PCA & PAMCANI Alliance
Local 130 Contract (June 1, 2014 - May 31, 2017)
How are the new contract increases ($2.01, $2.00, $2.00) calculated?
The agreed-upon total package increases ($2.01, $2.00, $2.00) are based on the total current (2013-2014) Local 130 journeyman package of $70.55 minus $1.27 per hour (which reflects the JAC contribution of $0.88 and the Plumbing Council Industry Fund-IF of $0.39 per hour). This figure equates to $69.28 per hour.
Local 93 and Local 501 packages were not used in the calculation since they expire on June 1, 2014 and a standardized rate for all Local 130 members is needed moving forward.
Therefore, starting with the $69.28 per hour Local 130 package, the first increase effective June 1, 2014 (Year 1) is 2.9% of $69.28, which amounts to an increase of $2.01 resulting in $71.29 (total per hour package equals: $72.56 with the JAC and IF).
The second increase effective June 1, 2015 (Year 2) is 2.8% of $71.29 ($69.28 +$2.01), which amounts to an increase of $2.00 resulting in $73.29 (total per hour package equals: $74.56 with the JAC and IF).
The third increase effective June 1, 2016 (Year 3) is 2.7% of $73.29 ($71.29 + $2.00), which amounts to an increase of $2.00 resulting in 75.29 (total per hour package equals: $76.56 with the JAC and IF).
Note: These agreed upon increases are lower than the construction industry standard increases in our area (around 3%) and lower than the COLA (Cost of Living Adjustment) rates averaged over the past several years (around 3%). In addition, the PCA and PAMCANI Alliance and Local 130 have tentatively agreed to work in partnership with a mediator/facilitator (preferably the same mediator who assisted with our bargaining) over the term of the contract to reach common objectives that will increase our market share and employ more members getting them back to work.
Did I hear the 401K plan is discontinued?
Yes the 401K ended with deductions for work performed through May 31, 2014. Discontinue any 401K deductions for work on or after June 1, 2014.
The monies deducted and any returns are still preserved and still managed by Mass Mutual. No additional monies can be added to the 401K fund. It is still self-directed so the monies can be allocated to any of the funds listed with Mass Mutual. The rules regarding distribution at retirement still apply.
I just received a new deduction form in the mail from the Union regarding the PAC and Voluntary Savings Authorization. Do I need to have my employees sign this and send it to the Union?
The Union sent this form to you in an effort to expedite the voluntary authorization of both its new PAC (Political Action Committee) and Voluntary Savings Fund. Neither deduction commences until a signed form is in your possession.
While you are not obligated per the Local 130-PCA-PAMCANI CBA to provide this form to your employees (since it is the Union's responsibility), providing it would assist you in determining sooner what amount (if any) to deduct from each employee's paycheck after the employee decides to sign and return the form. If you do provide it and your employee does authorize deductions on this form, make sure to turn it into the union by fax at 312-421-9633.
Please note that you cannot deduct the $0.05 new PAC deduction until you are informed by the Union that your employee has authorized the deduction or a signed form is returned from your employee, at which time the deduction would start with the next payroll. Again this is a voluntary deduction and some employees may choose it and others may not.
In terms of the Savings Plan, the Local 130 Trust Fund is advising all contractors to immediately stop any employee deductions for the 401K and/or the Savings Plan. Do not deduct any amount into the new "Voluntary Savings Plan" until you are informed by the Union that your employee has authorized the deduction or a signed form is returned from your employee, at which time the deduction would start with the next payroll. Again this is a voluntary deduction and some employees may choose it and others may not.
Can I immediately hire new Metal Trades (designations Mc through Me) employees to help reduce my crew costs?
While this is an individual business decision that you will need to determine if it works for your company, the short answer to the question is "yes." You can hire anyone of your choosing for these new categories provided that you receive written approval from the Local 130 Business Manager. According to the contract, the Local 130 Business Manager will respond with approval or denial to any such request within one (1) week.
