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| February 1, 2004 |
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| Table of Contents
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February Membership Meeting
LCCA Membership Meeting
Thursday, February 26
Country Squire Banquets
SAFETY AWARDS NIGHT
Featured speaker: Tom Broderick, Chicagoland Construction Safety Council
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| From
the President by |
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Mike Temple, Mechanical, Inc.
I’ve just finished reading the January newsletter and already it’s time to start writing the February “From The President” article. It’s early in the New Year but things seem to be off to a good start. Economists and other financial types seem to be mostly optimistic about the future. The holidays are in the rear view mirror and we’re off and running with the business of the New Year. The LCCA committee structure is largely in place and has hit the ground running. Several committees have already met. Government Affairs is hard at work making preparations for the March primaries. Membership has already recruited new member companies. Safety is preparing for the February general membership meeting featuring safety awards. Approximately 70 people are attending the two trips organized by the Winter Workshop committee. Program has set up the speakers for much of the year and is already working on the “big” events for the year including the summer outing, golf outing, and the next Holiday party. Finance has the budget in place along with tools to track our progress throughout the year. Education has a supervision class underway with more valuable training to follow. Professional Services continues to provide quality reading with the monthly “Professional Practice Report” found in the newsletter. The Labor Policy Committee continues to work on maintaining and improving our relationships with our Union partners. You’ve heard this said before but it bears repeating - the Committees are the lifeblood of this organization. The work accomplished at the Committee level is what makes this Association the valuable resource it is for all of us. I offer my thanks to all the people currently serving on Committees and extend an open invitation to all of the Membership to volunteer for service on the Committee of your choice. It truly is your chance to make a difference. I’d like to make an editorial comment regarding some of the facts offered in the story in the January newsletter concerning my personal history in the construction industry. One important item seems to have been missed. My first exposure to the industry came during my employment with Leo J. Fox, Inc., a trucking and excavating contractor located in Antioch. It was there that I had the opportunity to experience some of the more glamorous aspects of the industry such as flagging traffic, installing septic systems, and repairing large split-ring truck tires using technologies known previously only to the Flintstones. I still have a check stub from them in my dresser drawer at home that helps to remind me how far I’ve come and how fortunate I am today. I have maintained a close friendship with the family and I am so thankful for the window of opportunity they opened for me when they hired me as a 19-year old who knew absolutely nothing about this business.
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Thelen Appointed To Board of Directors
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President Temple has appointed, and the LCCA Board of Directors has approved, the seating of Steve Thelen, Thelen Sand & Gravel, as a member of the LCCA Board of Directors. Thelen replaces Kevin Piefer who has resigned from Payne & Dolan and relocated to California. Kevin was very active on LCCA’s Education Committee and we appreciate his past contributions and wish him well in his future endeavors. Top
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2004 Tax Milage
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The standard mileage rate for the use of personal vehicles in 2004 is 37.5¢ per mile for all business miles driven. This is up from the 36¢ per mile last year. The rate is based on an annual study of the fixed and variable costs of operating an auto. Fuel price is the primary reason for the increase. Top
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2004 Unemployment Taxable Wage Base
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Illinois employer groups and labor organizations have reached an agreement on a six-year plan to return Illinois’ Unemployment Insurance Trust Fund to solvency. The agreement provides Illinois employers predictability on their UI taxes and avoids more than $1 billion in federal penalties and $250 million in interest penalties. Increases in the taxable wage base from the current $9,000 are as follows:- 2004 - $ 9,800
- 2005 - $ 10,500
- 2006 - $ 11,000
- 2007 - $ 11,500
- 2008 - $12,000
A detailed overview is available on the Illinois Chamber’s website at IL CHAMBER. Top
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Minimum Wage Going Up
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The Illinois legislature has passed and Governor Blagojevich has signed a bill to increase the Illinois Minimum wage over the next two years. Effective January 1, 2004, the Minimum wage will increase to $5.50 per hour and increase to $6.50 per hour on January 1, 2005. Top
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Illinois Equal Pay Act Adds Poster
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The Equal Pay Act of 2003 has added yet another poster to your jobsite collection – and another administrative headache to enforce. The Act mirrors the Federal Equal Pay Act with some differences:- The law applies to all public and private employers with 4 or more employees.
- The law prohibits employers from discharging or taking any adverse actions against employees who discuss their wages or salary with others.
- The law requires you to post a notice regarding the provisions of the law.
