The Labor-Management Council of Greater Kansas City

FMCS Conference Shows Future Trends, What Works

The Federal Mediation and Conciliation Service's biannual National Labor-Management Conference featured excellent workshops and speakers last week in Washington, D.C.  For a summary of some of the programs, see Download fmcs08confsummary.pdf (78.3K) More materials are expected to available later.

Air Force Must Re-Visit Boeing Rejection

The LMC issued letters to key federal officials urging that the recent award to build supertankers be reviewed and possible thrown out.  The Air Force had chosen an Airbus-led group over Boeing, which has substantial workforces in Missouri and Kansas.  Here's the latest news:

Auditors sustain Boeing tanker protest

By Jim Wolf2 hours, 24 minutes ago

WASHINGTON (Reuters) - U.S. auditors urged the Air Force Wednesday to rerun its marathon, $35 billion competition for refueling aircraft, upholding a protest by losing bidder Boeing Co (BA.N)

The Government Accountability Office found the Air Force made "a number of significant errors that could have affected the outcome of what was a close competition between" Boeing and Northrop Grumman Corp (NOC.N).

"We therefore sustained Boeing's protest," Michael Golden, head of the a GAO bid protest unit, said in a statement.

Northrop was teamed with EADS, parent of rival passenger-jet makerAirbus. EADS (EAD.PA) had no immediate comment.

Boeing shares briefly spiked up 2 percent on the news, but pared those gains to less than 1 percent on the New York Stock Exchange. Northrop shares were down 1.4 percent in mid-afternoon trade.

"The Air Force is aware of the Government Accountability Office's report and will review the findings and recommendations. We will release a statement this afternoon," said Air Force spokeswoman Maj. Dayan Araujo.

The Air Force "conducted misleading and unequal discussions with Boeing" by telling the company it had fully satisfied a key performance criteria, then later determining that Boeing had only partially met the objective, the GAO said.

The GAO's recommendation to the Air Force punctuated a fight over what is likely to be one of the richest contracts in Pentagon history.

Lawmakers from states where Boeing has manufacturing plants were delighted with the GAO ruling.

"I am not surprised that the GAO identified significant errors in the selection process. The Air Force bought a tanker that doesn't meet their needs and has been waging a PR campaign ever since," Sen. Patty Murray, Democrat of Washington, said in a statement.

On February 29, the Air Force picked the team of Northrop Grumman Corp and EADS to build 179 midair refuelers over the next 15 years to replace its aging KC-135 tankers.

Richard Aboulafia, an aerospace analyst at the Fairfax, Virginia-based Teal Group consultancy, said the GAO decision provided ammunition to Boeing's political backers, who are seeking to overturn the award.

Given a change in Air Force leadership earlier this month and the GAO findings, "Boeing has a respectable chance moving forward," Aboulafia said in an email. Boeing has proposed a tanker based on its 767 aircraft; Northrop offered a modified Airbus A330.

Douglas Harned, an analyst at Sanford C. Bernstein, was surprised by the GAO's ruling.

"It is a big positive for Boeing. It remains to be seen how the competition ultimately plays out," he said in a telephone interview.

Boeing hopes to stop EADS from establishing a U.S. production facility that would make Airbus in effect a second U.S.-based producer of large aircraft.

Los Angeles-based Northrop already has invited the media to a planned June 28 groundbreaking ceremony at a Mobile, Alabama, site where it would modify Airbus A330 jets into the KC-45 tanker, if its contract stands.

An earlier Air Force plan to lease and then buy 100 Boeing 767s as tankers collapsed four years ago after Sen. John McCain, now the presumptive Republican presidential nominee, tarred it as a taxpayer "ripoff."

(Editing by Leslie Gevirtz)

Conference Begins June 30

Registration slots and hotel rooms are filling up fast for the 23rd Annual Mid-America Labor-Management Conference at the Lodge of the Four Seasons in Lake Ozark, Mo.

The conference agenda is wide-ranging and includes numerous outstanding speakers and workshops.  Registration and hotel information can be found here <a href="http://labormanagementkc.typepad.com/malmc23.pdf">Download malmc23.pdf (1822.2K)</a>

Please contact the LMC office with any questions.

Construction Committee Discusses Issues

Construction Industry Steering Team Summary of Minutes

8 a.m., Thursday, June 12, 2008, Mark One Electric, 909 Troost

Attending:  Terry Akins, Rosana Biondo, Troy Carlson, Jim Delaney, Gerald Eagan, Lyle Farrand, Rick Greeno, Gayy Kemp, Dave Kendrick, Mike Kotubey, Leroy Lutes, Payne Mendenhall, Julie Perkins, Jon Thompson, Dan West, Craig Wright, Bob Jacobi.

