Running updates on the status of negotiations (Oct. 18 through Dec. 30, 2007)
From Concretepumping
DECEMBER 30, 2007
Updates on IUOE 302 concrete pumpers negotiations
Summary on the membership’s vote on the contract proposal from Brundage Bone, Pacific and Ralph’s:
The voice of our membership was heard today. The employers’ proposal was seen by the membership for what it is -- a clear attempt to further degrade those working in the pumping industry for another six years.
The vote against the proposal was nearly unanimous among the pumpers at two companies, and it was rejected 2-to-1 by pumpers at the third.
We remind all members that if anyone who is management attends your Union meeting and then threatens your job based on your comments or your choice in voting, you should make the Union aware immediately. That is likely to be both a violation of Union by-laws and of federal labor laws, no matter where it happens -- even if the violation occurs in Tacoma. Anyone found guilty of violating the Union by-laws faces possible expulsion from Local 302.
Stewards at all companies signatory with Local 302 should be made aware that Brundage Bone, Ralph’s and Pacific are only under contract until Monday, December 31, 2007.
DECEMBER 28, 2007 (late)
The Union met with attorney John Payne today until about 7 p.m. this evening. He offered a contract that we feel is a complete slap in the face. Here are the low lights:
1. He offered a six-year contract with the last three years based on the AGC agreement. He said that pumpers would receive the same percentage increase as the AGC, but did not define how that would be determined -- Percentage of Group 4? Percentage of Group 1AA? He couldn’t say.
2. It takes away your Section 7 right to honor a picket line; the same right every single non-union person in this country has.
3. It offers no overtime pay until you reach 40 hours in the week.
4. It still has Yard Pay at $13.50 per hour, as it did 7 years ago.
401(k)s vs. Defined-Benefit Pensions
(Dec. 21 entry from Local 302’s Blog at www.iuoe302.org)
Last week, the U.S. Government Accountability Office released a report explaining how grim the retirement outlook is for today’s teenagers. More than one out of three American workers born in 1990 will have zero dollars in a 401(k)-style savings plan when they reach retirement age, the report said.
Why? When you’re young, you aren’t thinking about retirement. You’re thinking about what you’re doing that weekend – or who you’re doing it with. That explains why, as the GAO report points out, many young people don’t contribute to employer-matched 401(k)s when they have the opportunity. It comes out of their paychecks, and that means less this weekend. Even those who do contribute to 401(k) savings plans often pay the tax penalty and take that money out at some point, the GAO report says.
One day, these young people are going to hit retirement age and wonder why they can’t afford to stop working. Even if all the promises of Social Security are kept -- and that’s a big “if” -- that money was never intended to enable retirement, it is just to supplement retirement plans and try to keep seniors out of poverty when they can no longer work.
Which brings us to an issue many U.S. workers have confronted and some still confront, including concrete pumpers at Operating Engineers Local 302. Employers like 401(k) savings plans and hate defined-benefit pensions. The reason is simple, 401(k)s are cheaper for them. And thanks to the declining unionization rates in the U.S., employers have largely succeeded in replacing defined-benefit pensions, which guarantee you get money as long as you and sometimes your spouse live, with the cheaper 401(k) plans.
Pensions guarantee your retirement. 401(k)s might enable you to stop working… for a while. Which is smarter for concrete pumpers? The unique contract for Local 302 concrete pumpers -- which expires Dec. 31 -- includes two separate sets of benefits. “Unit A” workers participate in the Union’s defined-benefit pension plan, with the employer contributing the entire amount. “Unit B” gets a 401(k) savings plan instead, and after several years, the employer will match a percentage of the money that the worker diverts from his or her paycheck into the plan.
For the boss, the choice is easy. At Ralph’s Concrete Pumping, for example, it’s the difference between paying $0.38 an hour -- or less -- toward Unit B retirement benefits after a worker has been with the company for six years, and paying $4.20 an hour for a Unit A worker from Day 1.
Well, duh!
For the employee, the choice can be more difficult.
