* As we discussed a bit yesterday, road-construction projects are being halted in the Chicago area as two unions have voted to strike. From the Sun-Times…
A strike today by construction workers could delay road-building projects such as the resurfacing of the Eisenhower Expy.
The Laborers’ District Council of Chicago and Vicinity voted to strike earlier this week, and workers were already striking at some locations Wednesday. The International Union of Operating Engineers, Local 150, voted to strike Wednesday night and expected to stop work this morning.
The unions seek health-benefit-package increases of 15 percent over three years, while companies have offered a 1 percent hike, according to Dennis Culloton, spokesman for the Mid-America Regional Bargaining Association, which represents local contractors.
The parties are scheduled to talk Monday. The current contract expired May 31.
“It’s MARBA’s position they should continue to work and continue to earn their $45 to $50 an hour in the meantime,” Culloton said.
Tribune…
Late Wednesday, Local 150 of the International Union of Operating Engineers, whose members operate heavy machinery, voted to authorize a strike that was expected to begin at midnight. Other unions that could follow include carpenters, cement masons and technical engineers.
The laborers and the equipment operators unions represent about 15,000 employees in a 10-county area that includes the Chicago region, officials said.
“We are in OK shape right now on the Eisenhower and we will be OK if the strike lasts a couple of days,'’ Kollias said. “But if this goes on for a couple of weeks or a month, the project will be seriously delayed.'’
Daily Herald…
Sticking points were 10 to 15 percent increases in health care and reduction in annual work hours from 1,600 to 1,000 on average.
“Contrary to the employers’ rhetoric, we understand full well the pain this economy has caused for construction workers,” Local 150 President James Sweeney said in a statement.
Contractors argued that operating engineers and laborers are paid between $35 to $45 an hour and demands for increases were impossible in the economic climate that has devastated the construction industry.
“Why not continue to work? There’s another negotiation session set for July 7,” MARBA spokeswoman Lissa Christman said.
* Yesterday, I asked both the Operating Engineers and the contractors to submit their sides of the story. Let’s start with the contractors…
Tom Nordeen, Chairman of the Mid-America Regional Bargaining Association (MARBA) today made the following statement in response to reports that local trade unions representing area construction workers are planning to or are on strike:
“For months, MARBA negotiators have been engaged in collective bargaining talks with unions representing the carpenters, cement masons, laborers, operating engineers and technical engineers. We are disappointed to learn the Operating Engineers Local 150 plans to join the Laborers District Council in authorizing a strike as soon as tomorrow (Thursday, July 1).
“We do not believe the unions should strike because we have another negotiating session scheduled with both unions for July 7th. In the meantime, the Operating engineers can continue to work and earn more than $45 dollars-an-hour in wages—totaling more than $68 dollars-an-hour in wages plus benefits –while both sides participate in good-faith talks. While both parties negotiate, the Laborers District Council members can continue to earn more than $35 dollars-an-hour—totaling more than $53 dollars-an-hour in wages plus benefits. While we talk, these union members can continue to earn good salaries on projects important to local taxpayers and consumers.
“Unemployment in the trades is as high as 40 percent, yet MARBA negotiators have been struggling to engage union representatives in an agreement that reflects the reality of the worst economic recession in 80 years. We are all competing for work at prices far below what we were able to secure in years past. But so far, the unions have been unwilling to reconsider their demands for substantial increases in hourly wage packages—15 percent over the next three years– that far exceed cost of living increases and health benefit plans available to the average Illinois worker.
“The hourly increases that the unions have proposed simply do not reflect the truth of what has happened to the industry. And they don’t reflect the reality that these increased costs would ultimately be borne by the taxpayers on publicly funded jobs.
“The talks are continuing and the unions do not have to go on strike. The only way the men and women of the union trades can again put their skills to work and provide for their families in these tough times is for their union officials to bring a sense of reality and some shared sacrifice to the table.”
* From the Operating Engineers Local 150…
[Last night], thousands of members of the International Union of Operating Engineers, Local 150 voted unanimously to authorize a strike, affecting approximately 8,500 members working under several agreements throughout 9 counties in northeastern Illinois.
The strike will begin at midnight, at the conclusion of at 30-day “cooling off” period, during which both sides were required to meet three times per week toward an agreement. “We made ourselves available 24 hours a day, and the employers only agreed to meet four times in the entire month,” said James M. Sweeney, President-Business Manager of Local 150. “The livelihoods of thousands of working men and women depend on these negotiations, and while we have made ourselves available, the employers are running out the back door of meetings.”
The agreement ended on May 31, and negotiations between Local 150 and employer groups Mid-America Regional Bargaining Association (MARBA) and Excavators, Inc. have produced little more than a stalemate. Employers walked out of negotiations on Monday, June 28th, and stated that they would not be willing to meet again until July 7th, fully aware that Local 150 members had been without a contract for nearly one month and that a meeting would be held to vote on a contract proposal tonight.
“Our proposal does not include wage increases over the next three years,” said Sweeney. “But with healthcare inflation estimated at 10-12 percent annually over the next three years, we have costs that need to be covered. Local 150 is going to use its reserves to cover the approximate $150 million healthcare shortfall over the next three years caused by the reduction in hours worked.” Members who averaged 1,600 hours annually a few years ago have seen their yearly hours sink to 1,000 on average. This results in significantly lessened contributions to the funds.
