Workforce Development Initiatives in Houston

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Workforce Development Initiatives in Houston

• October2006

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Houston Business Roundtable

• Non-profit Business Association.
• Organized in 1973 as an association of
  construction users to be the Owners voice in the
  construction industry.
• The Mission of HBR is to develop, share and
  promote best practices that improve industry
  performance in areas of safety, health,
  environment, workforce skills, work quality,
  productivity and costs.
• 26 Owner Member Companies Including most of the
  major refining and petrochemical companies in the
  greater Houston area (including Texas City and
  Freeport areas)
• 111 Subscribers Including most of the major
  industrial contractors
• Workforce focus is on Contractor Craft Labor

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Workforce Development in Houston

• Area Workload Projections
• Future Skill Shortages
• Workforce Development Resources in Houston
• CMEF Training Statistics
• Current Initiatives in Houston
• Future Plans and Ideas

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HBR Craft Labor Forecast
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Forecast Comparison
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Future Workload Expectations

• HBR member company workload expected to be high
  for next two years
• Golden Triangle Business Roundtable predicts the
  need for 20,000 additional craft persons to build
  Motiva and Valero refineries, LNG projects and
  offshore work
• Eleven new power plant projects planned for East
  Texas
• Recovery and rebuilding in hurricane impacted
  areas has and will continue to draw some labor
  from Houston

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HBR Key Points of Agreement

• Voluntary Agreement recommending that Owners
• Use Contractors that are committed to Workforce
  Development. Pre-qualify and audit to verify.
• Endorse the NCCER/NCCCO skills programs.
• Require craft persons to become qualified through
  formal or upgrade training, certified through
  written testing and performance verified in the
  field or lab.
• Maintain gt10 of all site craft positions for
  helper-trainees.
• Include six cents per hour for all site hours in
  all labor contracts to support CMEFs education
  and credentialing programs.
• Apply the KPA to all Maintenance, Construction
  and Turnaround work.

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National Center for Construction Education and
Research (NCCER)

• NCCER is a non-profit education foundation that
  develops and maintains industry driven
  standardized craft training programs with
  portable credentials.
• 28 different Craft Curriculums and Skills
  Assessment tests (written) and 18 Craft
  Performance Verifications (demonstration of
  skills).
• Houston Contractors played a major role in
  creating and funding NCCER and supplying Subject
  Matter Experts for program development.
• Board of Trustees include representatives from
  several major Houston Contractors and Owner
  Companies, including Fluor, KBR, Zachry,
  ExxonMobil and Shell
• Forty percent of all NCCER training and skills
  assessments have been administered in the greater
  Houston area.

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Construction/MaintenanceEducation Foundation
(CMEF)

• Created by HBR and ABC more than ten years ago,
  replacing the former Merit Shop Trust.
• Non-profit Education Foundation and the
  accredited Training Sponsor of NCCER programs in
  Houston.
• Collects and distributes funding and administers
  formal and upgrade training and skills
  assessment programs.
• Audits all programs and submits records for NCCER
  credentialing purposes.

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Current Training Credentialing Programs

• Formal NCCER training for helper-trainees is
  available at night at five area community
  colleges - Lee, San Jacinto North Central,
  Houston Community and College of the Mainland.
• Upgrade training for journey-level craft workers
  available at HASC or at Plant Sites large enough
  to justify
• Written Skills Assessments administered at three
  Safety Councils - HASC, TCCSC, ISTC Baytown and
  at CMEF Office and on-site.
• Performance Verifications completed at work sites
  with Accredited Evaluator. PV Lab at Lee College
  has been piloted for Electricians.
• The goal is for all industrial craft persons to
  be trained and become certified-plus, i.e., pass
  the written Skills Assessment test and complete
  Performance Verification

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CMEF Statistics
Estimate
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CMEF Statistics
Estimate
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CMEF Statistics
Estimate
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New Initiative - Basic Training for Future Craft
Professionals

• Brings new recruits into construction and
  maintenance and provides accelerated initial
  basic training, including NCCERs core modules
  (including soft skills), basic safety
  orientation, introduction to craft specific tasks
  and a formal mentoring program.
• Owners coordinate with site Contractors and
  commit to placing new recruits on site in a
  helper-trainee position expected to last one
  year.
• Contractors recruit qualified candidates for
  specific crafts, screen and hire prior to
  starting training and assign experienced person
  to mentor new recruit on site.
• Candidates attend two week, eight hour per day,
  Basic Training class and commit to continuing
  their craft training at a community college.
• Mentors meet with assigned trainee and receives
  day of training.
• Trainees are mentored and progress monitored for
  one year.

