Port of Seattle Commission

Policy Directive on

Priority Hire

As Amended

April 24, 2018

Document last updated June 6, 2018

Port of Seattle Commission Priority Hire Policy Directive Page 2 of 10

SECTION 1. Purpose.

The purpose of this policy directive is to provide good family-wage jobs to qualified

construction workers from economically distressed areas of King County by increasing access to

Port of Seattle covered projects. This leads to economic growth and job creation in areas of

King County that are experiencing economic distress. In addition, it will provide jobs to those

historically underrepresented in the construction industry, such as women and people of color.

To develop a priority hire program implemented through a project labor agreement (PLA) and

to foster closer cooperation with the Regional Public Owners Group to ensure uniform

application of priority hire terms and contractor and union compliance with priority hire

requirements. This supports the Port of Seattle’s continued efforts on workforce development.

(Res. 3736, §2, 2017)

SECTION 2. Definitions.

When used in this policy directive, the following words and phrases shall have the meanings

given below unless the context in which they are included clearly indicates otherwise:

“Apprentice” means a person who has signed a written apprenticeship agreement with and

enrolled in an active state-registered apprenticeship training program approved by the

Washington State Apprenticeship and Training Council.

“City” means City of Seattle.

“Contractor” means any person, firm, partnership, owner operator, limited liability company,

corporation, joint venture, proprietorship, trust, association, or other legal entity that employs

individuals to perform work on covered projects, including general contractors, subcontractors

of all tiers, and both union and non-union entities.

“Core Employee” means an employee of an open-shop contractor that meets the core

employee criteria established under a PLA.

“Covered Project” means a Port of Seattle construction project under a PLA as defined in the

Policy Directive on Construction Labor Practices for Projects Located on Port of Seattle

Property.

“Dispatch” means the process by which a union refers workers for employment to contractors

under the authority of a collective bargaining agreement. The process typically mandates the

distribution of work via a “first in, first out” priority but can be legally adjusted via special

agreements to allow for out-of-order dispatching and priority worker hiring.

Port of Seattle Commission Priority Hire Policy Directive Page 3 of 10

“Economically Distressed Area” means a geographic area defined by zip code in King County

and found to have high population concentrations: 1) Living at or below 200 percent of the

federal poverty level, 2) Unemployed, 3) Those over 25 years of age without a college degree,

compared to other zip codes. King County zip codes with a high density per acre of at least two

out of the three criteria will be identified as Economically Distressed Areas. These zip codes are

updated and published by King County’s Finance and Business Operations Division.

“Jobs Coordinator” means either one of the following: a Port of Seattle employee, an employee

that is considered a shared resource between government agencies, or a third party entity that

facilitates the hiring of priority workers in collaboration with contractors and union dispatch.

“Journey-level” means an individual who has sufficient skills and knowledge of an occupation,

either through a formal apprentice training program or through practical on-the-job work

experience, to be recognized by a state or federal registration agency and/or an industry as

being qualified to perform the work of the occupation. Practical experience must be equal to or

greater than the term of apprenticeship.

“Labor hours” means hours performed on covered projects by workers who are subject to

prevailing wages.

“Open-shop contractor” means a contractor that is not a signatory to a collective bargaining

agreement with a union representing the trade(s) of the contractor’s workers, also known as

non-union contractors.

“Pre-apprentice” means a student enrolled in a construction pre-apprentice training program

recognized by the Washington State Apprenticeship and Training Council.

“Priority Hire Program” means a program on Port of Seattle major construction contracts that

focuses on recruitment, training and employment of workers who reside in Economically

Distressed Areas as defined by King County.

“Priority Worker(s)” means an individual prioritized for recruitment, training, and employment

opportunities because the individual is a resident in an Economically Distressed Area.

“Project Labor Agreement” means an agreement authorized under the National Labor Relations

Act (NRLA), 29 U.S.C., which provides a means for aligning interests of public owners such as

the Port with those of construction labor unions.

“Regional Public Owners Group” means the group including the City of Seattle, King County,

Port of Seattle, Sound Transit, the City of Tacoma, and the Washington State Department of

Transportation, focused on public agencies working together as regional partners to better

understand the workforce demand-supply gap for regional public infrastructure projects; to

enhance access opportunities and to increase the diversity of pre-apprentices, apprentices, and

journey-level workers entering into the trades workforce; to support retention programs for

Port of Seattle Commission Priority Hire Policy Directive Page 4 of 10

current trades workers, especially women and people of color; and to improve performance

data and systems of reporting for monitoring regional goals and initiatives.

