Vol. 68, #2 February 2010 For The Good & Welfare By Russ Burns, business manager Our hard work is paying off PAGE 4 Every day, I receive your calls and talk industry, not just construction, is feeling to you at meetings about the same major the heavy burden of this recession. concerns: Jobs; extended unemployment The unemployment rate is not benefits; the hope of a better year (It improving as economists predicted. You can only get better, right?). While I can’t know this better than they do, and we wave a magic wand and grant all of your are all feeling the effects. The Trustees wishes, I can tell you that some of them of the Operating Engineers Health and are starting to come true. Welfare Trust Fund had to make some In December, San Francisco Mayor changes to insure our plan’s long-term Gavin Newsom and U.S. Secretary of Navy stability. The Fund currently has about Ray Mabus announced an agreement to $70 million in reserves with about $90 PAGE 16 transfer Treasure Island, a former Naval million in hour-bank liability, but it’s Station, from the military to the city’s losing $3.5 million per month, or about Treasure Island Development Authority. $42 million per year. We’ve received CONTENTS While the specifics of the deal are still fewer contributions because of fewer being worked out, it’s expected to generate hours and more participants out of work An inside look at mines ..................... 4 thousands of construction jobs every year using the benefits. The changes the Board Busy work ..................................... 4 for 10 to 20 years as the city redevelops implemented were effective Jan. 1, 2010 Nevada JAC earns award .................... 5 the site into what’s been called one of (you should have received information on the most environmentally sustainable these changes in the mail) and will save the News and Notes .............................. 5 development plans in U.S. history. An Fund an estimated $23 million per year. Fringe Benefits ............................... 6 additional 3,000 permanent jobs will be I want you to know, these were not last Public Employee News ...................... 8 created as a result. minute decisions; we were at a crossroads Credit Union ................................. 10 Newsom’s office credits the Building where we either made these plan changes Looking at Labor ............................ 11 Trades, including Local 3, in helping or it became insolvent. When the work Political Perspective ........................ 11 secure this transfer. With the support picture improves, we are committed to Rancho Murieta ............................. 12 of the International Union of Operating restoring the plan to its prior terms of Strate to Canada ............................ 14 Engineers (IUOE), we have been urging coverage. If you have questions about Semi-Annual Meeting ....................... 15 our representatives to support legislation these changes, call the Fringe Benefits When dirt is more than dirt ............... 16 like this that will create jobs, put you to Service Center at (800) 532-2105. District Reports .............................. 18 work and stop the economy’s downward Even with these changes, our benefits spiral. I’ll say it again, that while politics is are still some of the best around and are Meetings and Announcements ............. 26 not my favorite subject, it is unavoidable often referred to as “Cadillac plans.” Many Health News ................................. 30 in this industry. The politicians we elect of you have approached me with concerns Swap Shop ................................... 31 directly impact funding for jobs. It’s that about the Senate version of health-care simple. Stay tuned in the Engineers News reform, and I want to let you know we for upcoming endorsements, and please are addressing these concerns along with Operating Engineers Local Union No. 3 vote for those individuals we suggest. other unions angry over the inclusion of Labor-friendly politicians equal work. a tax on middle-class health-care benefits. Russ Burns Business Manager Also regarding work, on Dec. 16, the We lobbied the House this summer when Fred Herschbach President House passed the Jobs for Main Street Act versions of the health-care-reform bill Carl Goff Vice President to create or save jobs here at home with were first written, and we lobbied the Jim Sullivan Rec. Corres. Secretary targeted investments of $75 billion for Senate this fall. IUOE General President Dan Reding Financial Secretary highways and transit, school renovation Vincent Giblin and I wrote personal letters and affordable housing. Other benefits to members of Congress in both parties William Kalani Mahoe Treasurer of this bill include the stabilization and visited their offices. Unions across the of public service jobs and emergency country are following suit, meeting with Engineers News Staff funding for families hurt by the economy. President Obama about the disastrous Russ Burns