* 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.