BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

STATE OF MONTANA

 

In the matter of the amendment of ARM 24.17.103, 24.17.127, and 24.17.501, and the repeal of ARM 24.17.526, pertaining to prevailing wage rates for public works projects

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NOTICE OF AMENDMENT AND REPEAL

 

TO: All Concerned Persons

 

          1. On October 29, 2015, the Department of Labor and Industry published MAR Notice No. 24-17-310 regarding the public hearing on the proposed amendment and repeal of the above-stated rules on page 1813 of the 2015 Montana Administrative Register, Issue No. 20.

 

          2. On November 20, 2015, a public hearing was held at which time no comments, either oral or written, were received. Additional comments were received during the comment period.

 

          3. The department has amended ARM 24.17.103, 24.17.127, and 24.17.501 and repealed ARM 24.17.526 as proposed.

 

          4. The department has thoroughly considered the comments and testimony received from the public. The following is a summary of the public comments received and the department's responses to those comments:

 

COMMENT 1: After the public had opportunity to speak as opponents or proponents and the rules hearing had closed, the department, pursuant to 2-3-103, MCA, allowed the public to speak on other matters to which it claims jurisdiction.  At this time Loren Ward, Sheet Metal and Air Conditioning Contractors National Association (SMACNA), noticed some inconsistencies in the prevailing wage rates between the Heating and Air Conditioning (HVAC) and the Sheet Metal Workers classifications. While these comments were made outside of the time for commenting at hearing, the department believes the comments are pertinent to these rules, and fell within the general comment period, and therefore responds herein.  The commenter said these two classifications have identical duties, and surveying for both of them may be leading to inconsistencies in the rates. The commenter asked how the department enforces compliance for these two occupations and asked the department to consider removing the HVAC classification from future prevailing wage publications.

 

RESPONSE 1: The department has observed differences between the two classifications during onsite job visits. An example of Sheet Metal work that would not be properly classified as HVAC is the installation of stainless steel panels and kitchen equipment in a commercial application. The cutting and fitting of the stainless steel panels (tin) would be classified as Sheet Metal and not HVAC. An example of HVAC work that would not be properly classified as Sheet Metal would be the installation of a new furnace in a building. The adjustment and installation of the new system would be classified as HVAC and not Sheet Metal. In the last example, the department identifies the possibility of a contractor looking for HVAC in the rate schedule and mistakenly classifying their workers as Laborer Group 2, if HVAC is removed. Plumbers do service work on HVAC systems, but do not install new systems on new construction projects, so using the plumbers' collective bargaining agreement (CBA) would be inappropriate. However, since the Sheet Metal, Air, Rail, Transportation (SMART) CBA covers both HVAC and Sheet Metal, the department views combining all data submitted by union Sheet Metal contractors as the correct way to use that data. The department rejects the suggestion to remove HVAC from the rate schedules.

 

COMMENT 2: In an e-mail, Jennifer Furtney, Office Manager, SMART Local 103, submitted a letter on behalf of John Carter, Business Manager, SMART Local 103, providing additional data and documents detailing the duties of HVAC and Sheet Metal Workers for inclusion in the rate-setting process during the comment period.

 

RESPONSE 2: The department has reviewed the information submitted. The department has incorporated the duties provided into the rate schedule and believes it will assist contractors in properly classifying their workers. The department has also incorporated the data as appropriate and has revised the rates for the HVAC and Sheet Metal classifications in line with the rate-setting standards. Revised rates are identified below in paragraphs 4 through 7.

 

          5. The following rates in the "Montana Prevailing Wage Rates for Building Construction Services 2016" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Heating and Air Conditioning

District          Wage                     Benefit

1                  $21.40 27.33          $ 6.86 15.39

2                  $27.97 27.33          $15.39

3                  $21.79 27.33          $ 9.95 15.39

4                  $19.85 27.33          $16.01  15.39

 

          6. The following rates and description of work performed in the "Montana Prevailing Wage Rates for Building Construction Services 2016" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Sheet Metal Workers

District          Wage                     Benefit

1                  $26.53 27.33          $11.77 15.39

2                  $27.33                    $15.39

3                  $27.12 27.33          $12.98 15.39

4                  $25.33 27.33          $ 8.54 15.39

 

Testing and balancing, commissioning and retro-commissioning of all air-handling equipment and duct work. Manufacture, fabrication, assembling, installation, dismantling, and alteration of all HVAC systems, air veyer systems, and exhaust systems. All lagging over insulation and all duct lining. Metal roofing.

 

          7. The following rates in the "Montana Prevailing Wage Rates for Heavy Construction Services 2016" publication, incorporated by reference in the rule, have been amended as follows, stricken matter interlined, new matter underlined:

 

Heating and Air Conditioning

                    Wage                     Benefit

                    $30.31 27.33          $16.01 15.39

 

          8.  The following description of work performed in the "Montana Prevailing Wage Rates for Heavy Construction Services 2016" publication, incorporated by reference in the rule, has been amended as follows, stricken matter interlined, new matter underlined:

 

Sheet Metal Workers

 

Testing and balancing, commissioning and retro-commissioning of all air-handling equipment and duct work. Manufacture, fabrication, assembling, installation, dismantling, and alteration of all HVAC systems, air veyer systems, and exhaust systems. All lagging over insulation and all duct lining. Metal roofing.

 

         

 

/s/ MARK CADWALLADER          /s/ PAM BUCY

Mark Cadwallader                       Pam Bucy, Commissioner

Alternate Rule Reviewer              DEPARTMENT OF LABOR AND INDUSTRY

 

Certified to the Secretary of State December 14, 2015.