•Introductions and thanks to Rosie Biondo and Mark One for hosting.

•Congratulations to Terry Akins on his election as Business Manager of IBEW Local 124.  He takes office in one month.

•The Pfizer Suit group is unable to attend to present.

•Colleen White, Strategic Workplace Solutions, will submit a letter stating that the industry does not see a conflict between her arbitration and compliance consulting for the committee to consider.

•KC Borden is recovering and has completed his chemo.  Updates are available at http://www.caringbridge.org/visit/kcborden.

•The Building Trades will have 2000+ square foot space at 13th & Broadway June 23-26 at the SkillsUSA national convention.  While the annual event will move to Louisville in 2014, it will continue to be important through that time.

•An update of the results of the LMC’s legislative agenda was distributed (it’s also on the LMC blog-http://labormanagement.typepad.com).  Other issues discussed included:

--The Building Trades expect a letter from Bombardier that indicates if the project is built in

  Kansas City, it will use union craftsworkers.  The Building Trades has sent a letter in to the

  KC City Council in support of the enabling ordinance on today’s agenda.

--After discussions with UMKC, the Institute for Labor Studies will become the Center for

  Labor Education and Research working with the Economics Department.  A final plan still must

   be developed.

--The Building Trades electoral targets in Missouri include Jay Nixon, Governor; Sam Page,

   Lt. Governor; Clint Zwifel, Treasurer; Chris Koster, Attorney General; for the state Senate, Joan

  Barry for the 1st District in St Louis and Chris Benjamin in the 31st District in Cass, Johnson,

  Bates and Vernon counties; and state representative candidates Juan Alonzo, District 123; Kristi

  Kenny, District 120; and Terry Stone, District 33.

--The selections for casinos in Kansas is expected in September with possible groundbreaking by

  Spring 2009.  The new law may face another legal challenge, though, from a tribal casino.

•Details are being finalized and collateral materials developed for the Kansas City Construction

  Partners.  Several additional projects are possibilities.  The J.E. Dunn headquarters project is in

  the early stages though soon study will be done on the impact of the KCCP agreement.

•The Mid-America Labor/Management Conference will be held June 30-July 3 at the Lodge of the Four Seasons.  The conference will include a session on the future of the construction industry at 9 a.m. on July 3, preceded by the next meeting of the  statewide construction labor-management group at 7:30 a.m. on July 3 at the Lodge.

•The LMC Golf Tournament is July 21 at Oakwood Country Club.

•The Building Trades Golf Tournament benefitting Truman Medical Centers neonatal unit will be

  Aug. 21 at Eagles Landing in Belton.

•The Building Trades, with the help of a grant, is offering train-the-trainer OSHA training July 28-Aug. 1.  Contact Dave Kendrick at the Building Trades for information.

•On June 14 there will be a motorcycle ride and other events in support of DADS at Sheet Metal Workers Local 2, 2902 Blue Ridge Blvd.  Contact Jim Huffman at Local 2, 254-8021.

•The iBuild event drew 1997 students and 71 booths. NICE and the Kansas City School District will soon have signed an MOU to create the Engineering and Construction Academy with the goal of the first students in fall 2009.  Several industry leaders toured a similar Chicago school and found that while it had success, the concepts and plans for the KC ECA already address many of the concerns/shortcomings of that school.  NICE is also working with other area districts.

•The next meeting will be at 8 a.m., Thursday, July 10 at Mark One, 909 Troost.

•M/S/C to adjourn at 9:30.

Legislative Sessions End with Some LMC Successes

With the Missouri and Kansas legislative sessions over, the LMC had some successes and some postponement of successes:

--The LMC endorses the renewal of Kansas City’s transit tax on the April 8 ballot.  Passed overwhelmingly

--The LMC endorses the Bannister Mall TIF project approved by the City Council and support its retention if brought to a ballot issue.  Ballot issue did not materialize

--The LMC endorses retention of the Missouri Plan for judicial selection and the similar policy that exists in Kansas.  Legislation killed in both states and ballot issue possible in Johnson County, Kansas.

--The LMC opposes immigration reform proposals that would put the burden of I-9 verification on contractors for subcontractors.  Verification responsibility should fall only on the direct employer of those workers  Missouri bill’s provisions are adequate on this point; no Kansas legislation passed.

--The LMC supports the removal of gaming loss limits in Missouri.  Legislation defeated but a ballot issue appears to have adequate signatures.

--The LMC supports reforms of 1099 misclassification enforcement in Missouri.  Immigration legislation in Missouri has provisions.

--The LMC endorses the renewal of the Overland Park sales tax for infrastructure.  Passed.

