From the desk of Hugh Kelleher, Executive Director
Comments or suggestions for future items:
hughkelleher@aol.com
Merger: As of June
1, UA Local 138 of Salem, Mass., will be merging with Locals 12 and 537
of Boston. Pipefitters from Salem will join Local 537, while plumbers
will join Local 12. One of the merger’s goals is to establish more work
for Boston’s union contractors on the North Shore.
Code:
As of September, all jobs are required to have a copy of the new 2005
Mass. Plumbing & Gas Code on hand when an inspection is conducted. The
easiest, cheapest way to get the new code is to buy it from the PHCC of
Massachusetts. See the enclosed information.
Foreign = Domestic?
The
Center for Automotive Research in Detroit reports that last year, for
the first time, more foreign-brand cars were made in the
US
than were imported. 3.7 million “foreign” cars (Subarus, Toyotas,
Hondas, Mercedes and others) sold last year were actually made at 15
plants here in the US. 3.4 million cars sold here were made abroad.
Home Prices:
The Boston Globe reported earlier this year that home prices
nationally will rise a bit more than 5% in 2006. But many say that
prices will soften as the backlog of unsold homes increases, and
interest rates rise.
Auctions:
Some sellers, desperate to unload their properties, are turning to
auctions. The Boston Globe recently reported that there has been a 25%
nationwide increase in auctions since 2003. Some homes are being sold at
steep discounts to their appraised market values.
Your Property:
Want to see what your property might be worth if you sold it? Go to
www.zillow.com. Type in your address, and within seconds you will
see an aerial view of your home, details on square footage, an estimated
sales value, and the estimated values for all the homes in your
neighborhood. Quite remarkable.
Occupancy Rates UP:
The Globe reported that at the end of 2005, office occupancy in
downtown Boston hit an all-time high 49.9 million square feet. More
office space is now occupied than at the height of the internet bubble
in 2001. However, because there are now several new office towers in
Boston, there are still vacancies. But the vacancy rate has been
declining steadily from a peak of 19.5% in 2004, to 14.4% today.
Companies of all sizes seem to be leasing space.
Pensions DOWN:
The Wall Street Journal reports that in 1981, 81% of workers with
retirement plans had pensions. Since then, there has been a sharp
decline in the number of workers with pensions. The union construction
industry is one area where workers continue to have pension plans. Our
employees in Local 12, for instance, are enrolled not only in a pension
plan, but also a personal annuity program, similar to a 401(k).
401(k)s:
While pensions are a “defined benefit” (the employee is guaranteed a set
amount when he retires), a 401(k) is a “defined contribution.” Under a
401(k) employees know how much goes in each month, but they have no
guarantee of the value of their package when they retire. Companies
prefer these programs because there are no promises about the value of
asset when the employee retires….Many are fearful baby boomers will fall
far short of what they will need in retirement, since many are saddled
with large debts, and have little set aside for retirement.
Hotel Glut?
Hotel construction
in Boston continues to be very strong. But by 2010, there could be an
additional 4,000 hotel rooms in town, leading some to fear that
Boston could be “over-built.”
Home Depot:
Continues to expand. In January, it paid $3.2 billion for Hughes Supply,
Inc., a distributor of construction, repair and maintenance products.
HD’s efforts to boost its business with contractors have made some
construction wholesalers very nervous.
Modern Problems:
The Boston Business Journal reports that Modern Continental is
being sued for $20 million by its joint venture partner, Obayashi Corp.,
a Japanese firm. Modern still has $75 million in contracts with the Big
Dig. It says that losing the suit would put it out of business.
Gas Explosion:
A Hopkinton couple received a $17.2 million settlement from N-Star and
others as a result of a 2002 gas explosion in their rented apartment.
The explosion killed their two young daughters.