“Local 150 members took money out of their pockets to stabilize these funds last year, and now we are using our reserves. We have done our part, and we are asking employers to share the burden,” said Sweeney. “These funds are administered jointly by labor and management, so they have a responsibility as we do to ensure that these funds are stable.”
“Contrary to the employers’ rhetoric, we understand full well the pain this economy has caused for construction workers. We are feeding 1,000 families a week with boxes of food. We are covering COBRA payments for 1,200 families who have lost healthcare coverage. We have spent millions upon millions of dollars to make sure that our members are provided for, so for them to insinuate that we are not aware of the economic conditions is insulting.”
At this time, employers have not offered to meet any earlier than their originally set date of July 7. Local 150 will remain available for negotiations, but according to Sweeney, “we cannot make them sit down with us.”
The International Union of Operating Engineers, Local 150 is a labor union representing more than 23,000 working men and women in Illinois, Indiana and Iowa. Local 150 represents workers in various industries, including construction, construction material production, concrete pumping, steel mill service, slag production, landscaping, public works and others.
* Your thoughts?
*** UPDATE *** Todd Vandermyde of the Operating Engineers sent these dot points over yesterday. They could be helpful to the discussion…
· Our contract expires May 31st with a 30 day cooling off period.
· So June 30th is the end – it’s in the contract everyone knows it CONTRACTORS included.
· The contract also states that they – both sides are to meet 3 times a week during June.
· The contractors only wanted to & met 4 times in June.
· On Monday (6/28) during negotiations the contractors called for a caucus. After a while a representative came back to say they had left and would meet again on July 7th.
· We started announcing the special meeting for [last night] on June 15th for what we hoped would be for a contract ratification. In the absence of a contract proposal beyond the talked about .65 an hour total package – not even any real contract language changes proposed, it will turn to a strike vote with no formal proposal to bring to the membership.
· The contractors’ proposal of 0, 0, 0 for three years translates into a 20% reduction in wages on the check with what we will have to pull out just to meet healthcare inflationary costs, retire healthcare and pension costs.
· Our proposal is NOT looking for a wage increase, merely looking to cover inflationary cost of healthcare.
- wordslinger - Thursday, Jul 1, 10 @ 11:02 am:
After months and months of economic gloom, there’s something very refreshing on this beautiful summer day about working stiffs having the testicular virility to go on strike. Here’s to you. Open roads on the 4th weekend, too.
- 47th Ward - Thursday, Jul 1, 10 @ 11:09 am:
So at a time of near record unemployment, the unions are walking off the job? I understand this is about a long-term contract, but the leaders do read newspapers, don’t they? This really looks bad on their part, politically tone deaf at best. I don’t think there’s much public sympathy for them in this environment.
Which is probably what the contractors are betting on too.
If this really is about health care inflation, have they done enough research to project what, if any, short term impact the new federal health care bill will have on inflation?
How about a one year extension of the current contract? Let’s see where we are a year from now. Lord knows we’ll have lots of summer road work next year too, so it isn’t like unions will lose any leverage in 2011.
- nick - Thursday, Jul 1, 10 @ 11:14 am:
If the healthcare system just forced thru congress will give everyone benefits,why would there be a need for an increase in healthcare benefits?
- well - Thursday, Jul 1, 10 @ 11:15 am:
Public sympathy for the unions is going to be somewhere around zero.
When the state has over 10% unemployment, the general public isn’t going to be sympathetic to people who 1) still have jobs and 2) have very well-paying jobs, pissing and moaning because they want even better benefits.
- Cincinnatus - Thursday, Jul 1, 10 @ 11:16 am:
Remember what Reagan did to the Air Traffic Controllers? Would he were alive now.
- Small Town Liberal - Thursday, Jul 1, 10 @ 11:16 am:
nick - Do you know anything about the actual healthcare reform law?
- Ramsin - Thursday, Jul 1, 10 @ 11:17 am:
Labor never wins. No matter what a union does, the anti-union sentiment finds a way to make them wrong. Strikes or threatened strike actions are a way to win better contracts. So when they do that, they get called out for being greedy. Don’t they know how bad the economy is? Why are they so greedy? People would love to have those jobs.
But if they aren’t militant, if members don’t stand up for themselves and refuse to except degraded conditions, the unions are do-nothing dues hounds who play footsie with management.
This is like any business agreement. Both parties are trying to maximize their benefit. We celebrate entrepreneurs who cut shrewd deals but when workers do it they’re lazy and greedy. It’s so disheartening. What happened to dignity and self-respect of working people in this country?
Oh, that’s right. Reagan killed it with PATCO.
- Wondering... - Thursday, Jul 1, 10 @ 11:21 am:
How can the union(s) expect any reasonable person to have sympathy for them for walking off the job (the rather lucrative job) during these difficult times.
(Blank) them… it is idiotic.
- Cincinnatus - Thursday, Jul 1, 10 @ 11:23 am:
The problem is the deck is stacked. Unions have demanded of the government that all projects be performed at “fair wage” rates. (Unions are a potent political force that lawmakers obey.) Low bidders, who use non-union labor are boxed out of the process. Of course, taxpayers suffer since they have to foot the increased bill of union wages, and also suffer the “inconvenience” caused by a strike.
