Union Celebrates 95 Year History

Written by Local 793 Staff

Local 793 has bounced back from some tough times over the years, thanks in large part to the members, but it is stronger for it and looking towards a bright future, business manager Mike Gallagher told a 95th anniversary dinner dance held at the Royal York Hotel in Toronto on Dec. 6. [vsw id=”80EXliMzSak” source=”youtube” width=”640″ height=”360″ autoplay=”no”] “When we took over in 1996, when you first elected our team, the local was $12 million in debt, we had $200,000 in the bank, and just prior to supervision we couldn’t […]

Local 793 has bounced back from some tough times over the years, thanks in large part to the members, but it is stronger for it and looking towards a bright future, business manager Mike Gallagher told a 95th anniversary dinner dance held at the Royal York Hotel in Toronto on Dec. 6.

[vsw id=”80EXliMzSak” source=”youtube” width=”640″ height=”360″ autoplay=”no”]

“When we took over in 1996, when you first elected our team, the local was $12 million in debt, we had $200,000 in the bank, and just prior to supervision we couldn’t meet the payroll for staff.”

Today, he said, the union has a pension plan with around $2-billion in assets, $70 million in members’ equity, and a staff of 140 serving members across the province.

“That’s where we are now,” he said to applause from the audience of nearly 1,000 people.

Gallagher noted that he and his team were only able to do that with the help of all the members.

“I couldn’t have gotten here without the support of the people here in this room and the members. I really appreciate all the members who have supported me and my team to help us rebuild and then build this local into the great local that it is.”

In terms of the future, Gallagher said the picture looks bright.

He noted the province has announced it is committing $130 billion to infrastructure projects, and more jobs will be created if the Energy East Pipeline goes ahead.

In the years ahead, Gallagher said the officers and the executive of the union will continue to improve the local.

“In terms of Local 793 and the future, we’re not done yet. I can assure you of that. As long as we have breath in our bodies we are going to fight and build this tremendous organization so it doesn’t stop at 95 years or 100 years.

“We’re going to keep on building our organization and organizing our market, making jobs safer, building up our training and continuing to build this great organization. I can promise you that.”

IUOE general president James T. Callahan told the audience that Operating Engineers have been involved in building numerous projects across the province.

“As you all know, there’s not one roadway or building or dam or bridge that, when you travel around this great province, Local 793 hasn’t touched.”

Callahan congratulated members of Local 793 on the 95th anniversary, saying it’s an example for other locals to follow.

“Your determination over the years has been an example to trade unionists around North America and it’s an honour to walk with you.”

Callahan said he’s traveled extensively across Canada and has found that Canadians are loyal to their country — and to their unions.

He said it was fitting that the local held a special ceremony earlier in the day to honour long-service members because they’re the ones who built the union.

Callahan also noted that Local 793 business manager Gallagher, who is an IUOE VP, works tirelessly on behalf of Canadian locals.

“As a VP, he’s a voice with (IUOE Canadian regional director) Lionel (Railton) and all the other Canadian business managers. They come down and they fight for their people.”

The general president said Operating Engineers are now 382,000 strong in the U.S. and Canada and he doesn’t see a border when it comes to the union.

The IUOE is one organization, he said, because anything that goes on in Canada affects Operating Engineers in the U.S. as well.

Minister of Labour Kevin Flynn said in remarks that Local 793 is a classy organization that gives back to the community.

“In the Town of Oakville, you moved in a few years ago, you set up a beautiful headquarters there and the town has just grown to love this organization more and more every day.”

He said the training and work that the local has done in the community and internationally sets the union apart from other organizations.

Flynn also said that Local 793 business manager Gallagher and president Joe Redshaw have set a very high example for other labour organizations to follow.

“Any time people speak about the Operating Engineers to me as Minister of Labour, there’s a degree of reverence behind it. It doesn’t matter if there’s an argument taking place, or debate taking place perhaps around various issues, your organization and the people that lead your organization are respected in Oakville, they’re respected in Ontario amongst organized labour, but let me tell you they’re really respected at Queen’s Park amongst the members of the Wynne government.”

Flynn noted that he has been working with business manager Gallagher on mandatory training for drill rig operators, an issue that came to a head after the death of 24-year-old apprentice Kyle James Knox in a drill rig accident Oct. 11, 2011 at a Toronto construction site.

“Let me tell you, on the drill rig issue it’s been a little bit of a challenge, it’s been a little bit of a balance, but I’m proud to stand before you tonight and say it’s almost over the finish line.

“If you’re going to operate a piece of equipment like that you need training and the only place to get that from, and the proper place to get that training, I’ve found, is right here in the rooms of Local 793.”

Oakville Mayor Rob Burton congratulated the union on its 95 years.

“Oakville is very proud that Local 793 has chosen our community for its headquarters and training campus,” he said. “We have your leadership and your membershp to thank for the integrity of engineering that we enjoy in our daily lives and for the way you’ve given back to help build the broader community of Oakville.”

Business Manager Appointed to WSIB

Written by Local 793 Staff

Local 793 business manager Mike Gallagher has been chosen to serve as a public appointee on the Workplace Safety and Insurance Board (WSIB). The Standing Committee on Government Agencies of the Ontario Legislature voted on Gallagher’s appointment at a meeting March 25. He appeared before the committee and its chair, Lorenzo Berardinetti, to answer questions from all three political parties. Gallagher spoke for about 10 minutes then took questions from members of the committee. Afterwards, Rick Bartolucci, the Liberal MPP for Sudbury, moved concurrence on Gallagher’s appointment. Chair Berardinetti then asked […]

Local 793 business manager Mike Gallagher has been chosen to serve as a public appointee on the Workplace Safety and Insurance Board (WSIB).

The Standing Committee on Government Agencies of the Ontario Legislature voted on Gallagher’s appointment at a meeting March 25.

He appeared before the committee and its chair, Lorenzo Berardinetti, to answer questions from all three political parties.

Gallagher spoke for about 10 minutes then took questions from members of the committee. Afterwards, Rick Bartolucci, the Liberal MPP for Sudbury, moved concurrence on Gallagher’s appointment.

Chair Berardinetti then asked if there was any discussion. There was none and the motion carried.