5. No meal provision.
6. It still contains 90% for private works. That means they can take your wage increases, and then some, if they wish.
7. Same apprenticeship language.
8. Vague guidelines for health care increases. (The employer identified their current fringe as $3.71 per hour.)
9. This proposal still expires in December 2013.
10. It pays Unit A employees approximately $2 less in the first year and more than $3 less in the third year. The union strongly recommends that you turn down this agreement. The choice is yours. If it fails, John Payne’s clients -- Brundage Bone, Ralph’s and Pacific -- will have an opportunity to make a better offer. If they opt not to make a better offer then those employed for those companies will not be covered by a union agreement. You will not be asked to strike. These companies will simply be non-union.
DECEMBER 28, 2007
The Union will meet with John Payne at 1 p.m. today. We still hope to have a proposal by Sunday from John and his clients, Brundage Bone, Ralph’s and Pacific. Conco and Luchts have received our most recent proposal and have yet to respond.
Reminder: There will be a concrete pumpers meeting this Sunday at 9 a.m. at the Bothell Hall. Bring your dues card, you will need it for admission.
Please stay tuned for further updates. It is our intent to put the proposal or at a summary of any proposals on the Web site. It may be late tonight or even Saturday morning. DECEMBER 26, 2007
The Union received a fax on Friday, Dec. 21 from attorney John Payne’s office -- he is negotiating on behalf of Brundage Bone, Ralph’s and Pacific -- stating that they still haven’t quite gathered up all the information regarding a Unit B proposal. The simple question, “How much is your offer actually worth?” apparently has lead to some serious head scratching on the part of John Payne’s clients. Hopefully, for all parties, we will have something worth voting on at this Sunday’s 9 a.m. concrete pumpers’ meeting at the Bothell Hall. Bring your dues card, you will need it for admission.
In the meantime, the Union will continue negotiating with Conco, Luchts and anyone else not affiliated with John Payne. Other companies will have less difficulty defining Especially when the boss is doing his best to convince them to do what’s cheaper for the company, as the pumping firms have.
Here are a few things for pumpers – and anybody else considering a similar decision – to think about:
1. What does your gut say? Will less of your employer’s money added to your money deducted from your paycheck and put in a savings account (minus fees and market fluctuations) end up making you better off than getting more – much more – of your employer’s money invested in a guaranteed retirement? Hint: it won’t.
2. Do you know how long you’ll live? 401(k)s are savings accounts that run out. Pensions last until you die, you cannot outlive their benefits.
3. Are you an investor? The pumping companies say one of the benefits of the 401(k) is controlling your investment. But study after study shows that pension investments outperform 401(k) plans. The Center for Retirement Research at Boston College studied investment data from 1988 to 2004 and found that defined-benefit pension plans outperformed 401(k) accounts by a full percentage point. The study blamed the higher fees charged by 401(k) plans and the participants themselves for not following prudent investment strategies.
4. Have you ever heard of anybody retiring on a 401(k)? Well? Have you? If you want to meet somebody who has retired with a pension, just come to a Union meeting and talk to one of your Union’s many proud members who are enjoying a secure retirement – one they don’t have to worry will end if they have the misfortune of living too long.
5. Consider the source. Do you think your employer cares whether you retire comfortably -- and permanently? No. It’s all about what makes you cheaper.
But what about your Union? Why would we try to convince you to choose a pension over a 401(k)? Do we get more dues money if you do? No. The truth is that we are working people just like you who have seen the benefits of a secure retirement, and we want what’s best for all of our members.
But we know there are cynics out there who think the Union must have some other angle. We do. Unit A vs. Unit B creates an unlevel playing field between concrete pumping companies. It also creates division within those companies. The whole point of a Union contract is to get the best possible uniform set of wages and benefits. The point is to stick together, so we have more strength at the bargaining table. Two-tiered contracts create an incentive for employers to favor the cheaper workers and to eliminate others. It allows them to divide the workforce, which weakens Union solidarity.
What do you think?--
David Groves, IUOE 302 Communications Director 401(k)s vs. Defined-Benefit Pensions their offers since they are using a dollar amount instead of a percentage. Plus, their total package is a defined number and not a moving target dependent on variables like 401(k) s, whether an operator has worked there enough years to get any company contribution, and whether those that do qualify opt to deduct money from their wages to receive that company contribution.
Stay tuned.
