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October 2005
From the desk of Hugh Kelleher, Executive Director
Comments or suggestions for future items:
hughkelleher@aol.com
Invest in steam
Interesting fact about some of our country's older cities: steam
generated by electric utilities is siphoned into miles of underground
tunnels, and then used to heat downtown buildings. In Boston, there is a
22 mile network of underground steam tunnels and pipes. For years the
system has been owned and operated by Trigen. Recently, Trigen was sold
to a private investment firm, Thermal North America. Turns out that
Thermal is backed by Harvard University's former top investment manager.
Trigen also runs systems in other cities, such as Baltimore and
Philadelphia. Johnson Controls will operate the system for Thermal.
Gas Island
Energy prices soar, and one problem in New England is how to store
natural gas. In September, a Virginia firm unveiled a plan to turn Outer
Brewster in Boston Harbor into a $500 million natural gas storage
facility. LNG would be stored in tanks beneath surface of island. One
hurdle: island is now part of state and national park system. But the
site has the advantage of being well away from populated areas.
New tests
The State Plumbing Board has implemented new test procedures for
plumbing license tests. All tests are now computerized, and tests are
offered each day. If you pass, you get a laminated license that same
day. If you fail, you can review all the questions on the spot, and can
retest after 10 days. New testing agency: PSI. Word on the first tests:
Not easy, although the state board reports that pass / fail rates are
about the same as before. Journeyman pass rate: 40 -- 50%. Masters pass
rate: over 80%.
It costs
Fee for plumbing exams: $166, and $84 for a repeat if you fail.
Not practical
The traditional "practical" part of the plumbing exam was eliminated
years ago. Many of us remember the days when you had take the written
exam, and then went back weeks later to identify fittings, pour or
solder a joint, etc. Real old-timers "wiped a joint." No longer. Today's
computerized plumbing exam contains a "practical" section on issues like
sizing of pipes. But you no longer handle a pipe or fitting. Resources
for such testing not available.
Plumbing permits
Want to know who is doing a plumbing job in Boston? You can go on line
and see all building permits issued in Beantown. Go to
www.gov/isd.building/bldgpermits.asp .
You can also file permits on line, but must go to the Building
Department on Mass. Ave. to sign, pay, and pick up the permit.
Trends
The average collective bargaining agreement nationally is 3-years. But
several recent collective bargaining agreements locally have resulted in
5-year contracts. Sheet Metal Local 17 in Boston, and Plumbers /Pipefitters
Local 51 in Providence each agreed to a 5-year contract. These are
notably longer contacts than in previous years. Advantage: everyone gets
predictability.
Local 17
The Sheet Metal workers settled for $11 over 5 years. This is an average
wage increase of about 3.4%. Bottom line: it will cost a contractor
$67.92 per hour to employ a Local 17 member in 2010.
Labor shortages
Cockshaws, a prime source for information on labor issues, reports that
the construction workforce is aging much more quickly than the overall
population. Current average age of a US construction worker: 38. But
21.6% of plumbers are now 55 or older. Overall, 185,000 new construction
workers needed every year between now and 2015.
Massachusetts dopers
Meanwhile, a federal study reports that the highest usage of marijuana
is here in Massachusetts. Use is not only by the young -- but by people
of all age, including baby boomers. More than 12% of Mass. youths and
adults reported smoking the weed during last 30 days. Marijuana usage is
a particular concern on construction jobs. It impairs motor skills.
Drug testing
The national IBEW, represented locally by Electricians Local 103, has
come out in support of a program which will in effect result in the
periodic drug testing of all union electricians. A contractor can choose
to become a drug-free company, and all his electricians must agree to
random testing.
College degrees
The Electricians Union in New York City now requires all its apprentices
to earn associates degrees. The national UA also has a plan for college
training for apprentices.
Travelers
Work available for Local 12 contractors has improved significantly,
although bid numbers are still tight. Currently all Local 12 plumbers
who want to work are at work. There are reportedly about 30 travelers
from other locals who have been brought in to meet workforce demands.
