ST. LOUIS --- A new three-year contract that boosts the flexibility and competitiveness of union electrical contractors has been approved, effective June 30, 2013. The agreement covers members of both the International Brotherhood of Electrical Workers (IBEW) Local One and signatory contractors, represented by the St. Louis Chapter, National Electrical Contractors Association (NECA).

The contract affects the 2,900 construction members of IBEW Local One and more than 115 union electrical contractors working in the City of St. Louis and 26 counties in Eastern Missouri, stretching from Lincoln County in northeastern Missouri south to the Arkansas border.

Terms provide a first year wage and benefits package increase of $1.55 per hour to journeyman electricians. Due to an 8.77 percent cut in total compensation effective in 2010, total compensation remains nearly three-quarters of a percent below the 2009 rates paid to union electricians. Incremental total package increases of $1.56 in mid-2014 and $1.66 an hour in mid-2015 will incrementally take the electricians’ package to a rate 5 percent above the 2009 rates, equating to an average raise of less than one percent a year over the six-year span.

The contract also covers residential electricians, providing a first year package increase of $1.41 cents per hour, a rate that is 1.93 percent below 2009 rates. Subsequent increases of $1.30 an hour in 2014 and $1.49 in 2015 provide a total package that is just 3.57 percent above rates paid in 2009, for an average annual raise of less than six-tenths of one percent for the last six years.

According to bargaining committee members, the joint focus of negotiations was to find ways to enhance the success of union electrical contractors and electricians by enabling innovation in crafting solutions to address the changing needs of industry customers.

“The new contract terms give our contractors an unprecedented ability to compete on more flexible terms to meet the unique needs of the construction buyers and general contractors they serve,” said Douglas R. Martin, executive vice president of the St. Louis Chapter, NECA. “In fact, we encourage buyers of construction to discuss ideas for innovative solutions suited to their operations with our electrical contractors who best know their needs.”

“We want to remain the clear choice for electrical and communications work among our customers,” added Frank D. Jacobs, business manager of IBEW Local One. “We have gained market share in the commercial and industrial sectors even during this five-year recession due to the changes we made three years ago. We are positioned better than ever to support economic development and attract greater opportunities by combining price competitiveness with a work force that is the most skilled, safe and productive available.”

Flexibility for Work Outside Normal Hours. Demand for electrical and communication construction and maintenance work that must be performed outside normal business hours has risen as many types of facility owners seek to keep their businesses operating without disruption, according to Martin. The new contract adds greater flexibility to start times (as early as 6 a.m.), allows work weeks at regular wage rates with four 10-hour work days for all types of work, and sets the wage rate on second- and third-shift schedules at a level that is far below standard overtime premiums.

“Universities, retailers, manufacturers, distributors and others value the benefit of having our electricians work in the spans of time when they are not operating at full tilt,” Martin noted. “Customers who might have paid time-and-a-half or double time in the past for after-hours or overnight work will be able to take advantage of the very reasonable premium rate our contractors can now offer. As an industry, we want to be there when the customer needs us.”

Professional Development. In addition to modest wage and fringe increases, the new contract adopts an innovative program for union electricians to participate in joint classes with contractors’ project management staff to improve planning, expedite communication and eliminate project problems. “This joint approach will equip our total team to be focused on what our customers need and want, and deliver together on our promises,” Martin noted.

Training Program. The new agreement allows contractors to secure entry-level apprentices continuously and better match apprentice placements with available job opportunities. This new flexibility allows contractors to deliver more competitive crew costs while sustaining the industry’s skilled work force to meet future needs for qualified electricians. Recruitment and placement of minority and female workers improved when the new procedure was piloted in 2012.

When available man hours for electricians declined more than 50 percent during 2009, 2010 and 2011, the St. Louis Electrical Industry Training Center accepted no new apprentices. In the same span, significant unemployment among journeyman electricians gave them time to continue their education at the nationally-recognized training center and garner certifications to qualify for specialized work. The funding commitment by IBEW Local One and the St. Louis Chapter, NECA, for training apprentices and upgrading journeyman skills in this fast-changing field exceeds $2 million per year, far exceeding the investment of any non-IBEW electrician training program. The center is managed by the St. Louis Area Electricians Joint Apprenticeship & Training Committee.

“We resumed apprenticeship training in Fall 2011 with small classes that combine classroom training with on-the-job skills development. With a new class starting every six months, this new procedure underscores our commitment to develop an adequate supply of electricians and communication workers with the right skill sets for construction buyers’ future needs,” Jacobs said. “Our small class sizes also mean we’re better able to pace the development of new talent to match the timing of emerging opportunities.”

While local demand for skilled construction labor remains about half the annual average logged during 1997-2007, the skilled electricians from IBEW Local One and local electrical contractors have been working in other regions of the country where data centers, power plants, manufacturing facilities and hospitals are under way. “Many regions have not kept pace with the long-term process of developing skilled electricians and communication workers. As a result, they now find they cannot meet the demand for quality workers,” Jacobs said. “Our strong, effective training tradition since 1941 has enabled us to meet peak demand upswings as needed for customers throughout Eastern Missouri while supplying skilled craft workers to other regions nationally when construction demand here wanes.”

IBEW apprentices complete at least four-and-a-half years and a minimum of 10,000 hours of training to become journeyman wiremen in a program that meets the standards of the U.S. Department of Labor. IBEW electricians and communication specialists regularly continue their education at the St. Louis Electrical Industry Training Center to be ready to deliver the most efficient installations for emerging technologies.

Economic Development Investment. As the electrical industry’s labor and management members have aligned to better meet the needs of customers, IBEW and NECA members also have invested in direct exchange of information with customers, providing contractor referrals and access to expert industry resources. The new contract retains industry funding for the Electrical Connection, a labor-management effort contributing to Missouri’s economic development efforts and energy future. Through partnerships and involvement in key organizations, the Electrical Connection is helping to inform energy policy development in Missouri as well as generating new business opportunities, particularly in the areas of data centers, renewable energy, small modular nuclear reactors, advanced manufacturing and more.

Organizations in which the Electrical Connection is involved include the Missouri Energy Initiative, Hawthorn Foundation, Missouri Economic Development Council, Missouri Small Modular Reactor Readiness Committee, Missouri Gateway Chapter of the U.S. Green Building Council, Missouri Botanical Garden, St. Louis Science Center, the St. Louis Regional Clean Cities Electric Vehicle Infrastructure Committee, the Unmanned Aviation Systems Initiative and the St. Louis Regional Chamber and Growth Association’s Green Talent Task Force, among others.