Labor Relations Update Eastern Region Conference April 16, 2018

The work picture is good NEBF Total Hours The work picture is good 471,766,528 hours for 2008 473,585,206 hours for 2016 Outside Man-hour growth 4.5% per year 2006 – 2016, 56 mil. to 81 mil: 25 mil. or 4.5% per year Almost 17% of the total

Outside Growth 2006-2016 Workforce growth 4.8% per year 2006 – 2016, 25,954 to 38,566: 10,023 or 4.8% per year Man-hour growth 4.5% per year 2006 – 2016, 56 mil. to 81 mil: 25 mil. or 4.5% per year. 17% of the NEBF total

Percentage Union - National ICT v. NLMCC Percentage Union - National

NLMCC Outside Market Evaluations Percentage Union

NECA’s Labor Relations Agenda Increase market share 10% by 2025 “10/25” Grow the workforce: JW’s, Apprentices and CW/CE’s Increase portability of workers Increased flexibility in agreement terms Lower Unfunded Liability in NEBF

Total Industry Growth 2017-2026 Growth at 1.1% or 2,935 per year (avg.) Attrition at 2.3% or 5,935 per year (avg.) 33/67 split Total workforce needs: 8,870 per year (avg.) Total workers needed is 88,706 from 2017-2026.

Outside Apprentices Indentured 2004 IBEW/NECA (NJATC) Inside Survey Outside Apprentices Indentured (2007 - 2017) Copyright © 2004 by the NJATC

Total Active Outside Apprentices 2004 IBEW/NECA (NJATC) Inside Survey Total Active Outside Apprentices (2007 – 2017) Copyright © 2004 by the NJATC

Total Graduated Outside 2004 IBEW/NECA (NJATC) Inside Survey Total Graduated Outside 2007 - 2017 Copyright © 2004 by the NJATC

Apprentices Indentured 2004 IBEW/NECA (NJATC) Inside Survey Apprentices Indentured (2007- 2017) Copyright © 2004 by the NJATC

Total Active Apprentices 2004 IBEW/NECA (NJATC) Inside Survey Total Active Apprentices (2007 - 2017) Copyright © 2004 by the NJATC

Completed Apprenticeship 2004 IBEW/NECA (NJATC) Inside Survey Completed Apprenticeship (2007 – 2017) Copyright © 2004 by the NJATC

Inside and Outside Apprentices currently in the program Total Inside Apprentices: 31,441/5 = 6,288 Total Outside Apprentices: 4,653/4 = 1,163 Total available 7,541 apprentices 8,870 – 7,541 = 1,329 15% shortfall across the industry per year (not so bad?)

Outside Projections Workforce growth at 4.8% per year, 38,566 x 4.8% = 1,851 Attrition at 2.4% per year (per NEBF #’s), 38,566 x 2.4% = 926 Total Workforce needs: 2,777 - 1,163 (1,036) = 1,614 58% shortfall in the outside industry

How are we keeping up? Inside – On average 5000 fewer apprentices indentured in the 10 years since 2008, it has to be CW/CE’s. Outside – With the average number of hours being worked per employee in 2016 at 2087. Depending on how you want to count it, each worker is working 487, 287 or 87 hours of overtime each year. Solution – We need more people!

What does a 10% Market Share increase by 2025 look like? In 2025 we need 379,442 total workers to grow at an additional 4% per year That is 86,517 additional workers over 8 years or 10,815 per year 8870 + 10,814 = 19,685 = new workers each year 70,964 + 86,517 = 157,481 total workers needed

Total Industry Growth 2017-2025 Growth at 1.1% or 2,935 per year (avg.) Attrition at 2.3% or 5,935 per year (avg.) 33/67 split Total workforce needs: 8,870 per year (avg.) Total workers needed is 70,964 from 2017-2025. 2025 w/a 10% market share increase is 86,517 additional workers over 8 years or 10,814 per year 8870 + 10,814 = 19,685 new workers each year 70,964 + 86,517 = 157,481 total workers needed

What does a 10% Market Share increase by 2025 look like? In 2025 we need 379,442 total workers to grow at an additional 4% per year That is 86,517 additional workers over 8 years or 10,815 per year 8870 + 10,814 = 19,685 = new workers each year 70,964 + 86,517 = 157,481 total workers needed

What can we do? Streamline the processes of indenturing new apprentices. Look at “local policies” that unnecessarily slow down the process. Consider modifications to our apprenticeship standards that encourage indenture. Look at additional methods of direct entry. Utilize the tools that currently exist. Section 5.09 “ten (10) day rule” and Section 5.12 “job site ratio”. Implement the CW/CE program and expand ratios NLMCC Sponsored Hiring Events

Additional Outside apprenticeship considerations. What can we do? Additional Outside apprenticeship considerations. Implement the new Construction Apprentice Lineman MOU. It creates a new classification to employ all other qualified line college graduates wishing to join our industry. Modify local standards to allow the direct entry of the top tier graduates from accredited line colleges.

Labor Relations Update Questions?

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