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IUOE Local #487

1425 NW 36th Street

Miami, FL 33142

305-634-3419 Phone

305-634-4314 Phone

305-633-0698 Fax

info@iuoe487.org

Newsletter
3rd Quarter 2008

The best news I can bring you in this report is that the present administration in Washington will soon be leaving office. They will leave with our economy in shambles; our military overextended and exhausted; our reputation and honor as a nation desecrated; our Constitution defiled; and our civil liberties eroded. They will leave more children without health care; more poverty; more homelessness; more debt; more trade deficit; more foreclosures; more unemployment; more pollution; more work related injuries, illnesses and fatalities; and, oh yes, more record breaking profits for the oil companies. We cannot afford to continue on with more of the same failed policies. We need a drastic change of political course, whereby the government serves the needs of all the people, not just a privileged few.

The U.S. unemployment rate in May jumped to 5.5%, the biggest one month jump in 22 years. We have lost 324,000 jobs since the beginning of the year. The construction industry has been hit hardest, with nationwide unemployment at 11.1% as reported by the Bureau of Labor Statistics in a report released May 2nd. I don’t think I need to tell anyone in the South Florida area that a precipitous decline in building construction has taken place in the last six months. Hopefully, the next administration in Washington will recognize the need to focus our national efforts on redevelopment of our aging infrastructure and set an energy policy which will free us of fossil fuel dependency and put our nation back to work.

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Construction Work Forecast

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City of Stuart

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Tarmac America

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Pipeline & Power Plant Work

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Organizing

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Apprenticeship, Training & Safety

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Health Care

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Pension

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Closing


Construction Work Forecast

The forecast remains gloomy in the building construction industry. The sub-prime lending debacle, a direct result of unregulated lending practices, will be with us for a long time. Housing values, especially condominium housing, have depreciated at record levels. Many families hold mortgages which exceed the present value of their homes. Many others are stuck with home equity loans which exceed the value of their homes. In the shadow of a recession, commercial building construction is also on the decline.

On the bright side, in the long term, I see rising demand for new and more efficient energy systems and construction of mass transportation systems providing many of the jobs lost to the slump in the building construction industry.

There is little new to report regarding the anticipated $914 million tunnel project in Miami, and the $525 million Marlins baseball stadium. Although construction on the stadium is tentatively scheduled to begin in November, a lawsuit filed by auto dealer Norman Braman challenging the constitutionality of the funding for both projects is likely to delay or may even halt both projects.

Rental work in the crane and earthmoving industries remains weak. Most contractors are holding on to their employees, but hours have been reduced and there have been few calls for new employees.

Foundation work is still slow relative to the recent past, but considering the economic circumstances in the building industry, the foundation companies are doing well.

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City of Stuart

As was reported in the last newsletter, the Stuart City Commissioners rejected the recommendations of the Special Magistrate, who supported the Union’s position opposing the “bonus scheme.” Instead, the Commissioners imposed the terms of the contract recommended by the City Manager which moved annual merit pay increases from the traditional increases in basic wages, to an annual “bonus” for an exceptional evaluation. This change will have a negative effect on pension benefits, since only basic wages but not bonuses are considered by the FRS in determining pension benefits. Additionally, the bonus will not be compounded into the following cost of living allocation (COLA). Unfortunately, when we received the City Attorney’s version of the agreement, there were changes in the language whereby, in our opinion, the City had reneged on some important Union proposals with which it had previously agreed. After much delay, we were able to compromise on some of the disputed issues, at least enough to bring the contract to a ratification election. The proposal was ratified by the bargaining unit on June 24th. The agreement is effective through September 30, 2010.

Any City of Stuart bargaining unit member who is facing what they believe to be unjust disciplinary action should contact Steward Rick June immediately. There are time limitations on the submittal of grievance notice to the employer. Once the time period has elapsed, a grievance can no longer be submitted. As I have previously mentioned, it is of utmost importance if you have an accident, or if there is an incident for which you believe you may be the subject of disciplinary action, that you document in detail the issues surrounding the incident as soon as possible. Remember, if you believe that you are going to be the subject of disciplinary action, call Rick June or this office immediately.

