Thank you for that warm welcome.  It is a privilege to be here today with all of you.

The Tennessee Valley Authority remains one of the most important, and enduring partnerships that America’s Building Trades Unions enjoy. For over 60 years, we have partnered with TVA to service its construction and maintenance needs, which, in turn, has created thousands of jobs for building trades craft workers in this region.

Equally important our partnership has kept utility rates low to benefit all residents of the valley. It is a relationship that has endured the tests of time, and our unions are dedicated to its continued success.

And speaking of partnerships, I want to take a minute to talk about another partner, one that I have had the privilege of working with for the last two years.  His name is Sean McGarvey and many of you know him quite well as a man of unbending character, intellect, and integrity. For those of you who don’t know him, I suggest you make it a point to do so. He is unquestionably one of the brightest and visionary labor leaders of his generation. He is loyal to the men and women he represents, and will fight fiercely to protect their interests.

By the same token, he values the partnerships and relationships that we have built, and continue to build, with industry groups, owners and contractors across this continent.

Sean is a man that understands that his ability to protect the interests of his members, Is in direct proportion to his ability to protect and enhance the interests of our industry and employer partners.  And that certainly includes the interests of TVA. I could not ask for a better partner to work with…nor could you.

I also want you to know that neither Sean nor I intend to stand pat or rest upon our laurels.  If you have been paying close attention to what is happening with America’s Building Trades Unions in the last two years, I hope you have noted that we have collectively embarked upon a new journey. And it is a journey with a specific objective in mind.

Our objective is to fundamentally re-define, re-position and re-vitalize the union construction industry brand. To put it simply, we are evolving into a new organization, with a new culture…one that is designed to meet the challenges of our time as well as the emerging needs for skilled labor among owners, contractors, and communities across North America.

We recognize that in today’s world, it is very dangerous not to evolve. Being flexible and attuned to the ever-changing needs of a market or an industry is critical to success in today’s world.

And today, our unions are making a commitment to become more customer-focused, and more value-added. I’m very proud to be a part of this initiative because it’s working. In fact, our new brand motto sums it up quite nicely:

“Value on Display.  Every Day.”

We are driving that message home to our state and local building trades councils and local unions, so that they internalize that ideal and make it the barometer for their every decision and action. Because all of us in the trades have to accept and embrace the fact that we offer a premium product…which just happens to be the safest and most highly skilled construction workforce in the world…and we sell that product for a premium price.

And rightly so.

Just like any premium product or service on the market today, our continued success will depend on the measure of value that our customers believe they receive from their investment in us.

The unmatched training that we provide is the main distinction and competitive advantage that we hold over our competition. And unmatched training is synonymous with unmatched productivity.

It really is who we are.

Our mission now is to showcase and expand the union construction advantage.  And that will occur by maintaining the most advanced apprenticeship training programs the world has ever seen.

With this foundation we will re-position the union construction sector to be a value-added partner in the eyes of owners, contractors and governmental agencies.

If we stop for a moment and examine the changes that are happening in our industry today, it is very easy to see why our apprenticeship and training programs are so very critical for our strategic objectives.

As I speak to owners or contractors in the Unites States and Canada, they all seem to be worried about one simple question: Can we get enough skilled crafts people to man the jobs of the future?

And because of the tight credit markets we are experiencing today…as well as a host of other macro-economic factors…these owners and contractors, just like TVA, are focused on bottom-line productivity like never before.

Therefore, they not only are concerned about the supply of the skilled labor…but they are also very, very concerned about the quality of the work that is produced by that labor. They worry about whether the skilled crafts people on their jobs are sufficiently trained in the latest technologies…the latest installation processes…and the most current safety procedures.

That is where our competitive advantage comes into play. Because each of these concerns translates into value for each construction and maintenance dollar.  We know that once the U.S. economy gets back on track, there will be tremendous skilled manpower needs across this nation…in a host of industries.

And that will especially be true in the heavy, civil, industrial, and institutional sectors. In fact, once the economy starts to rebound, there are estimates that the pace of construction in the next quarter century will eclipse anything seen in previous generations.

The Brookings Institution has estimated that nearly half of the structures that will be in existence in America in 2030 have not even been built yet.  If that is accurate, we have a tremendous challenge facing us.

We also know that today the average age of a skilled construction craft professional is somewhere around 47 years of age…while the average age of skilled maintenance professional is in the neighborhood of 53 years.

Projections are that by 2014 the United States will need one million additional skilled craft workers in the building and maintenance industries. That’s 4 ½ years from now. And with the investments being made by the federal government in infrastructure, green buildings, and clean energy, these projections will probably be revised upward.

America’s Building Trades Unions are cognizant of all of these factors…and we are taking steps to address them.

Again, we intend to maintain the rigorous standards associated with our training programs. But we are also looking at ways to be more flexible in the process by which apprentices move to journeymen status without compromising those standards.

Our track record speaks for itself.

Because when you compare union training programs to our competitors’ programs, there is no comparison:

• Union apprenticeship programs are more successful in recruiting workers of color and women…and we are expanding these efforts across the country.
• The vast majority of all apprentices in the U.S. are enrolled in union training programs.
• Apprentices in union programs complete their apprentice and journeyman training at much higher rates than workers enrolled in other programs.
• The union apprenticeship programs turn out skilled journey-level workers with the knowledge to perform all aspects of the trade not just specific tasks.
• The completion rates for women, military veterans and disabled apprentices from union programs are double that of the non-union sector.
• Our programs have much higher retention rates, while other programs are fraught with drop-outs.
• Union apprenticeship programs have an unsurpassed training infrastructure throughout North America that is the envy of all industries.
• So, as you can see, we have a successful foundation upon which we can build even greater success.