If you have an employee handbook, make sure it does not contain language that prohibits the dissemination and/or discussion of compensation information by employees. A copy of the post can be found on the IDOL website at IDOL. Click on the Equal Pay Act article to get to the poster. A copy is also available from the LCCA Office. It is in PDF format and can be emailed if you wish. Top
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ICIC Legislative Day February 24
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The Illinois Construction Industry Board of Directors invites you to the 2004 ICIC Legislative Day in Springfield, IL. The day will begin with a legislative briefing at 11:00 a.m., followed by visits with legislators at the Capitol and Stratton Office Building and conclude with a Legislative Reception at 5:30 p.m. Lyle Ehlers, Boller Construction, Steve Dalbec, Jos. J. Henderson & Son, and Gary Dowty, LCCA, are scheduled to attend. If you would like to join us, you are welcome to attend. This is a great opportunity to meet with your legislative representatives and share your views on current legislative problems with them. If you are interested in attending all day, or just for the reception in the evening, call Gary at the LCCA Office. Top
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Cubs-Brewers Headline Summer Outing
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Micky Day, DK Contractors, Chairman of LCCA’s Program Committee, is pleased to announce that back by popular demand, the summer outing this year will be to Miller Park in Milwaukee to see the Brewers play the Cubs. The outing will be Monday, July 5, for an afternoon game and will include bus transportation from Lake County, food and drink certificates in the stadium and box seat tickets. Unfortunately, we only have 180 tickets. So if you think you will be interested, act quickly when reservation forms become available. Complete details, including ticket price, are still being put together. But what better way to spend the July 4th Holiday than watching the Cubs play the Brewers with your friends from LCCA. And we understand there will be beer and hot dogs available – probably in Red, White and Blue! Top
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Negotiations Begin Soon
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Negotiations for new agreements with Bricklayers and Teamsters are scheduled to begin soon. Contractors who wish to assign bargaining rights for these negotiations must notify the LCCA Office no later than March 1, 2004. Instructions and options have been mailed to all contractor members. Other local agreements to be renegotiated this year include:- Painters & Tapers – District Council 14
- Terrazzo & Tile Layers – Local 67
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Grabowski To Co-Chair Laborers Grievance Committee
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Rick Grabowski, Pickus Construction & Equipment, has been appointed Co-Chair of the MARBA Laborers Grievance Committee. Co-Chairing the committee with Mr. Grabowski is Marty Flanagan, Laborers Local 118. The committee meets monthly to resolve disputes between the union and contractors throughout the Chicago metropolitan area. Issues addressed during the last year include grievances on subcontractor clauses and stewards. Top
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Wolff To Co-Chair Teamsters Negotiations
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Mike Wolff, Lake County Grading, will co-chair the MARBA negotiations with Teamsters this year with John Healy, Arrow Road Construction. The MARBA Teamsters Craft Committee is meeting to prepare for the negotiations which are expected to start soon. All contractors who are signatory to the agreement through LCCA have received a questionnaire from MARBA regarding the current contract. This is your opportunity to provide your input on what changes you would like to see in the agreement. If you have not completed and returned the questionnaire, please do so as soon as possible. If you have lost your copy, contact Gary at the LCCA Office and we will get you a replacement. LCCA members who serve on the MARBA Craft Committee include: Mr. Wolff, Pat Kirschhoffer, Kirschhoffer Truck Service and Suzanne Zupec, Campanella & Sons. Just who will actually sit on the committee to negotiate with the Teamsters has not been determined yet. Top
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2003 Labor Contract Comparisons
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LCCA tracks 21 labor contracts that impact Lake County. In 2003, the increase for these contracts averaged $2.02 per hour. On the high end, Ironworkers and Operating Engineers received $2.55 increases while Teamsters and Electricians Local 196 were less than $1.50 per hour increase. Wages ranged from a high of $35.70 for a Class 1 Operating Engineer under the Building Agreement to $26.15 for Teamsters. The average for all contracts was $31.45 per hour. For the first time ever, the total package for a union exceeded $50 per hour. Ironworkers Local 1’s total package reached $51.525 per hour after June 1. Automobile Mechanics, on the other hand, have the smallest total package of $34.39 per hour. During 2003, 6 contracts were renegotiated and first year increases averaged $2.16 per hour. Increases ranged from a high of $2.55 for Ironworkers Local 1, to $1.45 for Roofer’s Local 11. In contrast, the final year increases for the 4 unions that renegotiate this year averaged $1.67. A pretty good indication of the trend. Top
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New Hours-of-Service Requirements For Drivers
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The Illinois Department of Transportation is currently in the process of amending the Illinois Motor Carrier Safety Regulations (IMCSR) to adopt the new hours-of-service requirements for intrastate carriers of property. The effective date for the revised IMCSR is January 4, 2004, which is the same effective date for interstate carriers of property. The IMCSR will be identical in substance to the Federal Motor Carrier Safety Regulations. There will be no additional intrastate exceptions in the IMCSR to the hours-of service requirements. The following points summarize the NEW hours-of-service requirements found in 49 CFR 395: - Commercial motor vehicle (CMV) driver may drive 11 hours after 10 hours off-duty.
- CMV driver may not drive beyond the 14th hour after coming on-duty, following 10 hours off-duty.
- CMV driver may not drive after 60/70 hours on duty in 7/8 consecutive days. A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive hours off duty.
- Drivers may extend the 14-hour on-duty period by two additional hours if the following points apply: (Total hours driving may not exceed 11 hours)
- Are released from duty at the normal work reporting location for the previous 5 duty tours
- Return to the normal work reporting location and are released from duty within 16 hours, and
- Have not used this exception in the previous 7 days, except following a 34-hour restart of a 7/8 day period.
