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 The Union will meet with John Payne at 1 p.m. today. blamed the higher fees charged by 401(k) plans and 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. Conco and Luchts have received our most recent pro- 4. Have you ever heard of anybody retiring on 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 Please stay tuned for further updates. It is our intent to they have the misfortune of living too long. 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 The Union received a fax on Friday, Dec. 21 from at- is that we are working people just like you who have 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 Hopefully, for all parties, we will have something worth Union contract is to get the best possible uniform set of wages and benefits. The point is to stick together, voting on at this Sunday’s 9 a.m. concrete pumpers’ meet- so we have more strength at the bargaining table. ing at the Bothell Hall. Bring your dues card, you will need Two-tiered contracts create an incentive for employ- it for admission. ers to favor the cheaper workers and to eliminate oth- In the meantime, the Union will continue negotiating ers. It allows them to divide the workforce, which with Conco, Luchts and anyone else not affiliated with John weakens Union solidarity. What do you think? Payne. Other companies will have less difficulty defining -- David Groves, IUOE 302 Communications Director SEE NEXT PAGE their offers since they are using a dollar amount instead of employed at Conco and it was rejected. The biggest issues a percentage. Plus, their total package is a defined number appear to be the elimination of 90% for private works, and and not a moving target dependent on variables like 401(k) not enough money. s, whether an operator has worked there enough years to get Some expressed concerns at the meeting that Local 302 any company contribution, and whether those that do qualify was not allowing the membership to vote on a proposal by opt to deduct money from their wages to receive that com- any of the other companies. There have been no proposals pany contribution. from those companies to vote upon. We hope all companies Stay tuned. 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. DECEMBER 21, 2007 During the presentation last Sunday, some in attendance questioned the staff’s assertion that Brundage Bone has to On Tuesday, Dec. 18, attorney John Payne still did not contribute just 50 cents for every dollar Unit B members have the information needed to accurately define his clients’ contribute into their 401(k). Click here to see the company’s proposal. He said he would have the information by Friday own 401(k) description verifying the 50-cent obligation (we and would call us on Thursday to advise us if there would be highlighted the applicable section). If Brundage is actually negotiations on Friday. paying more, that is nice, but members should be aware that Local 302 called Thursday at 4 p.m. to inquire what the the company is not required to do so. status was and got John’s voice mail. A message was left We will meet with John Payne today regarding Brund- requesting a return call in regards to this. At this time (Fri- age, Ralph’s, and Pacific, and we’ll continue to keep you day at 1 p.m.) there has been no reply. John indicated that informed. Stay tuned. defining his clients’ proposal may be very difficult. If you have questions, contact Chuck Campbell at cca- Stay tuned. [email protected] or give him a call at 1-800-521-8882 ext. 118. The existing pumper contracts, which expire De- cember 31, are posted here. DECEMBER 19, 2007

Yesterday, Local 302 met with John Payne, the attorney DECEMBER 14, 2007 representing Brundage Bone, Ralph’s and Pacific. He has still not determined the specifics of the increase that will be The good news is that we are close to an agreement with offered by his clients. He said he hopes to have all the rel- Conco Pumping that eliminates the two-tiered pay system evant information by this Friday, Dec. 21. He will let us of Unit A vs. Unit B employees and includes many of the know by Thursday. other pay and working condition improvements sought by John did, however, clarify one issue. He said Brundage members. The bad news: a counterproposal presented to us Bone matches union members’ 401(k) contributions dollar- yesterday from Brundage, Ralph’s and Pacific offers signifi- for-dollar up to 7%. He said the document provided to the cantly less and retains the divisive two-tiered pay system, so union per our information request was only meant for non- we don’t yet have a proposal from those companies that the union employees of the company, who apparently get 50 Union can recommend. cents on the dollar. He said the company would provide us All Local 302 members employed by concrete pumpers: a written clarification of this policy. When we get it, we will There will be a 9 a.m. meeting this Sunday, Dec. 16 at the post it on our web site. Local 302 advises that all Brund- Union Hall in Bothell. Bring your dues card, you will need age 401(k) participants print and save a copy, and that they it for admission to the meeting. There will be a vote. always check their statements carefully. Members should mark their calendars for our next THE TENTATIVE