Workers who build affordable housing in Oakland could be guaranteed better pay, benefits, or local jobs under a policy the city is beginning to discuss.
City officials plan to meet with union representatives, contractors, and others in the housing industry in the coming months to explore what could be included in a “labor standards” policy for affordable construction.
If approved, the labor standards would influence what happens with hundreds of millions in public funds in Oakland. The city has more money available for affordable housing than it’s had in recent memory, thanks to Measure U, the $850 million infrastructure bond approved by voters in 2022. There are numerous housing projects waiting for a shot at those funds, which the city releases in batches.
On Tuesday, the City Council approved distributing $22 million in Measure U funds, all to projects in the city’s “pipeline”—projects at different stages of development that have previously applied for city support. The city expects to put out a notice of more available Measure U funds in September.
Council President Nikki Fortunato Bas and Councilmember Kevin Jenkins initially proposed requiring the city to pass a new labor policy for Measure U-funded projects before that next set of funds is released. Unions are some of the major supporters of strengthening work standards.
“We don’t want affordable housing to be built with labor and folks that can’t even afford to live in the housing,” said Andreas Cluver of the Building & Construction Trades Council of Alameda County, speaking at a previous city meeting.
At Tuesday’s City Council meeting, Bas and Jenkins presented a tempered version of the proposal, which states a “goal of” considering a new labor standards policy before the next round of Measure U funds, but not mandating its adoption. This version earned full support from the rest of the council.
Housing developers and city staffers push back
Affordable housing developers in Oakland have generally not been required to enter into the sort of labor agreements that could be required by a new policy. However, Alameda County’s Measure A1 housing bond requires local hiring and labor agreements for large developments. Last year, the city of Berkeley passed a policy requiring healthcare coverage and apprenticeship opportunities for workers on major projects.
Bas said it’s especially important for Oakland to consider a city policy because a massive Bay Area housing bond measure that’s in the works will not be able to include regional work standards.
Bas and Jenkins’ initial proposal received pushback from city staff, contractors, and affordable housing developers, who said officials should not let the process to create a labor policy delay the distribution of much-needed funding for housing. Oakland is behind on its affordable housing goals, and projects often take months or years to get off the ground because of the high cost of construction.
Developers often need to receive promises of city support before they can compete for money from the state—and these processes come with tight deadlines.
Ellen Morris of Eden Housing, an affordable developer, told the council that delaying the allocation of Measure U funds until a labor policy is adopted could “jeopardize” a state award given to their Liberation Park project. That project, a collaboration with the Black Cultural Zone, could bring affordable housing and a food hall to East Oakland, but it will depend on a variety of funding sources.
Oakland’s housing department had encouraged affordable developers to come to the City Council meeting to comment on the proposal.
“If passed, this policy will have significant ramifications on all projects in the affordable housing pipeline,” wrote Christia Mulvey, Oakland housing manager, in an email to developers who’ve applied for city funding.
Speaking with The Oaklandside ahead of Tuesday’s council meeting, Oakland housing director Emily Weinstein said she was concerned that the labor standards discussions could “hold up” the construction of housing, if the policy had to be in place before more Measure U money was distributed.
She said Oakland already has “substantial” labor requirements around wages for affordable projects, along with existing local business and local hiring policies.
With the resolution that ultimately passed, Bas said the idea is to “create some timeline and urgency for this discussion to happen” without stymying affordable housing.
Councilmember Janani Ramachandran asked Bas what will happen if September rolls around, and the next batch of Measure U funds is ready but no labor policy is in place yet.
“I honestly think we’ll have to cross that bridge when we get there,” Bas said.
Mixed opinions on labor standards
Developers, contractors, unions, and city officials have strong opinions about whether or not Oakland should adopt labor standards for affordable housing projects.
“Without these labor standards, construction workers are more likely to be subjected to inferior pay, no medical benefits, and inadequate training to do their job safely,” said Matthew Beeston, of the Nor Cal Carpenters Union.
Numerous labor groups, including building trades unions, are supporting Bas’ campaign for county supervisor, and Bas has a background in labor, having led the Partnership for Working Families (now Power Switch Action) before she was elected to the council in 2018.
In a letter sent to affiliates before the council meeting, the NorCal branch of the National Association of Minority Contractors said requiring labor agreements could exclude small and non-union construction firms that can’t afford the higher costs that come with such policies. A 2021 study by the RAND Corporation on a labor agreement policy in Los Angeles—some of the only existing research on the topic—found the policy significantly increased construction costs and reduced the housing units built.
“It is essential to recognize the value of a diverse and inclusive construction industry that provides opportunities for all qualified firms, regardless of their affiliation with building trades,” the letter said.
Some speakers at Tuesday’s council meeting added that Black workers are poorly represented in the trades.
Councilmember Carroll Fife replied that her father both benefited from his union electrician job, receiving a living wage to support their family, and experienced racism working in the trades.
Developing a work standards policy, with both unions and contractors as the table, is “an opportunity for labor to address the harms of the past,” she said.
