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June, 2017NOTICE TOEMPLOYERSUTILIZING MARKETADVANCEMENTAGREEMENTINSIDE THISEDITION:IBEW & NECA To Host Job FairIndustry Advancement IncreaseCongratulations Class of 2017IRS Updates Its Webpage onEmployer Payments andCalculationsPolitico AlertIBEW AND NECA TOHOST JOB FAIRJUNE 6TH!NECA Education OpportunitiesOSHA Suspends Rule forElectronic SubmissionUnion Labor ShortagesProjected for ConstructionThe Law and Common SenseClasses Offered through JATCCongratulations to ThoseCompleting ClassesLU #234 Availability ListCalendar of EventsTo Benefit Participate!P.O. Box 2175, Salinas, CA 93902Phone: (831) 236-1393E-mail: JLChamplin@gmail.comIBEW Local #234 and theMonterey Bay CA Chapter ofNECA are hosting a Job Fairon Tuesday, June 6th at 5 pmat the Tri-County JATC Officelocated at 10300 MerrittStreetinCastroville.Contractors will have theability to interview candidatesfor employment – and thosewho are selected will receivea dispatch at the Job Fair togo work. Calls have goneunfilled in the recent past andwe are hopeful that we willencourage not only thosewho have left the area toreturn, but also attract newtalent to our team. If you areinterestedinattending,please contact the OrganizerPaul Gutierrez at the UnionHall.On June 1st of this year, thereis an across the board wageincreaseforindividualsworking under the CW/CEAddendum to Inside WiremenAgreements in the Bay Area.An increase of 1.00 per hourapplied to the ConstructionElectrician, Level 2 will alsobe applied proportionally toother classifications, muchlikeapprentice/foremanclassifications under theInside Agreements. The newrate schedule can be viewedby clicking the link below.Keep in mind that wageincreases for most of theclassificationsarealsotriggered by the individualachieving additional on-thejob work hours, just asapprentices have two ways toget wage increases in theNECA/IBEW system.New CE/CW Wage & FringeBenefits Effective June 1,2017Page 1
NECA/IBEW FamilyMedical Care Plan2018 Contribution RateIncrease for CW/CEAddendumAfter review of the financialprojections and the currentstatus of the NECA/IBEWFamily Medical Care Plan(FMCP), the Board ofTrustees has determined thata contribution increase in theamount of 5 percent isappropriate and will beimplemented. New rate of 5.75/hour will be effectiveJanuary 1, 2018. The FMCPaverage increase since thePlan’s inception has been 5percent, well below theannual medical cost trends.“You cannottailor-make thesituations in lifebut you cantailor-make theattitudes tofit thosesituations.”― Zig ZiglarIRS UPDATES ITSWEBPAGE ONEMPLOYERPAYMENTS ANDCALUCULATIONSCONGRATULATIONSCLASS OF 2017We would like to offer ourcongratulations to the TriCounty Electrical JATC Classof 2017!Graduates are:Ryan Porter, Juan Palacios,Chris Olsen, Trudi Teller,CoreyCardenas-Perron,Gilbert Sanchez and SteveRios.Special congratulations toChris Olsen who wasselected as the OutstandingGraduating Apprentice. Chiswill be attending the NationalTraining Institute (NTI) at theUniversity of Michigan in AnnArbor this summer. NTI issponsored by the ElectricalTraining ALLIANCE (formerlythe NJATC) and is a weeklong experience designed tostrengthen leadership andtraining for the electricalindustry. Congratulations toall of you!On April 6, 2017, the IRSupdateditswebpageon TypesofEmployerPayments and How They areCalculated. It provides asummary of the employersharedresponsibilityprovisions, the esofemployerliability, and description of theIRS' process for assessingand collecting the employersharedresponsibilitypayment.POLITICO UPDATENECA Retention CapReauthorizationLegislation Continues toMoveOur sponsored 5% retentioncap legislation (AB 92) hasmoved out of the CaliforniaState Assembly and will nextbe heard in the CaliforniaState norBrownsignedNECA sponsored legislation(SB 293) in 2011, putting intoThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
place statutes that cappedthe amount of retention apublic entity could withholdfrom progress paymentsmadetoconstructioncontractors on public worksprojects at 5%. In 2014,NECA sponsored legislation(AB 1705) was passed intolaw providing technical cleanup to the law and alsoextending the sunset on the5% retention cap statuteto January 1, 2018.AB 92 would extend thesunset clause on the current5% retention cap statutes,pertaining to public worksprojects, from January 1,2018 to January 1, 2023.The 5% retention cap is asignificant policy for ourindustry and has had anextremely positive impact onlarge, small and emergingconstruction businesses.It is imperative that we extendthis fair policy that reducesthe cost of public worksconstruction and providescapital for job creation, at atime in which California isactively investing in itsinfrastructure, at both thelocal and state levels.We will keep you updated onthis important measure andmay ask you to “engage”once the bill makes