Workforce Development Initiatives in Houston

1. Workforce Development Initiatives in Houston October2006

2. Houston Business Roundtable • Non-profit Business Association. • Organized in 1973 as an association of construction users to be the Owner’s 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

3. 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

4. HBR Craft Labor Forecast

5. Forecast Comparison

6. 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

7. 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 >10% of all site craft positions for helper-trainees. • Include six cents per hour for all site hours in all labor contracts to support CMEF’s education and credentialing programs. • Apply the KPA to all Maintenance, Construction and Turnaround work.

8. National Center for Construction Education and Research (NCCER) • NCCERis 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.

9. 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.

10. 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

11. CMEF Statistics *Estimate

12. CMEF Statistics *Estimate

13. CMEF Statistics *Estimate

14. New Initiative - Basic Training for Future Craft Professionals • Brings new recruits into construction and maintenance and provides accelerated initial basic training, including NCCER’s 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.

15. Basic Training for Future Craft Professionals Participating Contractors – Owners to Date

16. Basic Training Trainees

17. 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

18. August Basic Training Class

19. 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

20. 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

21. 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

22. 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

23. 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.

24. 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.  

25. 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.

26. 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.