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Letter: Apprenticeship programs benefit state

Posted Sep. 4, 2016 at 8:02 PM

A study released Aug. 24 by the Illinois Economic Policy Institute and the University of Illinois at Urbana-Champaign School of Labor and Employment Relations determined in dollars and cents the actual benefit of apprenticeship programs in Illinois.

These benefits don’t extend solely to those who participate in the apprentice programs but also to the federal, state and local governments that receive the tax revenues and the members of the communities that benefit from increased investment.

According to the study, apprenticeship programs in Illinois “directly provide 2,871 jobs” and “provide $1.25 billion in long-term economic benefits to the state.”

Not only this, but apprenticeship programs educate and prepare the well-trained individuals who provide quality craftsmanship, who take pride in their work and complete it in a time-efficient and cost-effective manner.

The Chicago Regional Council of Carpenters knows that these benefits are important not only to the bottom line, but to the outcome of a project. That’s why the CRCC provides a robust training and apprenticeship program that boasts tens of thousands of highly trained and skilled workers who receive wages and benefits that allow them to support their families and grow their communities.

The study also found that the construction industry is going to keep growing, adding more than 25,000 new jobs in the next decade. Let’s make sure those jobs go to the trained women and men who are not only dedicated to their field, but produce a positive economic impact on our state.

Frank T. Libby

The writer is president/executive secretary-treasurer of Chicago Regional Council of Carpenters

Indiana Interim Study Committee Reviews Payroll Fraud Issue

Yesterday the Indiana Interim Study Committee on Employment and Labor heard testimony from construction contractors on the issue of#payrollfraud. Contractors asked the Indiana Legislature to consider options to investigate and prosecute businesses who break the law and steal from taxpayers. Stay tuned for actions the legislature takes to stop cheating businesses from robbing taxpayers of $400 million/year and raising costs on law-abiding business.

EXCLUSIVE: Attorney General’s office recovers nearly $5.7M in owed pay for New York low-wage workers

ALBANY — State Attorney General Eric Schneiderman’s office recovered nearly $5.7 million in owed pay and damages for more than 3,300 low-wage workers since last Labor Day, the Daily News has learned.

The recoveries are included in a third annual Labor Day report Schneiderman’s office is set to release Monday.

The recovered wages by Schneiderman’s Labor Bureau went to fast-food employees, home health aides, taxi drivers, restaurant employees and construction workers.

“As Attorney General, I remain steadfastly committed to ensuring that workers are paid for the work they do, that their pay lifts them out of poverty, and that undue obstacles aren’t placed in their path to job security and economic advancement,” Schneiderman said.

Read the full article here.

Ashland contractor cited $117K over police station project wages

SAM BONACCI

Ashland subcontractor On-Time Construction Services, Inc. and its owner Jonatas Vicente De Brito Barcelos have been cited $117,082 in restitution and penalties for intentionally violating the Massachusetts prevailing wage law and failing to submit true and accurate payroll records, Attorney General Maura Healey announced Monday.

The allegations stem from a project at the Acushnet Police Station for which On-Time was a subcontractor, according to a release from the AG’s office that began an investigation last July into the situation.

The investigation revealed that at various times between March and August of last year, On-Time failed to pay three workers the correct prevailing wage rate, according to the AG’s office. One worker was not paid any wages until after the investigation commenced. On-Time also certified on a weekly basis to the awarding authority that its workers were paid the prevailing wage rate even though they were not. Under the Massachusetts Prevailing Wage Law, contractors and subcontractors engaged in public construction projects must pay their employees a special minimum wage, according to the AG’s office.

Since the investigation began, On-Time has paid $78,987 in restitution to the employees.

Click here for the full article.

GETTING GOLDEN RECOGNITION

Allan Bramlett was recently recognized with a gold card for 50 years of membership and service to the Brotherhood of Carpenters, Muncie Carpenters Local 1016. That service area includes Henry County.