AGREEMENT WITH CONCO meeting on Sunday, Dec. 30, 2007, at 9 a.m. at the Bothell Hall. We hope that all companies have provided offers by We wish to thank Mike Cusak for his efforts in achiev- that time. If you have questions, contact Chuck Campbell at ing a Conco proposal we can vote on prior to the Dec. 31 1-800-521-8882 ext. 118. expiration of the current contract. We believe this agree- ment represents fair middle ground in the effort to eliminate the large disparity between signatory pump companies’ con- DECEMBER 18, 2007 tracts. It would benefit members, but it also would allow contractors to compete on a level playing field based on the At the concrete pumpers’ membership meeting held Dec. quality and efficiency of their work, as opposed to who can 16, a contract proposal was presented to Local 302 members SEE NEXT PAGE pay one group of workers significantly less than others doing The carrot they offer is a 6% increase to the total pack- the same work. age the first year, 5.51% the second year and 5.18% the third. The difference in the Master Agreement (MA) and the Unit A employees would get from $1.89 to $2.34, depending current Unit A rate is approximately $6.45 per hour for a on their job classifications, while they could not define how 52-meter pump and $10.63 for a line pump. For Unit B Em- much 6% would mean for Unit B employees because every- ployees, the differences are huge: $10.72 for a 52-meter and one’s benefit costs are different. In other words, they are $14.91 for a line pump, if they were making a full contribu- hoping members will look only at the percentage increase, tion to their Unit B fringes, and $14.24 and $19.43, if they and ignore the divisive setbacks the counterproposal also in- are not making any fringe contribution. If we attempted to cludes. achieve parity between the Conco agreement and the MA with this one contract, Unit A employees would receive a A TALE OF TWO PROPOSALS smaller percentage increase than the MA, but Unit B would receive a much larger percentage increase. The existing two-tiered pay system creates an incentive The tentative contract we have negotiated with Conco to discriminate against higher-paid Unit A employees by un- calls for a $5.29 increase (13.6%) over three-and-a-half fairly rewarding cheaper Unit B workers with better pumps, years. For Unit B employees to make the transition to this better hours, etc. This two-tiered system of “haves” work- agreement requires a $12.00 increase (37.3%) over the same ing beside “have-nots” creates internal hostility and morale time period, the bulk of which would be in the first year. problems and runs counter to the basic Union principles of Other gains include: unified collective bargaining. And that’s why members have -- Expires in May, not in January told us in their surveys and at meetings that Unit A vs. Unit -- Subcontractor provisions B has got to go. -- Overtime after 10 hours per day, instead of 40 hours per The Brundage, Ralph’s, and Pacific counterproposal re- week only tains that divisive system. Although it represents an 16.69% -- Fringe benefits paid on yard time increase in overall compensation, it achieves none of the -- $5.00 per hour yard pay increase other goals in conditions that members are seeking. Plus, -- Shortened trainee period from 6,000 hours to 2,000 it attempts to take away pumpers’ right to show Union soli- hours. darity with other trades when they are forced to picket a job -- Other gains in show-up pay, hours of work and overtime. site. -- Penalty for missed or late lunch The Conco proposal eliminates the two-tiered pay sys- tem and represents a 37.3% increase for Unit B members, a For Conco and Lucht’s to stay viable in the Puget Sound 13.6% increase for Unit A, and achieves many of the gains they both need to be competitive. We feel this is a fair con- in overtime pay, yard pay, show-up pay and other conditions tract and hope those of you asked to vote on it will ratify it that members are seeking. with a YES vote. We also hope that if you are asked to vote There are strength in numbers, and if you think one con- on a lesser agreement, you will vote NO. tract and one pay system is in the best interest of the whole, there has never been a better time to fix this broken system BRUNDAGE, RALPH’S AND PACIFIC than now. One contract means we work together and not COUNTERPROPOSAL against each other. We’ll see you Sunday at 9 a.m. at the Bothell union The Union met with attorney John Payne representing hall. 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’ DECEMBER 7, 2007 federal rights to honor other trades’ the picket lines. In other words, this counterproposal is all about dividing workers, Since our last update, the negotiating team has sched- as opposed to creating a fair and level playing field among uled a meeting with Attorney John Payne, who represents contractors. Pacific Concrete Pumping, Ralph’s Concrete Pumping and The counterproposal also failed to address paying over- Brundage Bone. It is scheduled for Dec. 13 at 9 a.m. time other than beyond 40 hours a week. It seeks to lock in The rumor mill is churning out product at a fever pace. another long-duration contract (6 years) and expires again It isn’t worthwhile to address any specifics. If your em- on Dec. 31. They propose to leave the yard