Your PCA and PAMCANI Alliance bargaining team successfully negotiated the addition of three new Metal Trade categories (designations Mc through Me) as an option to evaluate new employees who can perform non plumbing licensed work for a maximum of two years at a significantly reduced wage and benefit package starting at around $12.00 per hour (designation Mc probationary) with no benefits for the first three months.
After two years if you retain the employee, you may either promote the employee to Metal Trades Journeyman third year status pay and benefits, or the employee may apply to the Plumbers 130 Apprentice Program and upon applying and meeting all standards of entrance be selected as an apprentice.
Also be aware that you can only hire a new Metal Trade employee using a 1-1-1 (Journeyman, Apprentice, Metal Trades Mc-Me) ratio. In the event that an apprentice is not available at the time of your request, you can still hire a Metal Trades (designations Mc-Me) employee and then receive an apprentice once he or she becomes available.
Do I have to pay my new Metal Trades (designations Md through Me) employees the same health & welfare benefits as my non-bargained staff?
You have the option starting at the fourth month of employment through 24 months (designations Md through Me) to either enroll the new Metal Trades employee into a company health care plan selected and paid directly by you or enroll him or her into the Local 130 H&W Plan at the reduced "Schedule A" rate of $5.07 per hour. It's your choice. However you must submit a letter of credible coverage similar to the outline of coverage for the Schedule A trainees. If you decide on the employer paid plan, you will need to provide coverage to bridge the two (2) quarter insurance for initial eligibility coverage gap.
Why are there now two Welfare (Welfare and Retiree Welfare) contributions listed on the wage sheet?
Under the new rules and laws of the Affordable Care Act, all Welfare Funds including Local 130 cannot have a different schedule of benefits within their plan. The Local 130 Welfare Trustees have separated the two plans and as of January of 2014 have allocated money (as a one-time transfer) from the Welfare Fund to fund the future of the Welfare Retiree Fund. Therefore, you will notice on the new wage sheet a contribution of $11.04 per hour for Welfare and $2.14 per hour for Retiree Welfare ($12.53 + $0.60 segregated into the active plan and the retiree plan). Any future funding increases will need to be divided between the two plans.
I understand that I now have to secure a dual obligee bond or weekly letter of credit. How do I obtain a bond form or sample letter of credit?
According to the contract, each Employer shall be required to obtain, maintain, in full force and effect and keep on file with the Union and the Data Center either a dual bond or two separate bonds to secure all monetary obligations pursuant to the number of employees they hire. The bond(s) or letter of credit will now be issued with 50% of the bond to cover wages, wage assessments, employee authorized deductions and the voluntary savings plan deductions and the other 50% to cover the remaining fringe benefit funds. The amount of the bonds has not increased. This was negotiated and agreed upon to equitably protect the Trust Funds as well as the member's wages.
Do I need to obtain a referral slip from Local 130 for all new hires?
Yes, this is a contractual requirement that is important for both the union and our contractors to keep track of all Local 130 members and for the trust funds to properly track benefits that are due. All referral slips will now contain the following information: The employee's name, United Association number, the last four digits of the social security number, plumbing license number, address, telephone numbers, and e-mail address (if available). It will also include the employee's certifications, i.e., OSHA, HAZCOM, competent person, safety course, cross connection and backflow license, etc. Plus it will list the Employer's name, address, telephone number, the location, date and time to report, and whom to contact at that location. A copy of the referral slip must be signed by the employee and provided to the employer by the union.
In addition, new language was added to Section 1.3 (Union Shop) that now requires all employers to notify the Local 130 office of a new hire by the time that employee receives his first payroll check.
Are there any other changes in the contract that I should immediately be aware of?
OSHA & HAZCOM Training – It shall now be the responsibility of the employee, the union and the employer to maintain documentation of the individual's OSHA and HAZCOM certification, and any other pertinent industry related certifications.
Travel Expenses – When employees are required to secure lodging, all reasonable lodging and meal expenses shall be paid by the employer upon presentation of receipts, per IRS guidelines.
