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The Building Tradesman Newspaper

July 23, 2010

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Building trades: Dillon’s the choice for governor

LANSING – Michigan House Speaker Andy Dillon (D-Redford Twp.) has been endorsed for state governor by the Michigan Building and Construction Trades Council. Building trades union members and their families are urged to vote for Dillon in the state Democratic primary, Tuesday, Aug.3.

“Andy Dillon has supported the building trades from Day One,” said Michigan Building and Construction Trades Council President Patrick “Shorty” Gleason. “He supports us on the new powerhouses, the new Detroit River crossing, and the need to rebuild infrastructure around the state. There is no other candidate for governor, Democrat or Republican, who shares our vision for creating good construction jobs in this state. That’s why we endorsed him.”

Dillon is the only candidate for governor supporting the Detroit River International Crossing, a new bridge that would be built downriver from the existing Ambassador Bridge. As House speaker, he worked hand in hand with the building trades to move legislation allowing construction of new power plants through the state legislature.

He has fought for other job creation and economic growth opportunities such as the state’s first renewable energy standard to spur clean energy jobs and the 21st Century Jobs Fund to provide capital to innovative start-up companies. Dillon also supports “Hire Michigan First” legislation, which would steer state tax breaks to companies that hire Michigan workers.

In Dillon’s five years in the state House, he has a 90 percent voting record with the Michigan AFL-CIO.

"Andy has stood shoulder to shoulder with Michigan workers as we've fought to bring more jobs to this state and make sure new jobs go to the men and women who live right here," said Patrick Devlin, Secretary-Treasurer of the MBCTC. "He's a leader who has the right plan for a better economy and the ability to make it happen."

Dillon’s plan includes initiatives to diversify and expand the state’s job base by promoting advanced manufacturing, increasing agricultural opportunities and better promotion of Michigan’s tourist spots.

“Generating the jobs of the 21st century, diversifying our manufacturing base and making it easier for businesses to locate in Michigan are crucial to our state’s recovery,” Dillon said to a crowd at Riverbank Park in Flint on July 6. “We need to capitalize on the unique strengths that Michigan offers to a wide range of employers.”

Coupled with those efforts, Dillon plans to increase efficiency by creating a one-stop shop for business licensing and approval, making it easier for companies to do business in Michigan.

Dillon has butted heads with the Granholm Administration on several issues, including the support for construction of new baseload power plants. 

“I feel betrayed,” he told a rally of building trades workers last October. “We agreed to change the rules, with bipartisan support. Then the bureaucrats stepped in” and halted the plants’ permit applications. “Keep the heat on them,” Dillon urged.

Born and raised in Redford, Dillon attended the University of Notre Dame where he earned his accounting and law degrees. Upon graduation, he built a successful law practice with an expertise in business law and became an advisor to troubled businesses seeking turn-around advice. He soon became vice-president of GE Capital where he further advanced his reputation as an expert in saving struggling companies, and became president of Detroit Steel Company.

Dillon is serving his third term in the Michigan House of Representatives and his second term as Speaker of the House.



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Election Preview

The race for governor is at the top of the Aug. 3 primary ballot, but below those names will be numerous other candidates for office whose election will have long-term effects on Michigan’s policies and people.

Judges, state senate and house positions, county commissioners and city and township leaders are all among the positions that will be on voters’ ballots. With the effect of redistricting and simply because some districts are more heavily tilted to one party or another, the primary vote – stuck in vacation season, perhaps the worst time of year for an election – is often more important than the November general election.

“This is one year where term limits are at there peak in Lansing, and there’s a lot of turnover among lawmakers,” said Michigan Building and Construction Trades Council President Patrick “Shorty” Gleason. “And with the way districts are set up, probably 80 percent of the races are going to be decided in the primary. So it’s important for our people to know who is going to support their best interests, and vote accordingly.”

Voter history statistics tell us that a small minority of voters will decide which candidates will face off on the November ballot. In the 2006 gubernatorial primary, only 16.9 percent of the voting age population cast a ballot. That was the lowest turnout since 1990, when 15.1 percent of the voting age population turned out to vote.