“Union” means a representative labor organization whose members collectively bargain with

employers to set the wages and working conditions in their respective trade or covered scope

of work.

(Res. 3746, §2, 2018; Res. 3736, §2, 2017)

SECTION 3. Scope and Applicability.

A. This Policy Directive pertains to covered project(s) for the remainder of this policy

directive. (Res. 3736, §2, 2017)

SECTION 4. Responsibilities.

A. The Executive Director (1) will assign a designee (referred to as “designee” for the

remainder of the policy directive) and subsequent designated office to implement and

administer this policy directive, and (2) may, through the designee, develop and adopt rules

consistent with the requirements of this policy directive. (Res. 3736, §2, 2017)

B. The designee, with the Executive Director’s written concurrence and upon notice to

the Port of Seattle Commission, may reduce or waive requirements or goals of this policy

directive when impractical for a covered project for one or more of the following reasons: when

required due to an emergency, when subject to limitations of a sole source, when requirements

or goals would be inconsistent with an agreement with a public agency, when requirements or

goals are inconsistent with federal funding or other funding sources, when the project is in a

remote location, when superseded by safety or other legal requirements, when other

conditions arise such as the goals become impractical, or absent an executed PLA. (Res. 3736,

§2, 2017)

C. The designee shall be responsible for identifying, monitoring, and mitigating risks

within his/her authority and propose mitigation actions to the Executive Director if additional

authority is required. The designee shall enforce the requirements in this policy directive and

may use actions as deemed appropriate. (Res. 3736, §2, 2017)

D. As part of establishing a priority hire advisory committee to operate in an advisory

role to the Port of Seattle for implementation and effectiveness of this policy directive, the

designee shall participate in the previously established Regional Public Owners Group and may,

under an agreement with one or more other government entities with priority hire programs,

establish and participate in a regional priority hire advisory committee. (Res. 3736, §2, 2017)

Port of Seattle Commission Priority Hire Policy Directive Page 5 of 10

SECTION 5. Policy.

A. For covered projects that are not found impractical under Section 4(B), the designee

shall establish in the bid or other solicitation documents the following: (1) the required

percentage of labor hours to be performed by priority workers, and (2) the aspirational goal

percentage of labor hours to be performed by priority workers. Contractors and dispatch under

a PLA shall seek to first hire and dispatch priority workers so as to meet or exceed the required

and aspirational goal percentages. The designee shall establish the percentages separately for

apprentices and for journey-level workers. (Res. 3736, §2, 2017)

B. For each covered project, the designee shall establish the greatest practicable

required percentage of labor hours to be performed by priority workers by considering

anticipated workforce availability and past utilization percentages on similar construction

projects from the most recent project previous calendar year, and shall establish the

percentage for the upcoming year. This shall be included in the PLA and other Port agreements

as appropriate and progress monitored by the designee. The designee shall adjust these

required percentages annually, based on performance and reasonably anticipated changes in

worker availability. (Res. 3736, §2, 2017)

C. In order to achieve the intended impact in economically distressed areas, the

designee shall set project-specific requirements and an aspirational goal percentage of no less

than 20 percent for all labor hours performed annually by priority workers on the total of

covered projects for the year. Annual percentage rates will be measured January 1 – December

31 of each applicable year. (Res. 3736, §2, 2017)

D. In order to meet the percentage of labor hours to be performed by priority workers,

the designee shall require contractors and dispatch under a PLA to seek to employ a priority

worker who is a resident of an economically distressed area in King County, and then workers

from any other economically distressed areas as needed to meet the percentage labor hours to

be performed by priority workers. The specific process by which contractors, dispatch, and the

Port of Seattle Jobs Coordinator(s) will collaborate in order to facilitate the hiring of priority

workers shall be established by the designee. (Res. 3736, §2, 2017)

E. For covered projects, the designee shall ensure the availability of a Jobs

Coordinator(s) to perform the following functions: maintain a database of pre-qualified priority

workers for referral to work on a covered project; network with various work source centers,

community, non-profit, and faith-based organizations to facilitate the identification of priority

workers; and facilitate referral and coordination around training and employment of priority

workers between contractors, unions, and training programs. In addition, the designee shall

explore development of a third party to manage regional priority hire efforts. (Res. 3736, §2,

2017)

F. Per the Construction Labor Practices Policy Directive for Projects Located on Port of

Seattle Property (adopted by Resolution 3725), contracts $1 million in value or greater require

Port of Seattle Commission Priority Hire Policy Directive Page 6 of 10

apprenticeship utilization goals. The goal is no less than 15 percent of all contract labor hours

are to be performed by apprentices.