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Tarmac America

A panel of judges from the 11th U.S. District Court of Appeals lifted the injunction ordered by U.S. District Judge Hoeveler regarding mining operations in western Miami-Dade County. The Court of Appeals remanded the case back to Judge Hoeveler for further consideration. This was good news for Tarmac, since much of its mining operations had been halted by the injunction.

Our current contract with Tarmac requires the posting of full-time job openings on bulletin boards at all plants employing operating engineers. Bid notices are to be displayed for five working days from the posting date indicated on the bid. If you are interested in filling a position, you must keep an eye on the bulletin board and respond to the bid request within the five-day window of opportunity.

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Pipeline & Power Plant Work

Latex Construction Company is finishing up their work laying a 36-inch gas pipeline paralleling the Florida Turnpike. The southbound leg of the system, extending eleven miles south of Griffin Road, was to begin in November, but is being held up by legal disputes.

Sheehan Pipeline Company is continuing construction of a pipeline which will transport natural gas to Florida Power & Light’s West Power Energy Facility in Palm Beach County. Work is under way in the Canal Point area, just south of Lake Okeechobee. At the present time there are over 90 operators working on the project. The estimated cost of the modified Phase III construction is $129,200,000.

FPL is making progress in its pursuit of approval for the construction of two new nuclear powered generation plants at its Turkey Point facility. On April 11, 2008, the Florida Public Service Commission issued the final order approving Turkey Point Nuclear Units 6 & 7. FPL is now preparing for the next steps in the approval procedure including filing a State Certification Application and a federal Combined Construction and Operation License Application with the Nuclear Regulatory Commission. The approval process may take until 2012 or beyond. The high cost of fossil fuel improves the chances of approval. The construction costs of the plants are estimated at $11 to $18 billion. According to FPL, the cost of producing a kilowatt hour of electricity from a nuclear powered plant is ½ cent, opposed to a fossil fuel powered plant’s cost of 6 to 9 cents per kilowatt hour. With a thirty-year operating expectancy, based on the present price of fossil fuel, the initial cost of construction of a nuclear plant would be quite a bargain. The fact that nuclear plants produce no carbon dioxide, or “greenhouse gasses,” make the other potential risks associated with nuclear energy more acceptable in today’s environment of concern regarding man’s influence on global warming. We have been contacted by several union contractors experienced in the construction of nuclear plants who have been asked to submit bids to FPL for both new nuclear plants and the upgrading of existing plants.

Work to increase the megawatt output of existing nuclear plants at the FPL facilities at Turkey Point and St. Lucie is expected to begin later this year or early next year.

FPL has petitioned the Florida Public Service Commission for approval to build an additional natural gas fired unit at its West County Energy Center in Palm Beach County.

Anyone interested in working at FPL’s nuclear facilities should contact John Mullen for information regarding qualification requirements for “red badge” access to the facilities. Of course, there are many restrictions on gaining access to nuclear facilities. Workers at the nuclear plants must have “red badge” access authorization. The process takes at least thirty days to complete the background check and to fulfill the training requirements. A clean criminal background and favorable references from past employers over the ten years previous to application for employment are among the requirements for admittance into a nuclear facility. Florida Power & Light has implemented new requirements regarding verification of the skill level of employees working in their plants. All employees of contractors doing work at FP&L facilities will be required to provide proof that they have graduated from a state or federally certified apprenticeship program, or show proof of a ten-year history of journeyman work in the trade jurisdiction for which they are to perform work.

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Organizing

We welcome new signatory contractor Ray Qualmann Marine Construction this quarter.

We regret that Kipp Crane Service ceased doing business after many years of providing good union jobs for our members. I personally will miss the reasonableness the Kipp family always brought to the bargaining table.