Below is a transcript of the committee proceedings:

INTENDED APPOINTMENTS
MR. MICHAEL GALLAGHER

Review of intended appointment, selected by official opposition party: Michael Gallagher, intended appointee as member, Workplace Safety and Insurance Board.
The Chair (Mr. Lorenzo Berardinetti): Okay. We’re moving on now to the selection of the official opposition, Mr. Michael Gallagher. Mr. Gallagher, can you please come forward.
Miss Monique Taylor: See? Wasn’t that easy? Good morning, Mr. Gallagher. How are you?
Mr. Michael Gallagher: Good morning. Beautiful day.
The Chair (Mr. Lorenzo Berardinetti): All right. Mr. Gallagher, just to explain to you, you can speak as long as you want, up to—after 10 minutes, we rotate and the three parties can ask you questions. If you want to go forward, the Clerk will keep time, and you can speak for up to 10 minutes, so please go ahead. Any time that you speak will be subtracted from the government side. Please proceed, and good morning.
Mr. Michael Gallagher: Good morning, Chair Berardinetti, and members of the committee. Thank you very much for the opportunity to appear before you. It’s a great privilege to be here before you to speak to my intended appointment to the WSIB. I’m not concerned about the delay, as I understand that the business of the government is very important and I respect the process that you have to undertake to do the government’s business.
I would like to explain as briefly as possible—because you have, I believe, my CV in front of you—to give you as much time for questions as possible, why I’m qualified to serve on the board of the WSIB.
I have been a labour leader in the Ontario construction industry for 18 years. I’ve been elected five consecutive times to the top position of my organization. Operating Engineers Local 793 is a provincial organization but also encompasses parts of Nunavut.
I sit on three boards of the union. We have a $1.8-billion pension fund and we also manage a training trust fund and a health and welfare fund. Those are all jointly trusteed with management and labour, and I understand the requirements of working on a trust and the fiduciary responsibility that’s involved when managing the money of our members who contribute. I believe that my experience on these boards certainly will help me with respect to the contribution that I would like to be able to make to the WSIB.
I understand that the board of the WSIB has quite a challenge before it with respect to the unfunded liability, which I believe was at about 50% with respect to that fund, although there has been some progress made by the board, and I commend the chair, Elizabeth Witmer, for spearheading that change. I understand that the unfunded liability was reduced by $2 billion, from $12 billion to $10 billion, in just over a year. I think that good work needs to be continued, although there are a number of challenges that are before it.
When I was first elected to the manager of the operating engineers, I had been the labour relations manager for the local for a number of years. I first started working for the union in 1987 as a business agent, for which I travelled all over the province representing members. I was selected within my organization and promoted to the position of labour relations manager.
In about the mid-1990s, our local had run into some financial difficulties because of the economy of the time and we entered into a period of international supervision, following which I was elected as the business manager, following supervision.
I understand the challenges of an organization that is in financially difficult times. I was able to manage our organization over the next 18 years, to oversee its growth almost double the members we had when I was taking over. We currently have 13,000 members out there.
I also understood the challenges that face trustees with respect to pension funds. As we all know, in 2001 and 2008, pension funds right across North America became quite challenged, including our own, because of the turmoil in the markets. Despite that, we’ve been able to manage the liabilities on that plan so that we have not had to reduce the benefits that are paid out to the members and reduce the solvency issue with respect to that plan.
Last year, in 2013, I received the great honour of being awarded the Roy A. Phinnemore Award, which is the highest award given in the construction industry for health and safety. I know there were probably many others who could and should have been recognized as well, but I found it to be a great privilege to receive that honour.
I have always worked very hard on behalf of the members on issues of health and safety, and the construction industry is one area where we have to be particularly attuned to the challenges that that sector provides.
I believe that my experience in construction—I do not believe that there is anybody on the board right now representing labour who can speak to the specific challenges that exist within the construction industry because of the high mobility and seasonal nature of the work. So I believe that I will be able to bring that perspective as an individual who started work in construction when I was 16 years old, working in the utilities sector, moving on to the heavy road and sewer and water main construction. I have worked right across this country, including building highways in Alberta in camp jobs. I do know what takes place in the construction industry, and I know the risks that are involved with respect to workers.
I’m encouraged by the current enthusiasm or determination of the chair of the board on the issue of prevention. Most recently, Elizabeth Witmer, chair of the board, appeared at the IHSA, which is the successor to the Construction Safety Association of Ontario, a body that I was chair of for one year in 1994-95. I found it quite interesting that when Elizabeth Witmer appeared before the IHSA to the construction industry, she talked about youth at risk and initiatives that are taking place on prevention and working with the chief prevention officer, George Gritziotis, to reduce accidents in the first place so that they don’t come before the board, and I certainly would be in a position to support that.
With our own organization, the operating engineers, we became a compulsory trade in 1978. In fact, we were the last compulsory trade to be declared under a Conservative Bill Davis government. The minister of training at that time was Bette Stephenson, I believe—and education. That decision was very, very wise because we are now world leaders in Ontario in terms of training heavy equipment and crane operators.
We’re recognized around the world. It used to be that a crane-related death due to operator error happened every 11 weeks in the province of Ontario—
The Chair (Mr. Lorenzo Berardinetti): Mr. Gallagher, you have about a minute left.
Mr. Michael Gallagher: Yes—now, that has been reduced by about 80%. That’s because of investment in training. I believe that type of experience can be applied in other sectors of the construction industry.
I am running out of time and I don’t want to take away any time from the government or the members of this committee to afford themselves the opportunity to ask me any questions about my experience. So at this point, I’d like to wind up and afford the members of the committee the opportunity to question me on my qualifications.
The Chair (Mr. Lorenzo Berardinetti): Okay. Last time we did an appointment, the Conservatives went first, so the third party goes first for questioning—up to 10 minutes.
Miss Monique Taylor: Ten minutes?
The Chair (Mr. Lorenzo Berardinetti): You have up to 10 minutes. Yes, Miss Taylor.
