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National LMCC - Memorandum From John Grau


December 8, 1995

  • To: All Inside Chapter Managers, President and Governors
  • From: John Grau, Executive Vice President
  • Re: Local NLMCC Language for Inside Agreements

As you know, now that the Board of Governors and the IBEW have adopted the National Labor Management Cooperation Committee, the NLMCC language has become mandatory and it must be placed in all chapter agreements upon renewal. The IBEW will be notifying all local unions to this effect.

Enclosed are two versions of the language for inside agreements. The first version contains the NLMCC language only; the second version contains the “local option” enabling language for a local LMCC. Whether you may choose to adopt a local LMCC or not, either language must be used verbatim.

We have been advised by legal counsel that timely notice must be given to all signatory contractors before the NLMCC language can be added to local agreements. To comply with this notice requirement, you must send a letter to each contractor who has signed a Letter of Assent A to your chapter agreement notifying it that the agreement is coming up for renegotiation and that you will be adding language for a National LMCC. The local union will be sending the same notification to ‘B’ letter signers. According to the attorneys, all signatories should receive the notice no later than two weeks prior to the time they would be permitted to terminate their letter of assent. Since ‘A’ letters of assent have a “notice of intent to terminate” window of 150 days, we suggest that you send the notice letters to arrive approximately 5 1/2 months before your agreement's anniversary date.

For example, if your agreement has an anniversary date of June 1, 1996, the 150-day-notice window extends back to January 2, 1996. To inform the contractor two weeks prior to this date means you should send the letter to be received by the contractor no later than December 19, 1995.

The attorneys have developed the following language to be used in the notice letter.

“You are advised that the (type of agreement) collective bargaining agreement between (the local NECA Chapter) and IBEW Local Union ____ expires on ____. The Chapter and the IBEW intend to add to this Agreement a provision for a National Labor-Management Cooperation Committee established pursuant to the Labor-Management Cooperation Act of 1978. The program will be funded by employers at the rate of one cent ($.01) for every manhour worked in all Agreements that you are assented to with this Chapter. The total maximum contribution for each employer shall be based on 150,000 manhours. Those assenting to the new Chapter Agreement will be bound to this provision as well as all other provisions in the new Agreement.”

We would recommend that the letter also contain information about other provisions of the agreement that may be up for negotiation.

(Please note that the 150,000 manhour limit applies per contractor location (local union area); that is, the NLMCC is payable on the first 150,000 manhours a contractor works in each local union area within a chapter's jurisdiction. For example, if a chapter maintains agreements with three local unions and a contractor has work in all three, the contractor will make NLMCC contributions on the first 150,000 manhours in each local union area (up to a maximum of 450,000 manhours).)

In the coming weeks we will be sending you information regarding the collection and administration of the NLMCC, including the processing of the Chapter's reimbursement.

If you have any questions regarding this notification letter, contact Geary Higgins.