Newsletters of the PHCC of Greater Boston

New Leaders: At our recent Annual Meeting, PHCC of Greater Boston elected a new slate of leaders:

President: John Cannistraro, Jr. of J.C. Cannistraro Co. of Watertown
Vice-President: Michael Petrilli of E.H. Marchant Co. of Quincy
Clerk-Secretary: Kevin Walsh of J.C. Higgins of Stoughton
Asst. Clerk-Secretary: Edward Strickland of Wm. Collins Co. of South Boston
Past President: Thomas Hannon of Commonwealth Plumbing, Hingham

Dart Retires: Joe Dart, a major, respected figure in the construction industry in Greater Boston, has retired. Joe was head of the Boston Building Trades. In his early years he worked as a union painter in Springfield area. Frank Callahan, who has served as a lobbyist for the Building Trades, will take over Dart's role.

Drug Testing: Many construction unions and employers are working on (or have implemented) a drug testing program. Planning a vast expansion into Allston, Harvard has added drug testing to its Project Labor Agreement with the Building Trades. Will include testing for probable cause, post-accident, and for all new hires.

Tax increases: At least 25 Mass. Communities are looking at Prop 2.5 tax overrides this year--mostly to fund local increases in health and pension costs. Proposal at state house would allow the communities to join the state health and pension systems, which, to surprise of many, are much more efficient than most local plans. Example: Over past six years, cost of City of Boston health plan has increased 92%, while state plan has increased 61%. Much larger negotiating power of state system would drive down costs.

Pensions: Local pension boards often are very ineffective, operated amateurishly. Joining the state pension would almost automatically ensure a better return, since system is professionally run, and in fact has done pretty well.

Foreclosures: Mass. home foreclosure auctions were up sharply again in April, when more than 1,700 went on the block. This is 54% increase from a year ago. Highest rate since early 1990s.

Mass. Economy UP: Despite weak areas (housing), Massachusetts economy grew at an annual rate of 4.7% in first quarter, according to UMass study. 5,000 new jobs per month were created, four times the national averageŠa good sign that Mass. economy is strengthening. Until recently Mass. lagged the national average growth, shedding thousands of jobs in wake of 2001 tech downturn.

128 Occupancy: Another sign of strengthening local economy: 14.7% vacancy rate for commercial space along Lexington / Waltham stretch of Route 128 is lowest since 2001. Rents have risen nearly 40% in last 3 years. Major new construction now underway...1 million more square feet in Waltham by 2010. The tenants: many small technology companies--computer, internet and biotech lead the way. Many office amenities: Starbucks, ping-pong, fitness centers, etc.

Fidelity Ends Pensions: In a move indicating future of the retirement planning, Fidelity Investments is ending pension program for its 32,000 workers. Mutual fund giant will instead offer increased benefits in the company's 401(k) plan, and a health savings credit that puts aside money tax-free for medical expenses in retirement. Like many employers, Fidelity became wary of providing a "defined future benefit," which is what a pension provides. A 401(k) annuity plan guarantees how much money will be set aside--but does not promise how much it will be worth at retirement. Investment decisions are generally left up to worker.

Best of Both Worlds: A leading local economist was surprised to learn that Local 12 contractors and members operate a system providing both a pension (defined benefit) and annuity (defined contribution). His response: "That's the best of both worlds."

Boston Immigrants: One in four people who live in Boston were born in another country...A proposal before the Boston City Council would allow non-citizens to vote in city elections, if they are here legally, and intend to become citizens. The City Council is split; Menino has taken no position yet.

You are an Immigrant: One of the most useful concepts around: the notion of "digital natives" vs. "digital immigrants." Digital immigrants are typically those over the age of 30 or so, who did not grow up working with computers, cell phones, the internet, etc. For people like us, it takes a lot of work to use these damn things. We are the "immigrants" arriving in a new land. The real "digital natives" are kids who grow up learning "language of technology."

And An Immigration Disaster: A bad story: a highly-respected young truck driver for one of our companies had been brought from Brazil to Boston when he was four. Successful in high school, respected by all, and "the best truck driver we ever had." He was set to go into Local 12 apprentice program, when he was called by Immigration Service. His parents had never gotten him citizenship. Kid is now in jail. Illegal immigration is problem, but here was a terrific kid, a hard worker, paid taxes, someone who had gone to school here since he was in kindergarten. Now locked up. Probably being sent back to South America. What do you think?

Tickets: The Atlantic reports on George Mason University study of speeding tickets issued in Massachusetts. Results: better to speed in your own town. Out-of-towners have a 21% greater likelihood of getting a ticket. State Troopers ticket out-of state drivers at a rate 28% higher than Mass. drivers. Women more likely to get warning.

Free Trade: Some of those who supported "free trade" agreements (like NAFTA, The North American Free Trade Agreement) are having second thoughts. The Wall Street Journal reports that Princeton economist Alan Blinder--once a strong advocate of free trade (no restrictions / no tariffs) has changed his tune. Blinder now says "new industrial revolution" in electronic communication will put 40 million white collar American jobs at risk. Problems for accountants, financial analysts, architects, programmers, graphic artists, microbiologists and any job that can be done over internet.

Liable: A federal court in Connecticut has ruled that the president of a union company is personally liable for money owed to benefit funds.

The Middleborough/ Revere Casinos? The Boston Globe reports that the Wampanoag Indian tribe has purchased several hundred acres in Middleborough. The tribe recently won federal recognition, and this authorizes them to open a casino, if it can negotiate an agreement with state authorities. A local referendum on casino is planned.

Or in Revere? The Revere City Council has also asked to meet with the Wampanoags, to discuss a casino. New Bedford is also under consideration. Governor Patrick appears to be open to the idea of casino in Mass., though no official endorsement yet.

Water: Nearly a decade of dry weather in the American west has caused real problems for water supplies. After spending half a decade praying for rain, $2.5 billion in projects are planned or underway, including a 280-mile pipeline to bring water to Las Vegas from northern Nevada. California Gov. Schwarzenegger and others claim global warming is gradually eliminating the snow pack in the Rockies. Less snow = less water. Schwarzenegger is pushing $4.5 billion bond bill for water storage facilities.

100,000 Trees: Mayor Menino plans for 100,000 new trees in Boston over next 13 years. In 2008 city will spend $500,000. New York City will plant 1 million new trees over next decade. Trees lower summer heat, improve air quality, reduce storm water run off, and appear to improve psychological well-being among residents. Menino and others are impressed that neighborhoods with trees have higher property values, lower crime rates.