The Dig Daily Dose - Edition 122

Elevate Your Industry Insights

"The single biggest way to impact an organization is to focus on leadership development. There is almost no limit to the potential of an organization that recruits good people, raises them as leaders and continually develops them."

—John Maxwell

“Construction companies greatly benefit from prioritizing leadership development”.

However, it is crucial to address the prevailing issue of how management and labor are perceived. It is disheartening that many individuals wrongly believe that management bears all responsibility except for labor. This flawed mindset poses a significant problem as labor providers possess invaluable insights into productivity and safety. Regrettably, safety training often adopts a condescending tone, which is utterly disrespectful to labor providers. To rectify this issue, management must view labor providers as potential managers right from the start. By offering comprehensive training and clear growth guidelines, both managers and labor providers can reap substantial rewards. This shift in perspective has the potential to yield remarkable improvements, as exemplified by a field foreman who witnessed a new apprentice saving a lineman's life on their very first day of work. This remarkable incident underscores the utmost importance of transforming the perspectives of both management and labor providers within an organization.

— Wayne Jensen

Currently In The News

The Future of Nuclear Power: Going Small in a Big Way

Towering over the Savannah River in Georgia, the first nuclear reactors built from scratch in the United States in more than 30 years illustrate the enormous promise of nuclear power — and its most glaring weakness.

The Vogtle nuclear power plant boasts colossal reactors that can generate electricity for two million homes, all while emitting zero carbon dioxide.

Despite the setbacks of exorbitant costs and lengthy delays that have deterred other large-scale projects, the future of nuclear power lies in thinking small. A multitude of companies are currently in the process of developing reactors that are a mere fraction of the size of their traditional counterparts, placing their bets on swift and cost-effective construction. As the United States strives to transition away from fossil fuels and combat climate change head-on, nuclear power is experiencing a resurgence of interest and substantial investment from the Biden administration, as well as support from Republicans.

One of the most significant advantages of nuclear power is its unwavering ability to operate continuously, providing a reliable energy source regardless of weather conditions. While wind and solar energy face limitations during periods of calm or cloudy days, nuclear power stands as an indispensable backup, ensuring an uninterrupted power supply. Although enthusiasm for nuclear power is on the rise, the industry still faces formidable hurdles.

A recent setback saw the cancellation of a project to construct small reactors in the United States due to skyrocketing costs. Additional challenges include the Nuclear Regulatory Commission's lack of experience with novel reactor technologies and the ongoing conundrum of radioactive waste disposal. Nevertheless, the opportunity for nuclear power is ripe, with governments, companies, and utilities all aiming to drastically reduce their carbon emissions within a few decades. The need for low-carbon resources is undeniable, even for those who previously harbored reservations about nuclear power.

Support for nuclear energy among Americans has been steadily increasing, with a recent survey revealing that 57 percent favor the construction of more nuclear plants. While the struggle to build nuclear plants with manageable costs and schedules persists, the hope is that small, more efficient reactors will pave the way for a future powered by nuclear energy. The potential benefits are nothing short of transformative, offering a reliable and low-carbon power source that can make a significant contribution to combating climate change. As technological advancements continue to unfold, the industry must deliver on its promises and ensure that this moment of opportunity does not slip away.

President Biden Advances Vision for World-Class Passenger Rail with $16 Billion Investment in America’s Busiest Corridor

Funding made possible by the Bipartisan Infrastructure Law will go to 25 passenger rail projects in seven states along the Northeast Corridor, the latest investment in rail projects across the country

The U.S. Department of Transportation has boldly allocated an impressive $16.4 billion to fuel the advancement of 25 groundbreaking passenger rail projects along the illustrious Northeast Corridor (NEC). This transformative investment is set to unleash a torrent of over 100,000 construction jobs, breathing new life into the outdated infrastructure that has long hindered progress along this bustling railroad line connecting Boston and Washington, D.C. With a keen focus on modernization, this visionary initiative will revolutionize travel by rejuvenating 12 bridges and tunnels that have stood the test of time for over a century.

Prepare to witness a seismic shift in the realm of transportation as these remarkable upgrades pave the way for swifter, more dependable journeys, while simultaneously curbing our environmental footprint. The NEC, a veritable economic powerhouse, serves as the lifeblood of countless industries, supporting millions of jobs and contributing a staggering 20% to the nation's GDP. This audacious investment stands as a testament to President Biden's unwavering commitment to establishing a world-class passenger rail system, building upon the administration's previous triumphs in the realm of rail infrastructure.

Ten Members and Associates of the Gambino Crime Family Arrested in Coordinated U.S.-Italian Takedown

Defendants Charged in Brooklyn Federal Court with Racketeering Conspiracy Involving Violent Extortions, Assaults, Arson, and Union-Related Crimes

Today, a powerful blow has been dealt to the criminal underworld as a 16-count indictment has been unsealed in federal court in Brooklyn. This indictment charges ten audacious individuals with a range of heinous crimes, including racketeering conspiracy, extortion, witness retaliation, and union-related offenses. These brazen criminals sought to assert their dominance over the New York carting and demolition industries, but their reign of terror ended here.

Make no mistake, justice will be served swiftly and decisively. All ten defendants are currently in custody and will face arraignment this very afternoon. In a display of unwavering determination, federal authorities executed search warrants, leading to the seizure of multiple firearms. Even Italian law enforcement joined forces, apprehending six members and associates of organized crime in a meticulously coordinated operation. Only one individual remains at large, but rest assured, their days of evading justice are numbered.

