GENERAL BUILDING LABORERS’ LOCAL UNION NO. 66
TARGET FUND
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement (“Agreement”) is made by and between the General Building Laborers’ Local Union No. 66 (“Local 66” or the “Union”), and the Contractors’ Association of Greater New York (“CAGNY” or the “Association”), collective referred to herein as the “Parties.”
WHEREAS, the Parties are signatories to a Collective Bargaining Agreement covering wages, hours and other terms and conditions of employment (the “CBA”); and
WHEREAS, the Parties recognize the increasing encroachment of the open shop on Long Island; and
WHEREAS, the Parties wish to establish a market recovery and job targeting program intended to maintain and, where possible, improve the Union’s share of private work covered by the CBA.
NOW, THEREFORE, the Parties agree as follows:
1. Establishment. The Union shall establish the Local 66 Target Fund (the “Fund”) as a
market recovery and job targeting program intended to keep Union members working,
preserve benefit contributions, support CAGNY signatory contractors competing against
non-union competition, and strengthen the Union’s presence in the covered market.
2. Limitation. The Fund shall be used only for private work within the Union’s jurisdiction
that is covered by the CBA. The Fund shall not be used for public work, for any project
subject to prevailing wage laws, or for any project outside the scope of the CBA.
3. Union Control. The Fund shall be funded solely through a dedicated member assessment
(“Assessment”) approved in accordance with applicable law, the Union’s Constitution and
Bylaws, and any applicable International Union requirements. No employer, contractor,
employer association, contractor association, management representative, or
management-controlled entity shall contribute to, control, direct, approve, veto, or
participate in the disbursement of Fund assets.
4. Modification. The Assessment shall be adopted and modified only in accordance with the
Union Constitution and Bylaws, any applicable International Union requirements, and
applicable law governing dues, fees, and assessments.
5. No Employer Funding. Employer transmission of payroll-deducted member assessments
shall not be treated as employer funding or employer control. The Union shall not accept
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employer contributions, contractor contributions, contractor-association contributions, or
management-controlled contributions into the Fund.
6. Maintenance. The Fund shall be maintained as a segregated account within the Union’s
general treasury with separate ledger accounting, bank-account tracking, records, and
reports. Contractors shall have no ownership, beneficial interest, lien, claim, or property
interest in Fund assets.
7. Permitted Uses. Fund assets may be used for approved contractor Fund assistance,
reasonable administrative expenses, accounting, audit, legal review, market research, and
other expenses directly related to the maintenance of the Fund. Contractor Fund Assistance
shall be limited to the payment of benefit fund contributions incurred for work performed
on an approved project.
8. Eligibility. Project eligibility shall be limited to private work covered by the CBA subject
to the following:
• The project must be within the Union’s jurisdiction;
• The project must not be public work or subject to prevailing wage laws;
• The contractor must be signatory to the CBA or else execute the CBA before final
approval;
• The contractor must be current on fringe benefit contributions and any related fines
or fees, assessments, remittance reports and any other required reporting;
• The contractor must disclose known competing bidders and credible non-union
competition or other market-share justification;
• The contractor must certify no double-breasting or alter-ego arrangement that
undermines the CBA; and
• The contractor must agree to all reporting, verification, and audit requirements.
9. Targeting Factors. The Union shall have the exclusive authority to determine whether or
not Fund assistance is warranted on any given project, and the amount of Fund assistance
available. The Union may base its decision on any one or more of the following nonexhaustive factors:
• Expected Union man-hours and benefit contributions;
• Whether the job would likely be lost to non-union competition without assistance;
• Strategic owner, developer, general contractor, site, geographic area, or market
segment;
• Opportunity to preserve or expand recurring work;
• Availability of qualified journeypersons and/or apprentices;
• Relationship to organizing strategy;
• Contractor history of compliance, quality, safety, and reporting; and
• Fund balance, pending commitments, and need to distribute targeting resources
fairly.
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10. Application and Approval Process.
1) Initial Request. A Contractor shall submit to the Union a Job Targeting Request
with project, bid, competitor, man-hour, and schedule information.
