Volume 2 Issue 2 - Operating Engineers Local 520

Page 6THE 520 HOISTERMark Johnson,GaurdChadGoldschmidt,OrganizerOn November 20, 2009, the Illinois Fourth DistrictAppellate Court answered a long standing question: doIllinois prevailing wage laws apply in enterprise zones, or taxincrement financing (TIF) districts?The court concluded that tax increments were not"public funds", therefore Illinois prevailing wage laws do notapply. This ruling was an obvious disappointment to laborand reaffirms the need for a clearer provision in the PrevailingWage Act that would include these types of projects.It is truly disturbing to see local government leadersgrant a multi-billion dollar out-of-state company suchas Kline Coal (Deer Run Mine in Hillsboro) an enterprisezone. Then turn right around and tell their constituents,the tax paying residents of these communities, that requiringKline Coal to pay the area's prevailing wage would betoo burdensome.So instead of requiring higher wages paid to MontgomeryCounty residents that would reinvest that money inour local economy, they allow Kline Coal to mine muchof Montgomery County's natural resources and send mostof the proceeds FIVE states away. Kline Coal did not cometo Montgomery County because they were granted an enterprisezone. They came because there is a new marketfor high sulfur coal, and Southern Illinois has a lot ofit. With this new market for Illinois coal I believemany more mines will open in the near future.Let's hope the politicians learn from the mistakesmade at the Deer Run site and not give away the farm onthe next one.Respectively,MarkBrothers & Sisters:For those of you that don’t know me, I’mChad Goldschmidt, Organizer for the Local. It is mypleasure to tell you that we are moving in a positivedirection in working towards the organization of afew unorganized areas. As most of you know, this isan uphill battle almost all the way and takes time. Wewill not give up on these areas until we have exhaustedall of our options.In other areas we have been utilizing our ratvans. We’ve had one in Belleville for approximately aweek working together with the 459 Laborers. A bigthank you to them and one of our operators, JeremySanders, for their efforts on the picket line. I have alsobeen helping Mark Johnson maintain the picket line atthe mine site in Hillsboro. We would like to recognizeJim Hoxsey and Tim Franklin for their assistancethere. In addition, we currently have a picket line atCarlyle Lake. It is set up in the Boulder Recreationalarea and will probably be moving to the Cole’s Creekarea as work progresses. I would like to express mygratitude to both Rick McElroy and Mark O’Laughlinfor their dedication with the Carlyle Lake picket line.On Tuesday, March 16, the Breese Herald andthe Labor Tribune will both be at Carlyle Lake to takepictures of our picketers. We are going to use bothpapers to help us get our message out since, given thelocation, there is not much through-traffic. Please feelfree to contact me if you have any concerns regardingnonunion activity in our area. I will do my best toinvestigate the matter and consult with the officers todetermine if any actions need to be taken. Your voicematters!!! This is OUR local.Sincerely,Chad R. Goldschmidt