--The LMC supports restoration of Missouri programs that foster economic development and provide critical services such as Medicaid, education, the arts, childcare subsidies for working parents and others.  Final budget includes small increases in each of these categories, but not to prior levels.

--The LMC opposes the “Missouri Civil Rights Initiative” that would ban affirmative action programs and is attempting to gather signatures to get on the ballot.  Opponents are urging Missourians to not sign.  Petitions failed to get sufficient signatures to get on the ballot.

--The LMC continues past positions in Missouri and Kansas regarding:

--Support for Prevailing Wage in its present form   No action.

--Support for reasonable and effective economic development incentives.  Missouri legislation passed that enhances Quality Jobs Act and to accommodate possible Bombardier plant; Kansas passed no significant changes.

--Support for transportation funding and planning for future transportation systems and funding.

Both studies studying, expect major movement in ‘09.

--Opposition to TABOR (taxpayer bill of rights).  No bills passed but in Missouri it came close.

--Support restoration of Medicaid funding (Missouri) to its level before the cuts of 2005.  Small Increases in ‘08-9 budget but remain far below ‘05 levels and mostly for boosting physician reimbursement rather than adding coverage.

--The LMC opposes proposed changes in the U.S. Small Business Administration rule that would severely limit the areas of federal contracting that include women as disadvantaged contractors.

Proposals in the study stage.

--The LMC supports the award of the new Air Force tanker contract to the Boeing Co.

Boeing is appealing the award to Airbus to the General Accounting Office.

Health Care Initiative Launched

More than 100 area leaders participated in the announcement of the Robert Wood Johnson Foundation’s Aligning Forces for Quality in health care announcement June 5 at the Plaza Library.

Through a satellite hookup, foundation leaders announced a $300 million investment in its Aligning Forces initiative with a focus on 14 communities, including Kansas City.  The area will receive another $1 million for the next phase of the project through the Kansas City Quality Improvement Consortium (KCQIC).  The commitment to enhancing health care in KC and the other cities is, according to the foundation, “the largest effort of its kind ever undertaken by a U.S. philanthropy.” Nationwide and in Kansas City the effort intends to:

•Help physicians improve the quality of care for patients through education and reporting;

•Help patients get the information needed to partner with doctors and make informed choices;

•Help hospitals improve care, focusing on the central role of nursing; and

•Help reduce inequality in care among patients of different races and ethnicities.

A new foundation web site (www.rwjf.org) will provide resources for providers and patients.  Other communities involved are Cincinnati and Cleveland in Ohio; Detroit; Humbolt County, CA; the state of Maine; Memphis, TN; the state of Minnesota; Seattle; South Central Pennsylvania; Western Michigan; Western New York state; Willamette Valley (Portland area), Oregon and the state of Wisconsin.

In Kansas City, the project will be led by the KCQIC and a leadership team including patients, the Labor-Management Council, physicians and insurers.  The group has already been working for several years to develop physician education and reporting on evidence-based treatments for chronic diseases such as diabetes, heart and asthma.  KCQIC was founded by the UAW-Ford Community Health Care Initiative, whose co-director is executive director of KCQIC.

Among the local speakers at the announcement were George Washington University researcher Marcia Wilson, U.S. Dept. of Health and Human Services Regional Director Fred Schuster, Kansas Dept. of Health and Environment Secretary Rod Brimby, UAW Local 249 Benefits Representative Scott Jeannin, Research Family Residency Director Dr. Stephen Salanski and Davis.

The event also provided an opportunity to release the results of the Dartmouth Atlas national health care study and its Kansas City-area results.  A June 5 article in the Kansas City Star by Julius Karash covered those results well.

For more information on the project contact Davis at (816) 454-4424, cdavis@ford.com.

Golf Tournaments Continue

Though the turnout was successful, the lunch top notch and the location outstanding, rain shortened the National Institute for Construction Excellence's iBuild Golf Tournament yesterday.  However, there will be plenty of additional opportunities to build labor-management relationships on the golf course.

The NICE tournament raised funds for the iBuild event and curriculum and to support the Crayons to CAD and Engineering and Construction Academy efforts of NICE.  The Academy, meanwhile, is one step closer to reality as the Kansas City School District and NICE signed a Memorandum of Understanding towards its construction and operation, hopefully beginning classes in fall 2009.

The next tournament will be the Labor-Management Council's annual event at Oakwood Country Club on July 21.  Check this blog under "Events" for details and to download a registration form or contact the LMC.

Also on the calendar now is the annual Greater Kansas City Building and Construction Trades Council tournament.  Beneficiaries for the Aug. 21 event at Eagles Landing Golf Club (Belton) will be Truman Medical Centers and Dollars Against Diabetes.  Details can be found at www.tournevents.com/kccharitygolf.