Miss Monique Taylor: Thanks, Chair. Thanks, Mr. Gallagher, for being here with us today. Again, I apologize, but you know what? You were a really good strong-arm and helped us push that through. Thanks for sticking it out and for being here with us today.
I’m quite interested in the fact that you come from labour; you come from a unionized environment. You know the importance of WSIB coverage. In Mr. Arthurs’s report, it said that employers that are not covered are getting a free ride because they do not contribute to the health and safety functions of the WSIB and the ministry. What are your thoughts on that, on having a broad coverage of workers across the province paying into WSIB?
Mr. Michael Gallagher: I believe that’s the direction that the government has gone in with the WSIB, where the independent operators were recently included with the exception of home renovation, which I think was still excluded. But that, according to the numbers I heard from the paperwork that I had looked at from Elizabeth Witmer, has added 90,000 more covered individuals by covering the independent operators.
Personally, I think that that is a good move. I believe that the more people who are covered, the more affordable it is for all of the participants in the industry. I believe that was supported by the unionized construction industry as well. I think that’s moving in the right direction.
Miss Monique Taylor: Okay, so that’s the construction industry, but we still have so many sectors across this province that are not, to my knowledge, being covered. We’ve heard from developmental service workers who are not covered under WSIB, and they’re really at severe risk in different circumstances. What are your thoughts on that?
Mr. Michael Gallagher: Construction is my area of expertise. I can’t claim to understand the service industry. But if you follow the logic of it I believe what I’ve been saying is that the more coverage, the better.
There are always going to be circumstances where it’s inappropriate for somebody to be covered because they are perhaps a CEO of a company or are not at the same risk. But I do believe, generally speaking, that the more coverage there is, the better it is for the board and for all payers.
Miss Monique Taylor: I’m happy to hear you say that. I hope that you use your ability of sitting on this board to push that state forward.
I’m looking at the financial update that we received from research. It said that there was an operating surplus in 2011-12 because—the improved figures are due to the new medical strategy and return-to-work programs.
That, to me, is very troubling because I know in my constituency office back in Hamilton, I’m hearing from folks who should be getting WSIB and they were not getting WSIB because new overseeing doctors were speaking over what their family doctors had been saying for years. Now we’re finding that people are being cut off under different circumstances. They’re not getting the medications they used to get. They’re not getting the treatment they used to get. This is more injury to an injured worker. What are your thoughts on this?
Mr. Michael Gallagher: Well, again, speaking with regard to our own experience, my organization has a department that is well populated with staff to handle appeals and applications of members for WSIB. One of the biggest changes that has been made that I think is positive and that we support as an organization is the worker reintegration project, which is to assist workers to return to the workplace with their previous employer without a loss in any wages.
In construction, which I can speak best to, it has been a little bit of a challenge for us to get them back to their previous employer after the six-month mandatory period expires, so then we end up—there’s a lot of acronyms, it seems, in WSIB. We end up in the SO department, which is suitable other type of occupation.
I’m in favour of making sure there are no gaps and no workers end up not getting the coverage they should otherwise have, and also that careful calculations are made for widows, for example. After a worker has passed away, if there’s a recalculation that ends up having them lower the amount of money they receive, I think that’s very troubling, especially when you look at things like mesothelioma, an occupational disease which has a latency period of 20 years or more. That worker might have been actually working their last number of years when they were sick, so I think that has to be considered.
Miss Monique Taylor: On the return to work, do you think that the WSIB board should have the right to overrule a doctor’s—what’s the word?
Mr. Rosario Marchese: Assessment.
Miss Monique Taylor: Assessment. Thank you.
Mr. Michael Gallagher: I understand that, first off, it goes through the WSIAT, which is another panel that considers the appeals at some point. They must get the advice from their own doctor-practitioners and whatnot on any particular case.
I think the job of the board is to ensure that the system is well managed and that the coverage is complete for people who are injured or become sick.
Miss Monique Taylor: I’ll just say thank you for your time today. I appreciate the fact that you come from a union background and that you know the plight that injured workers in this province feel. I hope you will use that to the advantage of injured workers in this province because we know they’ve definitely been feeling the brunt of the misuse, I think, of WSIB funds, and that has put us in the deficit that they’re in. So thank you.
Mr. Michael Gallagher: Thank you very much. Should I be fortunate enough to receive the appointment, I will do my very best.
The Chair (Mr. Lorenzo Berardinetti): Thank you. Since you spoke for 10 minutes, the rotation will—that consumes the opportunity for the Liberals to ask questions, and we then move for 10 minutes.
Mr. Rick Bartolucci: The only thing we want to say is that we certainly support this appointment and we thank you for your years of experience that you’re bringing to the WSIB, especially so that it’s going to reflect the unique challenges of the construction industry. If the appointment goes through, we just want to say thank you for the effort you’ll expel.
Mr. Michael Gallagher: Thank you.
The Chair (Mr. Lorenzo Berardinetti): Thank you very much. We’ll move to the official opposition: Mr. Yurek.
Mr. Jeff Yurek: Thank you, Chair. Thanks, Mr. Gallagher, for coming out today. Just a few questions to ask.
It’s obvious that we’re not on the same page with regard to WSIB and Bill 119, which causes the independent contractors and owners to pay into the WSIB. We’re not on the same page, and now these employer groups or the owners themselves no longer have the option of going to their own private insurance to get better coverage than they do with the WSIB.
I just want to know how you’re going to make sure that the WSIB becomes a place where people who are entitled to benefits do get a fair and transparent process and it’s quick and very effective. How are you going to deal with that now that we have people on WSIB who really have no choice but to be there?
Mr. Michael Gallagher: Well, should I be appointed to the board, I’ll be one board member bringing my own experience to bear, through all my adult life in the construction industry. The board obviously has some challenges before it. One of the biggest challenges is the unfunded liability, I think, which is at 50%, but they have reduced it by $2 billion in the last couple of years.
