IEC Annual Report 2015 by Think Baseline

THE

E R U T IS

NOW 2015 IEC NATIONAL ANNUAL REPORT

INDEPENDENT ELECTRICAL CONTRACTORS

2015 IEC NATIONAL ANNUAL REPORT TABLE OF CONTENTS

PRESIDENTâ&#x20AC;&#x2122;S MESSAGE

BOARD OF DIRECTORS

MISSION & VISION

REGIONS 7 SNAPSHOT 8 EXECUTIVE SUMMARY

AWARDS 12 EDUCATION 14 ADVOCACY 17 MEETINGS 20 INDUSTRY PARTNERS

THE FUTURE IS NOW On behalf of the IEC National Board of Directors and the National staff, it is my pleasure to present the 2015 Independent Electrical Contractors (IEC) National Annual Report. It is my belief that 2015 will be marked as one the most transcendent years in IEC history. I say this for many reasons. In 2012-2013 we created a vision for the immediate future of IEC. Then, in 2014, that vision began to take shape and we experienced growth in every area of the association. The advancement of the association increased significantly in 2015. Contractor membership increased by 5.1% and the total number of workers represented in those companies grew considerably. The number of apprentices in our FourYear Apprentice Training program nearly reached 9,000. I am particularly impressed with the number of first year apprentices that enrolled in IEC in 2015. We had 4,099 first year apprentices in the program in 2015 compared to 3,349 in 2014. The IEC National Board of Directors and Committees made key decisions to improve member benefits and sustain the associationâ&#x20AC;&#x2122;s prosperous trends. You can read about all of these decisions in this Annual Report. With growth comes great responsibility to maintain member services and support new initiatives. With this in mind, we realigned the IEC regional structure to ensure proper representation of IEC membership (more information on page 7). In education, we developed the Certified Training Advantage Chapter program to recognize chapters that meet certain requirements. Most chapters already had the proper qualifications in place and this certification reinforces the importance of the educational components (Read more on page 15).

It is my belief that 2015 will be marked as one the most transcendent years in IEC history.

The impressive numbers are only possible through the hard work of the IEC chapters. The 51 IEC chapters recruit new members, deliver our world-class education programs, hold member events, and so much more. These are just a few of the improvements that we made in 2015 to ensure IEC is built for the continued success that is in front of us. The future that we have been striving toward is now here and we are positioned to lead the electrical industry. In this Annual Report you will read the details of our many 2015 successes.

This Report is delivered in a visual, or infographic, presentation to properly illustrate the levels of our growth. Thank you for your investment in the future of your business. The National Board of Directors and National Staff will continue to work to deliver you the most up-to-date and relevant member benefits to ensure that you have the tools to succeed in todayâ&#x20AC;&#x2122;s marketplace. Thayer Long Executive Vice President/CEO IEC National

2015 IEC NATIONAL BOARD OF DIRECTORS PRESIDENT Mark Gillespie TMI Electrical Contractors Clarksville, Ohio

SECRETARY/TREASURER Joseph Hovanec Advanced Electric Services Rahway, New Jersey

SENIOR VICE PRESIDENT Bruce Seilhammer SECCO Camp Hill, Pennsylvania

VICE PRESIDENT

MIDWEST REGIONAL DIRECTORS

SOUTHEAST REGIONAL DIRECTORS

Candy Branham Branham Electric Saint Charles, Missouri

Mark Ellis S.M. Ellis Company Columbus, Georgia

Gary Dykstra D&G Electric Crete, Illinois

Brian Haines Pyramid Electric Memphis, Tennessee

MOUNTAIN/SOUTHWEST REGIONAL DIRECTORS

WEST REGIONAL DIRECTOR

Valerie Murrill Murrill Electric Carlsbad, New Mexico Janet Martin Bret’s Electric, LLC Frederick, Colorado

Lloyd Quinney Quinney Electric San Antonio, Texas

NORTHEAST REGIONAL DIRECTORS

IMMEDIATE PAST PRESIDENT

Michael Gaffney, III Gaffney’s Electrical Contracting Dillsburg, PA

Gordon Stewart Joe Swartz Electric Company Houston, Texas

Jim Nasuta Electrical Energy Systems Corporation Southington, Connecticut

EXECUTIVE VICE PRESIDENT/ CEO (NON-VOTING)

