I know what you are thinking! What happened to Lyle? Is he ill? Was he struck down by writer block? Or is he just chasing contracts and beating up subs? Actually, none of the above. He decided to write when he was inspired and leave the uninspired articles to me. The things we execs do for our Presidents!

Every time we conduct a survey of major industry issues, Labor Relations seems to be at the top. I am never quite sure whether we are for “it” or against “it”; however “it” is important to all union contractors. But talk is cheap and nobody really needs to declare their answers to anonymous surveys. Which brings me to the subject of this article – “Bargaining Rights.”

Bargaining Rights are authorizations by a contractor for an association to collectively bargain with a union for a new labor agreement. As a result of assigning Bargaining Rights, the contractor is bound by the results of the negotiations. For the contractors who missed a meeting and were elected by all present to negotiate the agreement, the list of contractors who have assigned bargaining rights becomes their authority to step into a room with the union and negotiate.

Not every union contractor is concerned with Bargaining Rights. Many associations require a contractor to assign their bargaining rights as a condition of membership. Typically these associations are just negotiating with one union. In fact, that was the case for LCCA until 2001. But LCCA was negotiating multiple agreements with several different trades and with the increased union demands for broader jurisdiction (many time overlapping) and subcontractor clauses, the members needed protection from unions they did not employ. So mandatory bargaining rights were scrapped.

Unfortunately, now many contractors do not feel the need to assign bargaining rights. Some think if the negotiations breakdown, they will not be struck. Not true, the decision to strike is based on your importance to the industry, not your bargaining rights. Others say they will get the same terms and conditions so why get out in front. In fact, the union has no obligation to offer you the same agreement negotiated by the association. In fact, you are in individual negotiations – which mean they bring a contract and you sign it, whatever it says! And if you need financial help to fight a union contract issue, MARBA only helps those who assign their bargaining rights!

The Carpenters Agreement will be negotiated this year and Bargaining Rights information has been sent to all contractors. If you employ Carpenters, I urge you to consider assigning your Bargaining Rights and showing your support for the industry and the negotiators. It really costs you nothing and could save you thousands if you have a problem!

The LCCA Membership Committee is looking for “a few good members” and they can use your help. Co-Chairs Mike DeNinno, Lake County Grading, and Rick Grabowski, Pickus Construction & Equipment, will each be heading a team competing for fun and prizes with the goal to grow LCCA’s membership.

Once again, LCCA will have a drawing at the September Membership Meeting and give the winner $500 cash! To be in the drawing, all you need to do is sponsor a new LCCA member before September of this year. The Membership Committee will be out there trying to win but you can also win. If you know of a prospect, call Heidi for all the information you need to sign them up. If they join, you are eligible!

The results are in and LCCA Contractors have spoken – the construction industry is stagnant – or worse. Last year 61.5% of all respondents rated the state of the industry Stagnant with another 30.8% reporting growth. This year only 35.6% said it was stagnant and 31.1% said it was Weak. In fact the results are very close to those in 2003. It is interesting to note that in spite of the pessimism, 40% saw an increase in work volume – double the number in 2006. Here are the other results:

How is your work level compared to the last two years?

	2007	2006
Decreased Remained the same Increased	31.1% 28.9% 40.0%	26.9% 53.8% 19.2%

How would you rate the future over the next two years?

	2007	2006
Pessimistic Cautious Optimistic	8.9% 68.9% 22.2%	3.8% 69.2% 26.9%

Do you anticipate cost increases affecting owners' decisions to proceed on future projects?

	2007	2006
Yes No	73.3% 26.7%	84.6% 15.4%

If yes, what costs are most likely to impact future projects?

	2007	2006
Wages Materials Insurance	2nd 1st 3rd	1st 3rd 2nd

How has jobsite safety changed generally in last 10 years?

	2007	2006
Decreased Remained the same Increased	2.2% 22.2% 73.3%	0% 23.1% 76.9%

Thank you to everybody who took the time to participate in the survey. LCCA now uses Survey Monkey to conduct the survey and we only receive tabulated results so you can respond without fear that your individual response will be known to anyone here at LCCA. We will continue to ask your opinion to help us make more intelligent decisions on the goals and programs of the association.

LCCA will once again have a booth at the 18^th Annual Construction Safety Conference & Expo. The conference will be held February 12-13 at the Donald E. Stephens Convention Center in Rosemont. LCCA Safety Committee Members will be manning the booth so if you are going to the conference, be sure to stop by our booth to find out how LCCA can help with your safety program.

