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Greater Boston Plumbing Legends!

 

 

January 2010

From the desk of Hugh Kelleher, Executive Director

Email Hugh with comments or suggestions for future items.

Population UP: For two decades, Massachusetts has steadily lost population. But in 2009--for the first time in twenty years--the population of the Bay State increased. The Boston Globe reports that 3,600 more people lived in Massachusetts than a year earlier. Now that jobs are no longer easy to find in other states, people are not moving away. And lower housing prices mean some people who wanted to live in Massachusetts are coming here for buying opportunities.

Congressional: The number of residents of a state is very important. The New York Times (NYT) reports that, even with its slight growth in population, Massachusetts is likely to lose one representative to Congress as a result of the 2010 federal census. The US House of Representatives has only 435 seats, and these get divided up according to population. Massachusetts could be left with only 12 congressional representatives. Texas may get 3 new reps, for a total of 35. California will keep its 53.

Cadillac Plans: Construction unions have been concerned that the health legislation in Congress would impose a tax on so-called Cadillac plans. The Senate bill says there would be a 40% tax on every dollar spent on a plan that cost more than $23,000 for a family. The amount would be indexed for inflation.

Exemptions: It appears that most local union health plans do not meet that taxable threshold. Also, there are specific exemptions for workers in hazardous industries--including construction. Bottom line: It is unlikely that most Boston construction union health plans would be taxed. We may have good health plans--but we are not Goldman Sachs.

Real Estate Update: The Wall Street Journal (WSJ reports that nationwide, 1 in 4 borrowers are "under water"--they owe more on their mortgage than the home is worth. In Massachusetts, about 15% of borrowers have this problem. The situation is far worse in Florida (45% with 'negative equity') and Arizona (48%). Leading the nation: Nevada, where 65% of mortgage holders are "underwater."

Any Good News? Yes: the inventory of unsold homes in Massachusetts has declined for 24 consecutive months. Sales of homes and condos have been increasing. Prices have continued to decline--though by very small amounts. More and more people think that the bottom of the residential market is near.

Commercial Problems? Some fear there could be a "second wave" of foreclosuresSthis time in the commercial real estate sector. Many big purchasers overpaid during the years when real estate was growing rapidly in value. Now they can't refinance, and face default.

Buyers Market: Yet in both the commercial and residential markets, many think this is a good time to buy--if you have the money. Simon Properties has purchased an additional 22 shopping centers around the country -for $2.2 billion. Simon currently owns a number of Massachusetts properties, including Northshore, Southshore and Burlington malls.

Convention Center: The Boston Convention Center has announced plans that would double its size. Planning has begun for a 400,000-square-foot exhibit hall behind the main center, a 1,000-room hotel, a 5,000-seat auditorium, and a 65,000- to 75,000-square-foot ballroom.

Best & Worst Plumbers? A couple of publications are analyzing consumer services in Massachusetts--and evaluating plumbing companies seems to be a favorite topic. Both Angie's List, and Boston Consumers' Checkbook are printing up survey results on dozens of local plumbing, electrical, and residential construction companies. You can google information online. (They want you to pay for the details.)

Plumbing In Demand? Plumbers, pipefitters and steamfitters are on the list of the top 50 in-demand jobs in America. The list was created by the U.S. Department of Labor, which ranked all occupations by multiplying the projected need for employees in an occupation by the median hourly wage.

Unemployment Problems: Despite that optimistic assessment, the brutal fact is that in the current economy, there are many, many unemployed plumbers. Everyone in a construction-related business has been affected by the downturn. And if you are in commercial construction, your problems are worse, because they just aren't putting up any new buildings.

Why the Optimism? In the long run, the prospects for people in skilled trades like plumbing remain very good. The baby-boomer generation of tradesmen is about to retire, and nationally we are not training enough people to replace them.

Consider: This information from Ike Casey, the executive director of the national PHCC: The latest census documents I could find show that in 2007 there are 91,693 plumbing, heating and air conditioning companies in the U. S. with 975,796 employees, paying $45,414,849,000 in payroll. In the five years following the 2002 census there was a growth of 4,192 companies with only 1,428 more employees. So there were more companies going after fewer employees. Of course the economy has changed drastically since 2007 and there are plenty of people looking for work. The question is what are we going to do when the economy picks up?

Concessions at Ford: By a unexpectedly large 4-1 margin, union autoworkers at Ford agreed to concessions to help Ford continue its recent positive growth. Key points of the November agreement: a union commitment not to strike on wage and benefits until 2012; a wage freeze on entry-level workers; and a relaxation in work rules to allow employees to perform a wider variety of tasks. Workers also got a $1,000 bonus.

Congratulations! On election victories for Local 12 Business Manager Kevin Cotter, and for Business Agents Harry Brett, George Donahue and Tim Fandel--all of whom won reelection in December....Also to Skip Pfeffer of Canton Plumbing, elected President of the National PHCC at the recent convention in New Orleans...and to current Pipefitters Local 537 Business Manager Dan Watts, named the new International Representative for the United Association in our region. Dan takes over this summer from retiring rep Bill Turner of Rhode Island. 537 will hold elections in June.

Wal-Mart: Months after an arbitrator in Quebec awarded workers at a Wal-Mart a labor agreement, the store is still open. There are only two unionized Wal-Marts in North America--both in Canada. In the past, if a particular store unionized, Wal-Mart closed the store.

Hospitals: Meanwhile, Massachusetts workers at three hospitals in the Caritas Christi Health Care chain (St. Elizabeth's, Carney and, most recently, Norwood) have voted to join the Service Employees International Union (SEIU).

Image Problem: Many people still have negative images of unions--whether those unions work on construction sites, or in hospitals. Some of that bad image is based on outdated stereotypes. What's interesting is that many construction unions are working hard to become positive, constructive partners to businesses. For instance, the building trades work extremely cooperatively with Partners Health Care, which operates Mass. General, Faulkner, Brigham & Women's, Newton-Wellesley and other major hospitals.

Rainwater Reuse ...will be a major part of future plumbing systems. The Globe did a story on rainwater collection system being installed at the tower at Russia Wharf. Rainwater will cool the building, irrigate the plants, and slash the water bill. Water in 40,000-gallon tank will be filtered, and pumped back up to cooling tower. Installation by J.C. Cannistraro.

Chemicals: The article in the last issue about chemicals in our water supplies generated some mail. People expressed concern about unknown impact of everything from soy milk, to the excessive use of sunscreen (which some tie to autism.) Now a front-page NYT story reports that the SAFE WATER DRINKING ACT regulates only 91 contaminants--but over 60,000 chemicals are used in the US. 62 million Americans have been exposed since 2004 to water that could cause cancer or serious disease.

The Good News: We close with THE GOOD NEWS...also from the New York Times. "The most all-round health care innovation of our time...which many experts credit with a greater impact on disease eradication in developed countries over the last two centuries than any other device or drug on record...that would be the toilet."







 

PHCC of Greater Boston, 5 Elm St., Danvers, MA 01923 978-777-8764