The U.S. Department of Labor’s proposed overhaul of government-registered apprenticeship programs (GRAPs) has been quietly withdrawn by the White House. The nearly 800-page proposal had drawn mixed reactions from industry stakeholders.
The withdrawn rule, which was marked as “withdrawn” on the Office of Management and Budget’s website November 27, would have significantly altered regulations governing apprenticeship programs in the construction industry. The proposal drew both criticism and praise from industry groups like Associated Builders and Contractors (ABC), who said it would limit flexibility in the job training programs they offer and restrict training programs from expanding.
“ABC fully supports government-registered apprenticeship programs as a key component of the construction industry’s all-of-the-above solution to upskilling the more than half a million new workers needed in 2024 alone, but the DOL’s proposed apprenticeship overhaul was out of touch with the needs of employers and apprentices, and was a missed opportunity to modernize and expand the apprenticeship system,” said Ben Brubeck, ABC vice president of regulatory, labor and state affairs.
According to ABC’s survey of stakeholders, the proposed changes faced significant opposition within the industry.
“Feedback from ABC’s GRAP stakeholders on the proposed rule was overwhelmingly negative, with 94% of respondents stating that the proposal would increase the costs of participating in or sponsoring a GRAP and 90% saying they would be less likely to start their own GRAP as a result of the DOL’s proposal,” Brubeck noted.
The organization identified several critical issues with the proposed rule, including what it viewed as structural problems that would have impacted the industry’s ability to train new workers. Brubeck pointed out that the proposal “would have reduced flexibility by replacing competency-based GRAPs with time-based GRAPs, eliminated state governments’ ability to approve apprenticeship programs for new occupations needed to keep up with the modern economy and incorporated dozens of expensive new recordkeeping and administrative requirements.”
The financial impact of the proposed changes would have been substantial, with DOL’s own analysis suggesting costs of “$1.3 billion over the next 10 years,” according to Brubeck.
“The Biden DOL’s proposal failed to fully address ongoing challenges with the GRAP system, including efforts by unions and their state government allies to suppress new GRAP approvals and restrict taxpayer-funded contracts and grants to only businesses and GRAPs affiliated with certain unions,” Brubeck said.
Current data shows the existing apprenticeship system faces significant challenges, he added.
“ABC’s analysis of government data indicates that GRAPs are struggling to meet the construction industry’s workforce needs, with just 250,000 apprentice participants and 45,000 apprentice graduates in fiscal year 2023,” Brubeck said.
ABC continues to pursue workforce development through various channels. John Mielke, ABC senior director of apprenticeship, highlighted that “ABC and its chapters are educating craft, safety and management professionals in construction using innovative and flexible learning models like just-in-time task training, competency-based progression and work-based learning, in addition to more than 450 federal and state GRAPs in over 20 occupations across America, in order to develop a safe, skilled and productive workforce.”
Earlier this year, when the rule was still being proposed, the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) and ABC had issued statements with different perspectives on the proposed changes. SMACNA and the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) had previously submitted joint comments on the proposed rule, viewing their joint RAPs (Registered Apprenticeship Programs) as the “Gold Standard” for workforce development and training, according to SMACNA documents.