Page 9Volume 2, Issue 2Pension FundAs of January 31, 2010, the Pension Fund had Total Assets of $110,420,273.56 compared to $90,774,553.80 as of January 31, 2009, an increase of$19,645,719.76 or 22% during that 12-month period. The Fund is currently paying benefits to 750 Retirees or their surviving Beneficiaries, suchpayments totaling $8,458,433.98 during calendar year 2009 or approximately $715,000.00 per month at the present time. During 2009, we had 30members retire, after having 30 members retire during calendar year 2008. If you plan to retire in the near future, you may want to contact me torequest a draft of your Pension Quotation detailing the various benefit options that will be available to you at the time of your retirement. Whenyou file your Application for Pension Benefits, you will need to provide a copy of your Birth Certificate, your spouse’s Birth Certificate, and a copyof your Marriage license, if applicable, in order for us to process your retirement papers. Once you make your benefit selection and begin receivingpayments, you are not permitted to change your pension option. Pension payments are made on the first day of each month, for that month, eitherby Direct Deposit or check. Currently 65% of the pension payments are being made by Direct Deposit, which reduces the amount of clerical workand eliminates concerns about timely mail delivery. If you need a Direct Deposit Authorization Form to initiate direct deposit or notify us of achange in your bank account information, please contact the Fund Office.Vacation FundOn November 13, 2009, the Fund Office mailed VacationBenefit checks to 2,441 Participants, such payments totaling$2,817,618.29 and including Interest Distributions of $44,400.00 or1.6%. The Vacation Benefit amount was determined by the number ofhours reported and paid by Contributing Employers for the workperiod October 2008 through September 2009. If you worked for anemployer that is delinquent in the payment of fringe benefits for anymonth(s) during that period, you will receive an adjustment Vacationcheck when the Fund Office collects those deductions from that employer.If you did not receive your Vacation check, please let us knowas soon as possible. Since interest was included on your Vacationbenefit check of November 2009, you were mailed a Form 1099-INTduring January 2010 to be used for tax reporting purposes.A copy of your Work History Report and Dues check-offreport for calendar year 2009, detailing those hours reported on yourbehalf by Contributing Employers, was mailed to all Participants duringearly-February 2010. Since your Health & Welfare eligibility and levelof Pension and Annuity benefits directly relate to the number of hoursworked, we ask that you carefully review the Quarterly Work HistoryReports and notify the Fund Office of any discrepancies as soon aspossible. It is very important that you keep your check stubs as it maybecome necessary to use them to verify the number of hours that youworked for a particular employer.As always, we ask that you notify the Fund Office of anychanges in your mailing address, phone number, marital status, beneficiarystatus, etc. If you have any questions about your fringe benefitsor need a current Summary Plan Description (SPD) please let us know.The Fund Office is open from 7:00 a.m.-4:00 p.m. Monday throughFriday to assist you and your dependents in whatever way possible.Third-Party Liability MattersThe Health & Welfare Fund will be the secondary payer in those situationswhere the injury or illness of a Covered Individual (member ordependent) is the result of a negligent or wrongful act by a third party(automobile accident, etc.) who is primarily responsible for the paymentof medical expenses incurred by that Covered Individual. Once younotify the Fund Office your condition is the result of an injury or illnesscaused by a liable Third Party, the Health & Welfare Fund will not be ina position to consider any related medical expenses for payment untilthe responsible Third Party or their Insurer have paid up to the maximumlimit of their liability in the matter. You should promptly notifythe Fund Office of the name, address, and phone number of the responsibleThird Party, Attorneys and Insurance Companies involved in suchmatters as well as keeping us informed when legal action is institutedand the progress of that legal action. The Health & Welfare Fund, atyour request, will notify medical providers that the Fund will be in aposition to process all eligible claims in accordance with Plan Provisionsafter the maximum amount has been paid by the liable Third Party.Worker’s Compensation MattersNo benefits are payable under the Plan for any expense covered by aWorker’s Compensation Act or similar legislation or any injury arisingout of or in the course of any employment for wage or profit. Onceyou file a Claim Form with the Fund Office indicating your condition isthe result of a work-related accident or injury, the Health & WelfareFund will not be in a position to consider any related medical expenses.Should your Worker’s Compensation Claim be denied, you must file anAppeal with the Industrial Commission for a final determination. If yourclaim is found not to be work-related, then the Health & Welfare Fundwill be in a position to re-evaluate the submitted medical expenses.Miscellaneous InformationPension Fund Goes GREENAs of January 1, 2010, the Pension Fund has been certified by the Segal Company to be in the “Green Zone” with a Funded Percentage of 87.1%.Thanks to the foresight and willingness of the membership to allocate substantial contribution rate increases to the Pension Fund over the pastseveral years and the conservative investment philosophy of the Board of Trustees, we have gone from a Funded Percentage of 74.35% as of1/1/2008 to 79.49% as of 1/1/2009 (both of which were in the endangered or “Yellow Zone”) to its current position in the Green Zone. As recentlyas January 1, 2006, the Pension Plan’s “funded current liability percentage” was 61.81%, so the attainment of a Funded Percentage of 87.1% inonly four years is a noteworthy accomplishment. After the devastating investment returns of 2008, only about 43% of all Construction IndustryTaft-Hartley Pension Funds such as ours have Green Zone status at the present time and many pension plans have had to drastically reduce futurebenefit accrual rates while our accrual rate has remained the same during this volatile economic environment while making this tremendous improvementin its funding position.