TEXAS REGIONAL DIRECTORS

Thayer Long IEC National Alexandria, Virginia

Robert Bass R.K. Bass Electric Belton, Texas Thomas Gonzales TAG Electric Company Houston, Texas

Stuart McArthur West Coast Business Communications Portland, Oregon

PLATINUM PARTNER REPRESENTATIVE Aaron Kock CNA Insurance Chicago, Illinois

EXECUTIVE DIRECTOR REPRESENTATIVE (NON-VOTING) Nancy Levey IECA of Arizona Tempe, Arizona

LIVEWIRES CHAIR Carolyn Gillespie TMI Electrical Contractors Clarksville, Ohio

IEC MISSION & VISION MISSION The mission of IEC is to enhance the independent electrical contractor’s success by developing a professional workforce, communicating clearly with government, promoting ethical business practices, and providing leadership for the electrical industry.

VISION INDEPENDENCE THROUGH UNITY IEC will be recognized as the source of innovative education, products, and services to enhance member productivity, profitability, and competitiveness through appropriate delivery channels, such as chapters, strategic partners, and various technologies, thereby securing the competitive advantage.

IEC NATIONAL STAFF CORE VALUES Accountability – We are responsible for our actions that influence the lives of our members and fellow workers. We follow-up on promises and are efficient and thoughtful in our approach. We think things through and give our best at all times. We stand by our obligations.

Commitment to Service – We provide exemplary customer service, products, and other initiatives that impact us and our members in a positive way. We listen to members and put people first. We respond accurately and in a timely fashion.

Collaboration – We work as a team, promoting communication and cooperation inside and outside the association to help each other and our members be successful. We treat everyone with respect.

Professionalism – We are an integral part of our industry. We are knowledgeable about our industry, our members, and our association. We stay current on news and information that affects our members. We are empowered to take initiative and anticipate needs.

REGIONAL REALIGNMENT IEC REGIONS WEST

MIDWEST

NORTHEAST

MOUNTAIN/ SOUTHWEST TEXAS

SOUTHEAST

IEC REGIONS MOUNTAIN WEST

GREATER TEXAS

In 2015, the IEC National Board of Directors voted to adjust the IEC regional alignment to better reflect the geographical distribution of IEC members. The major changes to the regions were Oklahoma became a part of the Texas region to create the Greater Texas region and the West and Mountain Southwest regions combined to create the Mountain West region. Additionally, the Midwest, Greater Texas, and Mountain West regions will each now have three regional directors represented on the Board of Directors. These regional changes took effect January 1, 2016.

MIDWEST

NORTHEAST

SOUTHEAST

2015 IEC SNAPSHOT

51 IEC

JOIN

2,165 Contractor Members

Chapters

1,087 Associate Members

Industry Partners

Contractor membership increased by 5.1% in 2015. Since 2012, overall IEC membership has increased by 10% with steady increases in each of the past five years. 8

APPRENTICE ENROLLMENT

LEARN

207,381 Visitors to www.ieci.org 1,933 Attendees at National Conferences

77%

4,099 First Year

2,172 Second Year

1,449 Third Year

1,045 Fourth Year

In 2015, 1,372 more students went through the IEC National Apprentice Training Program than 2014, an 18.6% increase. Since 2013, First Year enrollment has doubled!

6,457 Connections on Social Media

CONNECT

The IEC National website continues to be the primary hub for all things IEC. Interactions have expanded since the 2013 redesign. 2015 was a banner year as visits to the website increased by 77%! 9

EXECUTIVE SUMMARY MEMBERSHIP

FINANCE IEC’s fiscal calendar operates July 1–June 30. The 2015 fiscal year (FY) (July 1, 2014–June 30, 2015) was another highly successful year and continued a streak of financially responsible spending and increased revenue. The 2015 budget was projected to have an approximate $3,000 positive variance, but ended its 2015 fiscal year with a significant positive variance. As a result, IEC was finally able to rebuild its reserve to near pre-recession levels. This methodical approach allowed IEC to responsibly grow its’ reserves without decreasing member value.

