PRESIDENTIAL ADDRESS

With negotiations behind us, we can all finally concentrate on the business at hand.

Once again, I would like to thank our negotiating committees for working through all the difficulties to bring this process to a successful conclusion. Job well done!

I recently attended a Graduation Ceremony for one of our trade groups. After socializing with some of the contractors and union officials, we were ushered into a large room where dinner was served and speeches were given. The program started off with formal introductions of the dignitaries and then it came time to speak to the new JOURNEYMEN.  There was a representative from the international speaking on behalf of labor and a local contractor speaking on behalf of management. The graduates sat very attentively listening to the messages given by both parties. The MESSAGES were very clear — take the education you have just received, expand on it in the future, work hard for yourself, and the contractor you’re working for, because you will benefit by steady employment and from the contractor being profitable. A message well received by all in attendance.

All of our trades are about to start new apprenticeship classes in the near future, so when you send in that sponsorship letter for a new apprentice, take the time to interview your prospective employee and tell him or her what is expected of them.  Many of us know that the younger generation doesn’t necessarily have the right frame of mind or work ethics that we require — every apprentice/journeyman needs to understand that they represent our companies on the front lines.  It’s never too early to get the message out. 

By the time you get this newsletter, we will have already had the Finish First Award dinner. On behalf of the Board of Directors and the Officers, I would like to thank all our members for their support of this event and congratulate the winners in each category.

—Tony Iannucci, President of IFCA, Aimm Philadelphia Installations, Inc. (856-546-1212)

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WHAT'S NEWS WITH THE UNIONS?

METROPOLITAN REGIONAL COUNCIL

• We negotiated a three-year agreement with the carpenters. The increase for 5/1/06 is $3.25 in Philadelphia County and $2.65 in the 4-Counties.  As soon as the agreement is printed, it will be placed on our web site along with the new rate increases. Let’s thank the union and management teams for working hard to reach an agreement — we hope that the new agreement increases our market share giving new business to our union employers which means steady employment for our union employees.
  
• IFCA is thrilled to have participated in the carpenters annual GRADUATION where over 200 folks graduated from the Apprentice Program. Congratulations to ALL on a job well done.
  
• Joe Durkin again organized the JAC Open House & Contest — he did another awesome job.  The winners from this year’s event were: General Carpentry—Jason Harrison; Interior Systems Carpentry—Jason Swander; Floor Layer—Brian Baraniewicz; Mill/Cabinetmaker—Jesse Florkowski; Millwright—Joseph Biasi —- GREAT WORK GUYS!

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INTERNATIONAL UNION OF PAINTERS & ALLIED TRADES DISTRICT COUNCIL 21 ("DC 21")

• We negotiated a three-year agreement with the IUPAT. The increase for 5/1/06 is $2.45. As soon as the agreement is printed, it will be placed on our web site along with the new rate increases. 
  
• Let’s thank the union and management teams for working hard to reach an agreement — we are hopeful that new relationships can be struck with owners and developers to INCREASE union construction.Let’s congratulate this year’s graduates. Our contractors welcome them into our industry and I know that many look forward to the new journeymen and the skills that they bring to a job. At IFCA, we support EDUCATION. 
  
• On September 23 District Council 21 will host a joint event (1) the Grand Opening of the new 80,000 square foot Training Center; and (2) Safety Saturday. The Grand Opening is designed to give everyone the chance to see the new training facility. Safety Saturday is all about safety awareness. Suppliers and Vendors will be invited to showcase their newest products. IFCA will participate in Safety Saturday and ENCOURAGE and INVITE all of our members to stop by to see the new facility and to learn more about the IUPAT’s Safety Training Program(s).

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LABORERS' DISTRICT COUNCIL ("LDC")

• We negotiated a three-year agreement with the LDC. The increase for 5/1/06 is $1.95. As soon as the agreement is printed, it will be placed on our web site along with the new rate increases. 
  
