Newsletters of the PHCC of Greater Boston

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Greater Boston Plumbing Legends!

August, 2006
From the desk of Hugh Kelleher, Executive Director
Comments or suggestions for future items: hughkelleher@aol.com

Save the Date: Every two years, our Association holds a special event: Industry Appreciation Night. This year, Industry Night will be held Friday, October 13, at Lantana in Randolph. Come hear local commentator Howie Carr, comedian Don Gavin, see your friends from throughout the plumbing industry. Ticket and sponsorship information (this is a pdf file).

Heat: Boston Globe reports that although the real estate market has cooled, inside homes it has been hot…because they lack AC. Only 58% of New England homes had central air conditioning in 2001, compared to 77% nationwide and 98% in places like Oklahoma and Texas. Most agree that new homes and condos built in our area would not sell without AC.

Hite: Leader Bill Hite handily won re-election to a 5-year term as the United Association’s General President. The UA represents over 350,000 union plumbers, pipefitters and other members of the piping trades. The election was held this month at the UA Convention in Las Vegas. Hite won 2200 votes, while opposition candidate Pruitt received 590 votes….Hite appears to have a “contractor-friendly” approach to running the UA. Representatives from our PHCC chapter have met with him a couple of times during this past year. We expect to have a positive relationship with him now that he is firmly in control of the UA.

In other elections: UA International rep Bill Turner also won re-election, as did regional VP Ken Aurecchia, who heads UA Local 51 in Providence. Local 12 Business Manager Kevin Cotter served on the Jurisdiction Committee for the convention.

Unions: By the end of August, the PHCC of Greater Boston and Plumbers Local 12 hope to reach agreement on a new collective bargaining agreement. Other agreements expiring this month: Boston Pipefitters Local 537; Boston Electricians Local 103; and cement finishers and plasterers.

Union Roofers…Went on strike for 4 days recently. They eventually agreed to a settlement which increased wages by $2.50 per hour in each of the next three years. As is typical, the increases come in six-month increments.

Settlements: Last year, Boston Sheet Metal Workers Local 17 settled a 4-year agreement with an increase averaging just over $2/hour…Painters in Boston settled a 4-year contract, with a wage increase of $9.50/ hr. over the period, or an average increase of $2.38 per hour during each year of the contract. Part of the increase goes to a new labor-management fund.

Keep in mind: Part of any union wage increase can (and often is) spent on benefits, such as health coverage, or pension. Rising health costs have meant a large percentage of wage increases in recent years has gone to cover health programs. Once an overall wage package is determined, it is up to union to decide whether to spend the funds on benefits, or put the money in the pay envelope.

Local 12 Health Plan: Effective management of the Local 12 Health Plan, run jointly with Harvard-Pilgrim, resulted in an unheard-of decrease in the plan’s costs this year. Effective cost-controls were put in place…no complaints from members.

Overall: This past year wage increases in the union construction industry have averaged about 4%.

Open Shops: Meanwhile, Cockshaws, which follows labor issues, predicts that open shop pay this year may grow by more than union pay. Cockshaws says labor shortages in the open shop sector may result in increases of 5%.

In New York: Currently Plumbers Union Local 1 in New York City has full employment, and may be looking to bring in “travelers” (workers from locals from around the country). This contrasts with New York’s pipefitters and electricians, who are suffering unemployment. New Yorkers attribute the high percentage of employed union plumbers to fact that Local 1 contract allows “helpers” to perform non-plumbing tasks such as moving materials and installing accessories.

Wal-Mart Battles: After closing one store in Canada when workers decided to unionize, Wal-Mart in the US has set up a “campaign-style ‘war room’” in DC to fight efforts in this country to unionize Wal-Mart stores. The ‘war room’ is staffed by lobbyists, consultants and lawyers. Both sides have set up very aggressive web sites. Currently, there are no unionized Wal-Marts in the US…. China has over 60 Wal-Marts, and they all have unions. In China the unions often support (rather than challenge) foreign corporations… There are Wal-Mart unionization efforts underway in England.

