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The Objects Of The IBEW Are…
This Is Who We Are And What INTRODUCTIONThe International Brotherhood Of Electrical Workers (IBEW) Wants You! This is an excellent opportunity for you to discover a great career as an IBEW electrician and to earn a secure and comfortable retirement. Did you know that over 50% of the people in the U.S. retire on their Social Security check, and nothing else? That’s just not right! Anyone who works hard for a living is entitled to a good retirement. A lot of people don’t really understand what a union is, what a union can do for them, and why workers need a union. This information should answer all of those questions, and many more. They Are Union Because They Want To Be! WAGESAll IBEW journeyman electricians earn $20 - $50 per hour, depending upon their job classification and the area of the country they live in. Apprentices are paid a pre-set percentage of the journeyman rate. Local 231 journeymen currently earn $26.89 per hour. PENSIONS Most nonunion electricians do not have a true pension plan. Some may have a 401K plan, while others may have nothing at all. The drawback to a 401K plan is that the employee has to take money out of his own wages first, and then the contractor may match a certain percentage of the employee’s contribution. Our pension plans are guaranteed – and you don’t have to take any money out of your pocket to fund them. The contractors fund them for us. IBEW Local 231 members receive three (3) separate pensions when they retire: Local Pension The contractors fund a local pension plan for every working Local 231 member. For every hour a member works, $3.21 is paid into his private pension account. If the electrician works 2000 hours per year (40 hours per week X 50 weeks per year), over $6,400 is paid into his individual account, and this is in addition to his wages. Each member can direct his pension funds into various types of investments accounts. Investment consultants are available - free of charge - to help him with his investment planning. Apprentices receive a pre-set percentage of this pension amount, which increases over time.
Many Local 231 members will retire at age 62-65 with $1,000,000 (that’s right, one million dollars) or more in their local pension accounts, depending on the rate of return of their investments over the years and the length of time they have worked (see the Estimated Pension Value chart below). To illustrate how much you could earn, determine how many years until you retire; scroll down the chart until you come to that year number; then follow that line over to the Balance column. For instance, an electrician who deposits $6,420 per year for 40 years could have $1,412,474 at retirement, if he was able to earn a consistent 7% interest rate for that time period. ESTIMATED PENSION VALUE**Based on $6,420 yearly deposits and a constant 7% interest rate. This is only an estimate. Actual values will vary depending on deposits and interest earned over the years.
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National Electrical Benefit Fund (N.E.B.F.)
All IBEW members receive a defined-benefit N.E.B.F. pension that is also funded by the contractors. Retirees are paid $32.00 per month for every year they worked as an IBEW member.
For example, after 40 years, a member would receive $1,280 per month for life ($32.00 x 40) as a retirement benefit from this fund.
International Pension
Additionally, all IBEW members receive a smaller, defined-benefit pension from the IBEW. Retirees are paid $4.50 per month for every year they worked as an IBEW member.
For example, after 40 years of work, a member would receive $180 per month for life ($4.50 x 40) as a retirement benefit from this fund.
Remember, all of these pensions are in addition to the members’ wages. So, a 40-year IBEW member could easily retire with over $9,000 per month income from these three pensions alone. Plus, he wouldn’t even have to touch the principal balance of his local pension account. It could stay the same and he would only need to withdraw the interest earned every year. The figures below illustrate how this monthly retirement income was estimated. (Of course, these figures are only estimates. Every individual’s actual retirement income will differ, depending upon total hours worked, interest received, and amount of contributions.)
A conservative estimate of 7% return on investment for your local pension account could result in a $1,412,474 account value after 40 years (see the chart on the previous page). A constant 8% return could yield a balance of $1,880,140.
With a pension account balance of $1,412,474 earning a 7% return, a retiree could receive $98,873 per year in retirement interest income, without ever touching the original $1,412,474 balance.
| $1,412,474 X 7% = | $98,873 interest per year. |
| $98,873 / 12 months = | $8,239 per month. |
| Local pension income | $8,240 / month |
| N.E.B.F. pension | $1,280 / month |
| International pension | $ 180 / month |
| Monthly IBEW Retirement Income | $9,700 |
Plus, the retiree will also receive Social Security (currently about $1,800) along with any other money he has saved for retirement.
