The City Council passed a controversial ordinance Monday that will provide incentives on city projects to contractors who have apprenticeship programs, something supporters said will help increase Lincoln's skilled workforce.
But several months of negotiations and some changes made before the final vote still failed to convince the Lincoln Independent Business Association, the Lincoln Chamber of Commerce and many of the city’s contractors to support it.
“We still oppose this amendment,†said Scott Lockard, president of construction for Hampton Enterprises. “We recognize the need for more labor in our industry, and most of us have made great efforts to encourage people into our industry. ... It doesn’t solve the problem.â€
Instead, Lockard and others said, the ordinance will create administrative costs for the city, and will cost both contractors and taxpayers.
The ordinance will give a 5% credit on city bids to contractors that use apprentices for at least 10% of their labor hours. The company must use an apprenticeship program registered with either the federal or state departments of labor, or be a training program authorized by a union.
It would not apply to contracts that use federal or state money in addition to city money. In 2020-21, there were 55 city contracts of more than $500,000, Assistant City Attorney Chris Connolly told the council, though he was unsure how many of those included federal or state money.
Council members met with contractors and others in an attempt to find middle ground on the ordinance, including a round-table discussion last week.
Amendments approved Monday stemmed from those discussions, including increasing the minimum bid for incentives from $250,000 to $500,000; including training programs at Southeast Community College and similar institutions as qualified apprenticeship programs; and delaying implementation until Jan. 1, 2023.
LIBA and local chamber officials said even with those changes the ordinance will put Lincoln businesses at a disadvantage, many of whom use training programs other than those approved of in the ordinance.
Councilwoman Jane Raybould tried unsuccessfully to expand the ordinance to include qualified training programs run by the Associated Builders and Contractors and similar organizations.
Opponents claim the ordinance unfairly favors unionized shops and would hurt Lincoln businesses, many of which aren’t unionized.
But supporters said it will help workers.
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Several people testified that apprenticeship programs allowed them to get the training they needed but never received even after years of working in the business.
Matt Scott said people are trying to make the issue about unions but it’s not. Instead, he said, such programs will help keep workers in Lincoln, rather than having them leave for Omaha or other cities that offer better pay.
Former Councilman Roy Christensen made an appearance to testify in favor of unions and their apprenticeship programs, which he said add value to the community in the way of quality work and higher wages.
The amendment to delay implementation of the ordinance was modified to include only the portion of the ordinance dealing with the incentives. Other parts of the ordinance intended to protect workers, including requiring contractors to provide worker’s compensation and pay through direct deposit, will go into effect as soon as Mayor Leirion Gaylor Baird signs it.
Councilman Richard Meginnis was the only council member who voted against the ordinance, saying one of his major concerns is that the ordinance carves out exceptions in the city’s bidding process.
“We’ve never done that. This is opening Pandora’s box,†he said. “It’s one step toward helping with the workforce shortage, but I don’t think this is how we should be using taxpayers’ money,†he said.Â
Meginnis urged his fellow council members to be open to revisiting the ordinance if it has unintended consequences, which several council members said they would be willing to do.
The other council members said this is one way to address a critical need in Lincoln.
“I think workforce development is critically important,†said Councilwoman Sändra Washington. “We know this will help a little bit. It’s not the end-all, be-all. I am exceedingly open to looking at other programs that will help increase workforce numbers here in Lincoln.â€