Manufactured Homes: Are they a wave of the future? Perhaps. One reader wrote to the Boston Globe real estate page asking if he could purchase a home directly from a manufacturer. Answer: States generally require purchase from a local retailer, who is responsible if there are problems. Installation of plumbing and electrical must also be inspected and approved.

Water: Huge investments are being made in the water business. Reason: projected water shortages in the US and around the world. GE, Dow Chemical and Siemens are among large conglomerates buying up water-technology businesses at a fast pace. Everything from filter companies to wastewater reclamation construction is expected to benefit. A Goldman Sachs analyst was quoted: “Water is a growth driver for as far as the eye can see.” Wall Street investment funds are being set up that focus exclusively on water.

Mass. Water: The need for special water treatment is evident even here in Massachusetts. A desalination plant on the tidal section of the Taunton River will open in 2008. It will use ultra-filtration membranes with reverse osmosis to provide 3.2 million gallons per day of drinkable water to users in Brockton. Metcalf and Eddy designed plant, Zoppo is GC. 16 mile, 20-inch ductile pipeline will connect plant to the city.

Foreclosures Up: Rising interest rates and variable rate mortgages are in part to blame for the huge surge in residential foreclosures in Massachusetts. In parts of the state, the foreclosure rate is up 181% in the past year. Also, significantly more properties are now on the market. Meanwhile, prices have begun to drop. Newton leads the nation in the number of home sellers who, after one month, dropped their asking price.

Copper: Everyone in our business knows that copper prices have gone through the roof. But who is profiting? Watts Industries, whose products contain lots of copper, raised its prices allegedly to accommodate higher copper costs. But meanwhile their profits in the second quarter rose 61%. The stock price has gone up about 60% in the past year.

Pension Reform: Congress has passed a pension-reform bill which will impact every pension plan in the country – including those offered by unions. Bill provides some loopholes for troubled industries like automobiles, and sets tough new standards. By 2015, most plans will be required to have enough money to pay 100% of projected benefits.

Pension Plans: Operated by many joint labor-management groups (including PHCC Boston and Local 12) have been fortunate to already have a high percentage of funding in place, though few pension funds – anywhere – are fully funded currently. Long-term impact: economists predict fewer companies will offer guaranteed benefits of a pension. Instead, 401(k) type plans will be put in place: money guaranteed to go in, but no promises on long-term investment performance…..Local 12 and PHCC contractors currently provide a 401(k) type plan, in addition to the pension.

Permitting Bill Passes: A bill which will streamline construction permitting has been signed into law by the Governor. Purpose: minimize frivolous appeals which hold up projects for long periods of time. New methods will expedite review.

Men Not At Work: The New York Times reports that record numbers of men in the prime of their lives – ages 30 to 55 – are not working. In the 1960’s, only 5% of the men in that age group did not work. Number has grown to 13% -- or 4 million American men. Main reason: layoffs and discouragement. Men lose jobs, have a hard time finding equivalent employment, so they simply stay home. Trend reaches all races and job levels – but single or divorced men more likely to stay home.

Men Not Marrying: Not only are men not working, they aren’t getting married, either. Another major report in the Times says nearly 20% men between ages of 40- 44 without college degrees have never married. That’s up from 6% twenty-five years ago. Researchers attribute change to fact that men without degrees are finding it more difficult to support a family. Also, blue collar men are finding it more difficult to find mates, since record numbers of women are now attending college. Those women want a man who will make a “college income.” But even among college-educated men, the numbers remaining single have grown sharply…More people are “living together. See Times 8-6-06.

PHCC: of Greater Boston has been doing its part to keep the members of Local 12 in the “marriageable” category. Journeymen of Local 12 currently make a total package of nearly $59 / hour (which includes $20 / hour in benefits like health care, pension, and a personal annuity). With collective bargaining underway, the challenge is to make sure that union workers are not priced out of the job market.