A Minnesota Laborers-Employers Cooperation & Education Trust Publication LABORER The Skilled Construction Craft UNION Promoting the benefits of Union construction in MN & ND The new Union Built County 101 Bridge near Shakopee MN. Construction Forecast 2016: Construction Economy Remains Strong All indicators point toward another good year in 2016 widely for the construction industry in Minnesota and North Dakota. Work Hours Up It is evident that Minnesota’s Signatory Union Contractors and skilled Laborers International Union of North America (LIUNA) members across nearly every construction sector have been very busy over the past 18 months, as indicated by work hour logs. A solid business climate in Minnesota has generated a number of new project developments Knutson Construction Skilled Laborers working on the Prairie Winds Middle School, Mankato MN. throughout the state. This has resulted in positive employment indicators and the addition of many new Apprentices coming into the trade. Leading market researchers expect continued growth in the construction industry, which is great news for an industry that weathered the storm of a major recession in the past 10 years. Dodge Reports Upward Trend in Minnesota In review of reports from the Dodge Data & Analytics Minnesota report, there is an estimated 12% increase in forecasted spending across a number of categories in both private and public construction industry sectors. Leaders in growth are expected to be manufacturing; nearly doubling its construction from a year ago, multifamily housing; which continues a lengthy positive run, and the power utility industry. Declines are expected in street work and water supply infrastructure, which may be a result of low funding available in these public sectors. North Dakota Construction Economy Relaxes Dodge Data is forecasting an 8% decline in North Dakota’s construction industry as it begins to slow down from more recent years of growth. Next year’s winning opportunities are expected to be in hospitality related businesses, manufacturing and multifamily housing. North Dakota has made significant investments in the previous five years in roads, bridges, bypasses and other public infrastructure largely due to the oil boom and some relaxation in these sectors is expected. Bright Industrial Work Sector Industrial spending in Minnesota looks to increase steadily throughout 2016 driven by major wind and solar projects and the possibility of the Sand Continued on Page 2 December 2015 ISSUE HIGHLIGHTS u Iron Range Feature | Page 4 u School Construction | Page 6 Welcome New Contractors! A E T Painting Albrightson Excavating The Cadeira Group Corporate Clean LLC J P Cullen Lakewest Excavating LLC Northern Industrial Services Raimonde Drilling Corp Reflections Cleaning Services LLC Ultra Concrete Viita’s Excavating Inc Minnesota LECET Board of Trustees Mark Ryan, Chairman Carl Bolander & Sons Inc. Dave Borst, Co-chair Laborers Local 405 Chris Born PCL Construction Services Mike Bubalo Laborers Local 563 Steve Buck Laborers Local 563 John Kittleson Bituminous Roadways Inc. Dan Olson Laborers Local 1091 Jim Person Ryan Companies US Inc. Todd Pufahl Laborers District Council of MN & ND Denise Woods AGC of Minnesota Dwight Engen LECET Construction Marketing Director LECET Mission The Minnesota LaborersEmployers Cooperation & Education Trust (LECET) fund was created in 1992 as a non-profit joint Labor/Management cooperation effort affiliated with the Minnesota Laborers Union. LECET aims to promote the many benefits of Union construction while addressing a number of initiatives that are of mutual benefit to both signatory Union Contractors and LiUNA members. Construction Outlook Based on 16-19 Final STIP* Construction Outlook Based on 16-19 Final STIP* Funding by Source (in millions of dollars) Funding by Source (in millions of dollars) to show SRC budget *Adjusted to show SRC budget *Adjusted Construction Outlook Based on 16 Funding by Source (in millions of dollars) *Adjusted to show SRC budget Source: Minnesota Department of Transportation Piper crude oil pipeline, according to Industrial Information Resources, Inc. Another $200 million in compressor and pumping station projects are in the queue for next year rounding out a robust spend for the oil and gas sector. Demand for construction craft Laborers is expected to increase starting in April 2016, with continued high demand