Volume 2, Issue 2Page 10Annuity FundANNUITY FUND:As of January 31, 2010, the Annuity Fund had Total Assets of $74,282,094.99 compared to $55,234,552.42 ad of January 31, 2009, an increase of$19,047,532.57 or 34% during that 12-month period. We have listed below the 2009, 2008, and 2007 returns for the 17 Mutual Fund selections thatare currently available to you under the Daily Valuation Investment Program:Fund Name 2009 Return 2008 Return 2007 ReturnDistribution of InvestmentsFederated Capital Preservation(IP)3.50% 4.07% 4.34% 47.8%Federated U.S. Gov’t: 2-5years-3.0% 6.5% 4.5% 3.1%T. Rowe Price U.S. TreasuryIntermed.Dodge & Cox IncomeDodge & Cox BalancedVanguard 500 Index-6.2% 10.1% 5.5% 1.4%9.9% -5.8% -.5% 2.1%24.9% -36.7% -7.0% 2.8%23.6% -38.5% 3.5% 1.8%Dodge & Cox Stock 29.3% -46.2% -9.9% 2.8%American Century UltraT. Rowe Price Mid-CapGrowthFidelity Low-Priced StockFidelity Diversified InternationalAccessor Aggressive GrowthFundAccessor Growth AllocationFundAccessor Growth & IncomeFundAccessor Balanced AllocationFundAccessor Income & GrowthFundAccessor Income AllocationFund34.7% -42.1% -8.0% .5%45.4% -43.4% 7.4% 2.7%38.2% -43.8% -5.5% 2.6%30.2% -46.1% 8.0% 2.0%23.3% -42.5% 3.6% .6%21.3% -37.9% 2.6% .8%19.1% -32.5% 1.3% 2.0%17.4% -27.8% .9% 1.2%14.8% -22.3% -.3% 23.8%10.1% -11.6% -2.6% .1%There were 3,150 Annuity Fund Participants as of March 1, 2010. If you have any questions regarding the Annuity Fund investment options thatare available to you, please contact our First Bank representative, Sophia Flynn, at (314) 889-1016 or 1-800-452-1414. Your Annuity Fund AccountStatement for the period ending March 31, 2010, will be mailed during the latter part of April 2010.Operating Engineers C.D. Fund:If you are invested in the Operating Engineers C.D. Fund, you should have received a letter from our representative at FirstBank during earlyMarch 2010 indicating that the bank that issued the Certificate of Deposit for the C.D. Fund decided not to renew that investment when it maturedduring February 2010, and the proceeds of that certificate of deposit were invested in a Money Market account with the Federated GovernmentObligations Fund Institutional Shares. That money market account is currently generating a return of approximately .10%. FirstBank is aggressivelypursuing another bank to issue certificates of deposit for the Operating Engineers C.D. Fund, and you will be notified when that takesplace. In the meantime, you have the ability to re-allocate your investment in the C.D. Fund into any of the 17 Mutual Fund selections that arecurrently available under the investment program.

THE 520 HOISTERPage 11TRAINING DEPARTMENTRecent ActivityMarch is finally here and we will be finishing up our winter schedule this month. April looks like it is starting to beanother busy month. We are planning to start some new apprentices around the fifth of April; we also have a careerexpo in Centralia on April seventh, eighth, and ninth. We will also begin doing some in-seat testing for C.C.O. beginningin April. I would like to stress to all applicants that it is imperative that those needing to test, get signed up and attendthe scheduled tests, because we are only going to be giving a limited amount of tests this year.Well the good news is that on January twentieth we were successful in getting property for the new training facilityrezoned. On January twenty-eighth we closed and became the owners of 112 acres of land for the purpose of building anew training site. It is located between Troy and St. Jacob, just off Route 4 and Highway 40, about two miles south ofInterstate 70. I think it will be an excellent location. We are currently going over some proposals in an attempt tochoose a contractor to construct the building; this will be a Design/Build project. The building will be around 24,000square feet, consisting of offices, classrooms and a shop. The intention of the board of Local 520 J.A.T.C. is to build anice-looking and well constructed building that is practical and efficient.*The Training Department is pleased to announce that we have hired Rusty Redman as newinstructor this past January. Rusty graduated in 1998 from Local 520’s Apprenticeship program,which will make him the first instructor that has gone through the program. He hasbeen working out of Local 520 for 17 years and became a member in August 2000.80 Hour Crane Class taught by Ron PlaceIn this photo (from Left to Right): Gary Dean, Ken Kearby, StephenFeilbach, Earl Shipley III, Ron Place, John Delap, Pat Keller >>We had 6 apprentices that graduated this year which included the following:Jason Oden, Jesse Wilkerson, Brant McFarland, Chad Hopkins,Joshua Kohring and Joseph Schanz.Oden Wilkerson McFarland Hopkins Kohring SchanzScheduleMarch 2010March 1 st -12 th 80 hr. CraneMarch 15 th -19 th Apprentice Field Work* Some additional classes will be added and notifications will bedone by telephone

Page 12Volume 2, Issue 2Job Site Photos“It is one of thecharacteristics of afree and democraticnation-that is havefree andindependent laborunions.”-Franklin D.Roosevelt

