New BEAD Policies Strip Labor Standards, Fiber Preference

__________________________

CWA Loxal 1103 leadership has been talking about this threat since the November election, and we have asked you to take action to fight for your job security.  Many of you did.  Thank you. Unfortunately, the threat became a reality.  
 

On Friday, the National Telecommunications and Information Administration, responsible for administering the BEAD program, issued a new Notice of Funding Opportunity (NOFO) to completely rewrite the rules of the program, remove labor standards, and eliminate the program’s preference for fiber technology, opening the door for significant expansion of satellite. The BEAD program, as part of the bipartisan infrastructure bill, was created to fund the deployment of high-speed broadband to un- and underserved areas. See CWA’s statement condemning Commerce Secretary Lutnick’s policy change here.

The NOFO removed the section titled “Fair Labor Practices and Highly Skilled Workforce,” which outlined the labor standards applicants must meet. It also takes a “technology-neutral” approach, meaning that fiber projects no longer get inherent priority. Instead, applications will be compared based on cost, disadvantaging high-road and union employers and encouraging the use of low-road subcontractors. Not only does it remove these labor protections, but it seemingly also prevents states from implementing their own versions of labor standards and fiber preferences - unless they apply for and are approved for a waiver. 

This is a major setback – Louisiana, Delaware, and Nevada (states that almost had shovels in the ground) had their approvals rescinded, and all states now must reapply to the NOFO and rebid “noncompliant” projects. While we’re still figuring out exactly what the changes mean for our states, there is no doubt that these changes will make it much harder for our employers to win this work and will encourage contracting out of work. 

We will keep everyone updated as we better understand the implications and what we can do to fight back.