Complete conference information can be found on the Chicagoland Construction Safety Council’s website – www.buildsafe.org. And some exhibit space is still available. If you are interested, call Beverlee Carrick at (708) 544-2082 x202.

February 22, 2008
Board of Governors/Directors
LCCA Office, noon

February 28, 2008
Safety Committee
Country Squire Banquets, 4:30 p.m.

LCCA’s Annual Trade Show will be held Thursday, March 27, 2008, at Midlane Golf Resort.

Exhibit space is 50% SOLD OUT! Exhibit information has been sent out and the following vendors are signed up to exhibit to date:

API Baker Corp. The Blue Book Burris Equipment Co. CISCO McCann Industries Peterbilt Northern Illinois

Rockenbach Chevrolet Saf-T-Gard Int’l VanderBloemen Group Vazcom Communications Waukegan Roofing Waukegan Steel Sales Zeigler Associates, Inc.

As in the past, booth space is limited and will be assigned on a first come, first served basis. If you are interested in exhibiting give Heidi a call TODAY!!

Be sure to mark March 27^th on your calendar and plan on attending and bringing your employees who will benefit from the networking.

Negotiations Begin – Several unions and associations are gearing up for 2008 negotiations. According to our records, the following contracts will be negotiated in 2008. Most will expire on May 31.

Elevator Constructors, Local 2 - Elevator Contractors of America
Carpenters District Council - MARBA
Drywall Finishers, District Council 14- Chicagoland Assn. of Wall & Ceiling Contractors
Electricians, Local 150 - NECA
Electricians, Local 701 - NECA
Heat & Frost Insulators, Local 17
Painters - District Council 14- Painting & Decorating Contractors of America
Pipefitters, Local 597-- Mechanical Contractors Assn.
Plumbers/Pipefitters Local 501 (DuPage, Kane, Kendall, DeKalb) - PAMCAMI
Plumber's Local 93 - PAMCAMI
Sheet Metal Workers, Local 73 - Chicagoland Sheet Metal Contractors Assn.
Sprinkler Fitters Local 281 - National Fire Sprinklers Association
Boilermakers, Local 1 - Boiler & Tank Contractors Assn. or Illinois

Laborers’ Apprentice Fund Approved – The Department of Labor has approved rules to permit the Apprentice Fund to accept referrals of new employees into the Apprentice Program directly by the employers. This program provides new laborers with both classroom and on-the-job training in safety procedures and a wide variety of important construction skills.

Employers are permitted to select candidates for the Apprentice Program as long as they meet the necessary physical, legal and educational standards of the Apprentice Program.

The employer referral approach has been in effect for a number of years and has been well received by contributing employers.

A recent change to the employer referral approach is that employers can now sponsor three apprentices per year, instead of the two apprentices per year limit as was the previous rule.

Employers need to keep in mind that the ratio of Journeyworkers to Apprentices has not changed. The ratio of Journeyworkers to Apprentices shall be six (6) Laborer Journeyworkers to one (1) Apprentice Laborer on a company-wide basis, with no more than 20% of the Laborers being Apprentices on any one (1) employer jobsite. Employers who employ less than six (6) Laborer Journeyworkers are entitled to one (1) Apprentice Laborer.

Questions can be directed to Paul Hoetzer, Apprentice Coordinator, at the Laborers Training Center (630-653-0006 x235).

The legislative session in Springfield is on hold until the Primary Election is over but much is going on in the background in preparation for their return. As you might expect, every construction industry legislative committee is deciding what to introduce. Looking at the agendas of Ahead, CISCO and ICIC, some bills that will be our focus are:

Bargained Workers Comp – High on many lists is Bargained Comp. This legislation would permit management and unions to negotiate limited items that affect Workers Comp. The issues that would be included are:

• An alternative dispute resolution system
• Mutually agreeable panels of medical treatment and vocational rehab providers
• Light Duty Return to Work Programs
• Establishment of Safety Committees and procedures
• Adoption of 24 hour health care coverage plan

The key to this legislation is that it is:

• Permissive - Both sides must agree before a program is included in the contract, and
• Non-Mandatory - That means that neither side can strike to force the other side to accept a Workers Comp program they do not want.

There can be no negotiations to change rates or other benefits established by the state.

