Return on Investment

Brothers and Sisters,

I hope this article finds you and your family doing well.  Work is starting to pick up and the out of work list is starting to empty. I would like to take the time to talk about Market Recovery and how it is an investment in gaining work hours. We all know that fund health and welfare, pensions, annuities, pays dues, helps fund the apprenticeship program and get us closer to retirement. District Council 16 has a power point that explains how Market Recovery works and what value it has to the members. Market Recovery will help us gain more market share, bring in more jobs, contractors, and members. I want to give you an example of a project that was funded by Market Recovery, this project is from 2021:

            Total man hours funded 20,500

            Funded at $7.36 per man hour X 20,500 = $150,880.00

Will the investment of $150,880.00 here is what we got in return:

            Pension contributions                        $150,880.00

            Health and Welfare contributions       $171,380.00   

            JATC contributions                              $11,275.00

            Market Recovery contributions          $23,575.00

            Wages                                                 $846,855.00

                                                                  Total $1,203,965.00

If you subtract the initial investment of $150,880.00 from the total $1,203,965.00, that is a return of $1,053,085.00. Now that’s a return on your investment. Currently the Painters of Local 487 have allocated $1.25 to Market Recovery per hour (it’s listed as “Wage Equality” on the wage schedule) with a new contract on the way we need to make sure we invest in ourselves. Drywall Finishers are currently allocating $.75 and have been using the program more and more. We will let you know when we have our presentation of Market Recovery in the Sacramento area.  I hope to see you at the next union meeting. As always, I can be reached at (916)696-1106.

Fraternally,

William Gonzalez