Southern California Cement Masons Joint Apprenticeship Committee v. California Apprenticeship Council

213 Cal. App. 4th 1531, 153 Cal. Rptr. 3d 448, 2013 WL 753469, 2013 Cal. App. LEXIS 154
California Court of Appeal·Decided February 28, 2013·No. No. A132892·Published·Cited by 16 cases

Opinion

Opinion

MARGULIES, J.

Appellants Southern California Cement Masons Joint Apprenticeship Committee and San Diego County Cement Masons Joint Apprenticeship Committee (hereafter the Existing Committees) operated the only state-approved apprenticeship training programs for cement masons in [1535] Southern California. In December 2008, real party in interest Southern California Laborers Cement Masons Joint Apprenticeship Committee (hereafter Laborers Committee) applied for approval of its own cement mason apprenticeship program. Once an apprenticeship program has been approved for a particular trade in a particular area, however, respondent California Apprenticeship Council (Council) can approve a new program only if the existing approved program has been found deficient or lacks the capacity or has neglected or refused to dispatch sufficient apprentices to public works contractors in the area.

The sponsors of the proposed new program submitted evidence that (1) public works contractors in Southern California employed cement mason apprentices at a lesser rate than required by the prevailing wage law, with many employing no apprentices at all and (2) the existing approved programs were graduating joumeypersons at a rate insufficient to meet the state’s estimate of demand for new cement masons in the area. Although the operators of the existing approved programs demonstrated they dispatched apprentices to local contractors whenever requested, they had taken little or no action to address the underemployment of apprentices in their area. On this evidence, the Council granted the application for approval, finding the existing approved programs both lacked the capacity and neglected to dispatch sufficient apprentices to local public works contractors. The trial court denied a petition for writ of mandate filed by the operators of the existing approved programs challenging the Council’s grant of the application for approval. We affirm.

I. BACKGROUND

A. Legal Background

California regulates programs for the training of apprentices in the construction trades under the Shelley-Maloney Apprentice Labor Standards Act of 1939 (Act) (Lab. Code,1 § 3070 et seq.; see Southern Cal. Ch. of Associated Builders etc. Com. v. California Apprenticeship Council (1992) 4 Cal.4th 422, 428-429, 433 [14 Cal.Rptr.2d 491, 841 P.2d 1011] (Southern Cal.).) Oversight of apprenticeship programs is vested in the Division of Apprenticeship Standards (DAS), one of five divisions within the Department of Industrial Relations (Department). (Southern Cal., at p. 433; §§ 56, 3070, 3073.) The Council is a public body consisting largely of DAS officials and industry and trade union representatives appointed by the Governor. The Council’s purpose is to “aid[] the Director [of Industrial Relations] in formulating policies for the effective administration” of the laws governing apprenticeship, including [1536] through the formulation of regulations establishing standards for apprentice working conditions and assuring equal opportunities in apprenticeship programs. (Southern Cal., at p. 433; see §§ 3070, 3071.)

The Act encourages construction industry trade unions and employers to create programs to train and regulate the employment of apprentices.2 (§§ 3075, subd. (a), 3076.) Such an apprenticeship program can apply for official approval by the DAS. (§ 3075, subd. (a).) Although DAS approval is not required for the operation of a program, “strong financial incentives” and other advantages are available to approved programs. (Southern Cal., supra, 4 Cal.4th at pp. 428-429.) Most importantly, only apprentices from approved programs are eligible to take advantage of the opportunities for employment provided by California’s prevailing wage law. Section 1777.5, the prevailing wage law provision relating to apprentice employment, requires contractors on public works to employ apprentices at a fixed ratio to journeypersons. (Id,., subds. (g), (i).) Such apprentices must be paid a specially set prevailing wage applicable only to apprentices (id., subd. (b)), and only apprentices from approved programs are eligible to receive this special wage (id., subd. (c)). As a result, only apprentices from approved programs can satisfy a contractor’s statutory duty to employ apprentices on public works. (See Associated General Contractors of America v. San Diego Unified School Dist. (2011) 195 Cal.App.4th 748, 761 [125 Cal.Rptr.3d 698].) In addition, financial subsidies for training are provided to approved programs, and an apprentice who completes an approved program obtains a certificate of completion naming him or her a stilled joumeyperson in the chosen trade, increasing his or her marketability. (Southern Cal., supra, 4 Cal.4th at pp. 428-429; § 1777.5, subd. (m); Cal. Code Regs., tit. 8, § 224.)

Once an apprenticeship program has been approved for a particular trade in a particular area, section 3075 gives the approved program significant protection from competition by other apprenticeship programs. (See Southern Cal., supra, 4 CalAth at p. 452 [“the only apparent purpose of [a regulation implementing an earlier version of section 3075] is to restrict competition among apprenticeship programs . . .”].) By statute, a new apprenticeship program can be granted approval only if “training needs justify the establishment” of the new program. (§ 3075, subd. (a).) In determining whether “training needs justify” the approval of an apprenticeship program, the DAS is guided by specific statutory criteria. (§ 3075, subd. (b)(1)—(3).) As would be expected, approval is justified if there is no approved program in the geographic area to serve the particular trade. (§ 3075, subd. (b)(1).) When an [1537] approved apprenticeship program already exists to serve the trade in the area, however, a new program can be approved only if the existing approved program has been identified as deficient by regulators or the existing program “do[es] not have the capacity, or neglect[s] or refuse[s], to dispatch sufficient apprentices to qualified employers at a public works site who are willing to abide by the applicable apprenticeship standards.” (§ 3075, subd. (b)(2), (3).)

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Southern California Cement Masons Joint Apprenticeship Committee v. California Apprenticeship Council, 213 Cal. App. 4th 1531, 153 Cal. Rptr. 3d 448, 2013 WL 753469, 2013 Cal. App. LEXIS 154 (Cal. Ct. App. 2013).

213 Cal. App. 4th 1531 (Southern California Cement Masons Joint Apprenticeship Committee v. California Apprenticeship Council) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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