2015 was banner year for IEC membership growth. This is thanks to aggressive member recruitment by the 51 IEC Chapters. In addition to an overall growth in membership, the number of reported field workers at member companies increased considerably. Contractor membership is broken into eight categories based on the number of field employees: 1-5; 6-10; 11-20; 21-60; 61-100; 101-150, 151-200, and 201+.

December 2015 marks the half-way mark for FY2016, and the positive trend is continuing. IEC will continue to make smart and timely investments into chapter development and support initiatives, improving the educational and apprenticeship program, IEC’s advocacy efforts, and an aggressive marketing campaign.

IEC was finally able to rebuild its reserve to near pre-recession levels.

IEC CONTRACTORS MEMBERS

1,980

2013

2,053

2014

2,165

2015

NUMBER OF CONTRACTORS WITH 21 OR MORE FIELD EMPLOYEES 2013 2014 2015

393 409 427

PRIDE Membership Formerly the Gold Card program, the PRIDE Membership has been redesigned to add a second-level of membership to allow all members to show their support for IEC while still enjoying special individual member benefits. PRIDE members stand out as IEC champions for their extra support to IEC and the industry. It has two levels, Silver and Gold, with the Gold level including a full convention registration.

SPONSORED BY

CHAPTER MEMBERSHIP DRIVE The Chapter Membership Drive was a significant contributor to the overall membership growth in 2015. The Drive ran from August 2014 to August 2015. IEC Chapters set self-determined growth percentages as a goal to reach in the next year (5% minimum goal). The chapters that reached their goal received a plaque and recognition at IEC Con 2015, in Tampa, Florida.

CHAPTERS THAT SUCCESSFULLY COMPLETED THE CHALLENGE IEC Atlanta

IEC New England

IECA of Arizona

IEC of Greater Cincinnati

CenTex IEC

IEC of Greater St. Louis

Central Indiana IEC

Mid-South IEC

Central Ohio AEC-IEC

IEC of Montana

Central Pennsylvania IEC

New Jersey IEC

IEC Dallas

IEC Rocky Mountain

IEC Dayton

IEC San Antonio

IEC Florida West Coast

IEC Texas Gulf Coast

IEC Fort Worth/ Tarrant County

IEC of Washington

IEC Kentucky & So. Indiana

Western Colorado IEC

2015 IEC NATIONAL PRIDE MEMBERS Candy Branham Branham Electric

Julie Howard IEC San Antonio

Michael Brown All-Type Electric

Joseph Hovanec, Jr. Advanced Electric Design & Service, LLC

Terry Cole Hamer Electric, Inc. Troy Corrigan Corrigan Electric Dan Denier Denier Electric Company P. Herb Doyle, Jr. Doyle Electric Services, Inc. Gary Dykstra G&G Electric, Inc. Joe Esposito Elecon Electrical Services Marcie Funchess, CAE IEC Fort Worth/ Tarrant County Jim Golly Eaton Corporation Thomas A. Gonzales TAG Electric Company Gregory Haren Enertech Electrical Billy Hill Hill Electric David Hittinger IEC of Greater Cincinnati

David Johnson CenTex IEC Dean Kredit K2 Electric Todd McCormick McCormick Systems, Inc. Bret Martin Bret’s Electric Chris R. Martinez Central Electric Company Lloyd Lee Quinney Quinney Electric Company, Inc. Bruce Seilhammer SECCO, Inc. Donald G. Sharkey Current Connections, Inc. Bobby J. Tutor Tutor Electrical Service Barry Williams Williams Electric G. H. “Bud” Wooten Merit Electric Co., Inc.

AWARDS

In 2015, IEC honored the contractor members, chapters, apprentices, and individuals who have done exceptional work throughout the year by presenting the IEC National Awards. The races were incredibly tight as their many high-quality projects and accomplishments by IEC members.

