Operating Engineer - Winter 2014

From the General President
[James T. Callahan]
Opportunities on the Road Ahead
Proactive engagement will define success
A NEW YEAR has begun, full
of promise and opportunity. The
economy has shown signs of life as we
prepare to put this long term recession
in the construction industry behind
us. A productive summer gave back
some of the gains towards the end
of the year, as we slid back to double
digit unemployment in the industry.
However, bright spots abound with
solid membership gains in many
regions of the International. I’m
cautiously optimistic that work will
pick up across the board in the second
quarter of this year.
One of these bright spots has been in
oil and gas pipeline work. The recently
completed Gulf Coast segment of the
Keystone XL Pipeline resulted in over
2 million hours of work for Operating
Engineers. A decision on building the
Northern segment is still pending, but
a recent environmental assessment
issued by the State Department
gives us hope that it will be approved
this spring. Pipeline projects of all
kinds will benefit from a new, three
year National Pipeline Agreement
negotiated between IUOE and the
Pipe Line Contractors Association last
month.
As we emerge from the recession,
we are still facing well funded and
coordinated attacks on our collective
bargaining rights. Capturing
employment gains and defeating
external threats means standing united
with the other trades. To that end, the
IUOE has re-affiliated with the Building
& Construction Trades Department as
of the beginning of the year. Raising
our collective voice and acting with
common purpose will benefit not
only our members, but all union
construction tradesmen throughout
the U.S. and Canada.
If the downturn has taught us
anything, it’s to not pine over the
current predicament, but to prepare
and position ourselves to capture as
many jobs as possible for Operating
Engineers as demand for our highly
skilled members increases. In that vein,
I want to underscore the International’s
role in assisting all local unions
whenever possible, understanding that
one size does not fit all.
First and foremost, we will rise and
fight alongside any state or provincial
local that comes under attack by socalled
“right to work” legislation or
similar threats to the rights of Operating
Engineers. Several state legislatures
and the Ontario provincial government
are moving in this direction right now.
In addition, the mid-term federal
elections this November could see
an influx of lawmakers to Congress
who would further advance an antiworker
agenda. We will never be
able to match the deep pockets of
corporate political funding, but we can
overcome it through member action. It
is critically important that we engage
in these political battles and that every
member carry the union’s message to
co-workers, families and friends.
Second, we are moving forward
with a comprehensive effort to gain
market share in the South. Industry
analysts believe that the Gulf Coast
region is poised to see investment and
development in the oil and gas sector
as high as $190 billion over the next
10 years. Industry heads have voiced
concerns with the mega-contractors
over their ability to meet the future
demand for qualified workers.
To address this, we must make a
commitment to train more individuals
and show them what the union
advantage has to offer. Planning is
underway to build a National Training
Center based in the South to capture
the work that we have traditionally
enjoyed in other regions—notably
Crane, Stationary, Heavy Highway, and
Petrochemical. In turn, high quality
training will serve as a foundation for
an all out Southern organizing effort.
There have been numerous
inquiries from union crane and heavy
equipment vendors who are interested
in participating with us. They see the
potential of shaping policy and safety
regulations nationally with such a
partnership.
Some may say that these are lofty
reaches and that it has the potential of
becoming a white elephant. I believe
that whether the Gulf Coast takes
off as predicted or not, the potential
to increase our market share in the
Southern part of this country begins
with training and is too important to let
such an opportunity pass us by.
Our union is poised to make solid
gains in the coming year. We will be
proactive instead of reactive; and we
won’t shy away from a fight when
warranted. Solidarity is the hallmark
of the Operating Engineers and
standing shoulder to shoulder with
other building trades will benefit all
members—past, present and future—
as we pursue these new opportunities.
Work safe and have a prosperous
new year.
WINTER 2014 5