through year end. Road and Bridge Building Softens There are major concerns about Minnesota’s heavy highway road and bridge construction industry, coming from the contractors and industry leaders who are dedicated to the industry. When looking at the Minnesota Department of Transportation construction spending program forecast, the industry is facing a serious downfall in 2017-19. Margaret Donahoe, Executive Director of the Minnesota Transportation Alliance discussed how shortfalls in funding are hurting the industry. “As major projects like the Lafayette Bridge and I35E projects in St. Paul wrap up, we’re looking at a future with very few large projects – those that employ a wide variety of trades 2 people, including skilled Laborers,” said Donahue. “Unless additional resources are provided by state and federal lawmakers, the construction program will become one that is largely focused on pavement preservation. One time money can move some projects up, but ongoing dedicated funding is really needed to get critical projects ready for construction and completion on time.” Donahoe noted that shortfalls in available construction projects place additional hardship on leading Minnesota based highway and heavy contractors, forcing many to downsize or look outside the state for opportunities. Save the Date! Minnesota LECET Announces Scholarship/Leadership Grant Program for 2016 Minnesota Laborers-Employers Cooperation & Education Trust (LECET) is proudly providing financial assistance programs to help individuals working in or seeking a career in the construction industry. Academic Scholarship Program Leadership Grant Program • Scholarship Value: up to $1,000 • Applicants must be in their second year or more at an approved institution and program with a declared major in a construction related program. • Applicants must be either a Minnesota Laborers Union member or immediate family member, or a Signatory Union Contractor staff employee or immediate family member. • Member Applicants must be current and in good standing with their Laborers Local Union Hall and non-member Applicants must be employed with a current Union contractor signatory to a collective bargaining agreement with the Minnesota Laborers Union. • Academic Year: 2016 • Leadership Grant Value: up to $1,000 • Applicants must use grant assistance to further his/her leadership development training through academic course work outside of training provided by the Minnesota Laborers Training Center relating to construction management and construction site leadership. • Member Applicants must be current and in good standing with their Laborers Local Union Hall with more consideration given to those members utilizing the extensive training of the LTC. • Applicable Period: 2016 Program Information • Visit the official program website at www.mnlecet.org. • Information and Applications are made available through Minnesota LECET, at each Minnesota Laborers Union Local, the Laborers Training Center and at a number of preapproved academic institutions. • The Minnesota LECET Board of Trustees reserves the right to make any program or rule changes, at any time, with all decisions final. Applications due: May 9, 2016 Contact Minnesota LECET at 651-429-1600 for questions or email at [email protected]. 2016 LECET Safety Seminar Schedule Released Minnesota LECET returns with three new Safety Seminars planned in 2016. These seminars are designed for signatory contractors who do not employ full time safety representatives. The sessions are professionally led and are free for signatory contractor representatives including lunch with an RSVP. Date/Time Location Topic Jan. 28 11:30 AM Laborers District Council Bringing your newer employees into your safety culture. Feb. 16 9:30 AM Hibbing MN – Park Hotel Dual Session: Bringing newer employees into your safety culture & Minnesota OSHA Presentation Mar. 18 9:00 AM Laborers Training Center* What is the new Confined Space Requirement? Attention Signatory Contractors For more information contact Minnesota LECET at (651) 429-1600. A flyer invitation was previously mailed to all Signatory Contractors. Space may be limited. Visit www.mnlecet.org. *In conjunction with Annual Contractor Open House event. Safety Driven THE POWER OF PARTNERSHIP NAME Chad Tschimperle Todd Johnson Travis Anderson Doug Holmes Erik Pagel Nick Brown Kevin Mosbrucker Dan Carlson Mark Hawkenson Josh Thorson