Carbon Monoxide
Detectors:
Contractors and plumbers are advised to be aware of the state’s new CO
regulations. Did you know that:
“In addition, the
installing plumber or gasfitter shall observe that a battery operated or
hard wired carbon monoxide detector with an alarm is installed on each
additional level of the dwelling, building or structure served by the
side wall horizontal vented gas fueled equipment.”
The Plumbing Board’s
very useful web site:
www.mass.gov/dpl/boards/pl/
Development #1: Kraft:
Two well-known
Massachusetts
businessmen are planning major developments that will affect the
construction industry. The Globe reports that Patriots owner
Robert Kraft is planning a huge “male mall” on the 500 acres he owns
around Gillette Stadium. “Patriots Place” will include hotel,
restaurants, a 16-screen cinema, even a day-surgery center.
Development #2: Karp:
Meanwhile mall developer Steve Karp is planning a $1.5 billion
development near the Amtrak station at Rt. 128 in Westwood. Karp and
Cabot, Cabot & Forbes are planning to transform an old 130 acre office
park into homes for 1,000 families. There will also be offices and
shopping. This follows the new development model: cluster housing,
along with business and retail, around a transportation hub. This mimics
old “downtowns” and is an antidote to “sprawl.”
Newburyport:
Karp has also spent millions recently to purchase about thirty downtown
buildings in
Newburyport,
as well as 8 adjacent waterfront acres. The city of 17,000 is expecting
a major development proposal soon.
Unions Steady:
The Wall Street Journal reports that in 2005, 12.5% of the nation’s
workforce belonged to unions. This is the same percentage as in 2004.
36.5% of government workers are in unions, while only 7.8% of private
sector workers are unionized. Mistaken public perception: that union
construction workers have the same job protections that apply to civil
service and other unions. Unionized construction workers can be laid off
literally at a moment’s notice, no explanations needed.
UA Membership
Increasing:
The national union representing plumbers, pipefitters and other piping
trades says that its membership is growing steadily, and is now over
300,000. General President Bill Hite recently sat down with PHCC
contractors. He reported that special kinds of new, lower-rate
agreements are bringing in new contractors and thousands of new members.
In Boston, a lower-rate “housing agreement” will be signed within the
month.
Louisiana:
Hite was invited by President Bush to join the Gulf Coast Rebuilding
Task Force. Thousands of new union jobs expected in that region.
Waterless Urinals
Approved:
Although waterless urinals are in use here in Massachusetts, there has
been grumbling about national PHCC’s support (under some conditions) of
waterless urinals. But “green” building technology pays special
attention to water usage. Our plumbing industry needs to be a part of
advances in building technology. In Philadelphia the plumbing board
approved the use of waterless urinals, on condition that the large new
Comcast Center includes back-up system for standard urinals. That system
would not be connected unless there was a problem with the waterless
urinals. The local plumbers union in Philly supported the plan.
Water for
Sale:
The Mass. Water Resources Authority, which provides water to Boston and
dozens of other communities, is considering selling excess water to
communities it does not currently serve. Would help reduce MWRA debt
from Deer Island and other major projects.
China Syndrome:
According to The New York Times, China is in the middle of the largest
building boom in human history. City of Shanghai in particular is
carrying out an enormous construction project. 1,000 new skyscrapers
will be built during the next decade – adding to the 4,000 that already
exist. It is estimated that 25% of the construction cranes on the
planet will soon be in use in
Shanghai.
High speed railroads, highways, subways and airports are also being
constructed. Huge old neighborhoods are being torn down. No community
hearings are held. The press is barred from reporting on ties between
officials and developers. Demolition maps are not made available.
What a Pear:
If you are driving to the Plumbers’ Union Hall over the next few months,
and come down
Columbia Road
from the Expressway, you will see, in the middle of
Edward Everett Square,
a 10-foot sculpture of a Clapp pear – a kind of fruit that was once
commonly grown in Dorchester. The pear is being fabricated by American
artists working in Thailand, and should arrive by the fall.
©PHCC of Greater
Boston, 5 Elm St., Danvers, MA 01923 • 978-777-8764
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