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Basic Training for Future Craft Professionals

• Participating Contractors Owners to Date

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Basic Training Trainees
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Basic Training for Future Craft Professionals

• June Pilot Class
• 23 of the original 27 Candidates are on the job
  and attending craft training classes.
• August Class
• 28 of the original 28 Candidates completed
  training and all but one are currently working on
  sites and attending craft training classes.
• Future Plans
• Class scheduled for Nov 27 Dec 8
• May expand to other colleges and hold classes
  more frequently

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August Basic Training Class
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Texas Workforce Commission Grant

• HBR and CMEF initiated a Skills Development Fund
  Grant through Lee College for 780,279 and was
  approved for 18 months starting in September
• Grant will focus on craft training of incumbent
  workers and performance verification
• Will allow CMEF some budget freedom to support
  other initiatives

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Greater HoustonConstruction Careers Initiative

• Joint HBR/ABC/CMEF Effort
• Formed to address craft workforce shortage
• Reduce duplication of effort
• Focused on attracting people into our industry
  and bringing people into the existing training
  pipeline of CMEF/NCCER programs

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Construction Careers InitiativeStructure

• Construction Careers Executive Leadership Team
  (CCELT)
• Construction Careers Industry Marketing Committee
  (CCIMC)
• Construction Careers for Youth Committee (CCYC)
• Each team and committee has an Owner and
  Contractor co-chair

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Construction Careers Initiative

• Some Initial Ideas
• Develop a centralized database of new recruits
  for construction and recycled workers that
  Contractors could access and search
• Develop effective marketing tools and materials
  that will emphasize careers in construction
• Two tiered approach for commercial industrial
• Targeted recruiting relationships (family,
  friends, associates), returning military, college
  drop-outs, underemployed (food service, etc.)
• Increase presence in area high schools
• Increase training scholarships at community
  colleges

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Use of Non-English Workers

• Survey Results (March)
• Thirteen Owners responded and two Owners already
  allow non-English workers on site
• Several companies indicated they were considering
  this option
• Barriers identified Safety procedures,
  training, signage, work permits, emergencies
• No company indicated they were planning to
  translate site training materials, plant signs,
  emergency communications, work instructions or
  work permits.
• The two companies that allow non-English workers
  require bilingual workers in crews.
• None are currently providing ESL for Contractors.

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Non-English Workers, Follow-up

• Nine Owner companies met and most indicated they
  were seriously considering use of non-English
  workers and several have active task groups
  developing plans requirements.
• The severe shortage of skilled labor is causing
  more companies to consider this option.
• Several companies indicated they were getting
  push-back from their safety departments. 
• The member company that has been using
  non-English workers for years has applied this to
  all crafts but most have been soft craft
  workers.  One of their contractors routinely has
  10 to 20 non-English workers.  They also
  reported that no incidents have occurred where
  non-English was a factor. 
• Another member company reported they had just
  implemented a non-English program in July through
  their scaffolding contractor. They are very
  interested in determining if the Contractor can
  deliver skilled labor as promised.
• The group has asked HBR to be a clearing house of
  information about this issue.  Plans are to meet
  again in December to check progress made.  

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Other Initiatives and Future Plans

• HBR sponsors an annual Excellence Award program
  to recognize Contractors and Owners that support
  and are actively involved in KPA and WD
  initiatives.
• ABC/CMEF/HBR is sponsoring a Construction
  Exhibition and Craft Championship at Lee College
  on October 27. 400 high school students are
  scheduled to attend.
• Solicit more TWC funding to support Basic
  Training classes and other training initiatives.
• HBR/ABC/CMEF are joining a larger coalition of
  Houston businesses, associations and colleges to
  address shortage of skilled workers in refining
  and petrochemical industry.

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Other Initiatives Impacting Workforce

• North American Substance Abuse Program
  Standardized industry program implemented in 2004
  and now over 100,000 Contractor employees
  enrolled with 6 excluded from working at
  participating Owner sites due to non-negative
  results.
• North American Background Screening Consortium -
  being developed between Houston, Baton Rouge
  New Orleans with plans to implement in early
  2007. Data from other programs already
  implemented indicate that 5 to 10 of workforce
  might be excluded from participating sites.