2015 IEC NATIONAL AWARD WINNERS National Member of the Year Tom Alexander, Atkins & Stang, IEC of Greater Cincinnati Industry Achievement Award Milwaukee Tool Apprenticeship Alumni Award Paul Lingo, IEC Rocky Mountain Chapters of the Year: • Central Pennsylvania IEC (16 to 30 contractor members) • IEC of Greater Cincinnati (31 to 60 contractor members) • IEC Rocky Mountain (61+ contractor members) Apprenticeship Chapter of the Year IEC Florida West Coast Instructor of the Year Darryl Fitch, IEC Atlanta Legislative Chapter of the Year IEC Rocky Mountain Chapter Executive Director of the Year David Hittinger, IEC of Greater Cincinnati Community Service Award Milestone Electric, IEC of Dallas Legacy Award G.H. “Bud” Wooten, Merit Electric, IEC Florida West Coast Team Award IEC Rocky Mountain Emerging Leaders Committee

Chapter SPARK Award Central Pennsylvania IEC Apprentice of the Year Erich Hunter, BizCom Electric, IEC of Greater Cincinnati IEC-CNA Safety Award • LeMay Electric, Inc. (16 to 50 employees) • IES Commercial – Denver (51-125 employees) • IES Commercial – San Antonio (126-300 employees) • JMEG, LP (301 plus employees)

Apprentice Short Story Contest FIRST PLACE: Paul Gill, Facilities Electric, Inc., IEC Texas Gulf Coast SECOND PLACE: Christina Eller, Tissa Enterprises (TEI), IEC Chesapeake – Frederick Campus THIRD PLACE: Anthony Piteo, Area Energy and Electric, Central Ohio AEC/IEC FOURTH PLACE: Damian K. Williams, Northern Electric, Inc., IEC Rocky Mountain FIFTH PLACE: Alberto Guel, Trio Electric, Ldt., IEC Texas Gulf Coast

CONTRACT AMOUNTS FROM $1,500,001 TO $5,000,000

EXCELLENCE IN ELECTRICAL CONTRACTING RESIDENTIAL SINGLE FAMILY RESIDENCE (INCLUDING NEW CONSTRUCTION OR RENOVATION)

Corrigan Electric (Louisville, Kentucky) Hacet Dream Home MULTI-FAMILY, MID-RISE BUILDINGS ABOVE THREE STORIES

Beacon Electric Company (Cincinnati, Ohio) Festo Regional Service Center FOR CONTRACT AMOUNTS OVER $5,000,001

Olsson Industrial Electric (Springfield, Oregon) The Dalles Dam

CONTRACT AMOUNTS BETWEEN $500,001 AND $1,500,000

King’s Electric Services (Lebanon, Ohio) 7th & Broadway Overbuild CONTRACT AMOUNTS BETWEEN $1,500,001 AND $5,000,000

Ohio Valley Electrical Services, LLC (Cincinnati, Ohio) Sree Hotels Homewood Suites/ Hampton Inn

Hawkins Electrical Construction (Laurel, Maryland) Pike 3400

APG Technology (Clearwater, Florida) St. Joseph’s Hospital South Service Contractor of the Year

APG (Clearwater, Florida) St. Joseph’s Hospital South

CONTRACT AMOUNTS UP TO $500,000

Central Electric (San Antonio, Texas) HealthSouth San Antonio Rehabilitation Center – Generator Upgrade

40 UNDER 40 Katie Anderson Francis E. Klunk Electrical Contractor, LLC

Milestone Electric (Garland, Texas)

IEC was proud to announce the first-ever National 40 Under 40 Award winners in 2015! This award recognizes IEC members and staff under the age of 40 who have made an impact on the electrical industry. This next generation of electrical professionals are taking the industry by storm and are set to lead into a new era.

Sarah Corwin Blueprint Skilled Services

Dominic Donofrio Enertech Electrical, Inc.

Jesse Beckett Beckett Electrical Services, LLC

Dave Edmondson SECCO, Inc.

Stephen Consiglio Consolidated Electrical Distributors

MORE THAN 50 SERVICE EMPLOYEES

Weifield Group Contracting (Denver, Colorado) Rigden Storage Reservoir Project

Andy Bass R.K. Bass Electric, Inc.

Joseph Cephas IEC National

Hawkins Electrical Construction (Laurel, Maryland)

CONTRACT AMOUNTS UP TO $1,500,000

Lindsey Cox 1st Electric Contractors, Inc.