I will reiterate a point I have made repeatedly on this blog. There should be no public service unions (who have an inherent conflict of interest with their employer), and governments should be prohibited of using artificial market rules (e.g. “fair wage”) for government contracting. At-will employees and low-bid competition among qualified contractors is the only way to go. Let the chips fall where they may.
- Ramsin - Thursday, Jul 1, 10 @ 11:24 am:
Wondering, did it ever occur to you that these jobs are lucrative because the workers formed a union and do things like negotiate a contract using whatever legal tools they have?
- Bluefish - Thursday, Jul 1, 10 @ 11:27 am:
Hmmm. Over 10% unemployment in Illinois and thousands of union workers not showing up at jobs that pay $35 to $45 an hour plus benefits. Sounds like a great strategy by the unions to me.
- Ramsin - Thursday, Jul 1, 10 @ 11:28 am:
Cincinnatus, that’s a bold proposal to go backwards 70 years.
- Wondering... - Thursday, Jul 1, 10 @ 11:31 am:
Yep, that has occured to me.
Did you ever hear the saying: pigs get fat but hogs get slaugtered?
Good union = pig
Bad union = hog
Going out on strike at this time like these guys are doing… hoggish.
- siriusly - Thursday, Jul 1, 10 @ 11:35 am:
Politicaly tone deaf indeed! I don’t even care what the issues are (sorry Rich) - as a taxpayer the whole thing makes me want to puke. Get back to work or get out of the way for someone who will take your place. Unions are once again way out of touch. The public is not with them.
Unions put an end to horrible working conditions - yeah. Unions stand up for better wages for people - yeah. But when union business agents and managers make $200k per year and they push to strike on public projects in the middle of construction season over issues that might be resolved without a strike - you have lost all sense of proportionality.
- plutocrat03 - Thursday, Jul 1, 10 @ 11:38 am:
So public works projects are being funded by money the public has to borrow to pay for. What do the union folks expect will happen? The reality is that less work will be done by fewer workers, thus making things worse.
What should be done is to suspend work rules so that two shifts can work during the long summer days resulting in a faster conclusion to the work process AND the employment of more workers.
That would be a proverbial win-win.
- Cincinnatus - Thursday, Jul 1, 10 @ 11:39 am:
Ramsin - Thursday, Jul 1, 10 @ 11:24 am:
“Wondering, did it ever occur to you that these jobs are lucrative because the workers formed a union and do things like negotiate a contract using whatever legal tools they have?”
Of course, at least to me, that has occurred. However, the playing field is not level. If unions were forced to compete on several levels, things would be much different.
Closed shops exist (think education where you must pay union dues to be employed, even if you opt out of the tiny portion of the dues that are for “political activities”. True also in some private industries, but that’s okay. If the company wants to pay union-demanded wages that’s okay. The problem is that a qualifying contractor or individual is forced out of the competition by government-driven rules. And the politicians sop to the unions because of their political expenditures.
If competition is allowed to work, wages (and benefits and other attributes) settle on the market-based number. If a company has a union, its prices may be higher than a non-union shop. If non-union shops offer too low a wage (or benefit package), workers will go to another firm. Highly skilled laborers will make more money than their unskilled counterparts.
But when government stacks the deck with union-driven “fair wage” requirements, companies that are highly qualified will refuse to bid because their other non-fair wage contracts would have to have increased costs associated with those higher wages.
So, the government interference in the market causes the taxpayer to foot an increased bill with nothing really to show for it other than an increased payroll deduction for taxes. Add into this equation the inconvenience of a strike.
How is it fair that the millions of taxpayers in Illinois tolerate this situation because of a relatively few unionized workers?
- downstate hack - Thursday, Jul 1, 10 @ 11:44 am:
Absolutely insane move by the union. This and the equally ludicrous stand against Walmart in Chicago will make them disappear very soon. When public support is gone so are the unions. Negotiate but stay on thew job.
- reality check - Thursday, Jul 1, 10 @ 11:44 am:
It is NOT TRUE that management walked out on negotiations. The parties last met on this Monday. At the time they AGREED to meet again on July 7.
- Cincinnatus - Thursday, Jul 1, 10 @ 11:49 am:
reality check - Thursday, Jul 1, 10 @ 11:44 am:
“It is NOT TRUE that management walked out on negotiations. The parties last met on this Monday. At the time they AGREED to meet again on July 7.”
Please do not confuse the pro-union contingent here with these inconvenient truths.
- Anon E. Mouse - Thursday, Jul 1, 10 @ 11:50 am:
Can’t feel much sympathy for the unions. When they are getting nearly $140k/year in wages plus benefits it’s crazy to hear the complaints.
- Small Town Liberal - Thursday, Jul 1, 10 @ 11:52 am:
- If competition is allowed to work, wages (and benefits and other attributes) settle on the market-based number. -
This will only work in the employers’ favor, never the workers’. There is competition for jobs, not workers. I know you don’t care about the workers and think the almighty market will provide the best for everyone, but history has proven that to be a poor assumption. I’m not sure I think this strike is a good move, but unions in bulk aren’t the problem that you make them out to be.
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 11:54 am:
As far as I know, the owners want to cut the benefits and limit the raises. The union can show the owners are making huge profits but want to use the bad economy as an excuse to make more. Cullotons already baiting the workers by saying how much they make. He should go back to working for crooked pols.
