GEB Minutes General
GEB Minutes General Executive Board Minutes of the International Union of Operating Engineers WEDNESDAY, October 24, 2018 Call of Meeting General President Callahan called the meeting of the General Executive Board to order at 7:40 a.m. on Wednesday, October 24, 2018 at IUOE Headquarters in Washington, D.C. 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. 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 July 10, 2018 were approved and made a part of the official records of the Board. Copies of these minutes had been distributed previously to all 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 Brian Cochrane 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 Cochrane informed the Board that as part of the bi-annual meeting, the Board of Trustees reviewed the projections for income and expenses of the International Union of Operating Engineers for 2018 and discussed the details of the projections with General President Callahan and General Secretary-Treasurer Hickey. A motion was made, duly seconded, and unanimously approved to accept the Board of Trustees report. General President Callahan welcomed new Trustee Barton Florence, Business Manager of Local 39. Case No. 5 Financial Report Chief Financial Officer John W. Loughry, CPA, presented the International Union’s internal financial results for the month ended August 31, 2018 compared to the results of August 31, 2017. Loughry first presented a slide that charted the change in membership levels over the past seven years. He noted that membership continues to grow slowly. He then reported on key financial results, including cash and investment balances. He reported that reserves were adequate at this time and that growth in investments continues. He reported on the current debt levels of the International, detailing the breakdown between debt from the Local Loan Program, the Line of Credit and the bank loan. His presentation continued with the results from operations. He detailed the revenue and support activity and explained variances from the previous year. Mr. Loughry compared year-to-date expenses with expenses from 2017 and explained all major variances. Loughry then provided the Board with a reported on the costs of the IUOE General Convention, and his report included the following details: (1) costs by Convention category; (2) revenue received from exhibitors at the Convention that were used to offset the overall cost of the Convention; (3) a comparative review of the total cost of the 2018 convention to the 2013 convention for discussion purposes. Mr. Loughry concluded his presentation by providing the Board with an overview of the financial activity of the International Training and Education Center. Case No. 6 Auditor’s Financial Review James C. Kokolas, Partner with Calibre CPA Group presented the reviewed financial statements for the General, Defense, and Death Benefit Funds for the six months ended June 30, 2018. He reported on total assets as of June 30, 2018 including investments, liabilities, and net assets. Kokolas reported on the categories of assets and liabilities and the allocation of the investments. Brother Kokolas reported on revenues, expenses, and investment income as of June 30, 2018 and compared it to the same from 2017. Case No. 7 Treasury Fund Report Tripp Shreves of the Wells Fargo Advisors’ Institutional Consulting Group reported on the asset allocation and performance of the IUOE Treasury Funds for the period ending September 30, 2018. Mr. Shreves reported on asset allocation, specifically that the current allocation of the portfolio had benefited the IUOE portfolio during the recovery since 2009. Mr. Shreves then reported that while the asset allocation remains conservative, that portfolio could benefit from the market volatility that has occurred over the first three weeks of October. Case No. 8 Healthcare Initiatives Department Report Director of Healthcare Initiatives Joanne Lye- McKay reported on the IUOE Prescription Benefit Management coalition move to OptumRx, with more funds expected to follow in 2019. Director Lye-McKay reported on continued work with CVS on audits and cost savings reports. She reported that SwiftMD and telemedicine remained strong with the IUOE groups. She reported that the Vision Service Plan is still being introduced to Locals. Director Lye- McKay also reported that the North Central States Conference hosted a healthcare portion including a history of the healthcare initiatives department, history of pharmacy benefit manager coalition, review of healthcare headlines with the International’s responses to and addiction awareness training. Finally, Director Lye-McKay reported on the Healthcare Initiatives Conference, speakers, and successful topics including panels. Case No. 9 Legislative and Political Department Report Legislative and Political Director Jeffrey Soth reported on modest victories on water and airport infrastructure legislation recently passed by Congress. Director Soth reported on revenue and spending for the political program over the two-year election cycle, pointing to major priorities such as the right to work ballot measure in Missouri, the fight to maintain transportation investments in California, and the major effort to defeat anti-union governors in the Midwest. Director Soth also identified the states where International Staff were deployed for the labor political program (Michigan, Minnesota, Nevada, Pennsylvania, and Wisconsin). Case No. 10 Construction Department Report Director of Construction Joseph Giacin reported on the 1994 Harmony Agreement between the National Building Trades and United Steel Workers (USWA), specifically the USWA’s expansion into the Construction Industry. Director Giacin reported on two current Arbitrations challenging USWA contractors recent transitions into unprotected work outside of their approved geographic jurisdiction. Director Giacin detailed each case and ensured the Board of updates following receipt of the Arbitrator’s decisions. Director Giacin reported on the latest expansion of Wind Turbine Projects, their locations, and a breakdown of those being performed under IUOE Local and/or National Agreements. Director Giacin reported on the ongoing purchase and development of an additional 30 acres for the Crane Training Area of the International Training and Conference Center, necessitated by the addition of 5 new cranes. Case No. 11 Jurisdiction Department Report Redacted. Case No. 12 Pipeline Department Report Director of Pipeline Robert Wilds reported on the number of Job-Notices and man hours reported to date in 2018. His report also showed an increase in Distribution work, and expected increase in Distribution work in the future. Director Wilds reported on ongoing projects and recently completed projects. Director Wilds reported on projects expected in 2019 including those pending regulatory approval. Director Wilds reported that the Pipeline Training is now accepting applications for the 159 classes scheduled, including new classes added for this training season at the IUOE ITCC in Crosby, TX. He further advised the Board that the Winch and Slope Work training will be held at the training facility in Boston, KY. Finally, Director Wilds reported on available openings and applications to members on the IUOE.org website, where the training schedule for this season runs from Oct 2018 – May 2019. Case No. 13 Construction Training Department Report Director of Construction Training Christopher Treml reported on classes that will be available through the department in 2019, including Trainer courses and courses for the General Membership. Director Treml reported that he will continue to update the General membership course schedule monthly as new classes are added. Director Treml discussed the delay of the proposed crane 22 INTERNATIONAL OPERATING ENGINEER SPRING 2019 23