DECEMBER 21, 2007
On Tuesday, Dec. 18, attorney John Payne still did not have the information needed to accurately define his clients’ proposal. He said he would have the information by Friday and would call us on Thursday to advise us if there would be negotiations on Friday.
Local 302 called Thursday at 4 p.m. to inquire what the status was and got John’s voice mail. A message was left requesting a return call in regards to this. At this time (Friday at 1 p.m.) there has been no reply. John indicated that defining his clients’ proposal may be very difficult. Stay tuned.
DECEMBER 19, 2007
Yesterday, Local 302 met with John Payne, the attorney representing Brundage Bone, Ralph’s and Pacific. He has still not determined the specifics of the increase that will be offered by his clients. He said he hopes to have all the relevant information by this Friday, Dec. 21. He will let us know by Thursday.
John did, however, clarify one issue. He said Brundage Bone matches union members’ 401(k) contributions dollarfor- dollar up to 7%. He said the document provided to the union per our information request was only meant for nonunion employees of the company, who apparently get 50 cents on the dollar. He said the company would provide us a written clarification of this policy. When we get it, we will post it on our web site. Local 302 advises that all Brundage 401(k) participants print and save a copy, and that they always check their statements carefully.
Members should mark their calendars for our next meeting on Sunday, Dec. 30, 2007, at 9 a.m. at the Bothell Hall. We hope that all companies have provided offers by that time. If you have questions, contact Chuck Campbell at 1-800-521-8882 ext. 118.
DECEMBER 18, 2007
At the concrete pumpers’ membership meeting held Dec. 16, a contract proposal was presented to Local 302 members employed at Conco and it was rejected. The biggest issues appear to be the elimination of 90% for private works, and not enough money.
Some expressed concerns at the meeting that Local 302 was not allowing the membership to vote on a proposal by any of the other companies. There have been no proposals from those companies to vote upon. We hope all companies have proposals to vote upon by our next meeting on Sunday, Dec. 30, 2007, at 9 a.m. at the Bothell Hall. Please mark your calendars and make plans to attend.
During the presentation last Sunday, some in attendance questioned the staff’s assertion that Brundage Bone has to contribute just 50 cents for every dollar Unit B members contribute into their 401(k). Click here to see the company’s own 401(k) description verifying the 50-cent obligation (we highlighted the applicable section). If Brundage is actually paying more, that is nice, but members should be aware that the company is not required to do so.
We will meet with John Payne today regarding Brundage, Ralph’s, and Pacific, and we’ll continue to keep you informed. Stay tuned.
If you have questions, contact Chuck Campbell at ccampbell@ iuoe302.org or give him a call at 1-800-521-8882 ext. 118. The existing pumper contracts, which expire December 31, are posted here.
DECEMBER 14, 2007
The good news is that we are close to an agreement with Conco Pumping that eliminates the two-tiered pay system of Unit A vs. Unit B employees and includes many of the other pay and working condition improvements sought by members. The bad news: a counterproposal presented to us yesterday from Brundage, Ralph’s and Pacific offers significantly less and retains the divisive two-tiered pay system, so we don’t yet have a proposal from those companies that the Union can recommend.
All Local 302 members employed by concrete pumpers: There will be a 9 a.m. meeting this Sunday, Dec. 16 at the Union Hall in Bothell. Bring your dues card, you will need it for admission to the meeting. There will be a vote. THE TENTATIVE AGREEMENT WITH CONCO
We wish to thank Mike Cusak for his efforts in achieving a Conco proposal we can vote on prior to the Dec. 31 expiration of the current contract. We believe this agreement represents fair middle ground in the effort to eliminate the large disparity between signatory pump companies’ contracts. It would benefit members, but it also would allow contractors to compete on a level playing field based on the quality and efficiency of their work, as opposed to who can pay one group of workers significantly less than others doing the same work.
The difference in the Master Agreement (MA) and the current Unit A rate is approximately $6.45 per hour for a 52-meter pump and $10.63 for a line pump. For Unit B Employees, the differences are huge: $10.72 for a 52-meter and $14.91 for a line pump, if they were making a full contribution to their Unit B fringes, and $14.24 and $19.43, if they are not making any fringe contribution. If we attempted to achieve parity between the Conco agreement and the MA with this one contract, Unit A employees would receive a smaller percentage increase than the MA, but Unit B would receive a much larger percentage increase.