The unions have these guys cold. Shutting them down right now during the peak of summer construction will bankrupt them and they know it. The Operating Engineers are so specialized that they can’t bring in scabs.
I am fully in favor of this union action.
- Anonymous - Thursday, Jul 1, 10 @ 11:58 am:
Hmm. The Chicago cops just got 2% a year for 5 years and were forced to wait 3 years with no contract. The Chicago firemen will get 2% I’m sure after waiting more than 3 years. The city teachers made out and are getting 4% they didn’t have to wait since they can strike. But the laborers want 5% a year for a job that requires no education or skills. Yeah it’s those damn public sector unions that are the problem.
- Cincinnatus - Thursday, Jul 1, 10 @ 12:05 pm:
- Small Town Liberal - Thursday, Jul 1, 10 @ 11:52 am:
- If competition is allowed to work, wages (and benefits and other attributes) settle on the market-based number. -
This will only work in the employers’ favor, never the workers’. “There is competition for jobs, not workers.”
You have obviously never run a profitable business, as have I. People are the absolute most important asset and resourse in a well run company. You obviously think that all businesses are evil. You are wrong. You also have little understanding or appreciation of market forces. As vital as unions have been to the past successes of our economy, the are now a drain on consumers and taxpayers.
You talked about my living 70 years in the past. It ain’t me babe. It’s the unions who refuse to evolve in the 21st century marketplace, to the detriment of their members, and in the case of public-service unions and public contracting, the taxpayer.
- Dan Bureaucrat - Thursday, Jul 1, 10 @ 12:05 pm:
Anonymous 11:58am:
These pay increases are on top of plump salaries, benefits, pension plans, and opportunities for early retirement. There is starting to be a real divide between public sector employees with such good benefits, and private sector who have less and less, but pay more and more for the public employees.
Didn’t the cops just negotiate a new pay structure so they work 4 days with 2 off instead of 5 days with 2 off? That adds up to a lot more days off.
- dupage dan - Thursday, Jul 1, 10 @ 12:06 pm:
There certainly is competition for jobs right now. The unions should not forget that. There are times when there is competition for workers. During boom times employers frequently have to pay moving expenses, housing allowances, stock options and the like, And, I am not talking about white collar jobs. I worked in an industry years ago where skilled workers (welders) were needed and the company dangled many perks to get folk to relocate and work for that company. When times are bad, tho, it’s a buyers market. That’s called the real world. Even state employees like me should realize that and accept that. We supposedly deferred 1/2 of our 2% raise recently. We state employees should have agreed to no raise at all. The least we could do. I am grappling with what I will do with my bump. Increase my share to charity is most likely.
- Wumpus - Thursday, Jul 1, 10 @ 12:11 pm:
It seems they are giving up wage increases in lieu of health care increases. These are tough times for all, but they don’t seem to be too outrageous. They did pick a bad time to do this.
I am concerned by a lack of diversity in the union leadership (of what I saw on tv).
- Small Town Liberal - Thursday, Jul 1, 10 @ 12:16 pm:
- You talked about my living 70 years in the past. -
No I didn’t.
And big pat on the back for running a profitable business and treating your employees well. If everyone was like you, unions sure wouldn’t be necessary.
- todd - Thursday, Jul 1, 10 @ 12:21 pm:
Well since I’m in the middle of this maybe I can help dispell some of the bad information or assumptions.
Our contract was over on the 31st of May. We have a 1 month cooling off period where both sides are obligated to meet three times a week. The contractors refused. They met a grand total of 4 times during the month.
On Monday, they started a bargaining session then called a caucus. While we waited 90 min for their rebuttal/ response to our proposal they left and sent in a lawyer to tell us they would be back on the 7th of July – 10 days later.
Even though we had scheduled a special meeting for the 30th the end of the cooling off period and the time when we normally bring back their proposal for a ratification. We were left without a final proposal and could only bring back their wish list of consessions and an offer of .65 per hour to cover everything.
During this time, we are NOT seeking an increase in wages. We were asking them to cover the inflationary cost of healthcare which is running 10 – 12%. Two things here – 1 we did not support the Obama bill as it hurts us real bad and I’ll talk about that in another post and 2. Man hours have gone down from a high of 1600 average per year to 1000. This means that for every $1 we were putting into our healthcare we are not putting in $1000 per man instead of $1600. Multiply that by 10,000 members and it adds up.
During the good times we built up a reserves for our healthcare, a rainy day fund. We expect that to cover the shortfall in man hours it is going to cost us about $150 million over the next three years. A cost we are willing to eat. That is what the reserves were meant for. In exchange we asked the contractors to help with just keeping up with the inflationary cost of healthcare.
But you can’t talk about any of this if the other side won’t sit down and bargain. Other issues involve our pension.
Over the last couple of years, we have reduced our pension multiplier 4 times to keep the fund healthy. This after the Federal Government forced us to spend our pension reserves in 2000. At which time our pension was 140% funded. So in complying with the 2006 pension reform act, we lowered mulitpliers’ to stay ahead of the curve and keep from having the feds mandate changes.
We also took a $1 off of our wages and put that into the reserves. So instead of getting credit for $5 being put in to the pension every hour you work, your get credit for $4. We would like the contractors to help match that to keep the pension fund in good shape. We believe that when the next report comes out our pension fund will be funded at 80% or higher – we can’t control the markets.