I know that the construction industry anyway, and COCA, for example, had taken the position, I believe, that they were expecting a larger increase to the rate premiums than what actually occurred. The rate increases were, I think, 2.5% and 2% in 2011-12, 2012-13, and then in 2014 there was a rate freeze, I believe.
I would be working with the committee to find the solutions to deal with the unfunded liability, but at the same time to make sure—I think everybody is on the same page with wanting to make sure that the compensation system survives.
In the Harry Arthurs report, he had mentioned that at 50% funded, it was at a tipping point, in terms of the compensation system, so I don’t think there’s anyone who wants that tipping point to go the wrong way. So they have to continue the work laid out in the Harry Arthurs report, and I believe there was another report, the Douglas Stanley report, that came up afterwards, and it really talked about that the rate system itself has to be looked at. There are 156 rate groups, and perhaps there are too many.
In the last 15 years, coming out of the Harry Arthurs report, it said that there was $2.5 billion—so going back to around 1995—that was given back in rebates to employers, versus surcharges. I don’t think that that’s really appropriate at a time when there’s an unfunded liability, so I think that whole issue of the rate groupings has to be looked at.
Even speaking from the employers’ side that I’ve talked to, what they want is certainty. In the construction industry, for example, when you’re bidding on a job, you need to know exactly what it is that you have to pay the workers, what all your costs are and everything else, when you’re putting in a bid on the job. It’s not helpful to know that you might have a rate swing of 35% between a surcharge or a rebate. So I believe that there is some work that still needs to be done there.
Mr. Jeff Yurek: Further to your response to the third party with regard to mandatory WSIB coverage for, basically, owners and independent contractors, are you in favour of expanding that outside of the construction industry into other industries throughout the province?
Mr. Michael Gallagher: I would have to really say that that’s not my area of expertise and that I would have to go with an open mind. But, having said that, in the construction industry—I was on the board of the Ontario Construction Secretariat, and we found that the underground economy was about $2 billion a year in the residential sector, and I think they have somewhat left that, even with some of the changes, by leaving home renovation excluded. And now you have also, I think they call them temporary employment agencies which are out there. They’re sometimes given more at-risk types of work, it came out in the report. So I don’t think we want to off-load those employer responsibilities.
It’s something I think I would have to keep an open mind about and get up to speed on and understand a little bit better when it’s outside of construction.
Mr. Jeff Yurek: Okay. You’re talking about home renovation, but I’m talking about your average pharmacy owner, your mom-and-pop convenience store owner. Are you for expanding it into that type of operation, the small business of Ontario?
Mr. Michael Gallagher: I understand what you’re saying, but personally I believe that the more payers there are, the better it is for everybody who is part of the system. Otherwise, the burden is unfairly put on one sector, one industry or one group of people. So if there is a cost that happens, there has to be some coverage for people if they do get injured or something happens to them so that they’re not free riders.
Mr. Jeff Yurek: However, if they’re not paying into the system, they can’t get access to WSIB; therefore, they wouldn’t be free riders. Right?
Mr. Michael Gallagher: Somebody is going to have to pay society in some way or another for the person who has become ill or sick or injured.
Mr. Jeff Yurek: Most people carry their own private insurance. They’re paying into a system where they wouldn’t be the free riders, because they would—
Mr. Michael Gallagher: I understand what you’re saying, but I also believe that the best system is the government system.
Mr. Jeff Yurek: Do you have any questions, Doug?
Mr. Douglas C. Holyday: How long do I have?
The Chair (Mr. Lorenzo Berardinetti): Right now you have about three minutes and 40 seconds.
Mr. Jeff Yurek: Doug will have it.
Mr. Douglas C. Holyday: I have a couple of questions. WSIB premiums are a significant component of the cost of labour, and bringing them down is an essential part of attracting jobs to Ontario. What priority level would you assign to premium reduction, among other policy objectives?
Mr. Michael Gallagher: I don’t believe that premium reduction can really occur until after the unfunded liability is dealt with completely. When you’re at 50% unfunded liability, it’s not appropriate, in my judgment, to be reducing premiums.
Speaking, again, about construction, right now we’re going through the most sustained period of economic activity and growth that we’ve had in a very long time: almost full employment with many, many trades. I believe that that would be the time to ensure the financial well-being and health of the WSIB. Naturally, though, we want to have a cost-effective system, so I don’t think that premiums should be increased gratuitously. They need to be maintained in order to keep the competitiveness of the employers out there bidding on work.
Mr. Douglas C. Holyday: Do you think that an educational component or some method of trying to reduce injuries in the workplace might lead to premium reduction and we might be able to actually meet a couple of goals?
Mr. Michael Gallagher: Thank you for your question. I do believe that the board is in the right direction with respect to that right now. They’ve already seen that some costs have initially been lowered as a result of work reintegration and returning workers to work as quickly as possible. I believe that prevention is another part of that. I feel very, very strongly about prevention and I think that training, in the experience we’ve had, is the best way to eliminate errors happening. In our trade, operator error was reduced by 80% by having compulsory certification and mandatory training.
My experience in construction is that young workers are the most vulnerable, because when they go out on the job, they’re most eager to please and they sometimes get themselves into trouble.
Mr. Douglas C. Holyday: Thank you very much. My last question: Since 2007, the local, of which you’ve been the business manager, has given in excess of $53,000 to either the Liberal party or Liberal leadership candidates. Can you verify that or is that inaccurate?
Mr. Michael Gallagher: It might be low. To be honest with you, we do participate in the political system, as employers do, and we always make sure that any donations that we make are within the provincial election rules. I wouldn’t desire to go over that.
Mr. Douglas C. Holyday: Thanks very much.
The Chair (Mr. Lorenzo Berardinetti): Thank you, Mr. Holyday. That now ends the time for questioning.
Mr. Gallagher, that concludes the time allocated for this interview. Thank you very much. You may step down.
Mr. Michael Gallagher: Thank you very much to all parties that questioned me as well.
The Chair (Mr. Lorenzo Berardinetti): We’ll now consider the concurrence for Michael Gallagher, nominated as member, Workplace Safety and Insurance Board. Will someone please move concurrence?
Mr. Rick Bartolucci: I move concurrence in the intended appointment of Michael Gallagher, nominated as member of the Workplace Safety and Insurance Board.
The Chair (Mr. Lorenzo Berardinetti): Thank you. Any discussion? None? All in favour? Opposed? The motion is carried.