We recently met with the new Okeechobee County Administrator hoping that the new Administrator would have a different position on the employees’ demand that any agreement provide that disciplinary action be taken only for “just cause,” and that it provide due process for the settlement of disputes regarding disciplinary action. Apparently, the new Administrator is taking the same position as the departed Administrator: that all employees retain their employment “at the will and pleasure” of the County Administrator. We are scheduled to meet again when the County’s budget numbers become available, but if there is no movement on the just cause issue, I doubt agreement can be reached.

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Apprenticeship, Training & Safety

We currently have 49 apprentices in training. The Sheehan pipeline project is providing a good opportunity for apprentices to receive training on a broad range of different types of heavy equipment.

The last practical examinations for NCCCO crane operator certifications were completed on June 22nd. The certification process began on January 13th. A total number of 85 members received certification or recertification on at least one class of crane after passing the exams. An application list for the next NCCCO testing process will be available in November. Classes will begin in January 2009.

The NCCCO has finally finished development of their new Signalperson Certification Program. The process of accreditation of examiners to administer the practical exams will begin in August.

Enforcement of the recently passed Miami-Dade County Crane Safety Ordinance was enjoined, in part, by a federal judge after a hearing in which a group of crane owners and users argued against enforcement of the ordinance.

I urge all members to take advantage of the upgrading and certification classes available at the apprenticeship training site. Mark Schaunaman, our Apprenticeship Director, and the Training Instructors have the ability to provide OSHA, MSHA, HAZMAT, and First Responder training requirements; training and certification in trenching and backhoe operation; and crane signaling certification. Simply put, training and evidence of that training make you safer and more employable.

A schedule of other classes available to journeymen seeking to upgrade their skills is available.

The school is located at:
19700 S.W. 68th Court
Pembroke Pines, FL 33332
(Click the map for driving directions)

Please contact Mark Schaunaman (954-434-8309) if you are interested in attending.

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Health Care

Health care, or the absence of it, is a grave issue of concern for a vast majority of Americans. The only real solution to this problem is universal health care for all Americans. The health care and pharmaceutical industries have had a political strangle-hold on our country’s political system for far too long. Fair contractors who provide health care insurance to their employees will continue to be at a competitive disadvantage until universal health care coverage is mandated. Once again, I ask you to please call or contact your U.S. Representative and ask him or her to cosponsor H.R. 676, which would provide universal health care to all U.S. citizens. If you are not part of the solution, you are part of the problem. If you need help in determining who your Representative is, call the union hall.

The toll free number for the administrator for our fringe benefit funds, Administrative Services, Inc. (ASI) is: 1-800-959-3953. The recorded prompts should guide you to the person who can help you. Health & Welfare eligibility issues should be addressed to Ms. Brown at extension 5007. Members experiencing problems should call the union hall for help. Remember, all eligibility issues will be handled by ASI, not Vista.

Participants in Local 487’s health care plan can now access information from our current health care provider, Vista Health Plan, online at www.vistahealthplan.com. Location of participating primary care physicians, specialists and hospitals near your home is available at the website. You can also access personal information after logging-in on a secure site. You’ll need your member identification number, which is at the top of your Vista Health Plan card, in order to log-in. Member identification numbers are no longer based on a participant’s social security number because of the threat of identity theft. You should record your member I.D. number in a secure place at your home in case you lose your card. You can print a duplicate card at the above mentioned website, provided you can enter the I.D. number.

Please be reminded that if you are a participant in the Local’s health care plan, and are disabled to the point that you cannot work at the trade, you are entitled to up to six months of continued eligibility while you are disabled. You must request a form from Administrative Services, Inc. (ASI) office (1-800-959-3953) and have your doctor confirm on the form that you are disabled, and then return the completed form to ASI. You must do this each month for which you are disabled. We still have people who have been disabled and are not taking advantage of this benefit. If, for some reason you temporarily lose eligibility and your coverage is terminated, you must file a new application form with the administrator, in order to renew your coverage with Vista. Also, be reminded that if you have a new dependent, like a new child, or you get married, you must notify the plan administrator within 30 days of the event, or you must wait until the annual contract renewal date, which is presently April 1st. If you have a dependent child who reaches 19 years of age, but is a full-time student, you can continue their eligibility by providing the administrator with proof of student status. If you divorce your dependent spouse, you are obligated to notify the fund within 60 days. Consult your H&W Summary Plan Description for details on eligibility rules.