Jack Brown IHG Electric

4 TO 15 SERVICE EMPLOYEES

INDUSTRIAL

Robert Barnett Reliable Electric

Brandon Berumen LEI Companies, Inc.

TMI Electrical Solutions (Cincinnati, Ohio) Equity 3.2 MW Photovoltaic System LOW-VOLTAGE SYSTEMS

CONTRACT AMOUNTS OVER $5,000,001

COMMERCIAL

EFFICIENT ENERGY/GREEN CONSTRUCTION

Chad Fisher Ennis Electric Company Kurt Geisinger ASCOM, Inc. Mauro Gonzalez Gonzalez Electrical Contractor Nick Grimstad Eaton Corporation

Rachel Guenther Thomas & Betts Corporation Nathan Harmeier Above and Beyond Electric Company, Inc. Kristin Kim Haynes IEC Rocky Mountain

Nicholas Kredit A.B. Electric Company

Todd Sorrell Epic Insurance

Paula Nolan Siemens Building Technologies, Inc.

Carlos Soto Wiring Solutions, Inc.

Eric Peralez CenTex IEC

Matthew Hittinger King’s Electric Services

Agapito Perez Rio Grande Valley Chapter IEC

Aaron Kock CNA Insurance

Karl Renfro Renfro Electric

Jared Kredit K2 Electric

Justin Schwartz Webb Electric Company of Florida, Inc.

Kori Muniz-Hemans K2 Electric Alex Nantz IEC Rocky Mountain

Darlene Seymour IEC of Washington

Robert Stalvey Ace Electric, Inc. James Tiller Greenlee Textron Alex Weinberg CET & Associates Mark Wilke CNA Insurance Taylor Wire Leer Electric Tim Yaciuk IEC-OKC

Chrissy Skudera IEC National

EDUCATION IEC’s 4-Year Apprentice Education is worth 40 college credit hours (Based on American Council on Education’s recommendation). IEC’s enrollment was 8,765 apprentices in 2015.

National average tuition cost for 2014-2015, was $761.58/credit hour.*

For every $1 spent on apprenticeship, employers get an average of $1.47 back in increased productivity, reduced waste, and greater front-line innovation.**

An IEC education has a $30,463 value. Students graduate debt-free.

THE VALUE OF AN IEC EDUCATION *According to College Board **According to the U.S. Department of Labor

FOUR-YEAR APPRENTICE TRAINING PROGRAM The cornerstone of the IEC educational program is the fouryear apprenticeship program. This program is responsible for taking apprentices and converting them into productive, and safe, journeymen electricians. The growth on the educational side, which we have seen grow by leaps and bounds over the past few years, is attributable to the demand for electricians as the construction workforce ages, and also to the increased quality of the IEC training program. In 2015, IEC has seen a steady increase of chapters enrolling students into the IEC Learning Management System (LMS), with about 3,000 students accessing it on a regular basis. The LMS is a virtual classroom management tool which allows for students to log-in to complete homework and to take tests and quizzes that are graded and scored automatically. The LMS also allows for instructors to track grades, attendance, and assist with other classroom management details. The LMS is used for both distance learning and as a tool for traditional classroom education. In 2015, IEC launched Instructor Training Level II. Instructor training is intended to ensure that â&#x20AC;&#x153;electricians-turnedinstructorsâ&#x20AC;? are comfortable and well-equipped to teach a class. Over 300 instructors have successfully completed Level I and are poised for advancing their skills further with Level II.

CERTIFIED PROFESSIONAL ELECTRICIANS The IEC Certified Professional Electrician program (formerly known as Journeyman Credential) demonstrates that IEC graduates have volunteered to go above and beyond to test their knowledge and skills as a professional electrician. Those who pass the practical and written exams receive the IEC Certification. Here is the list of the talented people who have passed the Certification Exam and earned the right to be called IEC Certified Professional Electricians!