CONTRACTOR NAME Advanced Masonry Restoration Inc C & L Excavating Inc Casper Const. Inc. Crawford Merz Anderson Construction Fraser Construction Global Specialty Contractors Inc Industrial Contractors Inc J R Jensen Construction Co Johnson-Nelson Masonry Kiffmeyer Inc Safety Driven Quarterly Award Winners 3rd Quarter 2015 NAME Terry Lemieux Cyrus Dorry Bruce Zwirtz Tom Earl Clint Koskovich Mark Haugh Craig Dunrud Jason Stoffel Justin Swendra Nathan Cummings 3 CONTRACTOR NAME Kraus Anderson Lakehead Constructors Inc Lloyd's Construction Services, Inc Maverick Cutting & Breaking Max Gray Construction Inc McGough Construction Minnesota Limited Inc Northland Concrete & Masonry RJM Construction Veit & Company Inc On the Iron Range of Northern Minnesota In addition to the construction work relating to the mining industry since the 1940’s, Union contractors and members of the Minnesota Laborers Union Local 1097, Virginia MN continue to build and maintain the infrastructure of North Country. In the Early Days Work From the Minncan to Minntac With a twinkle in his eye, Jordan Richardson reflected on some early times as a Minnesota Laborers Union Local 1097 member living and working up on the iron range in Minnesota’s mining territory. “Times were difficult for members in the early years, but then pretty good in the 60’s and 70’s,” said Richardson, former Business Manager. “We were fortunate, and still are to this day, to have our union back then. The union brought us a decent wage with health insurance, pension and job safety. Laborers were critical to the development of the entire iron range from the mines to the schools to hospitals – all of it.” Some significant projects in recent years help gauge a sense of history in the iron range region. The MinnCan Pipeline project was completed in 2009 and came at an opportune time when Laborers across the state were looking for work. The project put hundreds to work constructing a 304 mile pipeline across Minnesota and through the iron range over a two year period. Laborers Local 1097 was chartered on April 4, 1947 under the International Hod Carriers, Building and Common Laborers Union of America, later becoming the Laborers International Union of North America (LIUNA). The membership has ebbed and flowed over the years, much of that as a reflection of the mining industry. Mining for iron ore began in the 1880’s and peaked in the mid 40’s about the time the Local was starting up when the region produced about sixty percent of the country’s total iron ore output. When iron ore resources began depleting by midcentury, new technologies to develop taconite were invented by University of Minnesota Scientists . Taconite is a low grade pellet concentrated ore that became the area’s primary export by the 1980’s. In the taconite industry, a number of production facilities have gone through upgrades, with Laborers Union members and contractors doing the work. Some notable mining industry employers are Cliffs Natural Resources (Hibbing Taconite, United Taconite and Northshore Mining), U.S. Steel (Minntac and Keetac production facilities) and the new Essar Steel taconite production plant, which is in the midst of a large $1.9 billlion project. When mining is thriving it often accounts for as much as 40% of the work in the region. The new proposed Polymet Mining Corporation project represents the next wave of precious metals mining technologies and has a construction Project Labor Agreement in place ready for final approval to begin. 1 “Mining really characterizes our - Tim M 4 Northern Cities Like Their Project Labor Agreements Today, much of the public infrastructure on a local level on the range is built and maintained by skilled LIUNA members and contractors under locally authorized Project Labor Agreements (PLA’s). PLA’s have been approved by many northern Minnesota City and County boards as a means to ensure that locally financed public construction projects are completed on budget and on time with the shorter seasons in northern Minnesota, while helping to govern wages, benefits and working conditions. These ordinances along with local Prevailing Wage standards aid in the concept of keeping the local workforce employed through building their own projects. “Project Labor Agreements and the Davis Bacon (Prevailing Wage law) are very important to us,” said Larry Cuffe Jr., Mayor of Virginia, MN. “We make it clear and all of the