Union Numbers Continue to Grow

Written by Local 793 Staff

Local 793 is in good shape and membership numbers continue to grow, business manager Mike Gallagher told a general membership meeting in the union banquet hall March 23. “We now have 12,539 initiated members and more than 900 waiting to be processed,” he told nearly 200 union members at the meeting. By the end of the year, he noted, the union will have more than 13,000 initiated members. “This really shows our strength as an organization.” Gallagher said the growth is a tribute to the organizers who work so hard […]

Local 793 is in good shape and membership numbers continue to grow, business manager Mike Gallagher told a general membership meeting in the union banquet hall March 23.
“We now have 12,539 initiated members and more than 900 waiting to be processed,” he told nearly 200 union members at the meeting.
By the end of the year, he noted, the union will have more than 13,000 initiated members.
“This really shows our strength as an organization.”
Gallagher said the growth is a tribute to the organizers who work so hard and are often put in difficult situations when trying to bring new companies into the fold.
“They are doing their job and we are adding members, so that’s a good thing.”
Gallagher noted that hours worked by members is also up, and members’ equity is $68 million, up from $2.5 million when he was first elected in 1996.
The defence fund, meanwhile, is at $4.6 million, he said, 9.2 per cent higher than the previous year.
He also reported that the pension and life and health benefits plan are also healthy.
The ‘solvency’ windup situation has improved to $864 million and the ‘going concern” shortfall is now at $103 million, an improvement from $192 million at December 2012, he said.
“Obviously, we’ve had a very good year with the pension.”
Gallagher said the life and health benefits plan is also faring well and trustees recently announced a number of improvements, including a new Member Assistance Plan, that were announced in the 793 Operator magazine and have been posted on the union website.
Gallagher addressed a number of other topics at the meeting as well.
For example:
On recent bylaw changes approved by union members, Gallagher said they will ensure the local remains healthy in future.
One big change, he said, is that members would be disqualified from serving as an officer or on the executive board if they’ve been convicted of certain serious violent crimes and a record suspension has not been obtained.
Another change makes it an offence for any member or officer to publish via social media or online slanderous or libelous material against other members of the local.
Gallagher said people who represent a multi-million-dollar organization like the Operating Engineers should have a clean record.
“I’ve always believed that being a member of the Operating Engineers is a privilege,” he said, adding that when members join a union they also make a pledge as to how they’re going to treat each other.
With the advent of social media, Gallagher said it’s easier for people to express opinions on the Internet for everybody to see.
However, he advised members to be careful what they post because it could provide fodder for non-union groups and political parties.
On jurisdictional disputes (JDs), he said the union is presently embroiled in 14 JDs involving five trades, and the labour relations department is working to ensure Local 793 protects its jurisdiction.
Some contractors, he said, have opened up their books and are helping the union on the disputes.
On recruiting Aboriginals, Gallagher told the audience that the union has been working with companies like Aecon to get more people from First Nations communities into the trades.
“It’s the right thing for us and our contractors,” he said.
Presently, 10 Aboriginal communities in the Ring of Fire area are in the process of purchasing training from the Operating Engineers Training Institute of Ontario, he said, because they recognize the union offers the best training out there.
On communications, Gallagher told members that a new union website is nearing completion and, once finished, members will have greater access to information.
Once the website is finished, members will be able to see in real time what they’ve used in benefits and also pay their dues online at any time.
“Basically, we’ll have 24/7 coverage,” he said.
Also at the meeting, Gallagher and president Joe Redshaw presented a cheque to Local 793 operator Gerry Lukasiewicz of Sarnia who was injured in a construction site accident in 2012 and is now in a wheelchair.
A fundraiser was held for Gerry in Sarnia last December. The event raised $65,337 to help pay for the cost of a specially-equipped van for Gerry.
In presenting the cheque, Gallagher thanked Lukasiewicz for being such a strong member.
Lukasiewicz, meanwhile, thanked Gallagher and retired Southwestern Ontario area supervisor Bob McQueen and the union for the fundraiser.
“You can’t get a better union than this,” he said.

New Year’s Message from Business Manager Mike Gallagher

Written by Local 793 Staff

2013 was a prosperous year for Local 793 and I am looking forward to another good one in 2014. We are one of the fastest growing locals in North America with more than 13,000 members. The Operating Engineers Training Institute of Ontario (OETIO) campuses in Oakville and Morrisburg are at capacity, our finances are healthy, and our pension and life and health benefits plans are also in great shape. We started off the year on the right foot, successfully negotiating a new Provincial Collective Agreement that provided members a total […]

2013 was a prosperous year for Local 793 and I am looking forward to another good one in 2014.
We are one of the fastest growing locals in North America with more than 13,000 members. The Operating Engineers Training Institute of Ontario (OETIO) campuses in Oakville and Morrisburg are at capacity, our finances are healthy, and our pension and life and health benefits plans are also in great shape.
We started off the year on the right foot, successfully negotiating a new Provincial Collective Agreement that provided members a total monetary package increase of $3.95 an hour over three years and language aimed at improving protective equipment supplied to operators working in the concrete pumping sector. The settlement set the tone for other collective agreements negotiated throughout the year.
On the organizing front, we had a number of significant victories in 2013. We presently have eight organizers on staff and they were very busy throughout the year.
We successfully certified Chartrand Construction of Timmins and brought more than 200 new members into the union. We also certified Clarida Construction, a company in northern Ontario that builds wind and solar farms. This was a particularly important victory for us as CLAC was trying to organize the company’s workers at the same time. In the end, the workers chose to be represented by our union.
We also certified a number of other companies around the province in 2013, including Sartor and Susan Erosion Control in Vaughan, M. Fudda, a sewer and watermain company in the Barrie area, D. Crupi and Sons Ltd. in Scarborough, Jeff Parnell Contracting near Peterborough, Peter’s Excavating Inc. in Fort Erie, A-1 Asphalt in Hamilton, and Cleave Energy, a company in Picton that specializes in solar panel installations. Meanwhile, a number of other certification applications are pending at the Ontario Labour Relations Board (OLRB).
At the OLRB, we also successfully defended our jurisdiction in a dispute with Labourers’ Local 247 out of Kingston. We were assigned all of the equipment work on the site related to the preparation and installation of solar panel posts, however, the Labourers claimed the loading, unloading, handling and distribution of the foundation posts on site and the moving and pouring of concrete was their jurisdiction. The OLRB didn’t buy the argument and upheld the contractor’s assignment of work to Local 793 members.
In the summer, we conducted a membership survey to gauge how our union is doing and identify where we needed to make improvements. Improving business rep visibility was an action item and I recently hired five new business reps to better serve our members, along with a northern resource development rep to work out of the Barrie office.
In the survey, members also told us they wanted more information and communication on political and legislative issues and more online resources via our website. As a result, we introduced an electronic newsletter called Local 793 E-News. I encourage members to sign up for the newsletter by visiting our website and clicking on the red Members Login button at the top right and then following the directions.
We are also revamping our website to provide more online functionality and will be re-launching the site by spring. Members will be able to pay their dues online, check the status of their benefits, buy union apparel, as well as use the pension calculator to figure out different retirement scenarios.
The newly revamped website will also feature a political action tab that members will be able to click on to find out more information about political and legislative issues that affect them. Meanwhile, we are also embarking on a political action campaign against Bill C-377 and Right to Work. Hardhat stickers and leaflets are being distributed by business reps.
In 2013, we also made important inroads with First Nations communities in Ontario. IUOE Canadian regional director Jim Murphy and I will be meeting with the Assembly of First Nations to discuss training opportunities. Aecon chief operating officer Teri McKibbon and I agreed on a plan to get more Aboriginals working on projects in northern Ontario and our union also teamed up Gheztoojig Employment and Training to get more Aboriginals working on the expansion of Highway 69 near Sudbury. Meanwhile, we are running a series of articles in SAY Magazine in February that promote training at the OETIO.
On the training front, we remain at the forefront of training at the OETIO. We have pioneered new training courses in concrete pumping and drill rigs and we’re also changing with the times by offering e-learning courses online. We have spearheaded the development of mechanical and virtual reality simulators and developed a wind turbine erection scenario that uses two cranes. This past spring, we developed a drill rig simulator.
On the benefits front, trustees decided to make a number of improvements to our life and health benefits plan. The improvements come into effect Jan. 1, 2014. For more information, call Local 793’s pension and benefits office at 905-469-9299 or (toll free) 1-877-793-4863.
As of Jan. 1, 2014, Local 793 members will also have access to a Members Assistance Program (MAP) through Great West Life and Schepell.fgi. The MAP is a confidential and voluntary support service that can help members find solutions to all kinds of challenges at any age and stage of life.
The MAP offers assistance for stress, depression, anxiety, anger, crisis situations and life transitions. It also offers help for:

