GOVERNOR UNVEILS W.C. REFORM PROPOSAL (Go Top)

Adding fuel to the workers’ compensation reform vs. benefit increase debate, Governor Pataki has proposed his own reform package that would provide for a $100 benefit increase while enacting a series of reform measures he contends would cut employers’ costs by 15 percent.

Speaking at the Business Council’s annual Small Business Day on March 23^rd, the Governor outlined his plan to provide the first workers’ compensation benefit increase since 1992, and at the same time make changes in the system that would result in cost savings for employers. Noticeably absent from his remarks was any mention of a plan to reform Sections 240 & 241 of the Labor Law, something NESCA believes must be coupled with any action taken by the Legislature on workers’ compensation. The Governor’s proposed changes include:

· Increasing benefit levels by 25 percent. The maximum benefit would increase from $400 to $500 per week.

· Expanding the range of injuries for which benefit levels are scheduled in accordance with the severity of the disability. Currently, cases in which benefits are not scheduled account for 13.6 percent of claims but more than 76.6 percent of overall costs.

· Reducing the surcharges now imposed on employers’ premiums, called assessments, by adjusting the calculation used to determine assessments. Currently, assessments are based on 150 percent of the previous year’s disbursements from a special fund. The proposed change would lower that rate to 125 percent.

· Allowing employers and workers in unionized factories to negotiate benefits and case resolutions under the Alternate Dispute Resolution (ADR) program. This program allows employers and unions to include alternative administrative methods for providing comp benefits. It is currently available only to the unionized construction industry.

As previously reported in NESCA’s March 2004 Newsletter, organized labor has introduced its own bill that would dramatically raise benefit levels with no reforms.

ESSA W.C. SAFETY GROUP ISSUES 20% DIVIDEND (Go Top)

The Empire State Subcontractors Association (ESSA) Workers’ Compensation Safety Group 560 has announced the issuance of a 20% dividend to members of the safety group for the May 1, 2003 policy period. This marks the ninth consecutive dividend issued since the formation of the Safety Group in 1994.

The dividend was approved in conjunction with the May 1, 2004 group renewal, which is offering upfront discounts of 20%. These discounts are offered to all existing members as well as new potential members of the Safety Group. In addition, the ESSA Safety Group 560 has one of the strongest contingent balances among all of the construction safety groups in New York State.

The ESSA Safety Group is administered by Allied Safety Management, and the members of the group receive the services and representation they need to maximize cost savings with: experience modifications; construction credits; discounts; payroll classifications and audits; claims management; safety consultation and more! NESCA members who would like more information on the ESSA Safety Group should contact John Blackmore at Allied Safety Management - 516-733-9252.

NESCA Membership Meeting

May 13, 2004

Century House – 6:00 p.m.

6:00 Open Bar/Registration

6:30 Dinner: Filet Mignon

7:10 Business Announcements

7:30 Program: “Web-Based Estimating, Bidding & Project Management – The Future Has Arrived”

Speaker: Brendan Manning, General

Building Contractors of NYS, Inc.

Open Bar, Dinner, Tax & Gratuities - $35

PRESIDENT’S MESSAGE (Go Top)

On March 30^th, over 450 contractors and subcontractors from throughout New York State descended on Albany for Construction Industry Lobby Day, and paid visits to an estimated 150 senators and assemblymen in the process. Led by the NYS Builders Association, NESCA was one of several co-sponsoring contractor organizations, representing the commercial, residential and highway segments of the construction industry. The entire focus of Lobby Day was to gain support for reform of Sections 240 & 241 of the Labor Law. This onerous law is one of the primary reasons our liability insurance rates are so out of control here in New York. In my opinion, Lobby Day was very successful, not only in focusing considerable attention on this problem, but also in identifying those legislators who are with us and who are against us. One of the messages we delivered to lawmakers on March 30th is that they should not pass workers’ compensation benefit increases this year without including reform of 240 & 241 of the Labor Law. Thank you very much to those members who participated in Lobby Day. I encourage all members to get more involved in this issue. It is critical that we all do some follow-up work with our own legislators about Sections 240 & 241. Schedule a meeting with your senator and assemblyman in their home district offices and show them how skyrocketing liability rates have impacted your business. Bring your actual numbers, and let them see that this is a real and profound problem! Each and every year the Legislature passes a variety of bills that have a significant effect on our businesses. More often than not, it seems that legislative action, or inaction, ends up costing us a lot of money, and can even threaten the continued existence of our businesses. We all need to become more engaged and politically active! The survival of our businesses may depend on it!