Local Rep. Roy Loveless was in town recently to congratulate Bramlett on the milestone. The recognition was anything but routine for Loveless. “Allan’s been a mentor to numerous people,” said Loveless, adding that Bramlett got him his first job. “He gave me my start. I wouldn’t be where I am today without him.”

A New Castle resident since 2001, Bramlett continues to be involved in the community. He has an extensive list of memberships and service work in Delaware County in carpenters’ related organizations as well as business and community organizations.

At 75, his Henry County involvements include Board member of the Henry County Visitors Bureau, board member of Henry County Economic Development Corp., Vice Chair of Henry County Democrat Central Committee and Treasurer of Henry County Democrat Club.

He was a journeyman carpenter with the United Brotherhood of Carpenters in the Muncie area from 1966-75; business representative of United Brotherhood of Carpenters, Eastern Indiana Area, from 1975-98; campaign manager for Congressional Candidate, District 2 Indiana from April through December of 1998; interim director of the Muncie Urban Enterprise Association from 1999-2003 and Building Trades Coordinator for B.E.S.T. through Ball State University, 1999-2003.

As business rep, he had more than 400 members. His task was to secure jobs for those in the nine counties he represented and to place carpenters and negotiate contracts.

“The fulfillment is securing decent working conditions and benefits for those people you represent,” says Bramlett.

He says of his career, “It’s been rewarding. I’ve made a good living, gotten along well with membership and people in general. It’s rewarding to secure jobs for people.”

When he hired in, Bramlett’s hourly salary was $3.15 in 1966. In 1998 when he retired, a journeyman’s wage was $19 an hour.

Bramlett is married to Betty J. Bramlett and they have four children, nine grandchildren and one great-grandchild. His wife is a Henry County native.

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Today: UBC Meets the Challenge

Initially, many of unions were taken by surprise by the non-union sector’s developing economic clout. In the absence of a comprehensive counter-strategy, a number of locals and district councils adopted wage concessions in order to stay competitive with the non-union sector. Non-union employers effectively undercut that tactic by simply driving their own pay rates down further. At the same time, the ABC grew in political sophistication and became one of the linchpins of the “New Right” that propelled Ronald Reagan to the presidency in 1980.

“Our organization was set up to deal with the industry as it was in post-World War II North America,” said UBC General President Doug McCarron when he was elected in 1995. “But the industry has changed drastically since then, and we must change with it.”
Since his election, McCarron has reorganized the Brotherhood’s priorities and its structure. He set organizing as the union’s number one priority and has redirected its resources to get that job done. The union’s localized and often politically-motivated structure has also been restructured and streamlined to reflect today’s regional and national construction industry, as well as to ensure that union leaders are more accountable to members for the job they do.

The ultimate goal of these structural changes is to organize and reorganize every carpenter and contractor in North America and set the standard for wages, benefits, and working conditions on every jobsite. It is an ambitious goal, and one that will take a long-term effort to complete. But it can be done through organizing.

The UBC faces a complex and challenging future. New tools and materials and new methods of construction are entering the industry at an accelerated rate. In many ways, the carpenter of the 1990s is no different from the carpenter of the 1880s. But all indications are that the dawn of the 21st century will bring much more rapid technological innovation. Increasingly, the on-site carpenter is more an “installer” than a “fabricator” with the development of prefabricated materials, modular components, and panellized building sections. The multi-faceted general contractor is giving way to the construction manager whose subcontractors expect their carpenters to restrict their skills to more highly specialized tasks, such as concrete forms, framing, drywall, ceilings, finish work, etc. Union apprenticeship and journeyman-enhancement training programs have addressed these new developments while at the same time maintained a high level of all-around craft competence that union journeymen will always need.

Ultimately, maintaining and extending a strong union for carpenters will depend on combining an awareness of the dynamics of the future with the finest traditions of the past. The days of “country club” unionism that provided job security to members by keeping membership numbers down and the unorganized out are over. The UBC’s growth in the future rests on its ability to reach out and open its doors to all working carpenters.