The tentative contract we have negotiated with Conco calls for a $5.29 increase (13.6%) over three-and-a-half years. For Unit B employees to make the transition to this agreement requires a $12.00 increase (37.3%) over the same time period, the bulk of which would be in the first year. Other gains include:
-- Expires in May, not in January
-- Subcontractor provisions
-- Overtime after 10 hours per day, instead of 40 hours per week only
-- Fringe benefits paid on yard time
-- $5.00 per hour yard pay increase
-- Shortened trainee period from 6,000 hours to 2,000 hours.
-- Other gains in show-up pay, hours of work and overtime.
-- Penalty for missed or late lunch For Conco and Lucht’s to stay viable in the Puget Sound they both need to be competitive. We feel this is a fair contract and hope those of you asked to vote on it will ratify it with a YES vote. We also hope that if you are asked to vote on a lesser agreement, you will vote NO. BRUNDAGE, RALPH’S AND PACIFIC COUNTERPROPOSAL
The Union met with attorney John Payne representing Brundage, Ralph’s, and Pacific on Dec. 13. He presented a counterproposal that retained the divisive, two-tiered Unit A vs. Unit B pay system. It also seeks to take away pumpers’ federal rights to honor other trades’ the picket lines. In other words, this counterproposal is all about dividing workers, as opposed to creating a fair and level playing field among contractors.
The counterproposal also failed to address paying overtime other than beyond 40 hours a week. It seeks to lock in another long-duration contract (6 years) and expires again on Dec. 31. They propose to leave the yard rate frozen for six more years – through 2013 -- at the same rate it was negotiated in 2001. Yard rate also would not include benefits to be paid on the person.
The carrot they offer is a 6% increase to the total package the first year, 5.51% the second year and 5.18% the third. Unit A employees would get from $1.89 to $2.34, depending on their job classifications, while they could not define how much 6% would mean for Unit B employees because everyone’s benefit costs are different. In other words, they are hoping members will look only at the percentage increase, and ignore the divisive setbacks the counterproposal also includes. A TALE OF TWO PROPOSALS
The existing two-tiered pay system creates an incentive to discriminate against higher-paid Unit A employees by unfairly rewarding cheaper Unit B workers with better pumps, better hours, etc. This two-tiered system of “haves” working beside “have-nots” creates internal hostility and morale problems and runs counter to the basic Union principles of unified collective bargaining. And that’s why members have told us in their surveys and at meetings that Unit A vs. Unit B has got to go.
The Brundage, Ralph’s, and Pacific counterproposal retains that divisive system. Although it represents an 16.69% increase in overall compensation, it achieves none of the other goals in conditions that members are seeking. Plus, it attempts to take away pumpers’ right to show Union solidarity with other trades when they are forced to picket a job site.
The Conco proposal eliminates the two-tiered pay system and represents a 37.3% increase for Unit B members, a 13.6% increase for Unit A, and achieves many of the gains in overtime pay, yard pay, show-up pay and other conditions that members are seeking.
There are strength in numbers, and if you think one contract and one pay system is in the best interest of the whole, there has never been a better time to fix this broken system than now. One contract means we work together and not against each other.
We’ll see you Sunday at 9 a.m. at the Bothell union hall.
DECEMBER 7, 2007
Since our last update, the negotiating team has scheduled a meeting with Attorney John Payne, who represents Pacific Concrete Pumping, Ralph’s Concrete Pumping and Brundage Bone. It is scheduled for Dec. 13 at 9 a.m. The rumor mill is churning out product at a fever pace. It isn’t worthwhile to address any specifics. If your employer is posturing about different means of accommodating your potential absence after the first of the year, some of the things they may have said could be Unfair Labor Practices.
Indicating that you will no longer be employed could be intimidation, trying to influence you may be direct bargaining. Both could be a violation of federal law.
Please take notes of any contact you have with management that you feel is an effort to influence you or intimidate you to vote for an inferior contract. Email your notes (preferably in Word format) to ccampbell@iuoe302.org or call him at at 1-800-521-8882 ext. 118 to make other arrangements to get them. Thank you to those of you who have already provided such notes.