But in the 2006 general election, voter turnout in Michigan zoomed to 50.7 percent of the voting age population – the highest level since 1970.


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June’s construction Employment falls to 14-year low

Seasonally adjusted construction industry employment slipped in June to the lowest total since July 1996 while the industry’s unemployment rate remained at 20.1 percent, more than double the average for all workers, according to analysis of new federal figures released July 2 by the Associated General Contractors of America.

“The recession may have ended a year ago for most of the economy, but for construction, job losses and business closures continue every month,” said Ken Simonson, chief economist for the construction trade association.

“While the rest of the economy added nearly a million jobs in the first half of 2010, 114,000 construction workers lost theirs, joining the two million others who have become unemployed since August 2006.”

The industry added 49,000 jobs in March and April as homebuilders and highway contractors geared up, but 30,000 jobs disappeared in May and 22,000 in June as housing cooled and nonresidential building slumped further.

The outlook for nonresidential building construction remains ominous, according to Simonson. In May, the latest month for which such data is available, architectural firms laid off workers for the 21st time in 22 months.

“If there’s less work for architects now, there will be less for building contractors to bid on and build in coming months,” Simonson said. In contrast, engineering and drafting firms, which design infrastructure projects, added jobs three months in a row through May.

Heavy and civil engineering construction – the category that covers most workers in transportation, power, water and wastewater construction – added 1,300 workers in June and has held roughly steady since last October, as federal stimulus funds have boosted construction in these categories, the AGC said.

“The stimulus has helped,” said Stephen E. Sandherr, CEO of the association, “but any gains the industry experienced will evaporate unless Congress and the Administration promptly enact long-term spending bills for transportation, water, wastewater, rivers and harbors.”


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Fuel flexibility key to massive upgrade at Marathon refinery

By Marty Mulcahy
Managing Editor

DETROIT – Marathon Petroleum Company LLC’s refinery is in the midst of a $2.2 billion project that will allow it to process heavy crude oils, like those from Canada, and help keep Michigan’s only petroleum refinery viable and flexible well into the future.

Slated for completion in 2012, Marathon’s Detroit Heavy Oil Upgrade Project (DHOUP, as the company calls it) involves the installation of new processing equipment that will increase the refinery’s capacity to 115,000 barrels per day, up from 106,000 bpd. Marathon will also add 60 full-time employees and 75 full-time contractors.

Project engineering and construction are being managed by Fluor Corp. Approximately 600 building trades workers are at the construction site currently. “In a word, they’ve been outstanding,” said Marathon Construction Manager Dan Barrett. “The quality of work is good, safety is exceptional, and the trades recognize this as one of the few major projects in the area, and they’re very supportive of what we’re doing out here.” Manpower on the job will ramp up to an average of 900 Hardhats a day during the peak construction period next summer.          

Work began on DHOUP in June 2008. The project was on more of a fast-track basis until petroleum product demand slowed along with the economy, prompting Marathon to extend the project’s timeline.

There’s much to do in this project, and not a lot of room to do it in. The southwest Detroit facility is one of Marathon’s smallest, and is its only refinery in an urban area. Bisected by railroad tracks, Marathon’s more than 200-acre grounds are wedged into a site bordered by I-75, a salt mining company, and various active surface streets. Acres of open lots nearby have been purchased or leased by Marathon for use as lay-down areas during construction.

A refinery has been on the site since 1930; Marathon purchased the former Aurora Gasoline Company in 1959 from the late Detroit philanthropist Max Fisher.

Probably the project’s biggest day-to-day challenge, Fluor Project Manager Jack Penley said, “is the sheer logistics of the project.  Lay-down yards and offices and parking are scattered all over. There’s a constant stream of construction workers and supplies moving through here daily.  And yet, we’re on top of things and staying ahead of our plan.”