CERTIFIED CHAPTERS In 2015, IEC launched the Chapter Certification Program. This program was designed to recognize chapters that meet certain requirements in the areas of education. The requirements to be recognized as are already what most chapters have in place. IEC chapters are now being recognized as either Authorized IEC Training Chapters or Certified IEC Training Chapters. These 13 chapters met the requirements and are now Certified IEC Training Advantage Chapters. IEC Rocky Mountain IEC Florida West Coast IEC Atlanta IEC Greater St. Louis IEC of Greater Cincinnati IEC-OKC CenTex IEC

IEC Dallas Chapter IEC Fort Worth/ Tarrant County IEC San Antonio IEC Texas Gulf Coast IEC of Utah IEC of Washington

Michael Hampton Ohio Valley Electrical Services Cincinnati, Ohio

Jamie Sweet Fox Electric Dallas, Texas

Erich Hunter Biz Com Electric Cincinnati, Ohio

Jeremy Thompson ICS Electrical Services Cincinnati, Ohio

Josh Schmidt Queen City Electric Cincinnati, Ohio

David Watkins Lee Stultz Electric Cincinnati, Ohio

In 2015, IEC had 51 chapters throughout the United States. These chapters offer membership, deliver the IEC Apprenticeship Program, offer continuing education classes, and much more.