It is also worth remembering that the employers represented by John Payne have terminated their agreement with Local 302. If they didn’t want a contract with you, they wouldn’t be negotiating at all. Like hundreds of other employers signatory with Local 302, they wish to be a favorite choice of contractors who are signatory with the Local. Unlike hundreds of other contractors, they are hoping to contribute to an inferior fringe package. NO ONE SIGNATORY WITH LOCAL 302 PARTICIPATES IN TWO SEPARATE FRINGE PACKAGES SIMULTANEOUSLY except concrete pump companies. The current contract was a means to organize these companies. Now it is time for them to participate on one level playing field. You can make that happen with your vote.
Remember we have a meeting scheduled for all concrete pumpers on Sunday, Dec. 16 at 9 a.m. at the Bothell Union Hall. Bring your dues card, you will need it for admission to the meeting. There will be a vote, you should receive a notice by mail soon. Let your fellow concrete pumpers know. Remind them that they will not be voting if they are suspended or not a member.
We meet Monday with Conco. If we have a proposal, it is our intent to get it on this web site so you can review it prior to Sunday’s meeting. Check back frequently.
DECEMBER 4, 2007
All Local 302 members employed by concrete pumpers: Please plan to attend a meeting at 9 a.m. on Sunday, Dec. 16 at the Union Hall in Bothell. Bring your dues card, you will need it for admission to the meeting. There will be a vote. Meanwhile, here’s the latest on the negotiations: Negotiations with Conco scheduled for Dec. 3 were rescheduled for Dec. 5. Attorney John Payne, who represents Pacific, Ralph’s and Brundage, has made no attempt to schedule more negotiation dates. Brundage has still failed to respond to the Union’s request for information -- made way back on Oct. 22 -- regarding the costs of fringe benefits for its Unit B employees.
Meanwhile, the companies are busy trying to convince you that less money for your retirement is better for you… THE TRUTH ABOUT 401(k) VS. DEFINED-BENEFIT PLANS
Operating Engineers employed in the concrete pumping industry recently received information with their paychecks regarding the benefits of a 401(k) over a defined-benefit pension plan. Here are some facts that seem to have been omitted: The employers prefer the 401(k) because it makes you cheaper. It’s the difference between them paying $0.38 an hour -- or less -- toward your retirement in Unit B, and them paying $4.20 an hour in Unit A.
According to data from Ralph’s, Unit B employees contribute anywhere from 0 to $100 per week to their 401(k). That money is deducted from their wages. The most the company will contribute is $15 per week, which is 38 cents an hour over 40 hours. For every hour past 40, that 38 cents shrinks in value. And even that is not guaranteed. The 401(k) plan’s literature reads, “Ralph’s Concrete Pumping MAY at its discretion, make a Profit Sharing and/or Employer Matching contribution for a given year.” Finally, you only get the $15 per week if you are 100% vested, after six years with Ralph’s.
Pacific has similar vesting but contributes twice as much, approximately 75 cents per hour. But still, compare that to what Unit A employees get. Unit A employees earn $4.20 per hour contributed to their defined-benefit Union pension plan. Whether they work 40 or 60 hours a week, it is always $4.20 per hour. That is money above and beyond their wages, contributed to their pension on their behalf by their employer. In other words, the employer WILL contribute. The employer has made a commitment.
As for the issue of portability… yes, the money you divert from your wages into the 401(k) is undeniably portable. But the vesting time is not. Time spent at one pump company under the Unit B plan, does not help you at the next pump company. If you switch employers (which is common in this industry), you start from scratch working toward your 38-cents-an-hour benefit after six more years. Unit A employees for all of the different signatory concrete pumping companies -- or any one of 400-plus other Union contractors in other industries -- work towards the same vesting. In the Union plan, you are 100% vested after five years or 7,500 hours, whichever comes first. If you work 50 hours a week for three years, you would have 7,800 hours, and you’d be vested. Permanently. Even if you switch to a job with another Union contractor.
