International Operating Engineer - Fall 2019

GEB Minutes
General Executive Board Minutes of the International Union of Operating Engineers
Thursday, March 28, 2019
Call of Meeting
General President James T.
Callahan called the meeting
of the General Executive
Board to order at 7:40 a.m.
on Thursday, March 28,
2019 at the International
Training and Education
Center (hereinafter the
“ITEC”) in Crosby, Texas.
General Secretary-Treasurer
Hickey then read the call
of the meeting, whereupon
the roll call was taken which
disclosed all members
of the General Executive
Board were present with
the exception of Robert
Heenan, whose absence
was previously excused.
Also present were Chief of
Staff Joseph Giacin, General
Counsel Brian Powers,
Chief Financial Officer John
Loughry, Associate General
Counsel Matt McGuire,
Director of Jurisdiction Terry
George, Regional Directors
Alan Pero, Lionel Railton,
Martin “Red” Patterson,
Todd Smart, Carl Goff, and
Assistant to the General
Secretary-Treasurer John
“Jack” Ehrhardt.
Case No. 1
Minutes of the Previous
General Executive Board
Meeting
The minutes of the General
Executive Board meeting
conducted January 14, 2019
were approved and made a
part of the official records
of the Board. Copies of
these minutes had been
distributed previously to all
General Executive Board
members.
Case No. 2
Expenses and Actions
Taken Since the Last
General Executive Board
Meeting
Payment of expenses
incurred and actions
taken by the International
Union since the last Board
meeting were thoroughly
discussed. It was regularly
moved and seconded that
all such expenses and
actions be approved. The
motion was put to a vote and
unanimously carried.
Case No. 3
Adoption of Agenda
General President Callahan
presented a schedule and
agenda of the General
Executive Board’s sessions.
It was regularly moved
and unanimously carried
to adopt the agenda as
presented.
Case No. 4
International Trustees’
Report
The International Board of
Trustees appeared before
the Board. International
Trustee William M. Lynn
gave a detailed report
to the Board regarding
the Trustees’ findings
concerning the financial
activity of the International
Union. The Board of Trustees
commended General
President Callahan and
General Secretary-Treasurer
Hickey for the efficient
handling of the business
and financial affairs of the
International Union.
Trustee Lynn informed the
Board that as part of the biannual
meeting, the Board
of Trustees reviewed the
projections for income and
expenses of the International
Union of Operating
Engineers for 2019 and
discussed the details of the
projections with General
President Callahan and
General Secretary-Treasurer
Hickey. Chief Financial
Officer John Loughry, James
Kokolas, Partner with Calibre
CPA Group, and Tripp
Shreves of the Institutional
Consulting Group at
Wells Fargo Advisors also
attended the meeting with
the Board of Trustees and
made presentations on the
projections of revenues
and expenses for the
upcoming year. Based on the
projections and the factors
affecting the projected
financial performance
for 2019, the Board of
Trustees recommended for
consideration by the General
Executive Board that the Per
Capita Tax does not increase
in July 1, 2019.
General President Callahan
called for a motion to
accept the Board of
Trustees report and to take
under advisement their
recommendation to increase
the Per Capita Tax $0.00 per
member per month effective
July 1, 2019. A motion was
made, duly seconded, and
unanimously approved to
accept the Board of Trustees
report.
Case No. 5
Financial Report
Chief Financial Officer John
W. Loughry briefed the
General Executive Board
on the projections that
were used by the Board of
Trustees to make their Per
Capita Tax recommendation.
Mr. Loughry began the
presentation with an
overview of the final 2018
internal financial statements
that were used as the base for
the projections. He reviewed
the 2018 financial results
and explained all items that
were out of the ordinary.
He then went over all of the
assumptions that were used
to project revenues and
expenses for future periods.
Based on these assumptions,
he presented projected
revenue and expenses for
the five-year period 2019
through 2023. Working with
these projected results and
the current membership
level, Loughry detailed
the financial effects of
holding the per capita tax
rate at the current level
versus increasing the rate at
various increments. He also
detailed how the decision
on the per capita tax rate for
2019 would affect the next
five-year period. Finally,
Loughry presented the fiveyear
projected financial
statements at the various per
capita tax rates, incorporating
the assumptions and
summarizing the projected
operating results.