New requirements for apprentices
Look for the State Plumbing Board to expand apprentice training
requirements. Training expected to increase from the current 3 years to
5 years. Apprentices would need to show that they took a minimum of 110
hours of training in each of those 5 years (550 total classroom hours).
They would have to show that they were actually working at the trade at
least 48 weeks each year. No more firemen / plumbers. The new rules may
go into effect in 2006.
Williams wins major award
Well-known and respected contractor Fran Williams of Belmont won the
prestigious Col. Scott award at the recent PHCC National Convention in
Orlando. Considered by many to be the highest award in PHCC, it
recognizes Fran for his numerous contributions to our industry.
And the award goes to…
Congrats to Tom Theroux and the team at PHCC of Massachusetts for
receiving the national PHCC award for PROGRESS MAGAZINE, the best
publication in its class.
Union apprentice winner
After years of not participating in the PHCC National Apprentice
Contests, the national union (the UA -- United Association of Plumbers &
Pipefitters) reversed its policies and now encourages participation by
union apprentices. Three of six top winners in last two years have been
union members. One UA official at recent PHCC Convention in Orlando: "We
spend tens of millions each year on training. We're not going to hide
our light under a basket."
Push for organizing
At Mass General and other hospitals, the SEIU (Service Employees
International Union) is pledging to make a push to organize all workers.
This troubles management -- which would have to deal with one
mega-union. It also bothers other unions, who fear that the SEIU will
infringe on their current membership base. SEIU is known for its
aggressive -- and effective -- organizing.
Plumbers & the professor
Professor Kirk Alter of Purdue University's Construction Management
Program taught another one-day course at Local 12 recently. Kirk led a
program specifically for foreman. The course was sponsored by the PHCC
of Greater Boston.
Welding fumes lawsuits
From The Wall Street Journal: A former shipyard welder in Mississippi
reached a $1.5 million agreement with welding equipment manufacturers.
He had sued, claiming that welding fumes had caused his Parkinson's
disease. There is some evidence that welding fumes could be related to
neurological problems. Over 5,000 similar cases are expected to head to
courts around the country. There are about 500,000US welders -- many in
our industry.
Asbestos settlement?
A no-fault asbestos trust fund is likely to be passed by Congress
sometime in the next year. $140 billion will be set aside to settle
claims affecting 8000 companies. Fund will be operating for next 30
years.
Rising rents
A sign of economic recovery is reported by the New York Times.
Residential rents, which have been stable or dropping for several years,
have now started to increase. Trend exists all over the country. Boston
high-rises show rent increases of 2.2% this year. "Free month of rent"
offers are disappearing.
Rising inventory
Meanwhile, more residential properties are coming on the market, and are
taking longer to sell. Boston Business Journal reports there are now
8,300 more units on the market than there were a year ago. Rising
inventory is likely to cause a softening of prices. Prices are not
expected to drop sharply.
Quality web sites
Plumbers Union Local 12 has a new web site, and it is a very classy
operation -- filled with items of real news and information. Very
interesting to read:
www.plumbersandgasfitterslocal12.org .
Also first rate: the web site of the National PHCC, which contains a
whole library of articles on how to run a successful business:
www.phccweb.org .
School construction
In July the state issued the first bonds for a multi-billion school
construction program. It is expected that literally hundreds of new
schools will be built during the coming decade. This will be a major
opportunity for the construction industry.
Phony banker
Fleet Bank was taken over by Bank of America, and a bad situation got
much worse. Reported examples:
• If you use your business credit line, you can no longer pay it off at
an ATM -- even if you have thousands in your checking account. B of A
has blocked the system, thus insuring additional interest charges for
small businesses.
• Bank of America now charges business customers $10 every time they use
their credit line. That's like being charged $10 every time you use your
credit card. And that's on top of the 18% interest rate. Meanwhile B of
A rolls up record profits, and continues to run phony ads about being
friendly to small businesses. Call our office for phone numbers of
Eastern Bank, Citizens, Sovereign etc.
©PHCC of Greater
Boston, 5 Elm St., Danvers, MA 01923 • 978-777-8764
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