Newsletters of the PHCC of Greater Boston

aaa

Click to See

Greater Boston Plumbing Legends!

DECEMBER, 2006

Season’s greetings to all!
From the desk of Hugh Kelleher, Executive Director
Comments or suggestions for future items: hughkelleher@aol.com

Changes: Local 12 Training Director Joe Conley will be retiring soon, and an event in his honor was held recently…also honored at another special event: Bill Callahan, former Chairman of the State Plumbing Board…Local 12 Business Manager Jack McGinness has decided not to run for reelection, and an event in his honor will be held January 12…Local 12 elections – for all positions including Business Manager and the 3 Agent slots – will be held on December 9. Kevin Cotter faces no opposition, but a race is on to replace McGinness.

401(k): The average 401(k) annuity plan in the US last year pushed past $100,000. Average workers in their 20’s have $24,000 in their accounts; those in their 60’s have $141,000. But half of those with accounts have only $19,000. Trend: Life-style funds, which ensure that a participant is investing aggressively enough for his/ her point in life. Younger people are encouraged to put more money into stocks, while older people are encouraged to switch gradually to bonds. Local 12 Annuity Fund, managed jointly with the PHCC of Greater Boston, is implementing these kinds of options.

Collective Bargaining by Tenants? City Councilor Sam Yoon has introduced a local ordinance before the Boston City Council that would allow tenants to “collectively bargain” with landlords. Some see the proposal as an “end run” around state law which regulates rent control. Currently only the legislature can authorize a city to implement rent control.

Distressed Properties: As expected, foreclosure rates around the country are rising, due to the stalled housing market. The Wall Street Journal reports that Florida and Ohio are areas with large numbers of foreclosures. Expect a surge in real estate auctions in 2007. Average discount at an auction: 14.2%.

Decline in Prices: Some Mass. analysts say that the worst could be over for the residential real estate market. Prices peaked this past June, and since then have declined about 8%. But the monthly rate of decline in October was less than in the summer. Could be a sign that prices might stabilize. Others are not convinced; at the end of October there were 33% more homes on market than a year earlier.

Slight Decline Overall: McGraw-Hill, which analyzes construction data, says that a nationwide 5% slide in home construction means that there will be an overall 1% decline in construction spending in 2007. Stores and shopping center construction also dips when housing declines.

It’s Better Here? In a recent meeting with the PHCC of Greater Boston, Tom Miller, Director of Economic development for the Boston Redevelopment Authority, reviewed a long list of major projects that Boston officials expect will go forward. The tallest building ever in Boston is being planned for a one-acre site in the Financial District…many projects are planned for South Boston waterfront…Miller said that there will be a trend away from residential / condo projects, with a new emphasis on commercial and “mixed use” properties.

Poll: A United Way poll found that, despite high costs, 68% of Greater Boston residents believe they are “achieving the American Dream.” “The glass is half full here in Greater Boston,” said the head of the United Way.

Economy Grows: A recent report says that the Mass. economy is growing at a 3.4% rate – twice the national average. The key: technology and business products that Mass. specializes in.

Efficiency: Current Federal standards require that heating boilers /furnaces operate at 78% efficiency. The Bush Administration has proposed raising the official standard to 80%. But Mass., Rhode Island and Vermont want efficiencies of 90%. This higher standard would add about $500 to cost of typical house boiler…but payback time could be as short as two or three years.

Density: An unusual project in Westborough is promoting “smart growth.” A combination of condos and commercial shops are being built at rail station.

S-Corps: The IRS has announced plans to step up audits of S-corporations.

Gas Valves: A story in the Boston Globe reported that gas shut-off valves in the street are mostly inaccessible. 775,000 of state’s 1.1 million street shut-offs cannot be reached or won’t work. This presents real dangers, in case of fires / explosions.

Gas Inflates: KeySpan's gas customers in Greater Boston are paying much more than those people who heat with oil. Analysis in the Boston Globe shows that KeySpan customers in Greater Boston are paying the heating oil equivalent of $2.62 a gallon, 12 percent more than the current statewide average price for heating oil, which is $2.34 a gallon. KeySpan says it purchased gas early, at a higher price, in order to avoid winter shortages.