Passenger-carrying carriers/drivers are not subject to the new hours-of-service requirements. These operations must continue to comply with the "old" hours-of-service limitations specified in 49 CFR 395.5. The following points summarize the OLD hours-of-service requirements that will no longer be in effect for carriers of property as of January 4, 2004: - CMV driver may drive 10 hours after 8 hours off-duty.
- CMV driver may not drive after 15 hours on-duty, following 8 hours off-duty.
- CMV driver may not drive after 60/70 hours on-duty in 7/8 consecutive days.
If you have any questions regarding the Illinois Motor Carrier Safety Regulations, please contact the Illinois Department of Transportation, Division of Traffic Safety, Commercial Vehicle Safety Section, at (217) 785-1181 or (217) 524-4875 (TTY). Top
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ICIC Requests Prompt Payment Decision
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This past summer, the State of Illinois operated for several weeks without a capital budget in place. While contractors continued to work, no payments could be made from the Capital Development Board or other affected agencies prior to the Governor taking action on the spending bill. The State's Prompt Payment Act provides that in any instance where a State official or agency is late in payment (60 days overdue) of a vendor's bill or invoice for goods or services furnished to the State, the official or agency shall pay interest on the payment due. Agencies have been denying contractors' requests for interest payments, however, for the time period in question. These denials are based upon an administrative decision that the Prompt Payment Act is not applicable under these circumstances. ICIC disagrees with this determination. At the request of ICIC, State Representative Angelo "Skip" Saviano formally requested a review of this determination from Attorney General Lisa Madigan. ICIC will keep the membership informed of all advancements regarding this issue. Top
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25 Complete Supervisor Training
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Twenty-five students completed the recent Supervisor Training Course. The two-day course focused on “Problem Solving & Decision Making.” Graduates included: - Shawn Beaupre, F&V Construction
- Robert Brock, Pickus Construction & Equipment Co.
- Jerry Chan, F&V Construction
- Dennis Crawford, Pickus Construction & Equipment Co.
- Tim Day, DK Contractors
- Jeff Fogerty, Alliance Contractors, Inc.
- Stan Gorsuch, Pickus Construction & Equipment Co.
- Jason Graham, DK Contractors
- Harley Hoselton, Pickus Construction & Equipment Co.
- Bob Johnson, Pickus Construction & Equipment Co.
- Greg Johnson, Pickus Construction & Equipment Co.
- Steve Johnson, W.B. Olson, Inc.
- Mike Jurkovic, W.B. Olson, Inc.
- Brian Lambert, Pickus Construction & Equipment Co.
- Dean Lassiter, Pickus Construction & Equipment Co.
- John Loucas, Pickus Construction & Equipment Co.
- Jeff Kazumura, Lake County Grading
- Lee Nega, W.B. Olson, Inc.
- Duff Rossmann, DK Contractors
- Ron Rosenbergh, F&V Construction
- Todd Rosenbergh, F&V Construction
- John Styx, Pickus Construction & Equipment Co.
- Mike Tostrud, Pickus Construction & Equipment Co.
- Mark Warnecke, Greg Greenhill Construction Co.
- Dustin Weber, DK Contractors
Graduates will be recognized at the March Membership Meeting. Top
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Transportation Referendum Coming
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March 16 is just around the corner and that is the date the fate of the Referendum to increase the sales tax by ¼% to reduce traffic congestion in Lake County will be decided. The referendum would generate about $15 million annually to add traffic capacity to the Lake County system. Over the past decade, the miles of traffic-clogged two-lane county roads have increased by an astounding 284%, while county road capacity has increased by a mere 24%. It is not getting any better and the longer we wait, the worse the congestion becomes. Top
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Governor Outlines New School Construction Program
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In his State of the State message January 15, Governor Blagojevich briefly mentioned the need for new school funding. The original funding program that provided about $500 million annually for school construction is at the end of its five-year authorization. While stopping short of a specific proposal, he said, "...if we ultimately choose to invest $550 million each year on school construction…" before going on to say he believed the program could be more effectively managed. He referenced a "normal six percent fee" for project management of school construction that he believes can be cut to one percent, presumably with assistance from the Capital Development Board. Money saved would provide funding for additional classrooms and projects. The Governor also called for a local matching grant program to help schools pay for maintenance and building upkeep. Top
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Transportation Storm Water Projects Proposed
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Sen. Everett Dirksen said, “A billion here, a billion there, pretty soon it adds up to real money.” Apparently this quote needs some updating. The US Senate Environment and Public Works Committee has added nearly one billion dollars to the new highway funding bill, S 1072, to help state and local governments pay for projects to reduce storm water impacts resulting from road projects. According to the Association of State and Interstate Water Pollution Control Administrators, while helpful – the funding is a “modest amount.” Other highway funding interests are concerned because the amendment provides yet another dedicated fund that limits where the states can spend their transportation dollars. Many feel the money should go where the greatest need is, and not be spent on projects just because they are required to. But no matter how the debate ends up, I guess we can assume that a billion dollars really isn’t much today – to the politicians or their watchdogs. Top
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