Regarding several upcoming events and activities, NESCA has another good program in store for our May 13^th membership meeting at the Century House. Brendan Manning with the General Building Contractors of NYS will be on hand to discuss web-based estimating, bidding and project management systems. As more and more general contractors move in this direction, subcontractors and suppliers out of necessity will have to do likewise.

On Monday, June 14, 2004 NESCA and the General Building Contractors of NYS will hold our 9^th Annual Joint Mid-Hudson Golf Outing at Wiltwyck Golf Club in Kingston. All members are welcome at this event – not just members located in the Mid-Hudson region. If you do business in the Hudson Valley or just enjoy playing at a nice golf course, sign up! Over the last eight years, this tournament has grown into a very nice event, and the Wiltwyck golf course is fantastic! Registration information for this golf outing was recently mailed to all members.

Finally, please be on the lookout for information coming soon about NESCA’s 6^th Annual Day at Saratoga Race Course, which will be held on Thursday, July 29, 2004. We’ve reserved 225 spots in the Paddock Tent for the luncheon package. Reservations for this event will be taken on a first paid first served basis.

Jeffrey B. Senft, President

DISMISSED EMPLOYEE NOT PROTECTED BY FIRST AMENDMENT (Go Top)

On March 19, 2004, the United States Court of Appeals from the Second Circuit decided the Kwardua Vanderpuye v. Cohen, et al. case. Plaintiff, a governmental employee was terminated from her employment for speaking to co-workers about Defendant Louise Cohen’s potential conflict of interest in evaluating bids for municipal contracts. Ms. Cohen was a former employee of the subcontractor that was included on a bid that Cohen was to evaluate.

The plaintiff claimed that her discussions with the various co-workers about defendant Cohen regarding Cohen’s potential conflict of interest in the bidding process for municipal contract were protected by the First Amendment right of free speech and that the speech impermissibly played a substantial role in the employer’s decision to terminate the plaintiff. The United States Court of Appeals from the Second Circuit held that a government employer may justify its actions if i) the employers prediction of the disruption that such speech will cause is reasonable; ii) the potential for disruption outweighs the value of the speech; and iii) the employer took the adverse employment action not in retaliation for the employee’s speech, but because of the potential for disruption.

The Court concluded that under the circumstances, even assuming that the plaintiff’s speech was the motivating factor in her termination, that defendant’s prediction that plaintiff’s speech would cause disruption was reasonable and that the potential for disruption outweighed the value of plaintiff’s First Amendment rights. The Court also noted that the bidder which with Cohen had a potential conflict was not awarded a municipal contract.

Terence J. Burke, Esq., NESCA Legal Counsel

MONEY TALKS – LOBBYING LIST HIGHLIGHTS TOP SPENDERS (Go Top)

Four of the top five spenders on lobbying in New York State in 2003 were unions whose work is funded wholly or substantially by taxpayer dollars, new data from the New York State Temporary Commission on Lobbying show. Two other top-10 spenders were hospital interests, which in New York also receive substantial funding from New York State taxpayers. The unions spent millions to influence state spending for the education, health-care and other sectors that employ their workers.

The top 10 spenders on lobbying in 2003 were:

· 1199/SEIU & Healthcare Educ. Proj. ($11,067,696)

· NYS United Teachers ($2,292,528)

· Seneca Nation of Indians ($1,993,207)

· Public Employees Federation ($1,560,792)

· Civil Service Employees Association ($1,489,038)

· Healthcare Association of NYS ($1,244,083)

· Medical Society of the State of NY ($1,231,880)

· United Federation of Teachers ($1,009,748)

· Trial Lawyers Association ($1,009,116)

· Greater NY Hospital Association ($972,052)

The amounts shown above do not even include the substantial political contributions made to candidates by these organizations, several which made over a million dollars in total contributions in 2003. For purposes of comparison, NESCA’s state affiliate, the Empire State Subcontractors Association, spent roughly $30,000 to lobby in 2003, and made an additional $5,000 in political contributions.

ANOTHER STUDY, SAME RESULT: NY HAS HIGHEST TAX BURDEN (Go Top)

New York State continues to suffer from the highest state and local tax burden in the nation, according to a new report from the Tax Foundation. The new analysis echoes research by The Business Council’s research affiliate, The Public Policy Institute, and many others.