(1) For individual projects, the designee will determine the apprenticeship utilization

goal and may consider such factors as project size, project duration, labor hours

anticipated for the project, skills required, the likely crafts required for the

project, historic utilization rates, and apprentice availability.

(2) The designee shall establish aspirational percentage goals for apprentices who

are women and people of color using similar factors. Contractors may be allowed

to offer utilization below the aspirational percentage goals by substituting other

efforts to meet the intent of building a trained construction workforce for a

portion of the utilization percentages for women and people of color.

(Res. 3736, §2, 2017)

G. When determining whether the percentage of priority hire requirements has been

achieved, the designee shall exclude from the calculation labor hours performed by residents of

states other than the state of Washington. The designee shall track labor hours performed by

residents of states other than the state of Washington and shall review this percentage

annually with the previously established Regional Public Owners Group and any future regional

priority hire advisory committee that may be established under an agreement with one or more

other government entities with priority hire programs. (Res. 3736, §2, 2017)

H. Per the Construction Labor Practices Policy Directive for Projects Located on Port of

Seattle Property (adopted by Resolution 3725), the designee shall support the inclusion of

priority hire provisions in the PLA standard language to be approved by the Commission

Projects and Procurement Committee. In furthering the Construction Labor Practices Policy

Directive for Projects Located on Port of Seattle Property, Port staff will seek an agreement with

regional partners to develop a framework to achieve operational efficiencies through uniform

priority hire requirements and by sharing priority hire resources and data and advancing

workforce development efforts. (Res. 3736, §2, 2017)

I. The Port shall review and recommend how the intent of priority hire can be

implemented throughout the Port beyond the covered projects, including future leases,

concession agreements, and procurement contracts by September 1, 2018. (Res. 3736, §2,

2017)

SECTION 6. Program Evaluation.

A. The designee shall establish benchmarks and metrics to evaluate the program, such

as project costs, completion times, workplace safety, utilization rates and graduation rates of

priority workers, women and people of color from pre-apprentice and apprentice training

programs, and changes in the amount of contracting dollars paid to small business and Women

Port of Seattle Commission Priority Hire Policy Directive Page 7 of 10

and Minority Business Enterprises (WMBE) firms working on covered projects and the number

of small business and WMBE firms under contract. (Res. 3736, §2, 2017)

B. Port efforts in pursuit of the objectives of this policy directive will be incorporated

into the Port’s long range plan (LRP) to the fullest extent reasonable, including incorporation

into the LRP scorecards, reports, and LRP updates. Further, the designee shall prepare and

publish an annual report each year titled Apprenticeship and Priority Hire Annual Report.

The report shall include, but not be limited to, the following:

(1) The number and kinds of construction projects and contracts on which

apprenticeship and priority hire requirements were established;

(2) The percentage of labor hours actually worked by apprentices and priority

workers on each such project and the total number of labor hours on each

project;

(3) The number of apprentices and priority workers by contractor broken down by

trade and craft category, the wages paid by category of work or trade, the

number and percentage of women and people of color utilized as apprentices

and priority workers, and the degree of compliance with the percentage

requirements and aspirational goals to be established under this policy directive;

(4) The number of apprentices and priority workers per Port dollar spent on the

program;

(5) A description of problems encountered in the implementation of the program;

and

(6) A description of barriers encountered by participating apprentices and priority

workers and steps taken to resolve those problems and to ensure their

continued participation in the program.

(Res. 3736, §2, 2017)

C. The Port of Seattle Commission, Executive Director, and designee will review

program results annually as part of the LRP update to determine if the program should be

expanded or amended by increasing or decreasing requirements and aspirational goals. (Res.

3736, §2, 2017)

SECTION 7. Fiscal Implications.

This policy directive has fiscal implications as funding and staffing requirements will be needed

to implement the priority hire program. Fiscal implications will be reviewed by the designee

Port of Seattle Commission Priority Hire Policy Directive Page 8 of 10

annually, at a minimum, to determine if additional funding and/or resources are required and

shall submit a budget request, as appropriate. (Res. 3736, §2, 2017)

SECTION 8. Research Findings

Based on studies commissioned by the City of Seattle and King County and their

implementation of priority hire programs and numerous public discussions, the Port of Seattle

Commission finds that it is in the Port’s and the public’s best interest to increase the supply of

qualified construction workers, particularly those historically underrepresented in the

construction industry, including those who live in economically distressed areas in King County

and also within that group, women and people of color. (Res. 3736, §2, 2017)

