January 2005
From the desk of Hugh Kelleher, Executive Director
Comments or suggestions for future items:
hughkelleher@aol.com
New Plumbing Code: Congratulations to Chairman Paul Kennedy and all
the members of the State Plumbing Board. After years of back-and-forth,
and delays stemming from other areas of state government, this month the
Board approved a new plumbing code. After review by Dept. of Public
Health and Secretary of State, the new Code will become available in
print, and on the Board’s web site.
New Safety Requirements: It is not only the state plumbing code
that is being updated. Beginning in July 2006, all workers on public
jobs over $10,000 will be required to have OSHA 10-hour training.
Private Jobs, Too: General contractors on private jobs are also
requiring their subs to use OSHA-qualified workers. Example: At the
Convention Center Hotel, now under construction, 100% of E.M. Duggan’s
plumbers are 10-hour certified.
Maddaloni Resigns: After turmoil at the national UA headquarters
(United Association of Plumbers and Pipefitters) General President Marty
Maddaloni has resigned, two years prior to the expiration of his term.
William Hite, known as a thoughtful and progressive voice within the
union, has been named to replace him. Maddaloni’s departure had been
expected for months, as a result of cost over-runs and Department of
Labor investigations into UA and pension fund real estate investments.
The next UA national election will be in 2006.
Reaching Out: Bill Hite’s first official meeting outside the UA
offices in DC was at the PHCC’s National Office in Falls Church. Hite
met with the Executive Board of the PHCC’s Union Affiliated Contractors
(UAC).
Special Photo: Those attending last fall’s Industry Appreciation
Night may recall the special camera set up at the back of the room,
which took a single, classic photo of the event. We have the photo – and
it is 37 inches long, 8 inches high, and shows the hundreds of people
who were there that night. It is sure to become a keepsake. If you or
your friends were at the event, and would like a copy, call our office:
978-777-8764.
Union Future: The Kiplinger Letter reports that nationally, the
percentage of American workers who are union members now stands at about
13%. In 1983, 20% of the workforce belonged to unions. Loss of blue
collar jobs has hurt unions. Kiplinger predicts more union mergers along
industry lines, also alliances with other groups that have common
interests: environmentalists, immigrant, and anti-poverty organizations.
Interesting fact: While other unions declined, the national UA
reportedly increased membership 20% during Maddaloni’s 8 years.
Higher Wages Not Key Cost Factor: Cockshaw’s, a neutral journal
which analyzes construction and labor issues, issued a report analyzing
labor cost factors in construction. Discussing higher union wages costs
and prevailing wage impacts, it says: “There are two studies that refute
wage law critics’ cost arguments. They convincingly show that skills and
productivity – NOT differences in wage rates – are the critical
determiner of bottom line labor costs.”
Example: Road builders in higher-wage states actually saved
taxpayers $30,000 per mile. Their workers were better trained and more
efficient.
Benefits: Cockshaw’s also analyzes benefits structures. Looking
across all industries, it says employees averaged $24.96, for their
total package of wages and benefits. Typical worker had only $1.01
(4.1%) of package put into a retirement or savings account. Looks like
many folks will still be counting on Social Security.
Contrast: In contrast to the national all-industry average of
$1.01, the Local 12 Benefit Plan provides of total of $8.46 hourly in
pension and annuity benefits. This is just over 15% of the total
journeyman wage package of $55.45. Local 12 plumbers understand they
should be able to retire without being broke.
Kudos: To Anne Collins, the head of the Division of Registration,
who with the support of many from our industry and others, convinced the
legislature and Governor to create a new enforcement law. Law enables
Division to pursue MUCH stronger actions against anyone violating
licensure or code standards.
Example: boards will be able to issue fines of up to $2,500 for
unlicensed practice.
Mass Business Confidence Up: The Associated Industries of
Massachusetts reported that at year’s end, business confidence in
Massachusetts was up. Readings over 50 are considered optimistic, and
the recent reading was 57.4. An optimistic outlook is considered a
prerequisite for investment and hiring.
Going Nuclear: Entergy, the company that owns the Plymouth nuclear
power plant, is reportedly planning to apply for a 20-year extension of
its operating license. The change would allow Plymouth to remain in
operation until 2032. The 34-year-old plant is one of 103 nuke plants in
the US, and produces 670 megawatts, enough to power 670,000 homes.
National Nuclear Push? President Bush appears to be encouraging
industry to consider the nuclear option. The Cape Cod Times reports that
the Administration is providing matching grants to find new nuclear
sites. Entergy, the owner of Pilgrim, has filed application to explore
building a new nuke plant in Mississippi.
New Ramps? It will probably take years, but the Flatley Company and
others are paying $2 million to offer designs for new ramps that would
directly connect Quincy’s Crown Colony with the South East Expressway,
and Route 3. This would be welcomed by PHCC members attending meetings
at the Quincy Marriott.
Rents Down: Residential rents in Boston have declined an average of
$90/month since 2002. Recent attempts to reinstitute rent control have
failed.
Water Savings? There is a bill at the state house which would allow
landlords to meter individual tenant water use. Environmentalists and
landlords feel that metering would encourage tenants to pay much greater
attention to water usage.
Risky Pipe?: The new 29-mile gas pipeline under Massachusetts Bay
runs underwater from Beverly to Weymouth. Problem: At least 8 locations
could be risky because the pipe was not properly buried, and anchors of
commercial vessels could cause it to rupture. The Army Corps of
Engineers is forcing Algonquin Gas to correct the worst of the problems.
Pipe’s diameter: 30”.
Low Pressure? Cold weather is bringing anecdotal reports of low gas
pressure in some neighborhoods served by KeySpan. Boilers that were
working fine suddenly can’t produce enough heat. If you feel that your
utility is not providing adequate gas pressure, contact our office, and
also our contact person at the Department of Telecommunications and
Energy: karen.robinson@state.ma.us.
IRS Update: The Internal Revenue Service has raised the mileage
deduction for business use of a vehicle from 37.5 cents to 40.5 cents.
Biggest one-year rise ever.
©PHCC of Greater
Boston, 5 Elm St., Danvers, MA 01923 • 978-777-8764
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