal the state’s decade-old so-called “right-to-work” law in a 56-53, party-line vote; on March 14, Senate Democrats followed suit in a 20-17, party-line vote, sending the legislation to Governor Gretchen Whitmer to sign into law on March 24, 2023.  

This victory was a long time coming for union members in the Great Lakes State. In 2012, the country watched as SMART members joined over 10,000 fellow union workers and their supporters at the State Capitol in Lansing to protest the Republican-led effort to make Michigan a right-to-work state. Unfortunately, those protests were unsuccessful. Under right-to-work, union membership in Michigan fell from 17.1% of the workforce in 2012 to 10.1% last year.   

Over 10,000 union workers rallied against so-called right-to-work in Lansing, Michigan in 2012

Michigan was one of 27 states with right-to-work laws. Right-to-work laws, championed by corporations and employers looking to pad their profits, were designed to weaken unions and decrease pay and benefits. Now – thanks in no small part to the votes of SMART members, which helped Democrats win the state house, senate and governor’s office – Michigan became the first state in nearly 60 years to repeal its right-to-work law.

Michigan Democrats also voted along party lines to restore the state’s prevailing wage law for publicly funded state construction projects. This guarantees that workers are paid fairly and ensures wages are reinvested in local communities, ultimately benefiting taxpayers. Republicans had previously repealed the state’s 50-year-old prevailing wage law in 2018.   

“What is happening in Michigan offers an example of what’s possible when SMART members and voters across the state join together to elect pro-worker candidates,” said SMART General President Joseph Sellers. “After 10 years of anti-worker policy designed to weaken our ability to collectively bargain for better wages and workplace protections, this is a vital step in the right direction that was won by the tireless advocacy of union workers.”  

Watch Local 80 Business Manager Tim Mulligan discuss the repeal of “right-to-work” on SMART News.

As General President Sellers announced, years of hard work and sacrifices made by National Pension Fund participants, locals and employers have paid off.

In addition to this, the Biden Administration announced the Clean Air in Buildings Challenge in late March. This challenge is a call to action and a set of best practices to assist building owners with reducing risks from airborne viruses and other contaminants.

The Clean Air in Buildings Challenge relies on significant input from SMART and our experts at the National Energy Management Institute (NEMI), who assisted in devising its goals and objectives.

The challenge includes the creation of a clean indoor air action plan, practices for optimizing fresh air ventilation, the enhancement of air filtration and cleaning, and community engagement around the importance of enhanced air ventilation to ensure this issue — and its solution — is prioritized by leaders in the public and private sectors. This ensures the expanded contribution of our signatory contractors employing SMART sheet metal workers to lead this challenge.

As the Biden Administration rolls out the historic bipartisan infrastructure bill, modernizing the prevailing wages attached to these projects will ensure fair wages and protect workers employed in the sheet metal industry.

In early March, the U.S. Department of Labor announced that it was updating its Davis-Bacon rules, which affect members employed in the construction industry — especially those working for employers who compete on publicly funded projects. This is the first time in 40 years the Department of Labor has performed a comprehensive review of these regulations, and it couldn’t come at a better time. As the Biden Administration rolls out the historic bipartisan infrastructure bill, modernizing the prevailing wages attached to these projects will ensure fair wages and protect workers employed in the sheet metal industry. Structural changes to the administration of these new projects are what will make the difference in guaranteeing that not only are they built on time and under budget, but also that unscrupulous employers do not undermine the wages and standards SMART and our signatory employers have spent decades creating.

As you will find within this issue of the Members’ Journal, SMART has also updated our union’s website at www.smart-union.org. The website is all-inclusive and interactive, with landing pages for content and material found nowhere else online — such as an updated Resources section for sheet metal workers, TD material and forms, Canadian resources, an easier-to-use Sheet Metal Job Bank, membership information only available to you, links to fund material, dozens of resource libraries and more. Member information is accessed via a Member Portal and customized to each individual member’s needs and experience. Visit the website at www.smart-union.org and click on the Member Portal to create an account. Instructions for SM and TD members are linked through the QR Code below.

Brothers and sisters, we live in exciting times — we are taking advantage of new technologies to update our services to you. Make sure you continue to revisit the Member Portal, as we will update information there with breaking news and the latest resources.

Fraternally,

Joseph Powell
SMART General Secretary Treasurer

Today the Department of Labor announced a notice of proposed rulemaking updating the Davis-Bacon and Related Acts (DBRA) regulations. In response, SMART issued the following response.

“We welcome the Department of Labor taking steps to update and modernize the DBRA to reflect advancements in construction technology. This is the first time in 40 years the Department of Labor has performed a comprehensive review of these regulations, and it couldn’t come at a more opportune time. As the Biden administration administers the historic bipartisan infrastructure bill, modernization of the DBRA is necessary to help ensure fair wages and protect workers in the construction industry. We look forward to working with the administration to finalize the rule.”