2) Eligibility Screen. The Union shall confirm that the work is covered under the
CBA and the scope, private and prevailing wage coverage status, jurisdiction,
signatory status and the contractor’s fringe benefit contribution compliance.
3) Pre-Bid Notification. If preliminarily approved, the Union shall provide CAGNY
with a pre-bid allocation notice stating the potential per-hour assistance and
maximum cap available on the project, subject to award, final documentation, and
Union confirmation. CAGNY shall provide this notice to all of its members,
simultaneously.
4) Post-Award Review. If a CAGNY contractor is awarded the job, that contractor
must provide bid-award information, executed MOU, CBA if required, updated
hours, and any requested documentation to the Union for a post-award review.
5) Final Confirmation. After its review, the Union shall issue a written post-award
funding confirmation to the winning CAGNY contractor. No funding is final until
written confirmation is issued by Union.
6) Contribution Supplement. So long as the contractor keeps current on its portion
of owed contributions on the project, and keeps current on all other Local 66 Trust
Fund contributions incurred, the Fund shall cover all remaining Local 66 Trust
Fund contributions owed on the project pursuant to the terms of the post-award
funding confirmation.
7) Payment Review. Upon completion of the job, the contractor shall submit verified
man-hour reports and payment requests to the Union. The Union shall verify
eligibility, hours, and fringe benefit contribution status.
11. Discretion. The Union shall have full discretion over all Fund determinations. No
contractor, employer, member, applicant, or project owner has a vested right, entitlement,
property interest, or expectation of Fund assistance. All approvals are discretionary,
project-specific, and subject to Fund rules, available assets, and final approval by Local 66.
The Union, however, shall not discriminate against nor favor any eligible employer, and
all eligible employers shall have a fair and equal opportunity to receive Fund assistance.
12. Assistance Structure. Fund Assistance shall be calculated based on verified Local 66
member hours worked on the approved project, multiplied by the approved per-hour
assistance rate, subject to the approved project cap. The approved cap shall not be exceeded
unless the Union issues a written amendment approved in accordance with the Fund’s
procedures. No oral representation may increase the cap.
13. No Wage Reduction. Fund Assistance shall not be used to reduce, defer, waive, rebate, or
alter required wages, dues, assessments, statutory pay, or fringe benefit obligations under
the CBA or applicable law.
14. Contractor Requirements. To establish and/or maintain eligibility for Fund Assistance.
CAGNY contractors must:
• Remain current on all fringe benefit contributions, remittance reports,
assessments, and reporting obligations;
o Submit verified man-hour reports signed by the contractor representative and
Local 66 steward/foreman or other Union-designated verifier;
o Notify the Union immediately of any project completion, delay, cancellation,
scope change, ownership change, award change, change order affecting covered
work, or use of non-union subcontractors on covered work;
e Retain payroll, remittance, certified project, and job records for at least six years
or longer if required by law or dispute;
® Permit Union to audit or verify records relevant to Fund Assistance;
o Agree that disputes over covered hours, reporting, or Agreement or CBA
compliance may be referred to the grievance/arbitration procedure under the
CBA.
15. Effective Date. The Union shall notify CAGNY of the effective date upon which it will
begin considering applications for Fund assistance. The effective date shall be within the
sole discretion of the Union and based upon, among other things, the Fund amounts and
reserves on hand and the development of systems and protocols to identify Fund assistanceeligible projects, to review and approve applications, and to provide payment for Fund
assistance.
16. Amendment and Termination. The Union may amend or terminate the Fund, subject to
applicable approval requirements. No amendment or termination shall create a contractor’s
entitlement to future assistance. Upon termination, remaining assets shall be applied to
outstanding approved obligations and then used for lawful Union purposes consistent with
the assessment authorization, unless counsel directs otherwise.
GENERAL BUILDING LABORERS’ CONTRACTORS’ ASSOCIATION
OF GREATER NEW YORK
By:
Aislinn S. McGuire
Managing Director
Date: J f