  • Managing relationships and family
  • Finding child and elder care resources
  • Getting legal advice
  • Getting financial advice
  • Dealing with workplace challenges
  • Tackling addictions
  • Improving nutrition

To find out more about the MAP, call 1-800-387-4765.
On the pension front, our plan is doing well and the fund’s investment managers are bringing in returns better than the market. The strong returns are due to a rebound in investment markets and healthy work levels.
Contributions to the plan are expected to be about $111 million in 2013, the highest amount ever.
Early unreduced retirement at age 60 will continue until at least Sept. 1, 2015.
Meanwhile, at our dinner dance in November, I presented a cheque for $104,114 to the University Health Network for research into esophageal cancer.
The funds were raised at the second annual Gary O’Neill Memorial Golf Tournament held this past summer.
Just before Christmas, I received notice that financial secretary John W. Anderson, our assistant business manager, would be leaving to take up a new position and challenge as an administrator at Global Benefits. I know it was a tough decision for John. He has been with our union for 28 years. I hate to lose him but this is a new challenge for him and I certainly wish him all the best.
I recruited John as a business rep years ago and appointed him as assistant business manager in 1996. He has certainly contributed to our success as a union.
John will be available to provide assistance to us for a transition period of several months. He takes up his new position full-time at the beginning of March.
John joins in a fine tradition at Local 793 where members like Jack Redshaw and Ernie Ford moved on to second careers and made us proud.
I announced John’s departure at a staff function in December. John told staff that it wasn’t an easy decision for him.
He said he never thought he’d end up as assistant business manager at our union and he thanked the many people who helped him along the way.
John had some very nice words to say about the union and myself, and I thank him for that.
As for the future, our union faces a number of challenges in 2014, namely the right-wing agenda being proposed by PC Leader Tim Hudak.
If Hudak gets his way, years of gains for workers would be scrapped and we would embrace right-to-work legislation that he’s proposing. He wants to get rid of the Rand formula, which requires all employees in a closed union shop to pay dues. The Rand formula promotes stability and ensures unions have the resources to negotiate on behalf of their members.
Such legislation would undo the gains that unions have made in securing wages, benefits and pensions.
Hudak must be stopped. With the possibility of a provincial election looming this spring, it is important for Local 793 members to be aware of what he is proposing. Don’t be fooled by the rhetoric. His plans would be devastating for Ontario and its unionized workers.
On a happier note, Local 793 will be celebrating its 95th anniversary in 2014. We are planning to hold a number of events in the various districts throughout the year. Information about these events will be posted on our website and in our magazines, so stay tuned.
Local 793 has always been a leader in the construction industry. We have grown over the years because of the strength of our membership and the vision of our leaders.
In 2014, I intend to make sure we continue that tradition. I am confident that our union will remain strong and continue to prosper – as we have done in the past.

Fraternally Yours,
Mike Gallagher
Business Manager
IUOE Local 793

Union Looking to Develop Partnership

Written by Local 793 Staff

The Operating Engineers are looking to develop a partnership with First Nations communities across Canada. IUOE Canadian director Jim Murphy and Local 793 business manager Mike Gallagher, who is president of the IUOE Canadian conference, will be meeting with the Assembly of First Nations (AFN) to discuss training opportunities. The two labour leaders will attempt to enter into a memorandum of understanding for a national strategy to deliver training to First Nations communities. Once a memorandum of understanding is signed, the IUOE will connect with the AFN Technical Working Group. […]

The Operating Engineers are looking to develop a partnership with First Nations communities across Canada.
IUOE Canadian director Jim Murphy and Local 793 business manager Mike Gallagher, who is president of the IUOE Canadian conference, will be meeting with the Assembly of First Nations (AFN) to discuss training opportunities.
The two labour leaders will attempt to enter into a memorandum of understanding for a national strategy to deliver training to First Nations communities. Once a memorandum of understanding is signed, the IUOE will connect with the AFN Technical Working Group.
A resolution on the matter was passed at the 55th IUOE Canadian conference held recently in Nanaimo, B.C.
Business manager Gallagher had spoken on the issue in a speech at the conference, indicating that the time is right for a national memorandum of understanding.
He said Aboriginals in Canada face challenges and unions need to be part of the solution.
“They’re not the only solution, in fairness, but they are definitely part of the solution if we engage them and can convince them that the union way is the way go to.”
He noted that Canada’s construction industry will need 221,000 workers between now and 2021, and 600,000 Aboriginal youth will be coming into the labour force by the same time.
According to the resolution, many Operating Engineers are reaching retirement age and there is a need to meet the increasing demand for heavy equipment and crane operators.
The resolution states that one option is to recruit, retain and advance new apprentices from First Nations communities, rather than bring in recruits via the temporary foreign worker recruitment process.