contractors know about PLA’s on our projects because they help ensure high quality construction and they keep our workforce local.” Some notable projects under PLA’s include the Giants Ridge Convention Center, Hibbing High School Remodel, Parkview Elementary School in Virginia and Grand Rapids Reif Performing Arts Center. way of life on the iron range.” McCauley, Business Manager, Laborers Local 1097 5 Project Labor Agreements on The Range Cities Counties Aurora, Chisholm, Cromwell, Cohasset, Duluth, Ely, Eveleth, Hibbing, Kinney, Mt. Iron, Orr, Superior, Tower, Two Harbors, Virginia Saint Louis, Itasca, Carlton, Lake, Douglas (WI) Highest Bridge Underway in Minnesota The Minnesota Department of Transportation Trunk Highway 53 Relocation project over the Rouchleau Mine Pit Lake has commenced in Virginia, MN with a host of Minnesotabased signatory Union contractors performing the work under a Project Labor Agreement. The $156 million bridge will be the highest bridge structure in Minnesota with an elevation of 325 feet and is needed so that taconite mining in the area of the current highway will continue. “This bridge is a great example of how the mining industry has played such a huge role in our economy on the iron range over the last century,” said Tim McCauley, Business Manager of Laborers Local 1097. “Ironically, we are now building a new bridge connection into Virginia in order to keep an important mining production site going and creating jobs in the region. Mining really characterizes our way of life on the iron range.” 1. Iron Range Resources & Rehabilitation Board Data Center, Nov 30 2015 Photo Credits: Minnesota LECET, IRRRB, U.S. Steel, Uniquely Minnesota, Giants Ridge Golf & Ski Resort, Minnesota History Association. The State of the Union is Great By Todd T. Pufahl, President & Business Manager – Laborers District Council of MN & ND As the 2015 Construction Season is almost in the books, we look back with gratitude at a record setting year in Minnesota and North Dakota Laborers Union history. We are experiencing record breaking work hours for our LIUNA members, records in the number of members and hours trained through the Minnesota Laborers Training Center and the largest group of new Apprentices entering the Laborers construction craft career. We also now have more contributing signatory contractors than ever before, more Apprentices graduating than ever and a strong outlook for next year’s construction season. This recovery didn’t happen by accident, as many of the projects that made 2015 record setting were mere proposals a few years ago. By partnering with Union contractors through coalitions like the Building Jobs Coalition and Progress in Motion and mobilizing our Orange Army of Activist members to advocate in the halls of power at every level, we were able to help bring these projects to fruition generating the work hours that helped make this a record year. LIUNA members should keep these good times in mind as you hear “calls to action” from your Local Union to be a part the Orange Army, promoting projects that improve our infrastructure and create opportunities across all work sectors of our industry. This state of our Union brings additional good news for the Laborers Fringe Benefit Funds. In 2015, the Laborers Pension Fund Trustees approved a provision for retired members to come back and work during the 2015 season for a limited number of hours without discontinuing their pensions, resulting in over 60 retirees participating. The Vacation Fund Trustees approved a 4.5% dividend for member’s Vacation Fund dollars. The Health & Welfare Fund Trustees made improvements to Dental Plan coverage and added an improved option for hearing aid purchases. Trustees also approved expanded coverage for preventive health care services effective January 1, 2016. All of these improvements were made possible by the joint commitment and vigilant stewardship over these funds by our Labor and Management Trustees. Enjoy the Holidays with your families and Laborers are encouraged to make good use of their down time to TRAIN UP for another busy year in 2016! Opportunities Ahead: School Construction Market Gets $1.7 Billion in Future Projects Voters across the state of Minnesota approved over $1.7 billion in improvements at a number of school districts giving more life to a market sector that has great potential for signatory Union contractors. In all, 23 separate