All working Local 231 electricians receive a family health insurance plan at no cost to them. As long as the member works an average of 144 hours per month, his insurance is completely paid for by the contractor. Additional hours worked each month build up health insurance premium credits in the member’s personal health savings account. Members can accrue an unlimited amount of additional premium credits in their personal accounts. These credits can be used to pay their health insurance premiums if they are not working for any reason. The credits can also be used to pay for any out-of-pocket medical expenses incurred by the participant, if he so desires. The health insurance also has a prescription drug plan for short-term and long-term prescription medications needed.
IBEW Local 231 belongs to a non-profit, self-insured group that works to keep premiums and costs as low as possible. The plan has coverage throughout the country and the world, and members can use any doctor they choose. Blue Cross/Blue Shield also provides major medical coverage up to $1 million at no additional cost to the member.
As an added bonus, Local 231 members are provided life insurance and disability insurance (at no cost to them) in case they die, or if they are injured in an accident and can’t work. And to ensure continuous protection, the disability insurance also pays a disabled member’s monthly health insurance premium for up to one year, until he can get back to work, so he doesn’t lose his health insurance coverage.
Life insurance is divided into two separate categories: natural death and accidental death. The benefit payment for a natural death is $20,500. Payment for an accidental death is over $29,000.
Disability insurance payments start after a disabled member has been off work for 14 calendar days, and payments will continue for up to one year. Disability payments are currently $400 per week.
Your family is protected!
Do you feel like you’re advancing in your career? Do you wish you could get some more education? IBEW contractors pay for most training and educational classes for our members. This includes classes for license renewal, technical training, and apprenticeship school. Typical training may include classes on topics such as:
| ~ Code Updates | ~ Motor Controls |
| ~ Grounding | ~ Fire Alarm Systems |
| ~ Fiber Optics | ~ Telephone Wiring |
| ~ PLCs | ~ OSHA Certification |
| ~ Safety Training | ~ Data Cabling |
| ~ License Prep | ~ Integrated Circuitry |
Apprenticeship training is a combination of classroom work and on-the-job training. Apprentices attend classes for 180 hours per year in state-of-the-art classrooms and labs. They take the knowledge learned in the classroom and apply it to jobsite situations. All of this is done under the supervision of skilled journeyman electricians and instructors. The classroom work is part-time, and the on-the-job training is full-time work. Apprentices currently make over $150,000 over the course of the five-year program, and their training is free. The only cost to the apprentice is his schoolbooks, which he keeps.
The IBEW takes safety very seriously and continually strives to improve safety on all jobsites. IBEW electricians have one of the lowest accident rates in the construction industry. No job is worth your life.
Also, the contractor furnishes all required safety equipment (hard hats, safety glasses, fall protection, etc.) and all safety training (CPR, first aid, etc.).
IBEW Local 231 members are only required to buy their own work boots, tool pouch, and a limited number of hand tools, such as a hack saw, pliers, wire strippers, screwdrivers, hammer, etc. The contractor supplies everything else. This includes all power tools, benders, ladders, extension cords, battery drills, drill bits, hack saw blades, knock-out sets, hole saws, fish tapes, ropes, toolboxes, and most meters. The money for these tools should not have to come out of the electrician’s back pocket to help the contractor make more money. Tools are part of the cost of doing business, so the business should pay for them. It’s that simple.
Everything discussed so far has described the many financial benefits of IBEW membership, but what about all of the intangible benefits? The IBEW provides its members with many other things besides a great wage and benefit package. Read on to learn more.
Each IBEW local has a Business Manager who protects the rights of every IBEW member. He makes sure everyone plays by the rules and that everyone is treated fairly. IBEW members standing together enjoy more rights and benefits than individual employees standing alone. As the saying goes….“There is strength in numbers”. Even though the Business Manager represents the members, the IBEW is run by its members and for its members. It is their union and they elect the Business Manager and all of the local union officers. The IBEW exists to protect, serve, represent, and assist all of its members.
Do you dread asking the boss for a raise, better health insurance, or more vacation time? Most employees do. Fortunately, IBEW members don’t have to go in to ask (or beg) for these things. The local union negotiates wages, benefits, and working conditions for all of its members. IBEW locals have a written contract with the contractors which spells out exactly what wages and benefits the members receive. Everyone is treated fairly and equally in the IBEW. A negotiating committee sits down with the contractors to determine pay raises and all other work-related issues. After they reach an agreement, all IBEW members are allowed to vote on the new contract. Members can also vote on any local union issues that come up, giving everyone some meaningful input into his/her future.
The IBEW does not control its members; its members control the IBEW.