CHAPTER MAP 51 33 34

37 7 14

4 21

6 15

5 2 3

35 24 18

13 16

22 38

9 1

47 43

30 27 31 28 29

41 42

49 39 44

45 8

1. Central Alabama IEC BIRMINGHAM, ALABAMA

2. IECA of Arizona TEMPE, ARIZONA

3. IEC Southern Arizona TUCSON, ARIZONA

4. IEC Rocky Mountain DENVER, COLORADO

5. IEC Southern Colorado COLORADO SPRINGS, COLORADO

6. Western Colorado IEC GLENWOOD SPRINGS, COLORADO

7. IEC New England ROCKY HILL, CONNECTICUT

8. IEC Florida West Coast CLEARWATER, FLORIDA

9. IEC Atlanta ATLANTA, GEORGIA

10. IEC Georgia ATLANTA, GEORGIA

11. IEC of Idaho BOISE, IDAHO

12. Central Indiana IEC INDIANAPOLIS, INDIANA

13. IEC Southern Indiana POSEYVILLE, INDIANA

14. Midwest IEC CROWN POINT, INDIANA

15. Wichita Chapter IEC WICHITA, KANSAS

16. IEC of the Bluegrass LEXINGTON, KENTUCKY

17. IEC Kentucky & Southern Indiana LOUISVILLE, KENTUCKY

18. IEC Chesapeake LAUREL, MARYLAND

19. Central Missouri IEC SEDALIA, MISSOURI

20. IEC Greater St. Louis BRIDGETON, MISSOURI

21. IEC of Kansas City KANSAS CITY, MISSOURI

22. IEC of Southeast Missouri CAPE GIRARDEAU, MISSOURI

23. IEC of Montana HELENA, MONTANA

24. New Jersey IEC SPRINGFIELD, NEW JERSEY

25. Northern New Mexico IEC ALBUQUERQUE, NEW MEXICO

26. Southern New Mexico IEC LAS CRUCES, NEW MEXICO

27. Central Ohio AEC-IEC COLUMBUS, OHIO

28. MECA IEC of Dayton DAYTON, OHIO

29. IEC of Greater Cincinnati CINCINNATI, OHIO

30. Northern Ohio ECA LAKEWOOD, OHIO

31. IEC Western Reserve Chapter BOARDMAN, OHIO

32. IEC-OKC OKLAHOMA CITY, OKLAHOMA

33. IEC of Oregon BEAVERTON, OREGON

34. Mid-Oregon IEC EUGENE, OREGON

35. Central Pennsylvania Chapter IEC MECHANICSBURG, PENNSYLVANIA

36. IEC of Northwest Pennsylvania ERIE, PENNSYLVANIA

37. IEC Dakotas PIERRE, SOUTH DAKOTA

38. Mid-South IEC MEMPHIS, TENNESSEE

39. CenTex IEC AUSTIN, TEXAS

40 El Paso IEC EL PASO, TEXAS

41. IEC Dallas IRVING, TEXAS

42. IEC of East Texas TYLER, TEXAS

43. IEC Fort Worth/ Tarrant County FORT WORTH, TEXAS

44. IEC San Antonio SAN ANTONIO, TEXAS

45. IEC Texas Gulf Coast HOUSTON, TEXAS

46. IEC of the Texas Panhandle BORGER, TEXAS

47. Lubbock IEC LUBBOCK, TEXAS

48. Rio Grande Valley IEC HARLINGEN, TEXAS

49. IEC of Texas AUSTIN, TEXAS

50. IEC of Utah MIDVALE, UTAH

51. IEC of Washington EVERETT, WASHINGTON

ADVOCACY

IEC: THE VOICE OF THE MERIT-SHOP ELECTRICAL CONTRACTOR

While the political climate in 2015 appeared to be a bit more promising for IEC and its policy priorities—with Republicans gaining control of both the House and Senate—this did not translate in a practical matter on all fronts. That’s not to say there wasn’t some good that came from the first half of the 114th Congress with regards to issues of importance to IEC, but with a Democrat still in the Oval Office and the Senate majority not large enough to overcome a filibuster or veto, many of IEC’s top priorities were left to fight another day. The early part of the year got off to a rocky start, with IEC working with members of Congress in what was the anticipated release of the National Labor Relations Board’s (NLRB) final rule for what is termed the “ambush” or “quickie” election rule, which expedites the unionization process. Released in April, the final

rule now makes it possible for a union election to take place in as little as two weeks, giving little time for electrical contractors to prepare and educate its workforce on the benefits of the merit shop electrical contracting model, and the cons of forming a union. IEC worked diligently with its partners in a Coalition for a Democratic Workplace (CDW) and members of Congress to fight this rule, with the Congressional Review Act (CRA) being invoked. Congress introduced and passed a resolution that would reverse the NLRB’s new rule. However, as expected, President Obama vetoed the legislation and an override attempt proved unsuccessful. This

did not stop IEC’s efforts to overturn this rule, as it continued to work with Congress to introduce legislation that would pick apart the “ambush” rule. Those bills are still pending in the 114th Congress. Meanwhile, efforts in the courts were in the works, with appeals filed in the DC Circuit Court of Appeals by CDW and another in the Circuit Court of Appeals for the Western District of Texas. Unfortunately, IEC’s interest in both were not successful, however, an appeal was filed in the instance of the Western District of Texas and the case is still pending. One of the more egregious rulings by the NLRB came in the case of Browning-Ferris Industries of California, Inc. (BFI), in which it chose to alter what is known as the “joint employer” standard. In this case,

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IEC scored victories with a permanent increase in the small business expensing (Section 179) from $25,000 to $500,000.

the NLRB significantly amended a rule that was in place for nearly 30 years, in which one employer would be considered a joint employer with another company’s set of employees with which it’s doing business. The original standard generally stated that two employers are considered “joint employers” should they have “immediate” and “direct” control over the employees on the job site. The NLRB chose to broaden the standard by changing it so that a joint employer situation would be considered should another company have “indirect” and “potential” control over another company’s employees. Thus, the new standard makes it so virtually every business relationship or agreement could be considered a joint employer situation, opening up one company to another company’s liabilities as well as their collective bargaining agreements. In an effort to combat this harmful ruling, IEC joined the Coalition to Save Local Businesses (CSLB) and worked in support of legislation titled the Protecting Local Business Opportunity Act, which would reverse this new standard. In addition, IEC testified in favor of opposition to the new standard before the Committee on Education and the Workforce’s Subcommittee on Health, Education, Labor and Pensions. IEC member Kevin Cole, CEO of Ennis Electric Company, Inc., represented IEC before the Subcommittee, warning that this rule limits merit shop electrical contractor’s choices in who they do business with and could actually hurt both merit shop and union contractors alike. The legislation is still pending in Congress and BFI is in the process of appealing its case.

