The following are two articles from PAMCANI’s Collective Bargaining Committee Chairpersons Robert Lempa (for Local 501 negotiations) and David Ariano (for Local 93 negotiations) as published in our monthly association newsletter, “PAMCANI at Work,” (July, 2008 issue) providing a recap/perspective of our new union agreements, at the request of a number of contractors to allow the ability to copy and share with employees belonging to UA Plumbers Local 93 or UA Plumbers & Pipe Fitters Local 501.
Why A One-Year Contract with Local 501?
By Robert Lempa, Chair – PAMCANI (Local 501) Negotiations Committee
Be assured that the PAMCANI bargaining team thought long and hard about what will be best for our industry in the midst of a wide ranging downturn in construction and an alarmingly weak economy with no end in sight. On the plumbing side, unemployment amongst the Northern Illinois locals is hovering around 20%. At the same time, several home builders have filed for bankruptcy; non-union competitors are no less of a threat (and with lower overhead to boot); and fuel and material costs are rising to historic levels. The fact that several other area construction union contracts yielded sky-rocketing (and inexplicable) wage increases made it obvious that negotiations would be challenging.
Throughout our eight meetings with leaders from Local 501, PAMCANI’s team affirmed that a wage freeze would be sensible, a wage rollback would be appropriate, and any increase during these hard economic times and in the state of our trade is generous. Reality and common sense dictated that we hold firm to establish parity with the current Local 130 contract, which managed (thanks to the PCA’s bargaining team in 2007) to contain wage increases beneath the $3.00 mark. For both Local 501 (in a 1-year CBA) and Local 93 (for the first 2 years of a 4-year CBA), our goals were met.
As PAMCANI reported in the “Contractor Alert” released in conjunction with the ratification meeting results on May 31, the tentative agreement with Local 501 was reached on May 27. The offer for the one-year contract (June 1, 2008 to May 31, 2009), with no other changes but the $2.85 per hour increase, was proposed by Local 501, and accepted by PAMCANI. It should also be pointed out (as reflected in the Minutes) that immediately prior to accepting the union’s offer on behalf of PAMCANI, as our chair, I asked Local 501 to consider granting us several key requests (I referred to them as “benefits”) in order to meet an alternative wage package that the union’s chief spokesman had alluded to ($3.00 increases each year for a three-year contract) as we were heading into what turned out to be the final caucus session. Namely, PAMCANI had asked (as priorities) for Local 501 to accept the following: No Strike/No Lock-Out Clause (with IRC); Mandatory Drug Testing (with random and a MAP program), financed solely by our Industry Fund; the ability to schedule rank & file members to voluntarily work “Four 10’s” (meaning four 10-hour days at straight time, with three-day weekends) under language proposed by PAMCANI; the inclusion of the UA’s “Standard for Excellence” with implementation (and enforcement provisions) by a specific date; and for the 501 Pension Fund to Achieve a 10-Year Paydown of Unfunded Liability. We considered these measures to be meaningful as we strive to improve competitiveness and remain the best choice for construction users. But the Local 501 spokesman declined the other “benefits” I had referred to, and as a result, PAMCANI accepted the union’s contract settlement proposal. (It should be noted that every item on the “benefit list” I refer to was accepted or already in place for the new 2008-12 Local 93 CBA). Local 501 rank & file members voted overwhelmingly in favor of accepting the settlement (as offered by the union to us) at the union’s May 31 ratification meeting. The new 501 contract was also decisively ratified by the contractors at the May 31 PAMCANI meeting.
While I am satisfied that we successfully held the line on wages to maintain close proximity to Local 130, I have clearly and repeatedly stated that the wage increase for Local 501 members came with no additional value to our contractors. Our attempts for PAMCANI to gain the “benefits” mentioned above, as well as our requests to lower the overall crew costs through a “crew assistant” category and other provisions that we sought simply did not materialize either because there was a flat-out refusal to incorporate them from the union side, or because the progress that was being made came to a halt when Local 501 delivered the proposal that PAMCANI finally accepted.
(The Local 501 bargaining committee consisted of Assistant Business Manager Tom Andrews, who served as the union’s spokesman; Business Manager Larry Allport; Business Agents: Joe Blasing, Tim Doerr, Scott Roscoe; and JATC Training Coordinator Don Stunkel and Asst. Training Coordinator Frank Quattrocchi.)
As PAMCANI’s chair, I could not have had a more solid, united and focused group of colleagues at my side throughout negotiations. In my opinion, our bargaining team stood their ground, did their homework, and defended our constituents without fail – all in the best interest of our union industry. Together we demonstrated that now (and going forward) our union contracts must and will reflect the interests and status of our market and our members, regardless of what may occur for other organizations at their respective bargaining tables. I commend my colleagues: Lori Abbott, John Bali, Tom Bargiel, Dick Browning, Chuck Harding, Mike Mendel, S.J. Peters, Gary Rippentrop, Sr., (PAMCANI Alliance President), and Barry Thomas. This group will reform in less than a year to negotiate in good faith the next Local 501 CBA, with the aim of progress.