Barrett said it’s a challenge managing the state’s largest construction project in a refinery setting that operates 24/7. “When you bring in heavier crude, there are places where the pipes need to be bigger,” he said. “It’s kind of like an angioplasty.”  Some 500,000 feet of additional above-ground pipe will be installed at the refinery when the project is complete.

Among the myriad other tasks on Marathon’s to-do list is the installation of a new sulfur recovery/removal unit, since there’s a significant amount of sulfur in the Canadian crude oil. On the clean-air side, the trades will also install ultra low-NOX (nitrogen oxide) burners and a selective catalytic reduction system to control NOX, as well as a distillate hydrotreater to greatly reduce sulfur in refined products.

Easily the project’s biggest milestone to date was the setting of a pair of massive 120-foot-long “coker drums” on the site in November 2008. Built in Spain, then floated across the Atlantic Ocean to a Rouge River dock, then carted overland to the Marathon site on a multiple-axle flatbed trailer, the coker drums dominate the landscape on the refinery’s Oakwood Boulevard site.

Part of the refinery’s “delayed coker” processing system, the drums will convert asphalt-like material into liquid petroleum fuel blend components and petroleum coke (a coal-like substance). It also will allow the refinery to thermally convert and upgrade heavy crude oil into higher quality products such as gasoline, diesel, and petroleum coke.

“Fluor has done a lot of coker projects, but it was an incredible feat for these to go up so quickly,” said Penley. “Nineteen weeks from driving piling to setting the two coke drums. This has to be an industry record.”  Penley attributed this, in part, to several innovative technologies that were used.

Penley and Barrett said overall, the project involves little in the way of groundbreaking refinery technology. The pipes, valves and systems installed during the on this project “are all pretty conventional technologies,” Barrett said. “This project is all about relying on a high-quality workforce to perform good, safe work, day in and day out.”

Constructing in close proximity to a working refinery, safety is a major part of every construction process. With 1.5 million construction man-hours worked on the project, only a minor finger wound to a worker is on the injury side of the ledger.

“Marathon and Fluor aren’t just paying lip service to safety, they’re as safety conscious as I’ve ever seen,” said Ed Coffey, retired business representative with the Michigan Building and Construction Trades Council who still consults on the project. “They’re very strict, but our people have to take heed that they’re working in a refinery, and that one accident could be catastrophic. Marathon and Fluor have been great about making safety a priority.”

More than four million man-hours will be worked when the DHOUP project is complete. The project will involve the driving of 7,700 piles, and placement of 50,000 cubic yards of concrete and 15 million pounds of steel.

“When we finish this project in 2012 we’re going to have a refinery that’s more flexible than before, because we’ll be able to run a wider assortment of crude oils,” Barrett said. “We will also see some efficiency gains. “But we have lot of work to do before we are finished, and we are counting on the building trades to continue to focus on safety as they go about their jobs every day.”


A SET OF 120-FOOT TALL “coker drums” rise in the distance at Marathon Petroleum Co.’s Detroit refinery. The building trades are performing $2.2 billion in upgrades to the plant.

TIGHTENING BOLTS on a 600-lb. gate valve in Marathon’s Naptha Hydratreater Unit is Matt Carden of Pipe Fitters Local 636, working for John E. Green. Photos by Peter Rethorn/Marathon Petroleum LLC

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Safety rules would brace rights for miners, other workers

By James Parks
AFL-CIO

Stronger enforcement tools, tougher penalties and broader workers’ rights are at the center of soon-to-be introduced workplace safety legislation.

The bill’s crafters say they were spurred by the deadly Massey Energy Upper Big Branch explosion that killed 29 coal miners; the Tesoro refinery blast that claimed the lives of seven Washington State workers; the BP oil rig blast that killed 11, the Connecticut Kleen Energy Systems explosion where six workers died and other recent workplace disasters.

The outline of the proposed job safety bill focuses on mine safety, but also includes provisions to strengthen worker safety protections in all workplaces. House and Senate leaders, including Rep. George Miller (D-Calif.), announced the new job safety measure June 29.

