Community Benefits Agreements: Always a Win-Win

For many years, Cleveland’s minority construction firms recognized and expressed frustration about the disparities in the construction industry. In the 21st Century, workforce diversity and inclusion should be a “no brainer.” However, oftentimes projects did not mirror the community in which it served.

Several years ago, the Contractors Assistance Association (CAA) was reestablished with support from Construction Employers Association (CEA). They began focusing on education, contracting and employment in construction. Community Benefits Agreements (CBAs) were explored, outlined and shared by CAA. Five years ago, the wheels of change began to turn.

In 2011, African-American contractors developed a plan with Congressman Louis Stokes to increase inclusion in major construction in Cleveland. [Community Benefit template]. In 2012, the Greater Cleveland Partnership, supported the examination of exclusion of minority workers and contractors in the construction industry, which was followed with a City of Cleveland educational forum on CBAs. These efforts led to Mayor Frank Jackson ordering studies on how other major cities included minorities in major construction projects.

In 2013, a Memorandum of Understanding (MOU) on CBAs, was signed by nine stakeholders. The stakeholders included the CEA, the Cleveland Building and Construction Trades Council, the Urban League, Hispanic Roundtable, Hard Hatted Women, Greater Cleveland Partnership, Cuyahoga Community College, the Cleveland Metropolitan School District, and the City of Cleveland.

The MOU listed specific actions and programs that were essential in CBAs as a preferred policy for private development in the City of Cleveland construction projects. The Commission on Economic Inclusion offers this definition: “A CBA is a collaborative model that is designed to develop effective workforce equity strategies with real community input on inclusion goals.”

In simplest terms, CBAs are contracts that state the benefits a community receives as it relates to project development. They promote the core values of inclusiveness and accountability. They answer the question: As this bridge is being built and beyond, how will the community benefit?  

One person at the forefront of the industry CBAs is Anthony Panzica, CEO and President of Panzica Construction. “We were trying to come up with a model document within the construction culture that focused on diversity. We identified four important needs: Incorporate mentorship principles for mentoring workers and small business owners, improve pre-apprenticeship and training programs for high school students and others interested in the construction fields and improve public reporting.” Panzica is also the Immediate Past Chairman of the Construction Employers Association.

One of the primary goals of Mayor Jackson’s administration is to ensure that local development projects create direct benefits for residents. The focus has been on providing workers a living wage, making sure the residents have an opportunity to work on the projects, and diversity and inclusion as it relates to the labor pool.  The City has embraced CBAs as a tool to achieve economic prosperity, provide employment, ensure sustainable building practices, and maintain reports on private sector projects.

As of January 2016, there are 18 construction projects totaling nearly $1.3 billion which embrace CBAs. They are: Case Western Reserve University, Cleveland Clinic, Cuyahoga Metropolitan Housing Authority, Cleveland Municipal School District, Cleveland Public Library, Cuyahoga County, Dominion East Ohio, Fairmount Properties, Finch Group, Gateway Sports Complex, Geis Companies LLC, MetroHealth System, Northeast Ohio Regional Sewer District, Sisters of Charity and University Hospitals. Of these, all but four were the original signers on the 2013 MOU.

“They fit. I think they are working well,” said Gareth Vaughan, President of Albert M. Higley Co. about the progress of CBAs. “Time will tell. We started working on it in 2011, and it wasn’t quite together by then. They are a good thing, a way to get the community involved, get local as well as diverse participation. It’s good all the way around.”

“Reporting has not been adopted equally by everyone and it’s not the same for every institution,” offers Panzica. “Since CBAs began in 2013, what I see as someone working in the construction industry and have for many years, people are adopting CBAs whether they sign one or not, but there is room for growth and improvement.”

Vaughan thinks that CBAs should be second nature. “(It’s important) For a project to be reflective of the community in which you work and serve…but it’s not necessarily that way. Otherwise we would not have a Committee on Economic Inclusion,” he said.  For Panzica, he’s looking forward to seeing the program work on its own. “A culture without people pushing it. It should be a culture that people adopt within their organizations, making it an everyday practice within the construction industry,” he said. “I applaud Mayor Jackson for his leadership and tenacity to get the document done. There were a lot of people that said it couldn’t be done.”

Click here for additional information on Cleveland’s historic CBA.