Case No. 6
Auditor’s Financial Review
Mr. James C. Kokolas,
Partner with Calibre CPA
Group presented the audited
financial statements for the
year ended December 31,
2018. Mr. Kokolas reported
on the total assets and
liabilities. Mr. Kokolas also
reported on the categories of
assets and liabilities and the
allocation of the investments.
Case No. 7
Treasury Fund Report
Mr. Tripp Shreves, of the
Institutional Consulting
Group at the Monument
Group at Wells Fargo
Advisors, presented a
comprehensive review
of the Treasury Funds of
the International Union
of Operating Engineers
(hereinafter IUOE) which
included the General,
Defense, and Death
Benefit funds. Mr. Shreves
reported on a review of the
Treasury fund’s approved
asset allocation, its
investment performance,
and expectations for future
opportunities and risks
over the next 12-18 months
in capital markets. Mr.
Shreves reported that the
Treasury funds continue to
be conservatively invested
to support the long-term
mission of the IUOE and its
membership.
Case No. 8
Healthcare Initiatives
Department Report
Director of Healthcare
Initiatives Joanne Lye-
McKay reported on the
healthcare developments
in the news. She reported
the Healthcare Initiatives
Conference on May 21,
2019 will host speakers on
stem cell therapy, genetic
testing/therapy, medicinal
marijuana, and fraud/abuse
in the industry. Sister Lye-
McKay reported that product
information from spending
accounts, dependent
audits, and Social Security
disability assistance will be
featured too. An in-depth
look at pharmacy benefit
products and costs will be
explored by OptumRx and
Aon Consulting. Director
Lye-McKay reported
that Member Assistance
Programs will be highlighted
with the new International
Training
Program
developed. She reported the
IUOE coalition of locals with
OptumRx was discussed with
37 groups and 380,000 lives
strong, working on product
development with OptumRx.
She reported that other IUOE
coalition contracts including
SwiftMD, VSP, National
Labor Alliance, and ULLICO
Stop Loss with Hinge Health
are still in review with locals
and pilot volunteers.
Case No. 9
Legislative and Political
Department and Pipeline
Department Report
Legislative and Political
Director Jeff Soth presented
his report to the Board in
conjunction with Pipeline
Director Robert Wilds.
Director Soth’s remarks
touched on the extraordinary
growth in oil and gas pipeline
employment in construction
since the beginning of
the Great Recession in
December 2007. While
reviewing the status of
major projects and some of
their associated permitting
obstacles and policy
challenges in Congress,
Director Soth also reported
on a new IUOE-led program
designed to help address the
crisis in pipeline permitting
across North America.
Director of Pipeline Robert
Wilds reported on man hours
for 2018, NPLA Job-Notices,
the number of new signatory
contractors, the number of
DCA Job-Notices, and the
number new signatory DCA
contractors. Director Wilds
reported on a number of
projects with permitting
issues awaiting to start, and
several major projects where
construction has started
and been shut down due to
permits being pulled.
Case No. 10
Construction Department
Report
Director of Construction
Joseph Giacin reported to
the Board that Chrysler
was just granted a National
Maintenance Agreement
(NMA) that will cover the
next four years.
Director Giacin reported
on the Arbitration decision
in the USWA District 50 vs
IUOE Local 18 case against
Orders Construction.
Brother Giacin reported that
Arbitrator Harden found
in favor of the IUOE that
Orders Construction had
in fact violated the North
American Building Trades /
USWA Harmony Agreement
by expanding both their
geographical and scope of
work restrictions, thus were
ordered to cease and desist
from any future work in the
State of Ohio.
Director of Construction
Giacin reported to the Board
with a brief history of the
Mortenson Wind Turbine
Agreement and of a pending
arbitration challenging the
application as prescribed
in the Agreement regarding
Mortenson’s responsibility
to perform work in at least 22
of the US States.
Brother Giacin reported on
a comprehensive update of
the Phase 2 land purchase
and construction of eleven
new crane pads as well as
additional incoming cranes
at the International Training
Center in Crosby, TX.
Case No. 11
Jurisdiction Department
Report
Director of Jurisdiction Terry
T. George reported to the
General Executive Board
on the ongoing issues with
infringements by other crafts
on the traditional jurisdiction
of the IUOE. Brother George
reported that the outside
lineman branch of the IBEW
continues efforts to force
IUOE signatory contractors
to assign excavation work
to the electricians through
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INTERNATIONAL OPERATING ENGINEER
FALL 2019
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