We also know that retire healthcare is a big thing and those legacy costs help tot sink GM, the UAW, the steel industry and others. For that reason we have started a retirement healthcare savings plan. We expect that newer members when they reach the age of retirement will have all of their healthcare paid for with this. This was assuming certain facts like a 30 year old retiring will face costs of $100,000 annually in healthcare. And with a mere 4% rate of return we believe we can cover these costs. And since the plan is tax exempt for money going in and tax exempt when claims are paid it actually increases the dollar value of our members pensions. Again, we took money off the check to add to this to help start to get a handle on retiree healthcare costs.
These are all moves that we, Local 150, made to be prudent stewards or our healthcare, pension and retirees. We don’t want to saddle the next generation of operators with legacy costs that have them toss us under the bus as the quick fix. These are long term proposals to work on long term problems. Which we have not asked for a single extra dime over the last three years to pay for. The members paid for it themselves.
At the same time, we built a new training facility that costs over $45 million to help train and retrain members so they can be productive qualified operators in the field. The members assessed a 1% dues increase on their gross pay to build the facility. We are paying for our training and the building of the industry.
And during all of this, we have organized the non-union companies to where we retain 95% of the market in this area. Our contractors are not bidding against non-union contractors in an effort to compete by cutting wages and benefits. So they are bidding against each other with fixed labor costs that they all know. Everyone has the same rates. We kept up our end of the deal to make it a level playing field for them to bid on.
So in light of cutting back on pensions, taking money off the check to keep pension funds healthy, enacting changes to retiree healthcare, and being good stewards of the industry – let us not forget our efforts to pass 2 capital bills and the Illiana project. These guys walk out the door and say we’ll see you after the holiday (I guess they had to get to their lake house before the traffic rush hit) and leave us alone at the table. So what else are we suppose to do? Bargain against ourselves? Let them drag this out like they do legislative ideas in Springfield?
They knew of the hard date of june 30th.
They choose to walk out the door and refused to bargain in good faith. What is so magical about the 7th? I dunno. But they left and dictated that date to us. We can’t make them talk to us. so that is how and why we are where we are today.
Any questions?
- dave - Thursday, Jul 1, 10 @ 12:24 pm:
When they are getting nearly $140k/year in wages plus benefits it’s crazy to hear the complaints.
Huh? How many unionionized workers are making $140k a year?
These workers are making 35-45/hour. Due to a lost time (1000 hours a year, down from 1600), they are losing ~$24000 a year.
The anti-union folks on here are making some pretty absurd comments.
- Patriot - Thursday, Jul 1, 10 @ 12:28 pm:
“Child labor laws are silly and out-dated. In the good ol’ days kids could work in everything from textile factories to iron smelts. Yipeee horrray!”
-Mugatu to Zoolander
- wordslinger - Thursday, Jul 1, 10 @ 12:28 pm:
Cincy, by all means, let’s do away with public sector unions. Is that what passes for conservatism these days?
By the way, Reagan fired the air traffic controllers, but he was a union guy from way back.
- Irish - Thursday, Jul 1, 10 @ 12:28 pm:
The point I see here is that the unions are not looking down the road. They make the statement that they have members out of work and they have had to fund those workers insurance payments and assist them with boxes of food. That is very understandable and admirable.
What they are missing is why these members are out of work. Because there is not enough money to fund projects to keep them employed.
How do you fix that? Hopefully the businesses make enough money to stay afloat, the economy slowly improves, and more money becomes available to fund more projects to employ more people.
How do you prevent more money from becoming available for projects? You increase costs that make the projects not meet their budgetery goals so less gets done and employees work less time.
It’s like jumping into a lifeboat that is overloaded but the bilge pump is barely keeping ahead of the incoming water. With the current load you might make it. But if 20 more people jump in it’s going to sink.
- todd - Thursday, Jul 1, 10 @ 12:34 pm:
Cincinnatus — try again. Management walked out the door on Manday and sent their lackey lawyer back in to tell us that they would meet again in the 7th. it was dictated to us not agreed upon.
Our position was that we wanted the contract concluded by the 30th so there woul dbe no interruption in work. But the contractors wanted somehting else.
Anybody that say it was agreed upon is either buying the [expletive deleted by Miller] they are selling or lying — period.
We have been and are ready and willing to meet, today, tonight, tommorow, this weekend. what is so magical about dragging out these talks for another 10 days?
why wouldn’t they meet yesterday. the notice of the meeting has been up since the 15th. they knew the date and they knew the meeting was coming.
Hey rich we got any IP addys coming from lake geneva or Indiana or the michigan side of the lake? me thinks they wanted a longer weekend.
- The KQ - Thursday, Jul 1, 10 @ 12:41 pm:
During this time, we are NOT seeking an increase in wages. We were asking them to cover the inflationary cost of healthcare which is running 10 – 12%.
Todd - Why would you expect your employer to cover the cost of any health care increase in this economy? Take State employees as an example. The State increased their costs for health care/copays. Just becasue what you are asking for isn’t classified as a “salary increase” doesn’t mean it’s ok. It is still going to cost me and every other tax payer more money. I fully expect that my employer will pass on health care cost increases to me every year. I do not every expect or assume I am getting a payraise. Be thankful you have a job and get back to work, please.