Just as Peter J. McGuire built the Carpenters Union in the 19th century by organizing all carpenters, today’s leaders must rebuild this union in the 21st century in much the same way. They must embody that same spirit of inclusion in order to organize the unorganized and mobilize current union members to talk to their non-union brothers.

In 1882, W.F. Eberhardt of Philadelphia’s UBC Local 8 (which remains strong to this day), wrote a letter to the Carpenter. He outlined the efforts of his local’s members to contact every single carpenter in the city on a ward-by-ward basis. He described how those pioneering volunteer carpenter-organizers held regular meetings across the city to bring the unorganized carpenters into the new union. Today, more than 116 years later, the Brotherhood is using a “new” model much like the outlined by Eberhardt. Every district, council, and local in the union currently boasts an active volunteer organizing committee that uses today’s modern techniques and technologies, as well as old-fashioned one-on-one contact, to spread the still-relevant message of unionism to every non-union carpenter in their area. The American workforce may look different today–more multi-cultural, multi-racial, and multi-lingual. But the underlying principle of organizing all the men and women who make their living at the carpentry trade is exactly the same as it was in 1881, when 36 carpenters met in Chicago to improve their lives, their futures, and their trade.

Photo source: FreeImages.comGeorgeBosela

Prosperity, Complacency and Trouble

Local unions took advantage of the favorable conditions to expand into new areas of collective bargaining. In 1950, for example, the New York District Council of Carpenters negotiated a 3% payroll tax to support a Carpenters Welfare Fund. The idea of health and welfare funds became so attractive that the national office’s Health and Welfare Committee, appointed in 1954, urged all locals to set up programs as quickly as possible. Jointly trusteed pension funds soon followed, as well as other contract gains, such as safety measures, travel time, and coffee breaks.

The accomplishments of this period brought additional stability into the lives of working carpenters and their families. Unfortunately, the extended boom and success in the bargaining arena also bred a measure of complacency within the unions. With nearly full employment becoming routine, business agents often reduced their roles to those of office administration, job referrals, and contract negotiations. Traditional tasks such as organizing the unorganized and membership education fell by the wayside. Furthermore, many union leaders and rank-and-file members, terrified by the nightmare of the Great Depression, were convinced that job security depended on limiting the number of union members in order to minimize competition for a finite number of jobs.

The post-war construction boom, however, outpaced the unions’ ability to satisfy all the labor requirements. As a result, a significant number of non-union contractors began to appear on the fringes of the industry, particularly in suburban and rural homebuilding. Many unionists remained unconcerned about the potential threat of these newcomers since work was plentiful in the growing commercial and industrial construction sectors. Compared to the physical demands and the short life span of house construction, employment was more stable and of longer duration on large-scale projects. Ignoring the emerging non-union workforce came at a cost, however. While union trades workers continued to build 80% of all construction in the U.S. As late as 1969, the reliance on bigger projects and a limited membership allowed the non-union employers to win a foothold in the industry.

The 1970s began a new and more difficult era. The face of labor relations in construction has been completely transformed in the last 20 years. While the Carpenters Union and other building trades unions have always had to contend with hostile governmental interference and economic insecurity, they still successfully established unionism as a widely accepted force in the industry by the turn of the century. Since 1970 however, the rapid rise of the open shop has upset the long-standing collective bargaining equilibrium in construction. Modern anti-union advocates have been able to accomplish much more than their predecessors did. Today, just 30-35% of the construction dollar in the U.S. involves union workers.

