Megan Barry delays Nashville's local-hire law

New Nashville Mayor Megan Barry has delayed implementation of Metro's new local-hire requirement for city-funded construction projects amid workforce development concerns expressed by contractors who opposed the measure as well as unions that advocated for its passage.

A local-hire workforce rule that voters approved overwhelmingly Aug. 6 had been scheduled to be written into procurement policies starting Thursday. But Barry announced Wednesday that this now won't be the case, citing more time needed to review best practices of other cities and to continue to meet with stakeholders.

Barry's administration has not set a new date to implement the local-hire ordinance, which has been targeted by a Republican state lawmaker from Williamson County who has introduced state legislation to nullify the Nashville policy.

In a Wednesday letter to the Metro Council, Barry — who publicly supported Metro Charter Amendment 3 establishing the local-hire law — said concerns arose after talks with union leaders, the business community and legal counsel that the new procedures might hinder Metro's ability to move forward with construction projects and thus be "counterproductive towards the intended goals of putting more Davidson County residents to work."

"Like the majority of voters in the Aug. 6 election, I supported Amendment 3 because I believe strongly in workforce development and expanding access to good-paying jobs," Barry, sworn into office Friday, wrote. "My commitment to these principles has not (wavered) and I believe that we can find a path forward that satisfies our desire to promote economic prosperity for working families while also being fiscally responsible and continuing to move forward with important Metro projects.

"This delay in implementation will give us all a chance to research best practices in other cities and for my office to meet with members of the Metro Council, the business community, labor leaders and other stakeholders to develop guidelines that will meet our goals of training and hiring more Davidson County workers for jobs funded with their tax dollars."

The new local-hire law, approved by a 58 percent to 42 percent margin and pushed by a Nashville laborers union, mandates that at least 40 percent of the workforce on Metro-funded construction projects be residents of Davidson County. The policy — which still requires that the Metro Council work out some details — applies to every city construction project in Nashville that costs at least $100,000.

The rule's original Oct. 1 rollout date was set by the Metro Procurement Division of the finance department, which sought to comply with the new law in a reasonable but timely manner.

The delay comes after the Southeast Laborers' District Council, a branch of Laborers' International Union of North America, which pushed for the passage of Amendment 3, requested this week that Metro postpone planned procurement processes of the new policy until March 31. In making its case, the laborers union cited the need for a better-trained local workforce.

"While our organization affirmatively advocated on behalf of the passage of the Amendment 3 charter referendum, we agree with all interested parties on the need for a more expansive and better trained local workforce," Glenn Farner, business manager of the Southeast Laborers' Council, wrote in a letter to the Metro Procurement Office. "In addition, we want to ensure that all parties have an opportunity to work together to better understand the planned procurement practices and opportunities for improvement and common ground going forward.

"With that in mind, we would respectfully request that the planned procurement practices be held in abeyance until March 31, 2016 to provide an opportunity for discussion among the various representatives and coalitions that care about workforce development and/or that are interested in the implementation of Amendment 3.

"It is our hope that this process can be both pro-worker and pro-business," Farner concluded.

The Nashville Chamber of Commerce, former Nashville Mayor Karl Dean and Middle Tennessee contractor and building organizations all publicly opposed the measure leading up to the August election.

Jeff Gossage, Metro's purchasing agent, told The Tennessean that in recent weeks he's received feedback from about 60 entities — suppliers, chambers of commerce and others — either opposing the new rule, supporting it or simply asking for clarification. In an email Wednesday to all construction firms registered with Metro, Gossage relayed news of the policy's delayed rollout.

Earlier this month, state Sen. Jack Johnson, R-Franklin, a critic of the policy, filed a state bill that he says would prevent local governments from requiring a company bidding on a public construction project to employ individuals who reside within their jurisdiction. Johnson has warned that Nashville's local-hire rule would have a "chilling effect on the economic growth and development of this area and Tennessee as a whole.”

The state legislature is expected to consider the bill shortly after it reconvenes in January. Barry told The Tennessean last week that her goal is to create more local jobs on Metro projects even if the local-hire ordinance is overturned.

"I look at this as, whether or not the state moves forward in saying they're going to throw it away, I really believe that the voters sent a message to say there's a problem out there and we want you to solve it," Barry said.

Reach Joey Garrison at 615-259-8236 and on Twitter @joeygarrison.

Nashville's local-hire law, approved by voters on Aug. 6 by a 58 percent to 42 percent margin, will mandate that at least 40 percent of the workforce on Metro-funded construction projects be residents of Davidson County. It is to apply to projects that cost $100,000 or more. Its implementation date is now unclear.