(Bob Lempa is founder and chairman of International Piping Systems of Schaumburg, Illinois, serves on the PAMCANI board, and is a past president of our association)
93 Negotiations Yield Four-Year Deal
By David Ariano, Chair - PAMCANI (Local 93) Negotiations Committee
It’s been said that “tough times don’t last; tough people do.” As we’ve seen before, that’s true. This industry provides us with our livelihood, but – like all construction – it’s certainly undergoing a difficult period. That said, we entered into bargaining with Local 93 in early May aiming to achieve an equitable contract and yet to simultaneously address ways for our contractors to better compete in spite of rising costs and the ongoing expansion of the non-union sector. For our trade to survive and eventually thrive again (as we expect it will), both sides from the start acknowledged the need to establish a positive and cooperative atmosphere at the bargaining table, and we acted accordingly.
The result is a four-year contract (June 1, 2008 – May, 31, 2012) that not only broke new ground, but will clearly be of value to contractors by now incorporating the UA’s Standard for Excellence (with implementation and enforcement to be negotiated by June of next year); by introducing Mandatory Drug Testing at all 93 shops (paid for through our Industry Fund, and utilizing random testing and a Member Assistance Program, a.k.a. “MAP”); and through the establishment of the No Strike/No Lockout clause (with the IRC, or Industry Review Committee to resolve disputes to avoid any work stoppage). The union also agreed to include language on background checks, and for an analysis of the Defined Benefit plan for a paydown structure for the unfunded liability. For its part, PAMCANI accepted proposed increases for supervision (.25 cents the first and second years, and .50 cents the third year); OK’d the clarified referral language (the employer will notify Local 93 of a new hire within 24-hours of the first day of work); new bonding amounts ($25k to $150k max); a 3-month probationary period for Metal Trades; affirmed that contractors will comply with members’ requests to take part in the 401k; will reimburse members for steel-toed safety boots, if required for a project, up to $80.00 with certain guidelines and time limits; and several other provisions. Both sides supported the notion of forming a Labor-Management Industry Committee to address the drug program and Standard for Excellence implementation, and to meet regularly to discuss issues and seek solutions to improve our trade and fortify relations between our association and the local union. The per-hour Industry Fund contribution by Local 93 contractors will change from .23 cents to .35 cents and will also apply to apprentices (included in this amount is the Drug Free Alliance, to finance the Mandatory Drug program). During the second year (2009), another .02 cents will be added to the Industry Fund.
As the headline of this article states, the new contract with Local 93 is for four years. The wage increases for years one and two are in close proximity to the Local 130 rates, which still come under $3.00 when the Industry Fund contributions are calculated separately (.12 cents additional in 2008 and .02 cents additional in 2009). Local 93 listed the wage increases as $3.00 and $3.00 for each of the first two years on the “Wage Schedule” that it released the day of our ratification (May 31). Admittedly, the third year ($3.20) and particularly the fourth year ($3.50) wage increases that PAMCANI agreed to were not made with ease. We carefully weighed these substantial numbers against what we considered to be major advancements that PAMCANI requested and that Local 93 honored. The two towering examples, in our view, are the “No Strike, No Lock Out” provision – which we firmly believe can only help our union industry by avoiding work stoppages – and the mandatory drug program. Both of these provisions are significant from a labor organization’s standpoint, and should not be taken lightly. These items, along with a meaningful list of mutually beneficial changes, warranted the four-year agreement at the wage rates that were agreed upon. At both the union’s ratification meeting on May 30 and the association’s ratification meeting on May 31, the settlement was approved through votes by a wide margin.
The Local 93 contract is considered favorable by numerous PAMCANI contractors, particularly thanks to much of the language related to service. Moreover, the previously existing option to schedule “4-10’s” (four 10 hour days at straight time as a voluntary practice) and the ability to utilize Metal Trades journeymen in various capacities, along with the additional changes will hopefully make the 93 CBA even more “user friendly.”
(The Local 93 committee consisted of Business Manager Lynn Karner, who was chief spokesman; Business Agents: Gary Glander, Pete Olson and Scott Spangle, who is also Local 93 President; and Board Members: Mike Graves, Dave Hankins, and Mike Keefe.)
In conclusion, I’m not suggesting that the wage increases be downplayed in any manner. The market in many areas of our industry is currently in bad shape, and the percentage of plumbers “on the bench” across our region is alarming. As Bob Lempa states in his article, one could reasonably argue that a rollback or a wage freeze would have been in order to match the economic times. The PAMCANI committee considered all options, and even proposed a one-year agreement to reflect parity with Local 130. However, be assured that our team considered the entire picture before making the decision to accept the settlement offer, and deemed it to be in the best interest of our contractors and our industry.
In closing, my sincere thanks goes to the PAMCANI constituency for your support, and also the fine bargaining team with whom I had the privilege to work: Lori Abbott, Allen Jensen, David Kerrigan, Dan Mahoney, S.J. Peters, and Tom Swartz.
(David Ariano is President of Ravinia Plumbing and Heating Co. of Highland Park, IL, is past president of the Lake/McHenry PHCC, and currently serves as 2nd Vice President of the PAMCANI Alliance)
Please free to print out, duplicate, and distribute to all interested parties
(including rank & file UA union members). For more information, contact PAMCANI
Executive Director S.J. Peters at 630-960-3970.
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