THE BOTTOM LINE: TWO TIERS HAS GOT TO GO The Union has made it clear to all concerned that a level playing field is in the interest of the entire industry. The two tiers of Unit A vs. Unit B create uneven playing fields between companies. It also establishes uneven playing fields within companies. Unit B companies have an incentive to discriminate against Unit A employees by unfairly rewarding cheaper Unit B workers with better pumps, better hours, etc.
This two-tiered system of haves working beside havenots is a recipe for internal hostility and morale problems, it runs counter to the basic Union principles of unified collective bargaining, and it has got to go. If you have questions, contact Chuck Campbell at ccampbell@ iuoe302.org or give him a call at 1-800-521-8882 ext. 118. The existing pumper contracts, which expire December 31, are posted here.
NOVEMBER 17, 2007
Local 302 met with the management of Conco Concrete Pumping on Nov. 13 and presented the employer with a complete proposal. We hope to hear their response around Nov. 26, likely via e-mail. Both sides agreed there was a lot of work to be done, but we left with optimism. We meet again on Dec. 3.
Attorney John Payne, who represents Pacific, Ralph’s and Brundage, met with our bargaining team on Nov. 16 in Bothell. We presented him with the same proposal as we presented to Conco, and he said his clients are happy with the current two-contract arrangement. After our laughter subsided, we made it clear to Mr. Payne that the Union is dedicated creating a level playing field for all contractors in the pumping industry.
Based on conversations with you and information gathered from other sources we believe the difference between the Units A and B is $5-$6. We could illustrate this for the membership and the employer more clearly were they to respond to our request for information. Back on Oct. 22, we asked for information from all employers, and requested a response by Nov. 15. Much of it involved the company’s costs for the Unit B fringes. Luchts and Conco were not required to provide Unit B information because they have no Unit B employees. It appears Luchts and Conco have complied with this request. Pacific complied with most of it, but when asked to provide a list of all the members who have participated in the company’s 401(k) and a list of those who have vested in it, they were unable to comply. Mr. Payne indicated that Ralph’s and Brundage were having difficulty providing the same information. We asked that they keep trying and repeatedly asked for a new date by which we could expect to see this information and that which was already compiled by Ralph’s and Brundage. Mr. Payne would not specify a date, which was disappointing to say the least. Hopefully he can get the bulk of the information together soon so we can shed some light on why the employers seem so happy with the two-contract scenario now in place. Many have asked about the next time we will meet as a group. We are not sure at this time. Based on our scheduled negotiating dates, we ask that you keep Sunday, Dec. 16 open on your calendars. By then we should have a clearer picture of how things are going. Stay tuned to this site for further information on a firm date and time. Continue to encourage other 302 members to stay informed. Thank you. If you have questions, contact Chuck Campbell at ccampbell@ iuoe302.org or give him a call at 1-800-521-8882 ext. 118. The existing pumper contracts, which expire December 31, are posted here.
NOVEMBER 1, 2007
There have been no formal negotiations as of yet, but we have tentative dates with both Conco and Lucht’s and hope to set dates with the rest ASAP. In our conversations to date, these two companies have expressed an eagerness to begin negotiations, and appear to share our commitment to a level playing field.
The negotiating team has conferred with other Locals to determine possible tweaks or strategies in negotiations. Thank you to all of you who have contacted us with your information regarding the negotiations. Though these negotiations may become contentious at times, we hope to build a stronger relationship between labor and management and build a prosperous future for both sides. Much of the information Local 302 members have shared with us allows for cautious optimism. We will keep you posted. If you have questions, contact Chuck Campbell at ccampbell@ iuoe302.org or give him a call at 1-800-521-8882 ext. 118.
OCTOBER 18, 2007
The concrete pumpers’ meeting held Sunday, October 14 was well-attended and the staff appreciates the members’ viewpoints and encourages their continued participation. If you were not there, Local 302 has received many of the pumpers’ surveys indicating which issues are their priorities for contract negotiations.
Check this web site often to stay informed as these important negotiations progress. We will keep you posted of any developments. And please encourage your Brothers and Sisters in the pumping industry to do the same. Stay tuned. The existing pumper contracts, which expire December 31, are posted here.
If you have questions, contact Chuck Campbell at ccampbell@ iuoe302.org or give him a call at 1-800-521-8882 ext. 118.