Cincinnatus - There should be no public service
unions - I couldn’t agree more!
- Joe - Thursday, Jul 1, 10 @ 12:48 pm:
Thought Vandermyde was a gun lobbyist?
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 12:49 pm:
Todd,
stick to your time frames and don’t bend if they don’t appear to be negotiating in good faith. Several times, I’ve seen unions threaten to strike again and again and not follow through while management uses the time to harden their position and make contingency plans. I can tell by Dennis Culloton’s tone that management is doing precisly that in trying to get the public’s support by saying your guys make too much money.
- Rich Miller - Thursday, Jul 1, 10 @ 12:52 pm:
Joe, Todd has the perfect lobbying trifecta: NRA, ABATE and Local 150.
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 12:57 pm:
I was going to start my comment to Todd with “stick to your guns” but it would have been misconstrued as anti-union-but it would have been a good pun.
- todd - Thursday, Jul 1, 10 @ 1:13 pm:
Rich — it’s called the “steel industry”
- fed up - Thursday, Jul 1, 10 @ 1:38 pm:
Todd no matter what the laborers went on strike and are demanding 15% raise over 3 years. That is just crazy. I have no sympathy at all for the unions anymore.
Teachers work 170 days a year 6 hours a day and hold local goverments hostage every few years.
The cops and firemen cant strike so they get 2% after working without a contract for 3 years.
I have more sympathy for them my nieghbor just a few houses down is a teacher is sunbathing today and on most school days is home from “work” before 3pm. I know several cops they wont be at the 4th of July block party because the Chicago Police dept cancelled days off for the 3rd and 4th. come to think of it I dont think the nieghbor that teaches has ever worked a Christmas or a Thanksgiving.
I would be willing to bet Local 150 pension is nicer than the cops or firemen both of which are only 50% funded because Mayor Daley doesnt feel it is neccasarry to make the yearly payments to the pension plan. Yeah he will be out of Office (probably) when those funds run dry and the taxpayers have to come up with more money.
I make a good living working 1 fulltime and 1 part time job but I am realistic about raises the unions dont seem to be realistic.
- todd - Thursday, Jul 1, 10 @ 1:41 pm:
PJ — I can only imagine that when your employer came to you and said we are going to raise co-pays to 30% you said whoopee. I’ll do 35%.
We got skin in the game with costs we are going to eat a $150 million worth. So as with all bargaining, you try to find a place in the middle. We feel that if we are willing to a shoulder some of the costs, then it’s fair to seek an sharing of healthcare with the contractors. But their answer was to walk out the door.
We are thankful for the work we have. But we put the skinin the game to generate that work. The contractors would not have a large portion of that if it were not for us.
So I’m tired of hearing them complain that they lost money last year becuase instead of making $5 million they only made 2.5 million. when times were good and we ahd more work than everybody knew what to do with, we didn’t ask for increases mid contract. We didn’t seek to re-open them and say your making to much. We bargained for what we agreed to was fair. If they made more money ok. But now after doing all the respinsible things and being good stewards, we are willing to share the costs — but that means share not take it in the shorts.
the differance between us and you is you may have to take what they give you to keep your job. that is why we bargain together. If they don’t want to be reasonable we have things we can do.
- todd - Thursday, Jul 1, 10 @ 1:42 pm:
oops I thought it was PJ — SORRY I meant KQ
- Lefty - Thursday, Jul 1, 10 @ 2:05 pm:
At the same time, we built a new training facility that costs over $45 million to help train and retrain members so they can be productive qualified operators in the field. The members assessed a 1% dues increase on their gross pay to build the facility. We are paying for our training and the building of the industry.
Nice timing- $45 million????
- fed up - Thursday, Jul 1, 10 @ 2:21 pm:
maybe without the high costs of union workers your training facility would have cost about 20 million.
- Yellow Dog Democrat - Thursday, Jul 1, 10 @ 2:44 pm:
The unions are right, but if they don’t get alot better at explaining themselves - FAST - they are going to lose any chance of public support.
- Liandro - Thursday, Jul 1, 10 @ 3:01 pm:
I hear what Todd is saying if the owners are actually making a ton of money (something I can’t verify, of course), but in this economy I doubt a strike is going to get much popular support. People are taking lower paying jobs, pay cuts, jobs they hate, or not working entirely. Yeah, hours went down. That’s what happens in a bad economy. I gave out less hours at my store, too. Big companies, little companies: it’s everywhere.
- todd - Thursday, Jul 1, 10 @ 3:25 pm:
Lefty & Fed up –
We opened the facility three years ago. We did some of the work ourselves like the mass dirt and excavating — thats what we do.
It’s 300 acres and we have over 168 peices of iron. Check the link to the site out:
http://www.asiplocal150.org/Forms/Page.aspx?P=Home
We saw it as an investment on our future to keep up with changing technologies and stay at the forefront of skilled labor. So what’s the beef with that? We make an investment in the trade and you don’t like it? you want to complain becuase we build a state of the art facitity?
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 3:40 pm:
Apparently, some folk think people are born with the ability to operate cranes and heavy equipment. Well they are wrong. Lots of lives and money are in the balance whenever these guys go to work and the training facility is a fine investment.