Just when you thought IEC’s advocacy efforts couldn’t get more challenging, the Administration then released additional rules and executive orders that directly impact the merit shop electrical contractors. With the litany of proposed regulations, it would appear as though President Obama was making up for lost time in his last two years in office. For those IEC members that work on government contracts, proposed rules tied to the Fair Pay and Safe Workplaces Executive Order (E.O.), commonly referred to as “Blacklisting,” were released over the summer. IEC submitted comments in September opposing this E.O., which was marketed as a rule to keep the government from working with unscrupulous contractors. However, the rules create an entirely new and unworkable regulatory system requiring contractors to report violations on 14 different labor and employment laws and “state equivalent” laws taking place in the past three years for all contracts exceeding $500,000. Once awarded the contract, a company would be required to update this information every six months for the life of the contract. General contractors would have to collect similar information in the same increments from its subcontractors and pass it along to the federal government to assess whether they are suitable to do business with. The flurry of regulatory proposals continued with the release of an E.O. mandating all federal contractors provide their employees seven days or more of paid sick leave annually, which can be carried over from year-to-year, with no limits. This was

followed by the Department of Labor (DOL) proposing a drastic increase to the “white collar” exemption rules for overtime. Current law requires paying overtime to employees making less than $455 per week or $23,660 annually. DOL’s proposed change requires employers pay overtime to those making $970 per week or $50,440 annually. IEC submitted comments on the rule and continues to warn Congress and the Administration as to the harmful effects this could have on small business and its employees through the coalition known as the Partnership to Protect Workplace Opportunity. Another regulator proposal emerged late in the year from DOL that directly impacts IEC and its chapters’ registered apprenticeship programs with the release of proposed regulations updating registered apprenticeship program’s Equal Employment Opportunity rules. IEC weighed in on this proposal, registering its concerns with new reporting requirements and benchmarks for programs to attempt to recruit people with disabilities. With all the challenges presented to IEC throughout the year, the end of the year proved fruitful as IEC was able to score victories in Congress’ “omnibus” legislation, which included funding for the government for Fiscal Year 2016 and a number of positive tax and health care provisions. On the tax front, IEC scored victories with a permanent increase in small business expensing (Section 179) from $25,000 to $500,000. Prior to this, Congress typically only extended the $500,000 limit on an annual or semi-annual basis. Also in the tax area, bonus depreciation, which allows small businesses to depreciate 50 percent of the cost of certain property, was extended for equipment put in service during 2015–2017. The 50 percent is then reduced to 40 percent in 2018 and 30 percent in 2019. Lastly, a

two-year extension retroactively for 2015 and prospectively for 2016 of the tax deduction for energy efficient upgrades to commercial buildings, known as Section 179d, was also included.

The Cadillac tax, which is imposed on higher end health care plans, was delayed from 2018 to 2020.

Finally, in the health care arena, Congress provided IEC members temporary relief to taxes implemented through the Affordable Care Act. Included in the omnibus were delays of the so-called “Cadillac” tax and health insurance tax (HIT). The Cadillac tax, which is imposed higher-end health care plans, was delayed from 2018 to 2020, while the HIT, which is a tax from on insurance plans that ultimately gets passed onto small businesses and consumers in the form of higher premiums, was delayed for 2016. All in all, IEC worked diligently in 2015 to make the merit shop electrical contracting industry’s voice heard throughout 2015, advocating to Congress and federal agencies about policies that both positively, and negatively impact the industry. It’s clear that IEC is not without a

shortage of advocacy challenges as it heads into 2016 and will continue to fight for those issues that affect the merit shop electrical contracting industry and its bottom line.

2015 IEC LEGISLATORS OF THE YEAR SENATE Senator Tim Scott (South Carolina)

(Pictured above with 2015 IEC National President Mark Gillespie, Secretary/Treasurer Joe Hovanec, and EVP/CEO Thayer Long)

HOUSE OF REPRESENTATIVES Representative Tim Walberg (MI-7)

RISING STAR Representative Scott Perry (PA-4)

MEETINGS

THE IEC NATIONAL MEETINGS WERE REBRANDED IN 2015!

IEC NATIONAL LEADERSHIP CONFERENCE

IEC National Business Summit

IEC NATIONAL LEGISLATIVE CONFERENCE

IEC National Policy Conference

ANNUAL IEC NATIONAL CONVENTION & ELECTRIC EXPO

IEC Con

2015 IEC National Business Summit