• The LDC has changed their apprenticeship program — contact them direct with questions about the changes. Thanks to the union/management teams for their efforts in reaching an agreement — we hope that the new agreement will generate new business for all parties involved in UNION construction. Business means steady employment.The LDC has contracted with ADP to assist them with electronic Remittance Reporting — this feature is not mandatory; however, because it is easy to use and is efficient, we believe many employers will happily move over to electronic reporting.
  
  IFCA is available to assist any contractor member with respect to labor relations—contact Kim Clerkin, the Executive Director (610-225-1050).

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GET THE SCOOP

Finish First Awards: The association wishes to acknowledge our Title Sponsor, Lafarge North America, who has supported our event 6 years running. In addition, IFCA recognizes all of the following sponsors who helped to make the Finish First Awards possible: International Union of Painters & Allied Trades; Kempf Company; Metropolitan Regional Council of Philadelphia & Vicinity; USG; Marjam Supply; CIESCO; Kamco Building Supply; Armstrong Ceilings; BPB America Inc.; Dietrich Metal Framing; George F. Kempf Supply Co.; Marino/Ware; National Gypsum Company; Painters & Allied Trades Labor Management Cooperative Initiative; Specialty Products & Insulation Co.; and Stevens & Lee. “I can no other answer make, but thanks, and thanks.”  W. Shakespeare 

Congratulations to this year’s winners:  Acoustical Ceiling—American Interior Construction, Inc. (Project: Chester County Library); EIFS—Guy C. Long, Inc. (Project: Citizens Bank); Drywall Finishing—Ceilings Inc. (Project: Synygy); Millwork—Guy C. Long, Inc. (Project: University of Penn. Law School Classroom); Innovative Use of Materials—Ceilings Inc. (Project: Synygy); and Ornamental Plastering—All Surfaces Plastering, Inc. (Project: St. George Cathedral).
Save the date: The 2007 Finish First Awards is schedule for June 1.  Location to be determined.
The line-up for Guest Speaks at our monthly General Membership meetings is as follows:

• August: Robin, Kramer & Green will talk with the IFCA members about proper Succession Planning.
• September: There will not be a meeting of the BOD or General Membership.
• October: Our Guest Speaker, Ted Garrison, will talk to us about “How to Increase Your Company’s Effectiveness and Efficiency.”
• November: Group Discussion regarding the “Dos and Don’ts” of a UNION Construction Industry. 

IFCA annual Industry Golf Outing: I’ve been asking you to save this date for over a year, Monday, September 11, 2006. Our outing will again take place at Cedarbrook Country Club. Lunch will be served @ 11:00 a.m. followed by a prompt shotgun start @ noon. IFCA members are invited to bring two employees to this outing plus themselves for a total of 3. This day is reserved for our industry guests — giving them a chance to enjoy a relaxed day with the IFCA members— look for your invitation the first week of August! Questions about our outing should be directed to the IFCA office (610-225-1050).

“I am easily satisfied with the very best.”  W. Churchill

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SAFETY SEGMENT

There are THREE C’s in the Word CONSTRUCTION
By John H. Young, Member, MACSC; EHS Director, Skanska USA Building Inc.

Obviously from a literal interpretation of the title, many already disagree. But before you close your mind to the idea, let me demonstrate.

The first C is for COMMUNICATION. This process starts long before we arrive at the jobsite, way back when preconstruction and bidding activities are underway. Questions are asked and answered, direction is given and expectations are put into written words. Safety is part of what is being discussed and addressed. COMMUNICATION continues even past the end of the work.

The next C is for COORDINATION. When we understand what we have to do and when, we need to coordinate with others who also have work to do and a schedule to follow. Time needs to be allowed for everyone to get done what must be done when it needs to be.  Safety really plays a big role here because if we don’t sequence activities in the proper order, we make the work more complicated. Consider a few examples such as cutting floor holes too soon or installing overhead work at a lower elevation before higher work is properly addressed. And what if we didn’t get to the guardrails yet but you have to start your work, or the subcontractor we purchased temporary stairs and ladders from isn’t on the site yet. There are so many opportunities to really create unsafe conditions because COORDINATION isn’t properly addressed. Oh yes, and how do we avoid closing partitions or starting ceilings before everyone is ready?