The roots of this transformation can be found in the spiraling costs of the late 1960s. Escalating materials and labor prices set off alarms in the ranks of building owners, management consultants, corporate journalists, and public policy makers. In 1969, 200 of the nation’s top executives formed the Business Roundtable in order to put a lid on construction bills. The Roundtable, made up of the heads of General Motors, General Electric, Exxon, U.S. Steel, Du Pont, among others, concluded that the route to financial control over capital construction costs lay in blunting the power of the building trades unions.
The Roundtable built political support to weaken legislation, such as the Davis-Bacon Act, that protects construction workers’ wages. It laid out a collective-bargaining agenda to eliminate union gains. Finally, many of its members sponsored and subsidized non-union contractors on their own projects. The Roundtable’s efforts combined with the severe building recession of the mid-1970s and an increasingly anti-labor political climate in the United States to provide a generous window of opportunity for the open-shop movement.

Non-union builders, gathered under the umbrella of the Associated Builders and Contractors (ABC), took advantage of these opportunities. Today, construction in the U.S. is no longer dominated by union contractors. Open-shop and/or double-breasted firms now participate in and even control many major construction markets. Their mission is clear. They reduce wages, weaken established safety and working conditions, and change the way work is carried out on the jobsite. They seek to replace the traditional egalitarian apprentice/journeyman system with the co-called “merit shop” philosophy in which workers are pitted against one another and have no real shot at quality training or a decent lifelong career in the trades.

Decline and Recovery

The American Plan of the 1920s challenged the status of unions in the United States, but the Great Depression of the 1930s threatened the very existence of working people. The stock market crash in 1929 was a signal to the world that the economy was in crisis. In the months that followed unemployment rose at the astonishing rate of 4,000 workers a week.

As always, the construction industry served as an advance indicator of general economic conditions. In many parts of the country, the depression started for carpenters in the midst of the “Roaring Twenties.” By 1928, many local unions were issuing “stay away” warnings to travelling carpenters. Conditions only worsened, however. Total construction in the United States amounted to $20.8 million in 1929; four years later it reached just $6.6 million. Membership ultimately dropped to a low 242,000 in 1932 and fully 40% of those members were unable to pay their dues. By the next year, the Carpenter reported that less than 30% of the union’s ranks were employed as carpenters.

The pain of unemployment was devastating. The incidence of alcoholism, divorce, emotional depression, and suicide soared during the early 1930s. Proud carpenters, whose sense of self-worth was wrapped up in their craft and their ability to make a living as independent tradesmen, were unable to put bread on the family table. Local unions tried a variety of ways to ease the pain–lowering dues payments, negotiating for 24- or 30-hour work weeks, forbidding overtime, and instituting job-sharing programs. But all of these attempts were little more than bandaids on a fundamentally crippled industry.

Some union leaders on the local level looked to political action as a solution to their problems. A number of locals called for an independent Labor party as an alternative to the Republican and Democratic political parties. In 1932, the Chicago Carpenters District Council urged the UBC national leadership to lead the fight for an unemployment insurance system. Hutcheson was wary of such activities. His mistrust of governmental intervention in the collective bargaining process, fueled by his experiences during World War I, made him reluctant to support an activist agenda by the federal government. While Hutcheson ultimately accepted the idea of unemployment insurance, he unsuccessfully opposed the AFL’s endorsement of a minimum-wage bill in 1937. As late as 1940, after eight years of popular New Deal legislation, Hutcheson maintained his opposition to extensive federal involvement. “Labor,” said Hutcheson, “has known that what government gives, government can take away.”

Rank-and-file carpenters and local leaders had less difficulty welcoming the New Deal programs. Like Hutcheson, unemployed carpenters were not advocating welfare or relief. But they did want jobs. They eagerly greeted Roosevelt’s alphabet soup of public works agencies (PWA, CWA, CCC, and WPA) instituted to help revive the ailing economy. Initially, conflicts arose between federal desires to put people to work at any price and union commitments to maintaining a decent wage. By 1936, however, federal and union policies coincided to enable skilled tradesmen to move into their customary roles.