Labor is not unanimous in their support but the number of unions supporting the concept is growing and many others who oppose the bill just do not understand the limitations. Even some contractors oppose the bill thinking that unions could force their doctors, for example, down their throats.

Responsible Bidder Legislation – LECET and the Illinois Fair Contracting group have been pushing local municipalities to adopt Responsible Bidder Ordinances that require prospective bidders to comply with several provisions including:

• Bidder must comply with all applicable laws and the Prevailing Wage Act
• Bidder must comply with applicable EEO laws
• Bidder must have valid Federal Identification Number or Social Security Number
• Bidder must have valid certificate of insurance for general liability, product liability, workers' comp, completed operations, hazardous occupational and automobile
• Bidder must participate in applicable apprenticeship and training programs registered with the Bureau of Apprenticeship and Training

Now a bill has been written to expand this effort to all state and local agencies and will be introduced in Springfield this year.

Capital Bill – While the RTA bill provided some transportation funding, the bulk of the needed infrastructure improvement bill was held hostage to politics – what else is new in Illinois! Unfortunately, we may have to wait until Blagojevich is reelected or out of office to see a bill pass. In the meantime, Illinois stands to lose millions in Federal matching funds.

2007 Review – While 2007 will go down in history as “the session that would not end,” actually, in the end, it was not as bad as it could have been.

Gross Receipts Tax – Thanks to a collective effort by many associations and individual business owners, the Gross Receipts Tax proposed by Gov. Blagojevich failed dramatically to even get out of the House. Unfortunately, losing the vote on the Revenue Source did not stop the Governor from diverting other funds, some say illegally, to fund his Health Care proposals.

Mass Transit Bailout – The RTA bailout increased the sales tax by ½% but ¼% of the money collected in Lake County will go to local transportation needs. Lake County will realize about $28 million per year for transportation projects. LCCA and the Lake County Partners can be proud that this increase actually started to get on legislators radar during the fight to pass a sales tax increase referendum. While we failed in 2004, the seed was planted and when the negotiators started looking for sources of revenue, we were ready to offer a plan.

Prompt Pay – While not the last word on prompt pay, the bill that passed the legislature will move the process forward and provide a basis to build on in the future.

Employee Classification Act – The Employee Classification Act began life including everybody that works on a project under your control. After several years of negotiations, with LCCA taking the lead role, we were able to limit the bill to what is already required by the IRS. To determine the impact on you, look at who you pay for services. If they are a corporation, there is no concern and if they are not they must really be “independent.”

Potential Problems in 2008 – There are still some bills pending that could really hurt the industry according to AHEAD.

Additional Revenue – Just because the Governor lost the fight on the Gross Receipts Tax, the battle is not over. The GRT could easily return or the failed “Payroll Tax” or even a “Carbon Emissions Tax” that is being discussed. The fact is the state is short $1.7 billion and the amount increases daily. And if the economy slips, the deficit increases as sales tax collections decrease. Since there is no real effort to stop spending, more money will be needed – and you can bet it will be provided by business!

The LCCA Education Committee chaired by Tim Staples, Camosy, Inc., hosted a panel of apprenticeship program coordinators to help students in the Lake County High School Tech Campus Building Trades Program decide what they wanted to do when they graduate. We have put together this panel for many years and it’s a real help for the seniors. This year the following participated:

Carpenters Electricians Laborers Plumbers Pipefitters

- - - - -

Gary Vogt Dennis Malec Paul Hoetzer Tom Jennrich John Leen

In April, LCCA will conduct interviews of the top Building Trades students and select the very best to refer to you. If you would like to get on the list to employ a Carpenter or Laborer Apprentice next summer, call Heidi at the LCCA Office. Last year we were successful in putting two laborer trainees to work and got 10 interviews to get into the Carpenters Apprentice Program.

LCCA has teamed with the College of Lake County to hold another Improving Productivity course on Tuesday evening from 6:00 – 10:00 from February 18 till March 11. This highly successful course was held last spring and everybody who completed the course had nothing but rave reviews.

Topics include:

1. 2. 3. 4. 5. 6.

Productivity measurement Record keeping The effectiveness of planning and scheduling Layout and design Process reengineering New technology for productivity enhancement

In a tough market, the contractor who is more productive will survive. The tools offered in this seminar will make your supervision better able to find areas that need improvement, select the right changes to make and be able to measure the improvement. Together these tools can add dollars to your bottom line and make you more competitive. A reservation form is enclosed.