Unions Must Keep Fighting, Conference Told

Written by Local 793 Staff

Unions like the Operating Engineers built this country and we need to continue fighting for what we believe in, Local 793 business manager Mike Gallagher told delegates at the 55th IUOE Canadian conference in Nanaimo, B.C. “We have a responsibility in the labour movement to stand up, stop sitting on our heels and being complacent, and do what we did in the past – march on Ottawa or the provincial Legislature or whatever,” he said in a speech on the final day of the conference. Gallagher was critical of the […]

Unions like the Operating Engineers built this country and we need to continue fighting for what we believe in, Local 793 business manager Mike Gallagher told delegates at the 55th IUOE Canadian conference in Nanaimo, B.C.
“We have a responsibility in the labour movement to stand up, stop sitting on our heels and being complacent, and do what we did in the past – march on Ottawa or the provincial Legislature or whatever,” he said in a speech on the final day of the conference.
Gallagher was critical of the way some national labour leaders have handled relations with the federal Conservative government, saying they have a responsibility to stand up to governments.
He told the audience it might be time for the Operating Engineers to say, “If you’re not going to do the job properly, we’re not going to send you another dime of our members’ money while you waste it coddling a government that’s destroying our way of life.”
The audience reacted to his comments with a standing ovation.
Gallagher touched on a number of issues in his remarks, including right-to-work and the failure of the Temporary Foreign Worker Program (TFWP).
He said the TFWP is an “abomination” and “a complete failure” and a “failed policy position” because it ignores Aboriginal communities and young people.
“I’m not against immigration,” Gallagher told the audience. “I believe that we should be working with skilled workers who want to come in to this country, become Canadians and live in Canada, not those who take whatever scraps they’ve earned while they’ve been abused on some bridge or mine somewhere, then take it back to where they’re from.”
Unions have to stand up and object and get the government to start spending money on youth, Aboriginals and women, he said.
“Let’s have a policy for made-in-Canada, Canadians first, and cut the crap. We’ve had enough of corporations dishing out little scraps off their tables while creating more failures.
“We have to, in the labour movement and our union, wake up and get out front and say, ‘Enough is enough.’”
On right-to-work, Gallagher said Operating Engineers might be wise to take a page from what Local 18 did in Ohio to let people know that it’s not a workplace freedom act, but a workplace imprisonment act.
“What it is, it’s locking away workers from the rights to have a pension plan, a benefit plan and be represented without discrimination in the bargaining unit.”
Local 18, under business manager Patrick Sink, is, in fact, making progress by revealing the truth about right-to-work legislation.
The local has been aggressive in fighting against right-to-work legislation, running TV ads, and placing ads on billboards and issuing stickers for workers to wear on their hardhats.

Unions are Facing Threats: Gallagher

Written by Local 793 Staff

Local 793 members need to become better informed and more politically active in order to fend off the right-wing policies being proposed by the provincial and federal Conservatives, business manager Mike Gallagher told a general membership meeting Sept. 22. “We’ve got to get together to weather the storm that’s coming,” he said. “We need to reach out to people, even if they’re not part of a union, to realize the threat facing them.” Gallagher said both Prime Minister Stephen Harper and provincial Conservative Party leader Tim Hudak have got it […]

Local 793 members need to become better informed and more politically active in order to fend off the right-wing policies being proposed by the provincial and federal Conservatives, business manager Mike Gallagher told a general membership meeting Sept. 22.
“We’ve got to get together to weather the storm that’s coming,” he said. “We need to reach out to people, even if they’re not part of a union, to realize the threat facing them.”
Gallagher said both Prime Minister Stephen Harper and provincial Conservative Party leader Tim Hudak have got it wrong in trying to bring in right-to-work (RTW) legislation, and for proof one only has to look to the U.S. to see how such laws have impacted that country.
He said both the federal and provincial Conservatives have a knack of making their anti-union laws sound appealing and a good idea.
However, he said, RTW legislation would mean individuals could opt out of paying union dues and erode the ability of unions like the Operating Engineers to provide good pension and benefit plans.
It is “absolute fiction” that RTW legislation is about helping people, he said, noting they are really laws that have been given to politicians by corporations.
Gallagher said wages have decreased in U.S. states where RTW legislation has been introduced and, given time, it will destroy unions.
If Hudak has his way, Gallagher noted, he will turn Ontario into a RTW province.
“Nothing is more serious than Hudak winning an election,” he said.
He noted that Hudak’s only way of getting support is by attacking unions.
Union officers are trying to make the union better, Gallagher said.
However, he added, “with the stroke of a pen” Hudak could send unions back to the days before the Rand formula was implemented.
He said Canadian locals and members must wake up and fight back against RTW legislation, much like unions have done in the U.S.
He noted that IUOE Local 150 recently overturned RTW legislation in Indiana and locals in Canada should learn from that.
“We have to be as vigilant as the U.S. locals.”
He also called on national union organizations like the Canadian Labour Congress (CLC) and national building trades office to step up their efforts to combat RTW legislation.
“We need the CLC and the building trades nationally to wake up and mobilize workers. We have to wake up to the imminent threat that is on our border.”
During the meeting, Gallagher showed a video that was made by the Ontario Public Service Employees Union. The video depicted what’s happening in some U.S. states that have RTW legislation.
Afterwards, Gallagher said there is no case that can be made for RTW legislation.
“We have to make sure that’s not the reality going forward.”

Gallagher Addresses Union Meeting

Written by Local 793 Staff

Operating Engineers in Canada must pay attention to what’s going on south of the border where labour is under attack. That was the message Local 793 business manager Mike Gallagher delivered to delegates at a special executive board meeting of the union in the OE Banquet Hall on Sept. 21. “It’s important for us to pay attention to what’s happening in the U.S. and what’s been successful to turn it back,” he said. Gallagher noted that both the federal Conservatives and Ontario Tories are intent on pursuing a similar agenda […]