New Deal initiatives created jobs for millions of Americas but they did not end the Depression. In fact, almost 9.5 million people were still out of work in 1939. Only the monumental task of preparing for entry into World War II was finally able to generate enough work to eliminate the suffering of the jobless. The war-driven building demand and the general post-war prosperity finally provided American carpenters with reasonable opportunities and greater financial security.

The wages of union carpenters rose 15% between 1945 and 1949, 30% through the 1950s, and 72% during the 1960s. While inflation ate away at some of those gains, by and large the quarter-century following World War II proved to be the longest period of sustained improvement in the standard of living of American workers. The nation’s labor organizations reflected this growth, representing nearly one-third of the workforce. The UBC reached its peak membership of 850,000 in 1958 and again in 1973.

Photo source: FreeImages.comChadGore

Beating the Open Shop, The Early 1900s: Part 2

Read Part 1 in case you missed it.

The basic mission of the union–protecting carpenters’ rights on the job–remained the same. With the onset of World War I, the union faced a new challenge. Wartime needs for temporary military housing, shipbuilding, and ammunition factories pushed the federal government into a massive construction spending program. When President Woodrow Wilson allowed open shop contractors on federal construction sites, Hutcheson refused to participate in the government’s oversight boards. “While we have every desire to assist the government in the crisis we are now passing through,” he said, “we have no intention of waiving our rights to maintain for ourselves the conditions we have established.”

Despite extraordinary pressures, the union leadership held firm. On November 7, 1917, 1,300 building trades workers in eastern Massachusetts participated in a general strike on all military work in the area to protest the use of open-shop builders. The strike persisted in the face of threats from the U.S. War Department. Influential preacher Billy Sunday whipped anti-union hysteria to a higher plane, invoking the name of God to denounce Hutcheson’s treason. While that strike was settled within a week, the larger issue remained unresolved until April, 1918 when the federal government approved a new system that guaranteed closed shops in those areas that had them before the war.

Hutcheson’s firmness preserved union standards for carpenters. As the war became a memory, attacks on the patriotism of unionists gave way to a closer examination and subsequent recognition of wartime profiteering by employers. Secretary of War Newton Baker (who had been a vocal critic of the UBC) confirmed many unionists’ suspicions when he admitted that labor had been “more willing to keep in step that capital.”

Peace brought a new and different kind of battle. Employer associations of all kinds initiated a furious assault on union labor under the label of the “American Plan.” Building employers, supported by large industrialists and local Chambers of Commerce, pitched in. They took on construction unions in Detroit, Los Angeles, Milwaukee, Minneapolis, Philadelphia, Salt Lake City, and Seattle.

Contractors in Chicago insisted on a wage cut in January 1921 and locked out workers after the unions rejected their demand. In June, all the crafts except the Carpenters and Painters agreed to submit the dispute to arbitration by federal judge Kenesaw Landis. The judge’s drastic decision slashed wages beyond the initial contractor proposals and weakened long-standing union work rules. The UBC refused to recognize the judgment and let the fight against the “Citizens Committee to Enforce the Landis Award” for five years until union shop conditions finally returned to Chicago.

In San Francisco, the Industrial Association broke the 20-year reign of one of the country’s mightiest union shops in the building trades. Financed to the tune of $1.25 million and in control of the building materials’ suppliers, the Builders’ Exchange refused to call off a lockout even after the city’s Building Trades Council meekly accepted the contractors’ original wage cut demand. Determined to crush the unions, the employers of San Francisco settled for nothing less than open shop and an end to mandatory collective bargaining in the building industry.

While the American Plan did take its toll, the San Francisco experience was unusually severe. The Brotherhood survived the 1920s. The number of union carpenters declined from 400,000 in 1920 to 345,000 in 1928, but this drop in membership compared favorably to the losses of other labor unions in the prevailing anti-labor climate. Wages in the building trades actually rose by roughly five percent a year. The fury of the anti-union campaigns subsided by the end of the decade.