The third C is really what makes it all work and that is COOPERATION.  Everybody has their work to do, a schedule to follow and usually someone else telling them to start sooner, work faster or whatever.  Have you ever worked with someone who seemed to enjoy making your life more difficult? You’re working to a deadline and he’s reminding you he’s going to bury you if you aren’t ready? We all have to work together as a team to ensure this doesn’t happen. What good does it do for most everyone to be working in harmony when we all need to be?  COOPERATION requires things like trust, accountability, responsibility and dependability. It requires that relationships be established and maintained. And it depends on COMMUNICATION and COORDINATION to ensure success.

Think about it and see how your role is impacted by COMMUNICATION, COORDINATION and COOPERATION with others. It works everyday, day in and day out. And it feels good when the “Team” is successful and the job is done right, on schedule and within budget.

And just for kicks, some would argue there is a fourth C, that being CLEAN UP, but we’ll leave that for another day.

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ROBIN KRAMER SAYS…

Get the most out of your investment dollar

When making a major investment, get the best bang for your buck. Is the asking price firm? Will the seller negotiate? How about a reduced price if you pay cash?

Do a little pencil work before you make your offer on any major purchase. Look at this example.

Suppose the seller wants $100,000 for a piece of real estate. He is willing to sell it to you for nothing down and equal annual payments for 10 years at 8% interest. Your payments would be $14,903 per year.  The seller now has to live with a ten-year contract. Perhaps he would rather have cash than a long-term contract.

If he would settle for $80,000 cash, here’s how you would benefit.  Let’s assume that you have $80,000 of your own money available.  Paying $80,000 cash for this property will give you an equivalent return of 13.3% on your investment. Remember, if the seller carries a contract, you will pay $14,903 per year for ten years. Your $80,000 is, in effect, getting you $14,903 per year for ten years, and that results in a 13.3% return.

If you don’t have $80,000, perhaps you can borrow it and still make a profit. Let’s assume that the bank’s interest rate equals 8%, the same as the seller wants. You’ll pay the bank $11,922 per year. The total amount paid to the bank over ten years is $119,200. This is $29,810 less than you would have paid the seller over the same period of time.

It is easy to see that some combination of your money and borrowed funds could also be used to negotiate a reduced price and a much better deal for you.

This discounted cash payout holds true for existing contracts also. If you owe a sizable long-term contract, perhaps the holder of the note would take a reduced cash payout. It doesn’t hurt to make an offer. Money that is now earning you 5% (or less), could be earning you a higher return.

We will gladly assist you in determining your rate of return for discounted cash payouts versus long-term contracts, please contact us direct.

Robin Kramer & Green, LLP
425 Commerce Dr.
Ft. Washington, PA

215-641-8300 (O)
215-641-8335 (F)
info@rkgcpa.com

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TAKE IT FROM KIM

Skills USA: IFCA is proud to have sponsored Jim Pearson in the annual Pennsylvania Skilled/USA competition. Jim was a student @ Swenson — he graduated from school in June. Jim finished 11th out of over 400 statewide competitors in carpentry. During the contest he was required to build a project from a set of prints that he had never seen before.  Jim is extremely interested in becoming a UNION carpenter and has studied for the apprenticeship examination. Jim is a shining example of the type of student attending the Philadelphia Public Schools. Jim and the vast majority of the young people who learn in the Philadelphia Public School systems don’t make the evening news but their work ethic, efforts and accomplishments make them newsworthy nonetheless. We applaud Jim on a job well done and look forward to supporting other students in future competitions because we recognize the need to attract bright, productive, skilled students, such as Jim, to our various apprenticeship programs.

