The Gilbert Agreement and the MWA Arbitration Ruling = Pay-Cuts!

CONFIRMED - PAY-CUTS to ALL Shop and Carpenter Installers!

This just in, members are reporting...THATAll Manufacturing Woodworkers Association (MWA) signatory contractors have cut the benefit rate of shop employees, and outside installers, to $10.94.

Benefit Rate Per Hour.

Companies like, RIMI, Nordic, EMI, Miller-Blaker, Midhattan, Tobin Woodworking, Somerville, among others, have cut the benefit contribution rate for shop workers from the current $18.07 per hour and outside Carpenter installers, from the current $38.88 per hour to $10.94 per hour!

On May 13th, we reported the Manufacturing Woodworking Association (MWA) won in arbitration a lawsuit it brought against the District Council, having to do with a sweetheart deal made in 2009 by Dennis Sheils, (former disgraced Vice President of the corrupt Forde administration) with Gilbert Displays, an out-of-Association contractor.

For those of you who aren't up to speed, this means that all Carpenters installing millwork for the MWA, will now be paid $27.94 dollars less in benefits than doing the same work under other contracts, like the Wall-Ceiling, or BCA.

We are told the Contribution Break Down is as follows:

• Pension Fund: $2.50 per hour, up to 40 hours. 
• Hollow Metal Welfare Fund: $5.70 per hour, up to 40 hours. 
• Vacation Fund: $2.61 per hour, up to 40 hours. 
• Supplemental Fund $.04 per hour, up to 40 hours. 
• Custom Woodworking Industry Fund: $.01 per hour, up to 40 hours.
• Labor Management Fund $.08 per hour, up to 40 hours. 
• NO ANNUITY. 

Total employer contribution: $10.94 per hour, up to 40 hours.

(Note: under Hollow Metal, $26,000 medical expense cap, 1200 hours required before coverage eligibility may be established, hours are non transferable between Hollow Metal & District Council Welfare Funds.)

On June 4, Review Officer Dennis Walsh, included the Gilbert Agreement and the MWA Arbitration Ruling in his Fourth Interim Report.

Excerpts from the Report:

"Though not vested by the former District Council Bylaws with authority to do so, in August 2009, then District Council Vice President Denis Sheil entered into an agreement on behalf of the District Council with a company called Gilbert Displays (active in the trade show industry), which set its wage and benefit package at a rate lower than that in the agreement for the Manufacturing Woodworkers Association (the MWA). When the MWA found out about the deal, it claimed that it should have received the same terms pursuant to the “most favored nations clause” in its CBA. The MWA filed an arbitration claim and, in May of this year, an arbitrator agreed with the MWA’s position that it should have received the Gilbert rate from August 1, 2009, forward." See Exhibit below.

"The MWA has now not only claimed that it is entitled to a refund of contributions paid to the Benefit Funds, but has asserted it should only pay the lower, Gilbert rate going forward (a position which the Funds has rejected through a letter sent by counsel to counsel for the MWA)."

"There have been various claims and estimates of the damages in question – some which run into the millions of dollars -- but no ruling as to the precise amount in question has been issued (and will likely require further litigation)."

"I do not believe that the Gilbert deal caused more than nominal actual damages to any MWA company, as Gilbert was active principally in the trade-show industry, which has not traditionally been thought of as a competitor to MWA members."

"I have recommended to the District Council that its counsel explore legal remedies against any and all former District Council officials and any professionals who advised them with regard to the Gilbert contract. The District Council is also exploring its options with regard to an insurance claim."


Footnote: The District Council has searched for a written delegation of authority by the delegate body or executive committee and found none.

(John's note: As usual the District Council has not communicated a signal word to the membership regarding this mattter).

Arbitration Between MWA & NYCDC