Local 130 UA

An Update on Labor Agreement Negotiations

Dear Local 130, UA, Member:

The task of negotiating a new Agreement with our employer contractors began exactly three months ago. Since our first meeting with the PCA Labor Relations Committee, on April 29, we have met a total of 12 times. The last four discussions took place through a federal mediator. While we successfully made tentative agreements to a number of non-economic issues, both groups struggled to settle on a wage package. As you will read in the list of summary points below, the initial proposals were far apart. In later proposals there has been some progress; however, even with the assistance of a federal mediator we were unable to narrow the gap very much.

On July 28, Local 130 made its final offer to the PCA. This $6.40 wage package calls for a 3.25% increase in each of the three years, with the entire first year’s amount used for contributions to Funds. This represents almost a 40% reduction from our initial proposal of a $10.40 wage package. We have also insisted that the union continue to direct where the increases will be applied each year — wages vs. benefits — and not the contractor, as had been requested in negotiations. It is a fair proposal, we believe, and inline with new compensation packages recently negotiated with other major trade unions by MARBA. In all matters, we have tried to be accommodating, open-minded and show our desire to bargain in good faith. We want to work for the betterment of the industry.

The Plumbing Contractors Association has set a special meeting on Tuesday, Aug. 3, at 8 a.m. to present the Union’s final offer. Plumber’s Local 130, UA, will hold a special meeting that evening, at 7:00 p.m. at the union hall to inform the membership. I urge all members to attend this important meeting and support your union.

James T. Sullivan, Business Manager
Chicago Journeyman Plumber’s Local 130, UA

Summary of Wage/Benefit Negotiations:

• On May 4, at the second negotiating session, Local 130 initially proposed a $10.40 package, which called for a $3.30 increase (matching the last increase received by Local 422, which has since merged with Local 130) the first year, $3.50 the second year (an identical amount given to Local 93), and $3.60 the third year (adding a 10-cent, cost-of-living increase). This package was announced to the membership at the May 11 union meeting.

• The PCA’s initial offer called for no increase the first year; the second year increase was 2.5% ($1.58) and third year was 3% ($1.95). While the package offered a total increase of $3.53 for three years, the increases were contingent on achieving 4.2 million man-hours — a virtually impossible goal in the current recessionary economy. The man-hour condition, however, was later lowered and finally taken off the table.

• Non-economic issues that Local 130 has tentatively accepted include: 1) changes to the Service Agreement related to hours when a plumber is on call, 2) an implementation plan for the UA Standard of Excellence, 3) establishment of a new trust fund subcommittee to mediate contractor audit disputes, and 4) contributions reports to be collected and processed by the benefit funds instead of the union office. So far, the union has not asked for anything in return.

• In bargaining sessions that followed, five other economic packages were proposed and discussed. In these Local 130 demands gradually lessened by $3.00. The contractors’ offer increased by $1.07 in the same period.

• In the third meeting with the mediator, the mediator offered an alternative $5.65 package — $1.65, $2.00 and $2.00 — however, the contractors demanded the right to determine how the second increase would be distributed.

• On June 29, a single-year offer was discussed, through the mediator, for a $1.25 increase. Local 130 rejected this and countered with a one-year offer for a $2.75 increase (matching an amount given to Local 501) in two 6-month increments. This counter offer was rejected outright.

• The final $6.40 wage and benefit increases proposed by Local 130, if accepted, WILL NOT BE THE HIGHEST agreed to by a Chicago-area pipe trades local union. Rather, after two years L.U. 130 will remain behind Local 93 by $2.62 and Local 501 by $.97.

Final Wage Package Requested by Local 130, UA

1st year 3.25% ($2.05)
2nd year 3.25% ($2.15)
3rd year 3.25% ($2.20)

1 The proposal will be retroactive to June 1, 2010.
2 These increases for journeymen and apprentices are to be allocated, as they have in the past, in a manner to be determined by Chicago Journeymen Plumbers’ Local Union 130, U.A. in its sole and exclusive discretion.

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Special Meeting Notice!

Dear Brothers and Sisters:

A special meeting of the Chicago Journeymen Plumbers’ L.U. 130 U.A. will be held on Tuesday, August 3, 2010 at 7:00 P.M. in the Stephen M. Bailey Auditorium.

The progress of the ongoing negotiations with the Plumbing Contractors Association of Chicago will be discussed at this important meeting. We look forward to seeing you there.

Fraternally,
Thomas E. Gavin
Recording Secretary