rate frozen for ployer is posturing about different means of accommodating six more years – through 2013 -- at the same rate it was ne- your potential absence after the first of the year, some of the gotiated in 2001. Yard rate also would not include benefits things they may have said could be Unfair Labor Practices. to be paid on the person. SEE NEXT PAGE Indicating that you will no longer be employed could be in- THE TRUTH ABOUT 401(k) timidation, trying to influence you may be direct bargaining. VS. DEFINED-BENEFIT PLANS Both could be a violation of federal law. Please take notes of any contact you have with manage- Operating Engineers employed in the concrete pumping ment that you feel is an effort to influence you or intimidate industry recently received information with their paychecks you to vote for an inferior contract. Email your notes (pref- regarding the benefits of a 401(k) over a defined-benefit pen- erably in Word format) to [email protected] or call sion plan. Here are some facts that seem to have been omit- him at at 1-800-521-8882 ext. 118 to make other arrange- ted: ments to get them. Thank you to those of you who have The employers prefer the 401(k) because it makes you already provided such notes. cheaper. It’s the difference between them paying $0.38 an It is also worth remembering that the employers repre- hour -- or less -- toward your retirement in Unit B, and them sented by John Payne have terminated their agreement with paying $4.20 an hour in Unit A. Local 302. If they didn’t want a contract with you, they According to data from Ralph’s, Unit B employees con- wouldn’t be negotiating at all. Like hundreds of other em- tribute anywhere from 0 to $100 per week to their 401(k). ployers signatory with Local 302, they wish to be a favorite That money is deducted from their wages. The most the choice of contractors who are signatory with the Local. Un- company will contribute is $15 per week, which is 38 cents like hundreds of other contractors, they are hoping to con- an hour over 40 hours. For every hour past 40, that 38 cents tribute to an inferior fringe package. NO ONE SIGNATORY shrinks in value. And even that is not guaranteed. The 401(k) WITH LOCAL 302 PARTICIPATES IN TWO SEPARATE plan’s literature reads, “Ralph’s Concrete Pumping MAY at FRINGE PACKAGES SIMULTANEOUSLY except con- its discretion, make a Profit Sharing and/or Employer Match- crete pump companies. The current contract was a means to ing contribution for a given year.” Finally, you only get the organize these companies. Now it is time for them to partici- $15 per week if you are 100% vested, after six years with pate on one level playing field. You can make that happen Ralph’s. with your vote. Pacific has similar vesting but contributes twice as much, Remember we have a meeting scheduled for all concrete approximately 75 cents per hour. But still, compare that to pumpers on Sunday, Dec. 16 at 9 a.m. at the Bothell Union what Unit A employees get. Hall. Bring your dues card, you will need it for admission Unit A employees earn $4.20 per hour contributed to to the meeting. There will be a vote, you should receive their defined-benefit Union pension plan. Whether they work a notice by mail soon. Let your fellow concrete pumpers 40 or 60 hours a week, it is always $4.20 per hour. That is know. Remind them that they will not be voting if they are money above and beyond their wages, contributed to their suspended or not a member. pension on their behalf by their employer. In other words, We meet Monday with Conco. the employer WILL contribute. The employer has made a If we have a proposal, it is our intent to get it on this web commitment. site so you can review it prior to Sunday’s meeting. Check As for the issue of portability… yes, the money you di- back frequently. vert from your wages into the 401(k) is undeniably portable. But the vesting time is not. Time spent at one pump com- DECEMBER 4, 2007 pany under the Unit B plan, does not help you at the next pump company. If you switch employers (which is common All Local 302 members employed by concrete pumpers: in this industry), you start from scratch working toward your Please plan to attend a meeting at 9 a.m. on Sunday, Dec. 16 38-cents-an-hour benefit after six more years. at the Union Hall in Bothell. Bring your dues card, you will Unit A employees for all of the different signatory con- need it for admission to the meeting. There will be a vote. crete pumping companies -- or any one of 400-plus other Meanwhile, here’s the latest on the negotiations: Union contractors in other industries -- work towards the Negotiations with Conco scheduled for Dec. 3 were same vesting. In the Union plan, you are 100% vested after rescheduled for Dec. 5. Attorney John Payne, who repre- five years or 7,500 hours, whichever comes first. If you work sents Pacific, Ralph’s and Brundage, has made no attempt to 50 hours a week for three years, you would have 7,800 hours, schedule more negotiation dates. Brundage has still failed to and you’d be vested. Permanently. Even if you switch to a respond to the Union’s request for information -- made way job with another Union contractor. back on Oct. 22 -- regarding the costs of fringe benefits for its Unit B employees. THE BOTTOM LINE: TWO TIERS HAS GOT TO GO Meanwhile, the companies are busy trying to convince you that less money for your retirement is better for you… The Union has made it clear to all concerned that a level playing field is in the interest of the entire industry. The two