Tool Provision – All journeymen and apprentices shall be in possession of a valid journeyman or apprentice Plumbing License at all times.
Clothing Provision – Members shall be reimbursed up to $90.00 annually upon presentation of original receipt if required to provide "safety" shoes as a condition of employment on any jobsite.
Alumni/Participation Agreements – Contractors (with ownership interest) may work with the tools of the trade provided that he or she shall pay into the Health & Welfare Fund, Pension Fund, Retirement Fund, Apprentice Training Fund, and Plumbing Council or PAMCANI Industry Fund for a minimum of thirty-two hours per week or all hours worked, whichever is greater, at the rate established for each such fund. In order for the working contractor to pay benefits, there must be a signed (by the contractor) alumni/participation agreement. Existing alumni/participation agreements of former Local 93 and 501 shall be "grandfathered," but at the Local 130 rates.
Retirement Savings Fund - The Plumbers Retirement Savings Fund, formerly a pre-tax employee funded 401(k) Plan pursuant to Plan Amendments, effective June 1, 2014 and the merger of the Northern Illinois Retirement Fund and the Plumbers Local Union No. 93 Retirement Account have been converted into a contribution based Pension DC Plan, no longer accepting pre-tax deductions.
The Savings Fund component (employee deduction) has now changed from mandatory to voluntary.
Group Legal Services Plan Fund – This plan has been eliminated. The $0.64 cents per hour contractors previously paid into this fund will now be part of a total $1.00 per hour contribution to the Retirement Savings Fund (DC Plan) with the remaining $0.36 cents per hour allocated by the union from the total economic package.
Contribution and deduction due dates – An employer who fails to make such contributions and deductions by the due date therefore, shall pay, in addition to the actual delinquent amounts, interest thereon beginning with the due date at the rate of a minimum of eight percent (8%) or Prime plus three percent (3%) whichever is higher and liquidated damages in the amount of eight percent (8%) on the cumulative outstanding balance due.
Foreman's Schedule – One additional Foreman is required on each jobsite that has 19 to 25 journeymen and apprentices. Prior to this contract, the ratio for 19 to 25 journeymen and apprentices was 2 sub-foremen to 1 foreman to 1 superintendent. It is now 2 sub-foremen to 2 foremen to 1 superintendent. All other ratios remain the same.
Apprentices – All apprentices who have completed at least three years (except two years for maintenance and repair on existing plumbing systems) may work alone. Otherwise, apprentices shall work under the normal conditions defined in the CBA.
Occupational Jurisdiction – UA Local 130 will aid and assist all Local 130 signatory contractors in any and all jurisdictional disputes that arise over work included in the jurisdictional list in the contract.
Optional Compressed Workday and Workweek – Following written notice to the Union, employers may schedule the regular work week in a compressed work schedule of four (4) consecutive ten (10) hour days at straight time rates provided the four (4) ten (10) hour work days exclusive of a one-half (1/2) hours unpaid meal break to be taken no later than five (5) hours after the employee's starting time are scheduled during the period Monday through Thursday or Tuesday through Friday and are worked within the starting times of 6:00 A.M. to 10:00 A.M. and corresponding quitting times 4:30 P.M. to 8:30 P.M. In no event will a compressed schedule work day start later than 10:00 A.M. Make up day conditions will be on a voluntary basis. Employers properly adopting such work schedules may schedule Friday (on a Monday – Thursday work week) or Saturday (on a Tuesday – Friday work week) as a fourth make up day in the work week subject to the compressed work hour restrictions. Both the Employer and the employee(s) must agree to adopt the compressed work week option for the four (4) – ten (10) schedule. The compressed work week schedule excludes Prevailing Wage or Davis-Bacon work, unless allowed through a Project Labor Agreement or similar agreement.
If you have any questions not addressed in this FAQ section, please contact PCA and PAMCANI Alliance Executive Director S.J. Peters at 312-563-9526 or 630-960-3970 or e-mail him at or .