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Updates on IUOE 302 Concrete Pumpers Negotiations

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Updates on IUOE 302 Concrete Pumpers Negotiations Updates on IUOE 302 concrete pumpers negotiations DECEMBER 30, 2007 401(k)s vs. Defined-Benefit Pensions Summary on the membership’s vote on the contract pro- (Dec. 21 entry from Local 302’s Blog at www.iuoe302.org) posal from Brundage Bone, Pacific and Ralph’s: Last week, the U.S. Government Accountability Of- The voice of our membership was heard today. The em- fice released a report explaining how grim the retire- ployers’ proposal was seen by the membership for what it is ment outlook is for today’s teenagers. More than one -- a clear attempt to further degrade out of three American workers born in 1990 will have those working in the pumping in- zero dollars in a 401(k)-style savings plan when they dustry for another six years. reach retirement age, the report said. Why? When you’re young, you aren’t thinking The vote against the proposal about retirement. You’re thinking about what you’re was nearly unanimous among the doing that weekend – or who you’re doing it with. pumpers at two companies, and it That explains why, as the GAO report points out, many was rejected 2-to-1 by pumpers at young people don’t contribute to employer-matched 401(k)s when they have the opportunity. It comes out the third. of their paychecks, and that means less this weekend. We remind all members that Even those who do contribute to 401(k) savings plans if anyone who is management attends your Union meeting often pay the tax penalty and take that money out at and then threatens your job based on your comments or your some point, the GAO report says. choice in voting, you should make the Union aware immedi- One day, these young people are going to hit re- tirement age and wonder why they can’t afford to stop ately. That is likely to be both a violation of Union by-laws working. Even if all the promises of Social Security are and of federal labor laws, no matter where it happens -- even kept -- and that’s a big “if” -- that money was never if the violation occurs in Tacoma. Anyone found guilty of intended to enable retirement, it is just to supplement violating the Union by-laws faces possible expulsion from retirement plans and try to keep seniors out of poverty when they can no longer work. Local 302. Which brings us to an issue many U.S. workers have Stewards at all companies signatory with Local 302 confronted and some still confront, including concrete should be made aware that Brundage Bone, Ralph’s and Pa- pumpers at Operating Engineers Local 302. Employers cific are only under contract until Monday, December 31, like 401(k) savings plans and hate defined-benefit pen- 2007. sions. 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 replac- ing defined-benefit pensions, which guarantee you get DECEMBER 28, 2007 (late) money as long as you and sometimes your spouse live, with the cheaper 401(k) plans. Pensions guarantee your retirement. 401(k)s The Union met with attorney John Payne today until might enable you to stop working… for a while. 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: Which is smarter for concrete pumpers? The unique contract for Local 302 concrete pump- 1. He offered a six-year contract with the last three years ers -- which expires Dec. 31 -- includes two separate based on the AGC agreement. He said that pumpers would sets of benefits. “Unit A” workers participate in the receive the same percentage increase as the AGC, but did not Union’s defined-benefit pension plan, with the -em define how that would be determined -- Percentage of Group ployer contributing the entire amount. “Unit B” gets 4? Percentage of Group 1AA? He couldn’t say. a 401(k) savings plan instead, and after several years, the employer will match a percentage of the money 2. It takes away your Section 7 right to honor a picket line; that the worker diverts from his or her paycheck into the plan. the same right every single non-union person in this country For the boss, the choice is easy. At Ralph’s Concrete has. Pumping, for example, it’s the difference between pay- ing $0.38 an hour -- or less -- toward Unit B retirement 3. It offers no overtime pay until you reach 40 hours in the benefits after a worker has been with the company for week. six years, and paying $4.20 an hour for a Unit A worker from Day 1. 4. It still has Yard Pay at $13.50 per hour, as it did 7 years Well, duh! ago. For the employee, the choice can be more difficult. SEE NEXT PAGE SEE NEXT PAGE 5. No meal provision. 401(k)s vs. Defined-Benefit Pensions 6. It still contains 90% for private works. That means they (Continued from Page 1) can take your wage increases, and then some, if they wish. Especially when the boss is doing his best to convince 7. Same apprenticeship language. them to do what’s cheaper for the company, as the pumping firms have. 8. Vague guidelines for health care increases. (The em- Here are a few things for pumpers – and anybody ployer identified their current fringe as $3.71 per hour.) else considering a similar decision – to think about: 1. What does your gut say? Will less of your em- 9. This proposal still expires in December 2013. ployer’s money added to your money deducted from 10. It pays Unit A employees approximately $2 less in the your paycheck and put in a savings account (minus fees and market fluctuations) end up making you bet- first year and more than $3 less in the third year. ter off than getting more – much more – of your em- ployer’s money invested in a guaranteed retirement? The union strongly recommends that you turn down this Hint: it won’t. agreement. The choice is yours. If it fails, John Payne’s 2. Do you know how long you’ll live? 401(k)s clients -- Brundage Bone, Ralph’s and Pacific -- will have an are savings accounts that run out. Pensions last until opportunity to make a better offer. If they opt not to make you die, you cannot outlive their benefits. a better offer then those employed for those companies will 3. Are you an investor? The pumping companies not be covered by a union agreement. You will not be asked say one of the benefits of the 401(k) is controlling to strike. These companies will simply be non-union. 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 DECEMBER 28, 2007 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 Union will meet with John Payne at 1 p.m. today. the participants themselves for not following prudent We still hope to have a proposal by Sunday from John and investment strategies. his clients, Brundage Bone, Ralph’s and Pacific. 4. Have you ever heard of anybody retiring on Conco and Luchts have received our most recent pro- a 401(k)? Well? Have you? If you want to meet posal and have yet to respond. somebody who has retired with a pension, just come Reminder: There will be a concrete pumpers meeting to a Union meeting and talk to one of your Union’s this Sunday at 9 a.m. at the Bothell Hall. Bring your dues many proud members who are enjoying a secure re- card, you will need it for admission. tirement – one they don’t have to worry will end if they have the misfortune of living too long. Please stay tuned for further updates. It is our intent to put the proposal or at a summary of any proposals on the 5. Consider the source. Do you think your em- Web site. It may be late tonight or even Saturday morning. ployer 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 DECEMBER 26, 2007 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 The Union received a fax on Friday, Dec. 21 from at- seen the benefits of a secure retirement, and we want torney John Payne’s office -- he is negotiating on behalf of what’s best for all of our members. Brundage Bone, Ralph’s and Pacific -- stating that they still haven’t quite gathered up all the information regarding a But we know there are cynics out there who think the Union must have some other angle. We do. Unit B proposal. The simple question, “How much is your Unit A vs. Unit B creates an unlevel playing field offer actually worth?” apparently has lead to some serious between concrete pumping companies. It also creates head scratching on the part of John Payne’s clients. division within those companies. The whole point of a Union contract is to get the best possible uniform set Hopefully, for all parties, we will have something worth of wages and benefits.
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