SEE NEXT PAGE tiers of Unit A vs. Unit B create uneven playing fields be- so happy with the two-contract scenario now in place. tween companies. It also establishes uneven playing fields Many have asked about the next time we will meet as within companies. Unit B companies have an incentive to a group. We are not sure at this time. Based on our sched- discriminate against Unit A employees by unfairly reward- uled negotiating dates, we ask that you keep Sunday, Dec. 16 ing cheaper Unit B workers with better pumps, better hours, open on your calendars. By then we should have a clearer etc. picture of how things are going. Stay tuned to this site for This two-tiered system of haves working beside have- further information on a firm date and time. Continue to nots is a recipe for internal hostility and morale problems, it encourage other 302 members to stay informed. Thank you. runs counter to the basic Union principles of unified collec- If you have questions, contact Chuck Campbell at ccamp- tive bargaining, and it has got to go. [email protected] or give him a call at 1-800-521-8882 ext. If you have questions, contact Chuck Campbell at cca- 118. The existing pumper contracts, which expire December [email protected] or give him a call at 1-800-521-8882 31, are posted here. ext. 118. The existing pumper contracts, which expire De- cember 31, are posted here. NOVEMBER 1, 2007

NOVEMBER 17, 2007 There have been no formal negotiations as of yet, but we have tentative dates with both Conco and Lucht’s and hope Local 302 met with the management of Conco Concrete to set dates with the rest ASAP. In our conversations to date, Pumping on Nov. 13 and presented the employer with a these two companies have expressed an eagerness to begin complete proposal. We hope to hear their response around negotiations, and appear to share our commitment to a level Nov. 26, likely via e-mail. Both sides agreed there was a playing field. lot of work to be done, but we left with optimism. We meet The negotiating team has conferred with other Locals again on Dec. 3. to determine possible tweaks or strategies in negotiations. Attorney John Payne, who represents Pacific, Ralph’s Thank you to all of you who have contacted us with your and Brundage, met with our bargaining team on Nov. 16 in information regarding the negotiations. Though these nego- Bothell. We presented him with the same proposal as we tiations may become contentious at times, we hope to build presented to Conco, and he said his clients are happy with a stronger relationship between labor and management and the current two-contract arrangement. After our laughter build a prosperous future for both sides. Much of the infor- subsided, we made it clear to Mr. Payne that the Union is mation Local 302 members have shared with us allows for dedicated creating a level playing field for all contractors in cautious optimism. We will keep you posted. the pumping industry. If you have questions, contact Chuck Campbell at ccamp- Based on conversations with you and information gath- [email protected] or give him a call at 1-800-521-8882 ext. ered from other sources we believe the difference between 118. the Units A and B is $5-$6. We could illustrate this for the membership and the employer more clearly were they to re- spond to our request for information. Back on Oct. 22, we OCTOBER 18, 2007 asked for information from all employers, and requested a response by Nov. 15. Much of it involved the company’s The concrete pumpers’ meeting held Sunday, October costs for the Unit B fringes. Luchts and Conco were not 14 was well-attended and the staff appreciates the members’ required to provide Unit B information because they have viewpoints and encourages their continued participation. no Unit B employees. It appears Luchts and Conco have If you were not there, Local 302 has received many of the complied with this request. Pacific complied with most of it, pumpers’ surveys indicating which issues are their priorities but when asked to provide a list of all the members who have for contract negotiations. participated in the company’s 401(k) and a list of those who Check this web site often to stay informed as these im- have vested in it, they were unable to comply. Mr. Payne portant negotiations progress. We will keep you posted of indicated that Ralph’s and Brundage were having difficulty any developments. And please encourage your Brothers and providing the same information. We asked that they keep Sisters in the pumping industry to do the same. Stay tuned. trying and repeatedly asked for a new date by which we The existing pumper contracts, which expire December 31, could expect to see this information and that which was al- are posted here. ready compiled by Ralph’s and Brundage. Mr. Payne would If you have questions, contact Chuck Campbell at cca- not specify a date, which was disappointing to say the least. [email protected] or give him a call at 1-800-521-8882 Hopefully he can get the bulk of the information together ext. 118. soon so we can shed some light on why the employers seem