IFCA Membership: If you are not a member of IFCA, please contact Kim Clerkin to discuss the many membership opportunities offered to you as an IFCA member. For example, our contractor members have been in business a long time and have plenty of experience in contract interpretation, enjoy long-standing relationships with our unions and have working friendships with all of the suppliers — they can help you and your business — give us a call!

“We the People!” A few Saturdays ago, my husband and I took a tour of the Constitution Center, which by the way, won an award for Peter Bradley Construction in the 2004 Finish First Awards. During the tour, we were struck by the sacrifices that our forefathers endured for the FREEDOM we enjoy today! At the end of your tour, you will understand  “We the People!” SO … THIS SUMMER take your family on a tour of our City — the historical buildings are magnificent, and while you’re at it, you can take a look at the new construction, which is being built by our UNION contractors and their craftpersons.

2007 Winter Conference: I want to encourage our members to attend the association’s annual Winter Conference. The 2007 Winter Conference will be held @ Casa de Campo February 22—28, 2007 — this event is for members only. At our 2006 Winter Conference our Legal Counsel spoke to us about (1) Pension Plan Liability & Related Issues; (2) Negotiations, etc.; (3) Successorship and Retirement Planning; and (4) Pennsylvania Mechanics’ Lien Law update. The winter conference topics are selected by our members — join us in 2007 — the conference isn’t just about having a good time. Our attendees have many opportunities to have “one-on-one” time with our legal counsel as well as many in-depth discussions with each other about our union construction industry and what can be done to increase business.

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LEGAL NOTES FROM STEVENS AND LEE

IMPLEMENTING A DRUG FREE WORKPLACE:
PRACTICAL AND LEGAL ISSUES FOR SUBCONTRACTORS

Drug and alcohol abuse in the workplace compromises the safety of your entire workforce as well as your customers and the public at large. In addition, employees who abuse alcohol and drugs can affect the company’s bottom line due to absences, accidents and errors as well as causing low employee morale. 

The U.S. Department of Labor asked employers to consider the following:

• Out of 13.4 million illicit drug users aged 18 or older in 2001, 10.2 million (76.4 %) worked either full or part-time.
• Between 10 and 20 percent of the nation’s workers who die on the job test positive for alcohol or other drugs.
• Nearly 77 percent (10.7 million) of illicit drug users use marijuana. Six out of every 10 workers who test positive for drug use test positive for marijuana.
• Industries with the highest rates of drug use include many of the same industries at high-risk of occupational injuries, such as construction, mining, manufacturing and wholesale.

When examining alcohol and drug use within the different industries, the Federal government found that the construction industry had the highest rates of alcohol and drug abuse among any other industry. For full-time construction workers between the ages of 18 and 49:

• More than 12% reported illicit drug use during the past 30 days.
• Almost 21% reported illicit drug use during the past year.
• Approximately 13% admitted to heavy alcohol use.

Specifically, the rates of substance abuse among different types of personnel within the construction industry were found as follows:

Despite the statistics, employers have the power to improve the safety and health of their employees by implementing drug-free workplace programs. Such programs educate employees concerning the dangers of alcohol and drug abuse and encourage employees with such problems to seek help. In addition, such programs result in a safer, more productive workplace that ultimately results in increased profitability and success. While there are upfront costs and investments associated with implementing a drug-free workplace program, the program yields a return on the investment and a reduction of costs. 

Michael G. Tierce, Esquire
Stevens & Lee
215-751-2865
mgt@stevenslee.com

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CALENDAR

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PICTURES

IUPAT District Council 21 Training Center
2190 Hornig Rd., Phila. PA

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IFCA

Kimberly A. Clerkin, Executive Director
Valley Forge Office Center
676 E. Swedesford Rd., Ste. 300
Wayne, PA 19087
Phone: 610-225-1050
Fax: 610-225-1052
Email: kimclerkin@attglobal.net

We're on the web at www.ifcaassociation.com