If you are an eligible participant in the Local’s health care plan, you are entitled to a life insurance benefit and you should have named a beneficiary. If at any time you want to change the beneficiary of record, you must notify the fund administrator and file a new beneficiary card. If you should pass away without naming a valid beneficiary, the insurance award could go to someone not of your choosing, or to your estate.

American Income Life Insurance provides all members in good standing with a modest amount of accidental death and dismemberment (AD&D) coverage. They recently increased the accidental death benefit from $2,000 to $4,000. You probably received notice in the mail of this change in benefit coverage. You are not required to do anything to become eligible for this coverage except remain a member in good standing. Even if you do not fill out the beneficiary card, you are still covered, although your benefit may be directed to your estate in the event you have no direct dependents. American Income Life provides this benefit at no charge to you or the union. If you decide you need additional insurance, American Income Life is an all union company.

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Pension

The economic recession will most certainly have a negative effect on all pension plan investments, including the IUOE Local 487 Plan and the Central Pension Fund. The provisions of the recently enacted Pension Protection Act classify pension funds according to their funding status as; green zone, yellow zone, and red zone. We have received news from the fund actuary that the Local 487 fund remained in the “green” zone for the fiscal year ending March 30, 2008. However, looking ahead to the next fiscal year, the Dow Jones index has declined 6.5% in the 2nd Quarter of this year reflecting the overall economic downturn. The bad economic policies of this administration have affected every aspect of our well being.

The IUOE Local 487 Pension Plan is party to the Pension Reciprocity Agreement for Operating Engineers Pension Funds and has been since 1995. All IUOE Locals in the U.S., and most in Canada, are party to the Agreement. Under this Agreement, credits earned in any IUOE Local’s pension fund are combined with credits earned in other Local’s pension funds for the purposes of determining total earned credits. For example, if you earned three credits in the Central Pension Fund, and three credits in the Local 487 Pension Fund, you would have a total of six vesting credits. You would be vested in both funds, and would be eligible for a benefit from both funds upon reaching retirement age. The benefits you received from each fund would be based on a pro-rata basis under the benefit formulas for each particular fund. However, you would have to earn at least one credit in a fund in order for the reciprocity agreement to take effect. In the Local 487 Pension Fund, you must have accrued at least 1,000 hours in a plan year in order to earn one credit. Upon application for retirement, all earned credits will be considered.

Any questions regarding the IUOE Local 487 pension plan should be directed to A.S.I. at 1-800-959-3953 extension 5043. The phone number for the CPF is 202-362-1000. Remember, if you have any trouble getting the information you need, please call the Union Hall for assistance.

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Closing

The last thirty years, through government deregulation; privatization; so-called “free” trade; outsourcing of jobs; and tax cuts for the wealthy, have produced the greatest inequity of wealth in America since the peak of the “Gilded Age” in 1928. I think we are all aware of the huge gap between the ultra-rich and the rest of us. However, the extent to which the gap has recently widened is almost unbelievable. According to the Institute for Policy Studies, the richest 1% of Americans currently holds wealth worth $16.8 trillion, nearly $2 trillion more than the combined wealth of the bottom 90% of Americans (go to www.extremeinequality.org). If you’ve heard that there’s a class war going on, there is, and we’re on the losing end. The last Gilded Age was reversed by the efforts of organized labor and other populist and progressive social movements which produced political change and the rise of the middle class in America, a “New Deal.” We will only get a “Raw Deal” if we do not do our part to effect the political change necessary to get a “New Deal.”

“Let us never forget that government is ourselves and not an alien power over us. The ultimate rulers of our democracy are not a President and senators and congressmen and government officials, but the voters of this country.”

Franklin Delano Roosevelt
32nd President of the United States
1882 - 1945

Fraternally yours,

Gary Waters
Business Manager

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