The names of these audacious wrongdoers must be exposed for all to see. Joseph Lanni, Diego Tantillo, Angelo Gradilone, James LaForte, Vito Rappa, Francesco Vicari, Salvatore DiLorenzo, Robert Brooke, Kyle Johnson, and Vincent Minsquero stand accused of perpetrating violent extortions, assaults, arson, witness retaliation, and a litany of other crimes. Their malevolent actions were aimed at seizing control of the New York carting and demolition industries, but their reign of terror ends now.

The FBI, alongside the NYPD and other dedicated agencies, is resolute in its mission to dismantle organized crime. Let this be a stark warning to any others involved in such nefarious activities: the long arm of the law will find you, and you will face the consequences of your actions.

Furthermore, the Office of Inspector General will continue to tirelessly investigate allegations of fraud within labor unions. No stone will be left unturned in the pursuit of justice. These arrests serve as a resounding message that the influence of organized crime will not go unchecked. The audacity of these defendants, who employed violent extortions, fraud, theft, and embezzlement schemes to infiltrate the carting and demolition industries, will not be tolerated.

The severity of their crimes demands the harshest of punishments. The defendants face maximum sentences ranging from 20 to 180 years' imprisonment. Such penalties reflect the gravity of their actions and send a clear message to any who dare to follow in their footsteps.

Rest assured, this case is in capable hands. The Office's Organized Crime and Gangs Section will handle this matter with the utmost diligence and expertise. The fight against organized crime continues, and with each arrest, we inch closer to a safer, more just society.

Marketplace

Construction Litigation Roundup:

“It’s Not Always Who You Know” Veterans are an under-tapped labor pool for construction but many of the biggest-name companies know the benefits to be gained from employing this group of dedicated individuals.

In a pair of international arbitrations, the respondent party faced adverse awards totaling approximately $285,000,000. Undeterred, they launched a fierce attack on the awards, claiming arbitrator bias. However, it is crucial to remember that the law of arbitration firmly establishes that a federal court can only vacate an arbitral award in exceptional circumstances. This presumption against vacatur becomes even stronger when reviewing an award from an international arbitration.

The court, applying the Federal Arbitration Act, carefully examined the respondent's allegations of non-disclosures by the panel, which supposedly concealed information about the arbitrators' biases and deprived the respondent of a fair dispute resolution process. One of the respondent's arguments centered around an arbitrator's undisclosed nomination of another arbitrator for a highly lucrative position as president of a different arbitral panel. They suggested that this nomination may have influenced the second arbitrator's decision in favor of the first. Additionally, the respondent claimed that the arbitrators' undisclosed collaboration with the claimant's attorneys in other arbitrations created a potential conflict of interest.

However, the appellate court swiftly dismissed these allegations, finding no evidence of any nefarious activities. It emphasized that it is entirely unsurprising and inconsequential for esteemed members of the international arbitration community to cross paths in their work. The court refused to grant vacatur simply because these individuals had collaborated elsewhere.

Delving deeper into the matter, the appellate court analyzed the circumstances under Article V of the New York Convention, which allows for a defense against an arbitral award if its recognition or enforcement would contradict public policy. While there is undoubtedly a public policy in the United States against "evident partiality," the court concluded that this policy was not violated in this case.

Finally, the court examined whether the lack of initial disclosures violated the parties' arbitration agreement or United States law. It found no issue with the composition of the tribunal due to the arbitrators' late disclosures. The parties had appointed arbitrators who affirmed their independence and disclosed any potential conflicts. The respondent's challenge based on the late disclosures was duly considered and denied by the appropriate procedure. Although the court acknowledged that certain disclosures should have been made earlier, it did not disqualify either arbitrator because there were no facts that raised doubts about their independence or impartiality.

Ultimately, this decision could have gone either way, serving as a reminder to arbitrators of the utmost importance of full disclosure.

Direction Of The Business

Careers in construction can offer women a path to economic freedom

“We’ve seen young women go from homeless to homeowner, or pay off their student loan debt in just a few years. We’ve seen mothers be able to build better lives for their children,”

Michigan boasts major construction projects such as Ford's groundbreaking "Campus of the Future," the highly-anticipated Amazon Fulfillment Center, and the monumental Gordie-Howe Bridge. These remarkable endeavors have been brought to life, in part, by the exceptional graduates of Women in Skilled Trades (WIST), a program that I co-founded alongside the esteemed Carol Cool in 2016. WIST stands as a beacon of empowerment, dedicated to educating and supporting women who aspire to make their mark in the construction industry. Through our unwavering commitment, we have orchestrated triumphant community events and pioneered the groundbreaking Apprenticeship Readiness Program, meticulously preparing women for the esteemed union apprenticeships. Our resounding success has propelled WIST to expand its reach, establishing training centers in both Flint and Detroit and proudly graduating over 70 remarkable women who have embarked on illustrious careers in the trades. None of this would have been possible without the invaluable partnerships we have forged with esteemed organizations such as the Michigan AFL-CIO and the North American Building Trades Unions. As the demand for skilled laborers continues to soar, an unprecedented window of opportunity has opened for women to enter the construction workforce. WIST remains steadfast in its mission to champion representation and ignite a fire within more women, inspiring them to boldly consider the limitless possibilities that await them in the skilled trades.

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