Operating Engineers in Canada must pay attention to what’s going on south of the border where labour is under attack.
That was the message Local 793 business manager Mike Gallagher delivered to delegates at a special executive board meeting of the union in the OE Banquet Hall on Sept. 21.
“It’s important for us to pay attention to what’s happening in the U.S. and what’s been successful to turn it back,” he said.
Gallagher noted that both the federal Conservatives and Ontario Tories are intent on pursuing a similar agenda against unions and working families here in Canada.
He said the Operating Engineers may have to be more politically active as a provincial election gets closer.
In his remarks, Gallagher noted that he recently attended an AFL-CIO national convention in Los Angeles and it was a good feeling to be in a room with so many unionists.
At the convention, he said, IUOE general president James T. Callahan announced that Local 150 in Indiana took the government to court over the right-to-work legislation and won, prompting a standing ovation from the hundreds of union delegates in attendance.
“I certainly felt good to be there as an Operating Engineer when that transpired,” Gallagher said.
He noted that Elizabeth Warren, the Democratic Senator from Massachusetts, and AFL-CIO president Richard Trumka, both gave rousing speeches at the AFL-CIO convention.
Videos of the speeches were played for delegates at the special executive board meeting.
In her speech, Warren said unions are like a family in that “we’ve got each other’s backs.”
Throughout history, she said, powerful interests have tried to capture Washington but labour has always been there to fight on behalf of the American people.
She said labour enshrined into law the right to organize and created social security.
“Labour was there every step of the way. Our agenda was America’s agenda and we prevailed.”
Lately, she said, powerful interest groups in the U.S. have been attacking the very foundations that protect the middle class, but labour will prevail.
“The Washington insiders will fight us but the American people are on our side.”
Trumka, meanwhile, told delegates at the AFL-CIO convention that there can be no shared prosperity while 11 million Americans have no rights, while 20 million are looking for work and can’t find it, and while libraries and schools are closed in the poorest communities.
Shared prosperity, he said, is a reality when the rich and connected pay their share, when health care, retirement security and sick days are available to all people, and when there’s an end to trade deals that treat companies better than people.
“We build this country every single day and it is time for Americans to value the work of all workers in this country.”
After the videos were shown, Gallagher told delegates that what’s happening the U.S. is now happening in Canada.
“A similar thing is happening here, don’t kid yourselves,” he said.
Gallagher noted that Prime Minister Stephen Harper is stacking the Supreme Court and provincial Tory leader Tim Hudak is intent on bringing in right-to-work legislation.
He said unions in Canada have to shed their complacency so Harper and Hudak or whoever else comes in aren’t able to do what’s been done to working families in the U.S.
Also at the meeting, Gallagher told delegates that Local 793 has left the Provincial Building Trades.
He said he recently wrote to Pat Dillon, business manager of the Provincial Building and Construction Trades Council of Ontario, informing him of the decision, and Local 793 business reps have been directed to stop attending building trades meetings in their areas.
Gallagher said there have been too many jurisdictional disputes filed by building trades against Local 793 at the Ontario Labour Relations Board (OLRB) at a time when they should be working together.
When the 10th jurisdictional dispute reached his desk, he said, he decided to take action.
Gallagher said each jurisdictional dispute costs the union anywhere from $20,000 to $30,000 to fight.
He said he didn’t feel it was a good idea to continue working with building trades that are filing jurisdictional disputes against Local 793.
“We’re going to send them a wake-up call,” he said.
Gallagher said he has told Dillon that Local 793 will prepare to rejoin the building trades when the other trades realize the damage they’re doing.
Labour relations manager Ken Lew reported at the meeting that the union is now facing 13 jurisdictional disputes involving six trades.
He said the labour relations department has been gathering information and intends to defend Local 793’s jurisdiction.
The union has done a great job over the last several years at laying the groundwork to win such disputes, he said.

Union Supports Fund-raiser for Anishinabek Nation Charity

Written by Local 793 Staff

Local 793 business manager Mike Gallagher, president Joe Redshaw and a number of other union representatives attended a fund-raiser Oct. 17 for the Anishinabek Nation 7th Generation Charity. The event, at the Four Seasons Hotel in Toronto, provided an opportunity for corporate and government partners to meet and network with leaders of First Nations communities across Ontario. More than 200 people attended the event. A business networking reception was followed by a panel discussion on issues of importance to the people of the Anishinabek Nation. Funds raised from the event […]

MadahbeeLocal 793 business manager Mike Gallagher, president Joe Redshaw and a number of other union representatives attended a fund-raiser Oct. 17 for the Anishinabek Nation 7th Generation Charity.
The event, at the Four Seasons Hotel in Toronto, provided an opportunity for corporate and government partners to meet and network with leaders of First Nations communities across Ontario.
More than 200 people attended the event. A business networking reception was followed by a panel discussion on issues of importance to the people of the Anishinabek Nation.
Funds raised from the event will go to scholarships and bursaries and to support education, healthcare and other under-funded services in the 39 Anishinabek communities. The Charity has raised $600,000 since 1999.
Dignitaries attending the event included: Anishinabek Nation Grand Council Chief Patrick Madahbee; former Prime Minister Paul Martin; Ontario Premier Kathleen Wynne; former Assembly of First Nations National Chief Phil Fontaine; Ontario Aboriginal Affairs Minister David Zimmer; and John Tory, former PC Party leader and host of Live Drive on Newstalk 1010.
Local 793 was the only union that had representatives at the event. Grand Council Chief Madahbee sat at the table with Local 793 representatives.
Business manager Gallagher said it was important for Local 793 representatives to be at the event because the union is working to get more people from First Nations, Inuit and Métis communities into training programs at the Operating Engineers Training Institute of Ontario (OETIO).
“We are working closely with First Nation, Inuit and Métis communities and reaching out to the Aboriginal population to get more youth into our apprenticeship programs and good paying jobs in the construction trades,” he said. “By attending this event we are demonstrating our commitment to work with these communities and Aboriginal leaders.”
During the panel discussion, dignitaries addressed a number of issues, including education and the importance of having a skilled workforce available to fill key positions.
Former Prime Minister Martin complimented the work being done by Local 793 during his remarks.
Martin spoke about some of the things unions like the Operating Engineers are doing and how they are an important part of the fabric of Canada.
Premier Wynne shared her vision on enhancing student success in First Nation communities in Ontario.
Grand Council Chief Madahbee told the audience that First Nations communities support development but only with community control and benefits.
“We have to empower our people … to take control of our lives” and “put in place our way of thinking, our world view,” he said in a story published in Anishinabek News.ca. “We don’t need somebody dictating what we can do and cannot do. We know how to do the job.”
Meanwhile, former Assembly of First Nations National Chief Fontaine said the single most important issue to face Canada is First Nations poverty and how to eradicate it.
“We have to move quickly and … persuasively,” he said in Anishinabek News.ca. “Partnerships are our best option to create a better future for Canada and Aboriginal people.”
The Anishinabek Nation 7th Generation Charity is the official charitable fundraising arm of the Anishinabek Nation. The Charity is committed to improving the quality of life of Anishinabek Nation citizens by providing support where no other funding exists.