Now, allow me a moment to address one aspect of this equation that is often overlooked when discussing skilled craft shortages.

As I said before, it is the most common concern I hear from owners and contractors in our industry. And what is most ironic is the fact that the people who are screaming the loudest about skilled craft shortages are the same people who have done more to create these shortages in the first place!

Over the past twenty to thirty years, many owners made the decision to use a different business model for their construction and maintenance projects. This business model was, from their perspective, quite simple. They would award their construction and maintenance contracts to the lowest of the low bidders…without regard to quality or a commitment to training and workforce development.

This failed model was brought about as accountants became responsible for projects…and replaced the owners’ construction departments. The net result of this development was that open-shop contractors were awarded more and more projects…and the wage and benefits packages for skilled workers began to erode - especially in the South and Southwest regions of the country. This had the effect of driving qualified skilled craft professionals out of those markets.

An honest observer of this scenario could only reach one conclusion. And that is this: The North American construction industry has failed miserably to maintain levels of compensation…that are necessary to attract the “best and the brightest” to our industry.

This has been the case for twenty five years now, and now all of sudden these same owners are screaming about skilled craft shortages and the quality of work they are seeing on the job. Well, there is an old saying about reaping what you sow…and it applies to our industry today.

Additionally, there is one other point I will make…and I will make this point over and over until my last days on Earth. And that point is this:

The open shop does not have any semblance of an effective skilled craft training program!

Now, I am not going to sit here and engage in the demonization of the open shop sector…because, frankly, the “us vs. them” rhetoric that we have heard so much just doesn’t serve much of a purpose anymore.

In fact, I will go even further and say that the best way for us to beat the open shop is to stop competing with the open shop.

You heard me right.  Allow me to repeat that.

The best way for us to beat the open shop is to stop competing with the open shop.

I firmly believe that our success really boils down to three simple truths:

(1.) Developing friendship,
(2.) loyalty,
(3.) a can do belief in one another.

In any business or organization…especially one like ours…personal relationships form the backbone of everything we do. if we cannot cultivate friendships with the people we work with, and the customers we work for – or want to work for – then we are truly going to have a tough time in re-capturing market share for the union construction industry.

Likewise, if we cannot…through our performance, attitudes and actions…inspire a high level of loyalty among the members we represent and the customers for whom we serve, then we are doomed to a future of irrelevancy and eventual non-existence.

Instead, we are well into the process of re-defining ourselves and re-defining our strategic approach for earning back market share and elevating a new business model that people want to be associated with!

Instead of simply dividing up markets and competing with our open-shop competitors like we are used to doing, we must focus on creating an insatiable demand for the products and services that we have to offer, and the values that we represent.

In other words, we are re-positioning ourselves and we are creating an entirely new market that is based upon value, along with a new business model unlike any in our industry.

The bottom line:  we are doing all that we can to demonstrate value.

Each of our affiliated national and international unions has been working to implement local accountability measure and performance indicators.

They are designed to change the culture of the union construction industry away from the uncooperative and confrontational approach that has worked to our detriment for far too long.

This culture change is working and is now an integral part of our training programs. We are dedicating ourselves to producing journey-level workers who can accomplish amazing things with their minds and their hands…but we are also diligent about ingraining them with the proper mindset and attitude about their chosen profession.

That is the second key to our success…and it is one I am confident we will accomplish with distinction.

Ladies and gentlemen, the Building Trades Department will soon launch two new projects associated with our overall marketing and re-branding efforts.

The first is a recruitment program targeted for open-shop skilled craft workers who are seeking more in terms of career fulfillment. A new website, called “A Union Life.com,” is in development and will be launched very soon. It is intended to be used by local union business managers and organizers as a way of introducing our new story to these workers.

The idea is to dispel some of the “urban legends” that continue to plague the union construction industry. Things like excessive dues. This site will also feature personal stories of workers who made the switch from the open-shop to the organized sector…and what that has meant to them and their families.

The site will have testimonials from husbands, wives and children on how much their lives have improved since their spouses and parents went union.

The second component is a recruitment effort centered on another new website called “Building Your Future.com.” This program will focus on students…high school and post-secondary…who are looking for career fulfillment, but are not interested in a traditional 4-year college degree.

We have already invested in and conducted a fair amount of research among students and parents, and we are confident we have a pretty good idea of how to structure an effective recruitment campaign. In each instance, we intend to open eyes and minds to the bright prospects associated with a career as a union skilled craft professional.

Ladies and gentlemen, before I close, I would like to make a special announcement.  Effective immediately, I am appointing George Jones as the new full-time Administrator for all construction and maintenance work covered by our agreements with the TVA. Many of you know and have worked with George, who brings decades of experience and knowledge to this job.

I am confident that, with your support, George and the Tennessee Trades and Labor Council will deliver excellent representation to our members and maintain first-rate working relationships with TVA and its contractors.

Finally, I would like to make a few observations about labor-management cooperation in the construction industry.  The labor-management partnership we are celebrating here this week is a sterling example of the good things that happen when all the stakeholders in a construction program embrace their common destiny.

Construction is unique in that way. Unlike most other industries, in construction, the efforts of owners, contractors, and workers intersect on a daily basis.  And those intersections offer the best opportunities for cooperation, greater efficiency, and increased labor-management harmony.

At TVA, you have recognized this, and you have my heart-felt congratulations and support.

Let me reiterate how proud I am to represent the most trusted and effective construction craft workers in the world…and how grateful I am for the labor-management partnerships we have forged together.

I am truly excited about what the future holds for all of us.

Thank you for inviting me to join you today.

It’s been great to be with you all.