Editor I can’t include them all here, so for more effects of attacks on good benefits we’ve Carl Goff Editorial Adviser information on this bill, visit www.oe3. worked hard to negotiate for. We’ve Mandy Jessup Managing Editor org, and click on Jobs for Main Street Act. also asked you to contact your elected Jamie Johnston Associate Editor I also want to share the good news representatives; tell them you elected them Dominique Beilke Art Director about the Consolidated Omnibus Budget to protect the middle class, which means Reconciliation Act (COBRA) Premium protecting your benefits. If they can’t Subsidy, which was part of the American do that, we do not support them. If you Recovery and Reinvestment Act (ARRA). have questions about health-care reform www.oe3.org Unemployment benefits were extended or want more information on how you on Dec. 19 to include involuntary can get involved, please contact Political Engineers News (ISSN 1069-2185) is published monthly by Local 3 of the International Union of Operating terminations through Feb. 28, 2010. Director Mark Kyle at (510) 748-7446, or Engineers, AFL-CIO; 1620 South Loop Rd., Alameda, Benefits have been extended from nine to visit Local 3’s Web site mentioned above. CA 94502. Periodical postage paid at Alameda, CA 15 months, which means more aid for a If you have questions about anything and additional mailing offices. Engineers News is sent longer period of time. else, I encourage you to come to the without charge to all members of Operating Engineers In January, the U.S. Congress was Semi-Annual Meeting on Sunday, March Local 3 in good standing. Non-member subscription expected to pass a further extension of the 21 at the Solano County Fairgrounds price is $6 per year. POSTMASTER: Send address eligibility period to include involuntary in Vallejo, Calif. We officers will address changes to Address Change, 1620 South Loop Rd., terminations through June 30, 2010. I’ll the audience with the state of the union Alameda, CA 94502. keep you updated on any further extension at 1 p.m., right after lunch. For more benefits as information becomes available. information and directions to this event, This comes at no better time, as every please see page 15. 2 | Engineers News Talking Points By Fred Herschbach, president Big quake rattles District 40; world’s tallest building opens in Dubai Get ready to drill A 6.5 magnitude earthquake shook District 40 last month I’d like to begin this month by thanking Morgan Hill and stopped presses everywhere as newspapers and TV District Rep. Steve Harris for his efforts in getting a landmark stations covered the event worldwide. court decision passed regarding specialty drilling licenses. According to Eureka District Rep. Richard Marshall, area Harris serves as vice president of the Construction Industry damage wasn’t too bad, but Operating Engineers have been Force Account Council (CIFAC), a non-profit coalition of called to help with a few things, like the Old Town Bar and construction industry associations, contractors and labor Grill building on Second Street in Eureka. The three-story, unions that work to ensure state and local governments brick building will be demolished after the Jan. 9 quake comply with the Public Contract Code (PCC). Maggiora Bros. separated the front façade from the building’s roofline, caved Drilling noticed that Semi-Tropic Water Storage District, in the roof and collapsed part of the east wall. The job is a a public agency, was hiring contractors to drill water wells sensitive one, as the structure dates back to 1908, housing without certain licenses that the California State License everything from a dime-a-dance hall to the Times-Standard’s Board requires Local 3 signatories to have, and brought it printing press – the local newspaper that covered the quake to Harris’ attention. Harris acted on this claim with CIFAC and its effects in depth. Crews are looking at saving as much – public agencies should abide by licensing laws too. The of the structure as possible. Fifth Appellate Court supported his position. What does this The building is located just blocks away from the Eureka mean for our industry? According to Harris, C-57 licensed Hall on Fifth Street, where, luckily, no damage was done. signatory contractors will now have a chance to bid on Members were also affected at the PG&E Power Plant, as millions of dollars worth of work. Semi-Tropic Water Storage work was stopped for a day so the plant could be inspected District plans to drill about 65 wells soon. for damage. Speaking of decisions made, as of this writing, it looks As of press time, the quake totaled about $17.9 million in like Congress put a health-care reform bill together. Only damages. Details continue to “shake” in. time will tell how this will affect America. Our position on “Nothing major fell down all the way,” said Marshall, “but this reform is simple: We want to give our Health and Welfare it was a good scare for the area.