it toGovernorBrownforconsideration.DIR Announces RenewalRegistration for PublicWorks ContractorsAuserguidewith instructions is on the DIRwebsite.Public works contractors whoare registered with theDepartment of IndustrialRelations (DIR) for thecurrentfiscalyear(ending June 30, 2017) maynowrenewtheirregistration(s) for the nextfiscal year (starting July 1,2017) using DIR’s stered contractors whofail to renew by July 1, butcontinue working on publicworks after that date will besubject to late fees andpotential penalties.New California Registrar ofContractorsContractorsmustberegistered with DIR beforebidding, being awarded, orperforming work on publicworks projects in California.Using the online system,public works contractors can:Register for the first timeRenew an active registrationReactivate a prior registrationSecurely pay the nonrefundable 300registration/renewal fee.California Contractors StateLicense Board (CSLB) hasannounced the selection ofCSLB Enforcement ChiefDavid R. Fogt to serve as theBoard’s new Registrar ofContractors, effective May 2,2017.Ourofficewasverysupportiveofthisappointment and has had agreat working relationshipwith Dave during his time asCSLB Enforcement Chief. Mr.Fogt’s appointment, whichwas approved by the DirectoroftheDepartmentofConsumer Affairs, continuesa long history of CSLBemployees working their waythrough the ranks to becomeRegistrar. We look forward toworking with Dave in theyears to come.Contractor registration isactive when the onlineregistration form is complete,andthe 300registration/renewal fee isprocessed. Registration isprocessed within 24 hours, ifpaying by credit card.This newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
UNION LABORSHORTAGESPROJECTED FORCONSTRUCTIONCRAFTSOSHA SUSPENDSRULE REQUIRINGELECTRONICSUBMISSIONS OFINJURY ANDILLNESS DATANECA EDUCATIONOPPORTUNITIESChange OrderManagement in ElectricalConstructionDate: Tuesday, June 13,2017Time: 8:00AM-3:00PMLocation: Zero Net EnergyCenter, San LeandroElectrical ProjectSupervision, Train theTrainerDate: June 5-9, 2017Time: 8:30AM – 4:30PMLocation: Sound & CommTraining Center, SanLeandroFor more information, pleasecontact Juanita MitchellAt the Northern CaliforniaChapter, at 925-828-6322Many employers with rsaroundthecountry – are required by theOccupational Safety andHealth Administration to keepa record of serious workrelated injuries and illnesses.Minor injuries requiring firstaid only do not need to berecorded.The rule, which coverednearly 441,000 workplaces,took effect January 1st andemployers were obligated tosend in their 300A summarydata electronically by July 1st.But OSHA never launchedthe website for companies tosubmit the information, and itposted language recentlywith an existing fact sheetsaying it “is not acceptingelectronic logs at this time,and intends to proposeextending the July 1, 2017date by which certainemployers are required tosubmit the information” to theagency.Construction unions shouldtake note that skilled laborshortages are becoming asmuch of a problem for them asfor contractors, the head ofThe Association of UnionConstructors told BloombergBNA.Leaving aside the politicalmotivations of unions, they arebusiness entities focused onjobs and training, TAUC ChiefExecutiveOfficerSteveLindauer said May 19. "Theyrepresent people, but they aretheretoprovideourcontractors with the mostimportantresourcestheyneed, which are humanresources: skilled craft workersthat are safe."Ifthat'snotbeingdone, contractors are "going tolook somewhere else," hesaid.Management representativesfocusedoncompletingprojects on time and at costsee shortages in unioncraft labor as more of aproblem than do unions, whichhave a separate priority ofobtaining work for theirmembers, Lindauer said.He pointed to recentlyreleased results of a TAUCstudy on union labor supply inthe U.S. construction andmaintenance industry. Thestudy covers perceived laborThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
supplyshortagesandsurpluses for union craftworkers overall, as well as for14 specific unions. Seventypercent of contractor andconstructionmanagerrespondents to the studyreported a union craft laborshortage in 2016, comparedto 48 percent of union andlaborrepresentativerespondents.At the same time, union-sidepessimism has increased fromthe 41 percent of union andlaborrespondentswhoreported a 2015 labor shortagein last year's version of theTAUC report."This is the third year we'vedone this study, and to me,each year is a snapshot," saidLindauer, whose organizationincludes more than 2,000union contractors. "I thinkwe're starting to see somewhatof a trend that there issomething to be concernedabout there at our end of thepipeline."whichever side theyrepresent. The way thelaw is written, the way itis applied, and thepurpose of the law are allat odds with each other.The game is on and theeffort to get contractors towork for