A. In January 2015, following the positive results of a pilot program on the Elliott Bay

Seawall project, the City of Seattle adopted Ordinance No. 124690, an ordinance relating to

establishing a priority hire policy to ensure better access to training programs and well-paying

construction jobs for local workers, as well as to increase the diversity of the workforce on city

projects. (Res. 3736, §2, 2017)

B. The City of Seattle implemented the priority hire ordinance through a community

workforce agreement (CWA) between the city and the building trade labor unions, and that

agreement requires that prime contractors on city public works construction projects of

$5 million or more, must ensure that a certain percent of project labor hours are performed by

workers living in economically distressed areas of Seattle and King County. (Res. 3736, §2, 2017)

C. In May 2016, the King County Executive directed county agencies to implement a

priority hire pilot program that prioritized economically disadvantaged local workers for

inclusion on large King County capital construction projects. King County is considering a

permanent priority hire program implemented through a CWA. (Res. 3736, §2, 2017)

D. Based on studies commissioned by the City of Seattle and King County and their

implementation of priority hire programs, and numerous public discussions, the Port of Seattle

Commission finds that it is in the Port’s and the public’s best interest to increase the supply of

qualified construction workers, particularly those historically underrepresented in the

construction industry, including women, racial minorities, and those who live in economically

distressed areas of Seattle and King County. (Res. 3736, §2, 2017)

E. King County completed a study in January 2016 documenting a widening gap

between the demand for construction labor and the supply of skilled trade workers in the

regional labor market for King County and other public entities. The gap reinforces the urgent

need for developing a strategy to address the current and projected workforce shortages. The

study also used economic data involving poverty levels, employment, and educational

attainment to determine economically distressed areas, which are identified by zip code. (Res.

3736, §2, 2017)

Port of Seattle Commission Priority Hire Policy Directive Page 9 of 10

F. King County completed the Construction Workforce Analysis in December 2016 and

found that the county may reasonably anticipate a reduced surplus of qualified labor and

possible labor shortages in certain construction trades by 2020. That is the result of a projected

shortfall forecast between demand and supply of 4,630 workers by 2020. The county is

concerned that these labor shortages will increase reliance on out-of-state construction

workers and that the demand for new construction workers may increase construction costs on

the county’s public works projects unless the county supports efforts to increase the supply of

trained apprentices and journey level workers for local public works projects.

The analysis also found that 81 percent of the construction workforce in King County in 2016

were white males, while 19 percent were people of color and women. Representation of

women and people of color is higher among new entrants to the labor force through

apprenticeships and accredited certificates of completion, such as those received for

completing a pre-apprenticeship program. However, according to the analysis, women and

people of color also have lower rates of apprenticeship completion than do their white male

counterparts. (Res. 3736, §2, 2017)

G. The City of Seattle commissioned the Construction Industry Labor Market

Assessment, which found that women, irrespective of race, are underrepresented in the

construction industry. Between 2009 and 2013, 10 percent fewer women finished their

apprentice training program than males. The assessment also found that between 2009 and

2013, 14 percent fewer racial minority apprentices finished their apprentice training program

than white apprentices. In addition, it also found that underrepresented workers face barriers

to completing apprentice training. Between 2009 and 2013, 65 percent of the racial minorities

exiting apprenticeships did not complete the programs compared to 51 percent of the white

apprentices who failed to complete the program. During that same time period, 65 percent of

all women, irrespective of race, failed to complete their programs compared to 55 percent of all

men. (Res. 3736, §2, 2017)

H. The City of Seattle has found that priority hire effectively and successfully increases

diversity on city construction projects. The share of labor hours between November 2013 and

April 2017 saw an increase of 233 percent in rate of hours performed by workers living in

Seattle’s economically distressed zones. In addition, it saw an over 300-percent increase in rate

of hours performed by apprentice women and 200-percent increase in rate of hours performed

by African-Americans. (Res. 3736, §2, 2017)

I. A PLA is an effective tool to manage public works projects when reducing the risk of

project delays and reducing the potential of labor disruptions and labor shortages. (Res. 3736,

§2, 2017)

J. Priority hire is an effective tool to create local jobs, enhance workforce diversity, and

improve overall working conditions. (Res. 3736, §2, 2017)

Port of Seattle Commission Priority Hire Policy Directive Page 10 of 10

Revision History

April 24, 2018 Resolution 3746 modified the definition of a covered project to

comport with the definitions in the Policy Directive on Construction

Labor Practices for Projects Located on Port of Seattle Property.

November 28, 2017 Resolution 3736, establishing the Priority Hire Policy Directive, was

adopted.