school districts approved referendums held in the November, 2015 elections. The Laborers District Council of MN & ND supported school bonding measures statewide, not only for their good community merits, but also for the job creation these projects bring to the industry. The Council will continue to monitor school projects in hopes of luring more Union contractors, including subcontractors and specialty contractors to bid on this work. School construction work can be challenging for union contractors with districts that do not include prevailing wage language in the bid specifications. Prevailing wages help level the playing field for all contractors by requiring the contractors to pay construction wages per the area wage standards determined by historical work performed in the location of where the project is. Wage standards help thwart unscrupulous contracting by contractors who take drastic measures to pay far less than industry or local wage standards just to get the work. The Minnesota Laborers District Council and LECET are hosting a workshop next month to encourage more Union contractor participation in this market sector. WHO: General contractors and subcontractors, including concrete, demolition, excavation, masonry, utility contractors & more. WHEN: Wednesday, January 13, 9:30 AM-12:30 PM including lunch WHERE: Radisson, 2540 North Cleveland Ave., Roseville, MN 55113 SCHOOL CONSTRUCTION OPPORTUNITIES WORKSHOP AND NETWORKING LUNCH Wednesday, January 13, 2016 $1.7 BILLION APPROVED BY VOTERS IN 2015! AGENDA: Presentations from leading consulting firms, construction managers and more. Sponsored by Minnesota LECET PLEASE RSVP at (651) 429-1600 or online at mnlecet.org 6 Train Up THE POWER TO EXCEL Training Calendar Week of January 11, 2016 Asbestos Supervisor Initial Concrete Practices/Insulated Forms Hazardous Waste Initial Highway Heavy Skills/Flagging/SWPP Duluth, MN Pipeline Technology/MnDot Flagging Safety Week/OSHA 30/Msha 24/CPRFA Virginia, MN Safety Week/OSHA 30/CPR First Aid Bismarck, ND Excavation Confined Space Excavation Confined Space - Virginia, MN Intro to Union & Apprenticeship Program Grand Rapids, MN CPR/First Aid - Virginia, MN Flagging/MnDot - Duluth, MN Hazardous Waste Refresher Asbestos Worker Refresher - Superior, WI Mine Safety & Health Admin - Virginia, MN (651) 653-6710 Jan 11-15 Jan 11-15 Jan 11-15 Jan 11-15 Jan 11-15 Jan 11-15 Jan 11-15 Jan 13-14 Jan 14 Jan 14 Jan 15 Jan 15 Jan 15 Jan 16 Jan 16 Week of January 18, 2016 Asbestos Worker Initial Jan 18-21 CPR/First Aid Jan 18-19 Foreman Preparedness Jan 18-22 General Construction/Flagging/Pro-10 Jan 18-22 Hazardous Waste Initial - Duluth, MN Jan 18-22 Hazardous Waste Refresher Jan 18 Mason Tending Jan 18-22 Safety Week/OSHA 30/CPR First Aid Jan 18-22 Excavation Confined Space Jan 19 General Construction/Flagging/Pro-10 Jan 20-Feb 04 Pro-10 Jan 20 Flagging/MnDot Jan 21 Intro to Union & Apprenticeship Program Jan 21 Plumbing Code Jan 21 Asbestos Supervisor Refresher - Hudson, WI Jan 22 Asbestos Worker Refresher Jan 22 Asbestos Supervisor Refresher - Superior, WI Jan 23 Hazardous Waste Refresher - Duluth, MN Jan 23 Week of January 25, 2016 Excavation Confined Space - Rochester, MN Jan 25 General Construction/Flagging/Pro-10 Bismarck, ND Highway Heavy Skills/Flagging/SWPP Lead Worker Initial Line & Grade Safety Week/OSHA 30/CPR First Aid Torch Cutting Demo Safety Hazardous Waste Refresher - Rochester, MN CPR/First Aid - Rochester, MN Plumbing Code - Rochester, MN Rigging & Signaling Qualified - 24 Hr Lead Worker Refresher Asbestos Supervisor Refresher Asbestos Worker Refresher Flagging/MnDot - Bismarck, ND Asbestos Worker Refresher - Superior, WI Week of February 01, 2016 General Construction/Flagging/Pro-10 Hazardous Waste Refresher Pipelaying 1 Plaster Tending Safety Week/OSHA 30/CPR First Aid Scaffold Erecting Competent Person Flagging/MnDot Lead Supervisor Refresher Asbestos Supervisor Refresher Mine Safety & Health Admin - Virginia, MN Week of February 08, 2016 Asbestos Supervisor Initial Blueprint Reading - Bismarck, ND Blueprint Reading (Evenings: 5pm) Concrete Practices/Insulated Forms Hazardous Waste Refresher Line & Grade Pipeline Technology/MnDot Flagging Safety Week/OSHA 30/CPR First Aid Welding/Torch Cutting Air Arc Excavation Confined Space CPR/First Aid Excavation Confined Space Hazardous Waste Refresher Jan 25-29 Jan 25-29 Jan 25-27 Jan 25-29 Jan 25-29 Jan 25-26 