For the 14^th consecutive year, New York’s state and local tax burden, when measured as a percentage of income, stands at 12.9 percent – highest in the nation and well above the national average of 10 percent. The report, which measured state and local tax burdens in all 50 states, also found that when federal income taxes are added to the equation, the state’s tax burden jumps to 32.5 percent of income, 17 percent higher than the national average of 27.8 percent of income.

The report also found that New York’s tax burden as a percent of income is 48 percent and 39 percent higher than the two largest states, Texas and California, respectively. New York’s closest neighbors and competitors also fared much better. New Jersey’s tax burden is nearly 3 full points below New York at 10.1 percent. Pennsylvania and Massachusetts both have a 9.4 percent burden. Alaska was the most tax-friendly state with a 6.3 percent tax burden.

WELCOME NEW MEMBERS (Go Top)

C&C Specialties, Inc.

1 Pinnacle Place, Ste 201

Albany, NY 12203

(518) 446-0581; FAX (518) 446-9382

Contact: Clark Seeley

JJP Slipforming, Inc.

P.O. Box 979

Middleburgh, NY 12122

(518) 827-7447; FAX (518) 827-7418

Contact: Dale Shults

Noreaster Heating and Cooling, Inc.

P.O. Box 764

Catskill, NY 12414

(518) 678-3445; FAX (518) 678-3445

Contact: Carl Lundell

CALENDAR OF EVENTS (Go Top)

May 4, 2004

Binghamton Membership Meeting

Niko’s Char Pit, Binghamton, 8 am

May 4 & 11, 2004

NESCA/GBC/ECA Seminar

Defensive Driving Course

Building Industry Center, 6 pm

May 13, 2004

Board of Directors Meeting

Century House, Latham, 5 pm

May 13, 2004

NESCA Membership Meeting

Century House, Latham, 6 pm

June 3, 2004

Board of Directors Meeting

Century House, Latham, 6 pm

June 10, 2004

NESCA Membership Meeting

Century House, Latham, 6 pm

MEMBER PROFILE (Go Top)

VICTAULIC CO. OF AMERICA

Victaulic, headquartered in Easton, PA originated the groove piping system in 1925 to provide a fast and easy assembly for a wide range of applications. Victaulic is the world’s leading producer of mechanical pipe joining systems. The company has manufacturing and distribution facilities worldwide and employs approximately 3,000 people. Victaulic, in partnership with its subsidiaries, develops products for a full range of industrial, commercial, OEM and institutional piping systems. Victaulic was recognized as one of the “top 100 places to work in PA” for employers of 250 or more for the year 2000.

The CEO of Victaulic is John F. Maloy formally of North American HVAC, Carrier Corp’s largest business unit. Locally, the regional manager for New York and New England is Michael Belanger, western New York sales is Pat Crawford located in Buffalo, and eastern New York sales is Ben Lauletta located in Albany. The local distributors in eastern NY are Albany Windustrial and Newburgh Windustrial, both NESCA members, Niell Supply also a NESCA member, FW Webb and Ferguson Enterprises. They are distributors for both the hvac/plumbing and fire protection markets. RAMSCO is a distributor for the AWWA market.

Victaulic joined NESCA in 2003 and is also a member of ASPE and ASHRAE. Ben Lauletta has been affiliated with NESCA since 1992 and is now serving on the board as an alternate director representing the supplier membership.

Some of Victaulic’s recent projects include: 50 Wolf Road in Colonie; Queensbury Schools; Ulster County Law Enforcement Building; Delmar Assisted Living; Hudson River Psychiatric in Poughkeepsie; and GE R&D in Schenectady.

NESCA members who would like to be profiled in a future Newsletter should contact the NESCA Office.

MEMBER ANNIVERSARIES (Go Top)

In May, the following members have reached milestone anniversaries as members of NESCA.

Thank you very much for your continued support!

Five Years

Biondi Rigging, Inc.

P & D Electric, Inc.

Ten Years

Allied Safety Management, Inc.

Bilotta Home Center, Inc.

CNA Surety

Fifteen Years

Abele Tractor & Equipment Co., Inc

Versatile Office & Storage Rentals

Twenty Years

Dembo, Freedman & Shutt, P.C., CPA’s

R.M. Lill, Inc.

T & J Electrical Corp.

United Welding Supply Co., Inc.

Twenty-Five Years

AWESCO

Marvin & Co., P.C., CPA’s