- Rich Miller - Thursday, Jul 1, 10 @ 3:41 pm:
Of all the things you could criticize 150 for, the training facility thread here is just laughable. Move along.
- todd - Thursday, Jul 1, 10 @ 3:58 pm:
Liandro –
a few weeks ago the contractors claimed they could not afford more becuse they were loosing money. Ok show us your books. Once you make that claim, we get the right to examine the books including personal income taxes and comapensation.
We then made the damand for such records and the contractors refused to comply. then there lawyer said they were not asserting such a claim but in fact they were making money but they were unwilling to pay us an “increase”.
then there spokeswoman goes on TV and again claims they are loosing money — another unfair labor practise.
We understand that there may not be a lot of “public support” for this stike. that the contractors are trygint to portray it as we could keep talking, but they only want to talk on their terms.
But we can do the right thing by our members which is to get a fair deal for these ecomonic times. if we take a 0, 0, 0 contract for three years, our members take at lease a 20% cut in wages to make up for the healthcare inflation. Plus we spend down $150 million covering the gap in man hours. And after taking money off the check for the pension fund, taking money of the check for retiree healthcare, and putting up reserves in an effort to bridge the gap in a shortfall of man hours we are then suppose to take a 20% cut in wages?
We have given more and been more responsible on all fronts that what has gone on under the dome in trygint o take care of our members and fuduciary responsibilites.
- Cincinnatus - Thursday, Jul 1, 10 @ 4:01 pm:
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 3:40 pm:
“Apparently, some folk think people are born with the ability to operate cranes and heavy equipment.”
Nobody said that. What is your point? Are you saying that there is no way for anyone to operate a crane without union training? Does it follow that any carpenter must be trained by a union to be successful?
Todd’s union is to be commended for creating this facility. I hope they are making it available to other unions and independent contractors across America and the world. I’d like to see them make some money on it.
Todd,
I have been paying my own health insurance for years. I am absorbing my increases. Just as a kicker, by choice, I retired early and am on a fixed income. I would be fine if I did not have to absorb increases in just about every aspect of my live because of government interference. My taxes increase to handle public sector wage increases, and increases in construction costs by unionized labor. Because of these increases, I may have to return to the workforce (get the Cincinnatus reference?). Why should I pay these increase costs and deal with inconveniences caused by public service workers and government contractors?
- PalosParkBob - Thursday, Jul 1, 10 @ 4:15 pm:
The unions are doing an excellent job of making a case…..for repeal of Davis-Bacon and all “prevailing wage” featherbedding in Illinois and other states.
The fact is that they don’t need the public on their side. A few hundred thou per Illinois legislator buys political loyalty worth billions every year in unfair labor practice advantage.
Regarding the elected officials that sell out the people of Illinois and the nation for union bribes….errr….campaign contributions, I think their situation was best summed up by “Rick” in “Casablanca” speaking to Ugarte, “I don’t object to you being a thief, I just object to you being a cut-rate one.”
Fits Springfield and Washington Union sell-outs perfectly!
- VanillaMan - Thursday, Jul 1, 10 @ 4:19 pm:
I just can’t imagine striking right now with these demands. I just can’t imagine why anyone would believe this could work out in the union’s favor. Is it a bluff? If it is, that’s better news, but still - what kind of a bluff can you do in these economic times.
As a big union supporter, I am worried how these guys could have such incredibly bad timing. Anti-union feelings are sky high and hungry people are looking for scapegoats like union workers.
Contract talks at this time will be a loser for the union. Demands like the ones they are publically calling for seem luxurious. It is too easy for contractors to indicate how badly the market is tanking and how hard it is for them to find projects themselves.
I feel for my union brothers, and I would never have recommended this approach unless we could eak out another percentage or so. I don’t see them succeeding here.
- todd - Thursday, Jul 1, 10 @ 4:23 pm:
Cincinnatus –
we know the cost of everything goes up, gas, utilities, goods and serivces. most people get some form of a COLA in either their pay or benefits.
Medical inflation has been running 3 to 4 times the normal inflation rate and a lot of people are struggling to keep that under control. So there are times that we all eat cost increases. some time busineses don’t pass them along to keep a price point down. sometimes they hold them back and take less profit.
In our case, we are saying that we are doing everything we can to control our costs, and by virtue of the retire health savings accounts adding to our co-pays or picking up more of the costs ourselves. So we have done just what you have had to do. but at some point we can’t absorb any more. And like a business, it gets passed on.
- Small Town Liberal - Thursday, Jul 1, 10 @ 4:29 pm:
- I would be fine if I did not have to absorb increases in just about every aspect of my live because of government interference. My taxes increase to handle public sector wage increases, and increases in construction costs by unionized labor. -
I call BS. What taxes increased?
- chicago - Thursday, Jul 1, 10 @ 4:42 pm:
I will never understand the thought process that causes someone to villify the workers for looking out for their best interest and love the contractor for doing the same, especially when that contractor is making exponentially more money.
Cincinnatus-
There are innumerable state expenditures that don’t directly benefit me (public schools, child service agencies, county hospitals, agriculture subsidies, big business tax credits, etc.) No one benefits from every expenditure the state makes. It’s part of living in a community. To blame one or two state expenditures for specifically forcing you back to the work force just doesn’t add up.