Other Utilities… are charging prices less than the current statewide average price for heating oil. NStar Gas is charging the heating oil equivalent of $2.24 a gallon. Bay State Gas is charging equivalent of $2.18 a gallon.

National Grid: Is purchasing KeySpan. The company is based in England, and already owns many New England electric utilities.

Rate-Payer Money: KeySpan and other utility companies continue to use rate payer money to compete against private contractors. They subsidize cost of “free” gas equipment for homes, and even for large businesses. Those costs are put into your high gas bills. Private contractors lose work to KeySpan’s subsidized operations.

Getting There: This year the Mass. Alliance for Fair Utility Competition moved a bill forward which would have prevented this practice, which hurts both union and non-union contractors. The bill moved further than ever before – and was reported out favorably by the Senate Ways and Means, as well as by House committee handling utility companies. Bill will be reintroduced in the new legislative session.

Legislation: 9,273 bills were introduced into the Mass. legislature this session. 5.32% were signed into law. Key to passage: keeping pressure on legislators.

Garbage: Disposals are not regarded as complex or fancy products. But Insinkerator, intending to “build a better mousetrap”, has introduced new disposals that will grind just about anything (including corn cobs) – and at a reduced noise level. Insinkerator says that jam sensors and new, pulsing technology virtually eliminate jams and clogging.

Jobs: The market is very strong for 2006 graduates of construction management programs. Engineering News Record (ENR) reports that at Wentworth College in Boston, nearly all of the graduates had offers by May. Average starting salary: $45,000 - $70,000. Recruiting on campuses has been “fierce.” Good way to snag a strong student for future employment: co-op work. Three out of four students stay with a firm where they did a co-op.

Shortage: Yes, there are still unemployed people out there. But many industries can’t fill jobs: health care, technology, retail and hospitality sectors all need workers, according to the Boston Business Journal. Recently, State Street Bank had 522 local positions available; Fidelity had 415, and Bank of America 452.

Bio-Tech: Bristol-Myers Squibb is building a huge, 750,000 square foot campus at the old Fort Devens – which is now called Devens. The first construction phase will soon be out to bid. Bidders expected include: Turner, Skanksa, Bovis and Parsons. Bio-Tech is a rapidly growing part of our state’s economy.

Ford: You have probably heard the story (true) that health care costs now add $1,500 to the cost of an average American car. Ford, battling to survive, has now offered an early retirement program. 38,000 workers, or 40% of its employees, have agreed. They will receive buy-outs worth up to $140,000 depending on job and years of service.

Wal-Mart: Despite some recent declines in its stock price, Wal-Mart continues to roar ahead with innovations. Sells 331 prescription drugs at $4 per script.
...Average Wal-Mart shopper is suburban woman, 5-foot-2, size 14. (NY Times)

Apprentices: Applications for the Local 12 apprentice program will be available in January. Contact the Training Office at 617-288-1010….Last year nearly 400 filed applications for the 30 openings. No wonder, given the hefty wage / benefit package available to Local 12 plumbers.

Bargaining: That wage / benefit package will only increase over the coming years. As of September 1, a four-year collective bargaining agreement was reached between the PHCC of Greater Boston and Local 12. Other recent collective bargaining agreements were settled for Pipefitters Local 537, and Electricians Local 103.

Ready to Compete? The PHCC of Greater Boston has also concluded special negotiations with Local 12, and with UA officials from Washington. New special Housing Agreement will enable local plumbing contractors to do certain housing jobs at a lower wage rate. Goal: to get into markets where union contractors have not been able to compete.

Anti-Aging: Wall Street Journal and other publications have been filled recently with articles about resveratrol, a natural substance found in small quantities in red wine. Extremely high doses were given to rats. The rats lived much longer and healthier lives. The good news / bad news: to get that kind of dose from red wine, you would have to drink hundreds of glasses each day.