free- and toprovide an owner with afree project- is beingplayed,andplayedseriously in the courts.There have been someespecially bad outcomesforcontractorsnotwithstanding that theymet the spirit of the lawbut were technically(theoretically) out of step.John McGillTo be sure there are badactors in the constructionindustryandtheydeserve to be “educated”onthelaw.Unfortunately, it is notjust the bad guys gettingcaught up in the licensingnet; the good guys tooare being dragged in aswell. Courts are buyingoff on strict application ofthe law notwithstandingthe contradictions andinconsistencies betweenwhat the rules say andthe purpose the licensinglaw is intended toaccomplish.One of the major issuesconfronting contractorsthese days is licensing.Attorneys are focused onthe issue as a way to wina TKO for their client-Thepointofthecontractor’s licensing lawis to assure that onlyqualified contractors areperforming work. Thecontractor’s test is meantTHE LAW ANDCOMMON SENSELicensing Law AndThe Rule OfUnintendedConsequencestodemonstratetheindividual understandsthe basics of the law andis accomplished enoughin their particular field tobe able to perform thework in a competent andprofessional manner.TothatendtheLegislature passed aseriesoflawstodiscourage incompetentand/orunlicensedcontracting. The lawsare well-intentioned but,as applied, they ignorethe purpose of thelicensing laws and worseyet they seem to tie ajudge’s hands so thecourt cannot considerfairness when ruling on alicensing issue. This iswhere the law falls downand, as they say, badthings happen to goodpeople.For example, if yourcompany is a corporationand properly licensed butyouundergoareorganizationandchange the staffing anddepartments, you needto be sure the projectsyou are doing continue tohave the same licenseattached to them aswhen you started. In arecent fairly notoriouscase, a large contractorreorganized. They had a 30 M contract with apublic agency. At theend of the contract thereThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
was a payment disputeand lawsuits followed.The public owner arguedthe contractor did nothave a license becausein the reorganization thelicense went to anotherdepartment even thoughthesameprojectpersonnelremained.Nothing changed at thejob, just at the corporatelevel.At trial the jury foundthere was a properlicense and awardeddamagestothecontractor. The trial courtjudge reversed the awardand the appellate courtagreed- the company didnot have a license theentire time it wasperforming on the projectso it had to lose. The factthat the company was thesame, the personnelwere the same, and thecompany had been inbusiness for a very longtime, did not matter. Thecourts made it easy forthemselves: no license,no pay. Not only that, thecompany had to giveback the money it wasalready paid on theproject- all of it! The pointof the contractor licenselaw- to assure thecontractor is qualifiedwas subverted to themore myopic objectiveyou didn’t follow the ruleexactly and therefore youcan’t win the case.A judge apparently hasno discretion to reviewthe facts to see if thepurpose of the licensinglaw is satisfied. Instead,aperfectlyqualifiedcontractor is severelypenalizedforanobviouslyunintendedand ultimately irrelevantoversight and the Owneris given a free project thatwasbuiltbyprofessionalsinaprofessional manner andwithout problems ordefects. The unfairnessis obvious and thepurpose of the law isignored in favor ofpunishing the qualifiedcontractor for a minorandinconsequentialinfraction.And it doesn’t stop withthe fact of not having alicense either. Attorneyswill use any possibleargument to obtain aTKO against contractors.If your license is qualifiedbyaResponsibleManagingEmployee,expect to be questionedabout the involvement oftheRMEinyourcompany. The rule isthat the RME has to beinvolved in the companyand either managingprojects or managing aspecific project. This isfair, and you need to becompliant,buttheargument you can expectto hear is your RME is notinvolved in the project indispute.If you havemultipleon-goingprojects it is not possiblefor the RME to be on allof them and by Code youdon’tneedmultipleRMEs if you havemultiple projects. Expectthe argument though andexpect to provide W2’samong other things forthe RME as an elementof the proof you present.The takeaway here isthat licensing is notsomething to take lightlyor to ignore. The law isintended to protect thepublic from incompetentcontractors;averyworthwhile goal. It is notintended to bankruptlegitimate contractors orto get an owner a freeproject just becausetherewastechnicalnoncompliance by thecontractor. That said, beaware: licensing is nowthe cause de jure andraised in nearly allconstructionrelateddisputes.Goodcontractors are beingcaught in the same net asbad and the results donot serve any publicinterest at all. To thecontrary, it subverts thepublic interest.Bio: John McGill is an attorneyrepresenting contractors andsuppliers throughout the BayArea and Northern California inboth private and public workdisputes. He is the author ofThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