- chicago - Thursday, Jul 1, 10 @ 4:50 pm:
Additionally, the argument that says “Fire them, I’ll take the job for $15 an hour!” is ignorant. The Laborers work does require skill, knowledge, and is back-breaking (sometimes literally) work. The vast majority of people making this argument would not last long on a road crew, they’d either get fired for poor performance or quit because it was too hard.
The contractors make millions of dollars. Fire them! Pay me hundreds of thousands and I’ll take the job! Silly argument.
- Cincinnatus - Thursday, Jul 1, 10 @ 4:54 pm:
chicago,
You’re right to point out that it is not any one expenditure, tax or whatever causing me, and other taxpayers problems. Repeating what I’ve already said, there is no room for public sector unions, or government contracting that somehow skews bidding toward unions, or government over-reaching with mandates forcing ever increasing costs and taxes in my world.
- Yellow Dog Democrat - Thursday, Jul 1, 10 @ 5:04 pm:
The contractors REALLY need to think things through to their end game.
You cannot pass the revenue needed to fund public works projects without a partnership between the workers and the contractors.
Local 150 and other unions helped pass the capital bill. Now the contractors are trying to play hardball with their contract and basically take the money and run.
If I were the contractors, I’d be much more worried about the NEXT $30 billion contract than a 5% per year increase in health care costs.
- Septic - Thursday, Jul 1, 10 @ 5:30 pm:
Ditto what Cincinnatus says…
- Phineas J. Whoopee - Thursday, Jul 1, 10 @ 5:31 pm:
Cincinnatus,
There were a few folks who criticized the union for spending the money to build the training center. Although I’m sure there are other ways to train employees on heavy equipment, having a proper facility helps build better skills for so specialized a trade.
- Septic - Thursday, Jul 1, 10 @ 5:38 pm:
“Joe, Todd has the perfect lobbying trifecta: NRA, ABATE and Local 150.”
I had no clue. The local 150 angle definitely diminishes some of Todd’s luster for me. Ick.
- Betsy - Thursday, Jul 1, 10 @ 6:16 pm:
taxpayers pay $45-$50 per hour to construction workers? I’m all for a living wage but wow - that’s sure a lot more than a living wage. my employer sure isn’t offering a 15% increase in health care.
I wish there were a happy medium, a reasonable wage and benefits package somewhere between the no-benefit $10/hour some folks make and the riches of union labor.
- truthy - Thursday, Jul 1, 10 @ 7:00 pm:
Don’t forget a few things:
Operators have a health plan far superior to most workers. Their employer pays $10.40 an hour into it. I agree they did not support Obamacare, probably because their current plan will be classified (and taxed) as a “Cadillac Plan” in 2018.
Also, they currently have $270 million in the bank for their healthcare plan, more than a year worth of reserves.
- Jim - Thursday, Jul 1, 10 @ 9:20 pm:
Contractors stick together. This could set precedent for a lot of other union contracts (I bet they know that too).
- Todd - Thursday, Jul 1, 10 @ 9:45 pm:
Truthy you are correct. We did not support Obamacare and some democrats may loose our support of that vote and the costs it will place on our union.
Septic — why does it change anything?
And guys I was a laborer before I became an operator. I came from the field. I know what it takes to run a jack hammer all day and beleive it or not their is a right way to run one and a wrong way to run one.
Being an operator takes skill. I have the skill sets for parts of our craft. I am NOT a crane operator. Haven’t figured that one out. I can unload a couple of bundles off a truck but that is about it for hook work.
While some complain about our wages, they are built on a scale that bets on we don’t work 2000 hours a year. If it rains and we don’t work, we don’t get paid for the day. We may be off for a week or more at a time becuase of weather. then again in order to get the job done we may put in 6 12’s. Vacations in the summer, don’t think about it. these are all things that factor into our trade and wages.
But I see people complaining about how much we make an hour. Any one of you want to climb up to the tower crane at trump tower thats 300 feet over the top and sit there for 12 hours? Swaying with the breeze?
want to go on a train derailment and wear hazmat gear with a full respirator for 24 hours while running a track loader?
How about being the guy picking up 400 tons for the new staduim being built and hanging it 200 feet in the air?
Everyone thinks the other guy has it better till they spend some time in their shoes and see what it takes to get there.
- dave - Friday, Jul 2, 10 @ 7:56 am:
Let back of the “holy &@#$! they make $50/hour” argument. First, I am guessing that many of the people on this blog make $50/hour (or close to it) for much easier work. Second, they average $35-45, not $50.
Third, remember that they assume a 1600 hour year. that means $64,000 a year (at ave of $40/hour). Thats a decent salary, but I am not sure that I would do the work they do for that price. But further, their hours have been cut to around 1000 hours a year, which brings their salary down to $40,000 a year.
These folks are hardly overpaid.
- Septic - Friday, Jul 2, 10 @ 12:51 pm:
Todd: No offense. Just a bit of a paradigm shift / rock / explosion for me personally. Kind of like a kid seeing his father kiss a lady other than his mother. I’ve always considered guns good and unions bad. I’ve only known of you as good through your pro-gun work. Not saying you’re bad due to pro-union work. Just saying what I thought was one dimensional is multi-dimensional. The older I get, the less black or white and more gray I see. We may differ on the union issues; but you have my full support and gratitude on the gun issues.