Page 13Volume 2, Issue 2J.A.T.C. Training Classes: Hazmat"Although it is truethat only about 20percent of Americanworkers are inunions, that 20 percentsets the standardsacross theboard in salaries,benefits and workingconditions. Ifyou are making adecent salary in anon-union company,you owe thatto the unions. Onething that corporationsdo not do isgive out money outof the goodness oftheir hearts."-Molly Ivins

January 2010 February 2010 March 2010Page 14THE 520 HOISTERNEW MEMBERSCongratulations to Leo andDarlene Rode of Pocahontas for 50years of marriage on 2/21/10January- (In random order) Buddy Brewer,Eric Cummins, James Harris, Roger Kolweier,Douglas Murphy, Vernon J. Parmley, Justin Pim,Louis Pochek, Timothy Wall, Mark Worker,Stephen WilderRETIREESFebruary- (In random order) Jason Albers, RussellCripe, Stephen Feilbach, Kenneth Finley, Roger A. Hausmann,Jordan Hug, Jacob Matthews, Charles McFeron,Bryan McKinney, John L. Parker II, Bradley Peradotto,Travis A. Tegenkamp, Ronnie WernerFebruary 2010Terry Smith-46 yearsMarch- (In random order) Darin Sensel, ShannonDahms, Cale Moore, Drew Knop, Duane Richter,Joshua Biffar, Raymond Burrows Jr.March 2010Eddie Phillips-41 years

Page 15Volume 2, Issue 2ATTENTION LOCAL 520 MEMBERSPlease contact the Union Hall or any agent in the event of an illness or death of anymember or any member of their family.Please make sure that the Union Hall, Health & Welfare Fund Office and Training Departmenthave your correct address, phone numbers and beneficiaries on file.REMINDERSWhen sending in money for dues please be sure to includethe members’ registration number or other necessaryinformation to insure that your check is posted to thecorrect account.We do not send out bills-it is the responsibility of themember to pay their dues on time.NOTICELocal 520 will not be acceptingapplicationsfor referrals until further notice.The next re-registration day for currentreferrals is April 5, 2010 betweenthe hours of 9 a.m. and 2 p.m.MONTHLY CARD CHECKPlease make sure you haveyour card with you and thatyour dues are paid up when you come tothe union meetings.IUOE WEBSITEVisit www.iuoe.org for information regarding the International Union ofOperating Engineers and the latest in labor news.LOCAL 520 CONTACT INFORMATIONwww.oe520.orgOperating Engineers Local 520520 Engineer RoadGranite City, IL 62040618-931-0500Office Hours - 7:00 a.m. to 4:00 p.m.Health and Welfare Office8 Executive Woods CourtSwansea, Illinois 62226618-233-7978Office Hours - 7:00 a.m. to 4:00 p.m.Training DepartmentOperating Engineers Local 520 J.A.T.C.516 Engineer RoadGranite City, IL 62040618-931-0829Office Hours - 7:00 a.m. to 4:00 p.m.

STANDARDU.S. POSTAGEPAIDMAILED FROM62034Operating Engineers Local 520520 Engineer RoadGranite City, IL 62040618-931-0500PERMIT NO. 12ADDRESS SERVICE REQUESTEDIUOE Local 520OfficersBusiness Manager……………...……..Ron JohnsonPresident……………………………..Ron KaempfeVice-President………………………..Vern ParmleyRecording-Corresponding Secretary...Terry MacZuraFinancial Secretary……………………Steve WolffTreasurer……………………………..Mike ParkinsonGuard…………………………………Mark JohnsonConductor…………………………….Janice HartTrustee………….. …………………..Chad GoldschmidtTrustee………………………………..Marlene KrotzTrustee………………………………..Terry MacZuraAuditor………………………………..Matt BirknerAuditor………………………………...Jerry KellermanAuditor………………………………..Don DixonRetireesJames M. Wielt 01/01/10Eddie P. Phillips 02/01/10William Farnsworth 02/01/10Vera Barton 02/01/10ObituariesWe wish to extend our condolencesto the families of:12/27/2009 Greenwalt, Evelyn R.(Richard)12/28/2009 Hipkiss, Carl01/04/2010 Caputo, Mark R.01/04/2010 Riechmann, Elmer A.01/08/2010 Minter, Reola01/11/2010 Marlette, Louis01/16/2010 Oulson, Curtis01/19/2010 Gobble, Kingsley C.01/19/2010 Smith, Jerry E.01/25/2010 Schmollinger, Clifton H.01/26/2010 Porter Sr., Kenneth02/11/2010 Toon, Michael D.02/15/2010 Ragland, Roy K.02/15/2010 Huston, June02/20/2010 Baxmeyer, Kathy A.(John)03/08/2010 Brown, Rachett03/13/2010 Tommy Miller