California Contractor’s DESKTOPGENERAL COUNSEL What YouNeed To Know About CaliforniaConstruction Law. Contacts: 707337 1932jmcgill@mcgilllawfirm.comUPCOMINGCLASSES OFFEREDTHROUGH THE JATCFIRST AID/CPRSinceFirstAid/CPRlanguage has been added tothe Inside Agreement and willnow be a requirement, theJATC continues to offer itmore regularly. Roni JaneSudyka will be the trainer andthe class is always wellreceived.Blood bornepathogens will also becovered. The next class isscheduled for July 8, 2017from 8am to 1 pm. CallStacy at the JATC office at(831) 633-3063 to reserveyour place. Class size islimited.SIGNIFICANT CHANGESTO THE CODEA Significant Changes to theCode series, with instructorDavid Martinez is scheduledfor June 20, 2017 from 5:30pm to 8:30 pm and will beheld the third Tuesday of themonth. Drop on in! You arewelcome to attend one classor as many as you like in thisseries. This is a (3) hourclass.CALCTPCalifornia Advanced LightingControls Training Program(CALCTP) with InstructorStephen Slovacek is lookingfor participants. This class isa total of 50 hours: 10 hoursof lecture and 40 hours of lab.The class schedule will becoordinated with those inattendance. YOU MUSTBRINGPROOFOFCOMPLETING THE ONLINECOURSE TO THE FIRSTCLASS OR EMAIL TOstacy@tricountyjatc.org.Students will not be allowedto attend the class if theyhave not completed theonline coursework. Go tobit.ly/IBEW234CALCTPtoget started today. There is a 125 stipend available uponsuccessfulcompletionprovided by the MontereyBay LMCC.CALCTP-ATThe JATC is also taking signupsfortheCaliforniaAdvanced Lighting ) with InstructorStephen Slovacek. This classis a total of 24 hours. Theclass schedule will beattendance. The prerequisitefor this class is completion ofthe 50 hour CALCTP. Anapplication form must becompleted prior to startingclass. To register for thisclass there is a 225application/recordmaintenance fee. Go onlineto goo.gl/qkW7AI to completean application and pay theapplication/recordmaintenance fee. There is a 125 stipend available uponsuccessfulcompletionprovided by the MontereyBay LMCC.EVITP - CONDENSEDEVITP 3.0 Class ElectricVehicleInfrastructureTraining Program (EVITP)3.0 with Instructor StephenSlovacek. This class is acondensed version of the 35hour course. It is aprerequisite for EVITP thatyou are a California CertifiedGeneral Electrician. As abonus, there is a d by the MontereyBay LMCC. Call Stacy formore information.CONGRATULATIONS TOTHOSE COMPLETINGUPGRADE CLASSESCongratulationstothefollowing individuals whohave recently completedclasses offered through theapprenticeship program! Weappreciate your commitmentto the industry!SIGNIFICANT CHANGESTO THE NEC James BrownMark HiuraWill NunesNick PrelgoviskBrian StanleyThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
JATC INFORMATIONJATC APPLICANTTEST SCHEDULEDThe Tri-County ElectricalJATC accepts applications ona year round basis. For moreinformation regarding theprocess, please click in thefollowing link:AVAILABILITY LISTUPDATEOn the Inside Out-of-WorkList, there are 10 on Book 1,53 on Book 2, 4 on Book 3and 16 on Book 4. There is 1on Sound & Comm Book 1, 1on Sound & Comm Book 2,and 3 on Sound & CommBook 3. There are 2 on CEBook 2. There are 14 on CWBook 1 and 162 on CW Book2.There is 1 Insideapprentices available forwork at this time.INSIDE MONTHLY HOURS bMarAprMayJunJlyAugSeptOctNovDec2012 ,90914,75113,47217,7952013 ,81718,26515,59311,1412014 ,75520,81320,21722,0512015 ,31420,55229,77620,5162016 ,50770,12389,81489,3722017 89,32748,02682,828 103,534This newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
June 6, 2017IBEW-NECA Job Fair5 pm to 7 pmTri-County JATC Training CenterCastroville, CAJune 18-20, 2017Labor Relations ConferenceMinneapolis, MNJune 26, 2017Board of Directors MeetingJune 28-29, 2017Sound and Communications Partnering SessionSan Leandro, CAJuly 19-21, 2017District Nine MeetingVancouver, BCJuly 29-August 4, 2017National Training InstituteUniversity of MichiganAnn Arbor, MIOctober 7-10, 2017NECA ConventionSeattle, WADecember 1, 2017NECA Christmas PartyLa’el Vineyards BarnTres Pinos, CABy invitation onlyThis newsletter is published by the Monterey Bay California Chapter of the National Electrical Contractors Association (NECA) for the exclusive useof its members. Although we make every effort to verify information, its Directors, Staff and Members make no warranty of accuracy.
status of the NECA/IBEW Family Medical Care Plan (FMCP), the Board of Trustees has determined that a contribution increase in the amount of 5 percent is appropriate and will be implemented. New rate of 5.75/hour will be effective January 1, 2018. The FMCP average increase since the Plan's inception has been 5
