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Report: construction’s racial and social equity challenges persist

By: Alex Visser//June 13, 2019//

Report: construction’s racial and social equity challenges persist

Alex Visser//June 13, 2019//

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Minority-owned businesses don’t get a fair shot when it comes to construction work in Oregon, according to an April report by the Minority Contractor Participation Equity Committee 鈥 a group of industry professionals and experts of various backgrounds. By sharing personal experiences, performing research and reading past news stories, the group found that despite state agency goals to increase workplace diversity, the status quo remains unchanged for many projects.

The committee was formed, co-Chairwoman Faye Burch said, after several stakeholders recognized that multiple segments of the construction industry were experiencing the same lack of diversity. This led her to ask for volunteers, who then formed the committee.

The group found that even with participation requirements that encourage industry groups to do business with minority-owned business enterprises (MBE), Oregon’s long history of resistance to inclusion is still present in several forms.

鈥淚 think it’s clear to see that disparities continue,鈥 said committee member Ranfis Villatoro, state policy coordinator for the BlueGreen Alliance, an organization dedicated to creating a clean environment and fair economy. 鈥淚t really does take a whole industry to stop and listen to tackle this problem.鈥

According to the report, some large, white-owned companies create smaller shell companies that either the owner or an owner’s wife run, potentially fulfilling certifications by counting as an emerging small business (ESB) or woman-owned business (WBE). For this reason, the report reads, ESB is an often known as the 鈥渆verybody ‘sept the brothers鈥 program.

鈥淭here’s not as strong a commitment to cultivate and to seeing them as vital parts of the construction industry,鈥 said committee member Roberta Hunte, an assistant professor at Portland State University specializing in gender and race studies. 鈥淐onstruction is a very competitive industry, and you don’t change the status quo without a commitment to cultivating what you want to see.鈥

Also according to the report, discrimination exists in unions and nonunion trade associations, which in the past have discouraged MBEs from joining. Usually there are costs associated with joining a union or association, which can keep newer firms from seeking membership, the report states.

Another problem, the group found, is the significant barrier to entry established by the network of industry professionals who have dominated the scene for decades. Well-established connections already exist between large industry partners, so it can be hard for smaller firms to break in and gain a reputation, according to the report. Those that do were often started by people who were previously part of larger firms and are well known. In this way, even companies that don’t intend to perpetuate systemic racism benefit from it, according to the report.

The report asserts that progress could be made toward equity if more authentic relationships could be cultivated, and suggests that most of the participants 鈥 from unions to individual companies to state agencies 鈥 have a role to play.

One method discussed in the report of achieving that progress would be via an increase of programs and education opportunities via unions, associations and industry firms 鈥 i.e., major companies interacting with and learning about smaller, minority-owned businesses. Establishing these connections, the report says, will go a long way in making sure MBEs have the chance to grow.

And expanding opportunities for minority contractors is a positive outcome for all involved, Hunte said. Retention has long been a problem for industry firms, she said. As far as government is concerned, fewer people need services and assistance if they’re working, she added.

While the industry is far from perfect, Hunte said there has been a greater focus on the importance of women and minorities in the workplace, and she credited Hoffman Construction and Multnomah County for helping spur efforts to hire more MBEs.

鈥淚 think we have a long ways to go,鈥 Hunte said. 鈥淏ut I think we are at a promising moment.鈥



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