Jan 26 Jan 27 Jan 27 Jan 27-29 Jan 28 Jan 29 Jan 29 Jan 29 Jan 30 Feb 01-05 Feb 01 Feb 01-05 Feb 01-05 Feb 01-05 Feb 01-05 Feb 04 Feb 04 Feb 05 Feb 06 Feb 08-12 Feb 08-12 Feb 08-23 Feb 08-12 Feb 08 Feb 08-12 Feb 08-12 Feb 08-12 Feb 08-Mar 11 Feb 09 Feb 10 Feb 11 Feb 12 Apprentice of the Month Awards September Matthew Mears October Philip Ruelle Jr. November Donald Schmidt ATTENTION APPRENTICES Mandatory Apprentice Orientation meetings are held the third Thursday of every month at 6 PM at the Laborers Training Center, Lino Lakes, MN. Learn about your Union, your training requirements, Union benefits and much more. www.ltcmn.org ‘Showcase of Training’ Open House Draws 150 The Laborers Training Center and LECET hosted their 4th Annual Fall Construction Industry Open House at the LTC on Oct. 9, 2015 with contractor representatives and public officials from all over Minnesota attending. The event showcased the high-valued training available to current Minnesota Laborers Union members and new Apprentices and how the joint efforts of labor and management are working to ensure a vibrant construction industry with training as the cornerstone. The open house included a tradeshow with industry professionals representing these organizations: Associated General Contractors of MN, Fair Contracting Foundation of MN, Minnesota Building & Construction Trades Council, Minnesota Concrete & Masonry Contractors Association, Minneapolis Urban League and the Minnesota Transportation Alliance. 7 “We want to thank all those who attended our annual open house – a showcase of training,” said Dean Mills, Director of Training for the LTC. “The training we provide through this 44,000 square foot facility gives LIUNA members the knowledge and skills to go forward and make a difference in the construction industry.” NON-PROFIT ORG. US POSTAGE PAID PERMIT 27072 Minnesota Laborers-Employers Cooperation & Education Trust-LECET 81 East Little Canada Road Little Canada, MN 55117 TWIN CITIES, MN CONTACT MINNESOTA LECET P: 651.429.1600 F: 651.653.9745 [email protected] www.mnlecet.org www.facebook.com/MinnesotaLECET Opportunity Gateway: County 101 Bridge opens in Southwest Metro The Minnesota Laborers Union and Signatory Contractors Ames Construction and other Union subcontractors recently participated in the official opening of a significant new bridge located in the southwest metro region of the Twin Cities. The Union built County Highway 101 Bridge is an elevated four lane, 4,225 foot long structure replacing the previous river crossing that had closed a minimum of 11 times. “Thank you to the men and women of the Union Trades for your dedication to job quality and giving the taxpayers a bridge for today and the future. Well done,” said Randy Maluchnik, Carver County Commissioner, in his address at the event. Carver and Scott County commuters: Your New Opportunity Gateway The new County Highway 101 bridge! Partial listing of Union Contractors: Ames Construction (General Contractor) Cedar Ridge Landscaping Hardrives Interstate Improvement The Minnesota Laborers Union and Signatory Contractors are proud to have built this bridge for the communities of Carver and Scott Counties UNION BUILT: Better • Faster • Safer “Thank you to the men and women of the Union Trades for your dedication to job quality and giving the taxpayers a bridge for today and for the future. Well done!” —Randy Maluchnik, Carver County Commissioner Brought to you by Union Contractors and Union Workers • Paid for by Minnesota LECET • LaborersBuildMN.org Minnesota State Curb & Gutter PCI Roads LLC Rainbow Inc. Terra Services Warning Lites Interested in a Construction Career? Contact Minnesota LECET (651) 429-1600 for info. Bridge Facts: The 101 bridge is a four lane, 4,225 foot long, $54 million bridge over the Minnesota River floodplain • Just 16 months to completion • Structure design is a concrete girder span bridge • The bridge slab concrete area is 333,456 sq. ft. • There are 41 spans and 369 prestressed concrete girders • Approximately 320 Skilled Union workers and 400,000 work hours • The project includes a bike trail, roundabout and other improvements • In its history, the 101 causeway had previously closed 11 times in the past 80 years due to flooding. Minnesota LECET placed advertisements in local newspapers celebrating the opening of the new County Hwy 101 Bridge.
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