Miller, chairman of the Education and Labor committee, says the April 5 Upper Big Branch blast highlighted the “significant problems” in mine safety laws.

Pointing to “bad actors who have put profits ahead of people,” Sen. Tom Harkin (D-Iowa), chairman of the Health Education, Labor and Pensions Committee, says:

“In mines around the country and in other workplaces as well, worker safety has not been a priority… As a consequence, workers have lost vital protections, suffered significant injuries and, in too many cases, lost their lives. We are determined to put sharper teeth in our workplace safety laws and to step up federal enforcement.”

According to a summary of the upcoming legislation, the bill would crack down on serial safety violators of mine safety rules by revamping the criteria for placing a mine in what is a called “pattern of violations” (POV) status. That launches tougher enforcement and stronger penalties.

A computer programming error kept the Upper Big Branch mine out of that enhanced safety program. A recent investigation by the Department of Labor’s Office of the Inspector General found serious flaws in Bush administration changes in pattern of violation policies. The current leaders of the Mine Safety and Health Administration are revising POV procedures.

The bill would guarantee miners the right to refuse to work in unsafe conditions, a right that is written into every Mine Workers (UMWA) contract. Non-union miners have long said they fear employer retaliation if they speak out about mine safety problems.

It also would strengthen whistleblower protections for workers who speak out about unsafe conditions or who testify in safety investigations.

Under the bill, MSHA would have stronger enforcement tools, including the authority to subpoena documents and testimony and seek court orders to close a mine when there is a continuing threat to the health and safety of miners. It also increases civil and criminal penalties for mine owners who violate safety laws.

The proposed bill’s summary says that to guarantee safety in other workplaces, it would strengthen whistleblower protections, increase criminal and civil penalties and speed up hazard abatement. In addition, victims of accidents and their family members would be provided greater rights during investigations and enforcement actions.

Those provisions strengthening the Occupational Safety and Health Act (OSH Act) were taken from the Protecting America’s Workers Act which was introduced earlier this year and has already been the subject of House and Senate hearings.

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NEWS BRIEFS

Walker is new prez at Michigan Building Trades

Zane Walker, a Flint-area business agent with Iron Workers Local 25, will succeed Patrick “Shorty” Gleason as President of the Michigan Building and Construction Trades Council. Gleason is retiring effective Aug. 1.

The Michigan Building and Construction Trades Council Executive Board appointed Walker in a vote taken on July 14. He will serve out the remaining three years of Gleason’s four-year term.

Walker, 44, also currently serves as President of the Flint Area Building Trades Council. He has served as the Iron Workers Local 25’s political director for the last five years.

“I know this job will have a  lot of work in governmental affairs, and with my background , I’m comfortable with that,” Walker said. “I have big shoes to fill with Shorty leaving, but I look forward to the challenge,” Walker said.

Walker has been a business agent with Local 25 since 2003, and before that, he was a local organizer for two years.

“Zane has the ideal background for Michigan Building Trades President, and  I know he’ll do a great job,” said Michigan Building Trades Secretary-Treasurer Patrick Devlin.  “At the same time, we’re really going to miss Shorty’s knowledge and experience.

Ouch – big hurt put on construction wages

Construction industry wage and benefit settlements have taken a big fall so far in 2010, reports the Construction Labor Research Council. Average first year contract increases in the U.S. were 55 cents, or 1.1 percent through June.

That modest increase was down from an average of $1.49 or 3.1 percent reported for a comparable period a year ago. Percentage increases are also lower than a year ago for second and third years of contract settlements, but the drops aren’t as great.

“Small or no increases were widespread,” said the CLRC. “Almost a quarter of new agreements were freezes or reductions and about two-thirds were less than 2 percent. Similarly, about two-thirds of the first-year increases were less than one dollar. Almost all second and third-year increases were under 3 percent.”

However, the best news was in the East North Central Region, which includes Michigan. Average first-year settlements in our region were almost double the national average, at $1.11 or 2.0 percent. Even so, those numbers are more moderate than last year’s $1.69 or 3.1 percent increase.

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