The IBEW has a grievance resolution procedure in place to handle any type of problem that may arise – whether it’s reaching a contract agreement or resolving a complaint by an employee. The IBEW and the contractors have agreed to work together to solve any and all problems that come up. If a problem can’t be resolved locally, it is referred to arbitrators who listen to both sides of the issue and make a final decision on the case. The IBEW and the contractors have agreed to accept this decision as binding arbitration.
This is an important point – the IBEW has a ‘ NO STRIKE CLAUSE’ in its contract. We do not go on strike when we have problems or disagreements with the employers. We believe it is more important to maintain a good working relationship with the contractors.
This is one of the best benefits IBEW members enjoy that very few non-union electricians have. And it’s much more important than most people realize.
Have you ever changed jobs? When most people leave a job and start with a new employer, they lose all of their benefits from their last job. They may have to take a pay cut, and they probably lose vacation time, health insurance, sick days, and/or pension benefits.
IBEW members don’t have to worry about these issues. Whenever an IBEW electrician leaves one contractor and goes to work for a different one, all of his wages and benefits transfer from his last employer. There is no pay cut, health insurance doesn’t lapse, vacation pay continues to accrue, and pension payments do not stop or have to start over. It doesn’t matter if he takes a job across town or across the country, all of his job benefits follow him wherever he goes in the U.S. or Canada.
Do you currently have any input into your job, pay, benefits, and/or working conditions? Every IBEW member has an equal voice in all of these things.
IBEW members belong to the union for all of these reasons….and many more.
All IBEW members pay union dues. So, why do they take their own money and give it to the IBEW? They do it because they know that the benefits and representation they receive are much more valuable than the dues they pay.
Local 231’s dues are $28.00 per month and $1.61 for each hour worked. That may sound like a lot, but consider what the members receive in exchange for their dues – top wages, 3 pensions, health insurance, a vacation and holiday plan, good working conditions, representation, and much more. Plus, union dues are tax deductible!
Union dues are a great value. Consider union dues this way – instead of making $26.89 per hour, Local 231 members make $25.12 after dues….Plus, they get all of the benefits of union membership!
IBEW membership doesn’t cost…it pays
Wait a minute! Non-union electricians don’t have to pay any dues. They get to keep all of their money. Let’s take a closer look….
Most nonunion electricians have to use some of their hard-earned money to pay for part of their health care insurance, retirement, tools, vacation, training, etc. This money comes right out of their pockets. Take a little time to figure out how much money you spend every year for the following items. IBEW Local 231 members receive all of these benefits.
How much does it cost you every year for these benefits (if you have them at all)?
| * Health Insurance | $_______________ |
| * Disability Insurance | $_______________ |
| * Life Insurance | $_______________ |
| * 401K Plan | $_______________ |
| * Vacation Plan | $_______________ |
| * Holiday Plan | $_______________ |
| * Tools | $_______________ |
| * Safety Equipment | $_______________ |
| * Continuing Education | $_______________ |
| * Apprenticeship School | $_______________ |
| * Training Classes | $_______________ |
| Total Yearly Cost | $_______________ |
Yeah, you pay non-union dues!
* Figures are based on 2000 hours per year.
So, you might be asking yourself some of these questions….
This sounds too good to be true. What’s the catch?….
There’s no catch. Union membership isn’t free, but members do get a great return on their investment. For every $1 spent on union dues, members receive over $5 in vacation, insurance and pension benefits.
Some unions used to be corrupt, and maybe some still are. But all unions should not be lumped together. Each union should be judged by its own actions. The IBEW is a great union to belong to, and it is definitely not corrupt. There are numerous checks and balances in place to protect the members. All financial records are available for review and the union’s books are audited quarterly. Do a little research online and you will discover how well run, honest, and open the IBEW is.
Sure, unions need money to operate, just like any other business. We can’t speak for other unions, but the IBEW cares a lot about its members. We understand that a union’s business is representing its members. If the IBEW didn’t care about its members, people wouldn’t continue to belong to it, and it would be out of business! However, just the opposite is occurring right now. Membership in the IBEW has been growing steadily for the past few years and recently eclipsed the record for total membership. Today, nearly 750,000 people are represented by the IBEW. Can that many people be wrong?
Changing jobs is often hard for people, even if they don’t like their current job. In fact, any change in your life is hard. But it always takes a little risk to reap the rewards. You really have nothing to lose by checking out the IBEW….and you have a lot to gain. Even if you join and decide later that the union is not the right choice, you can quit at any time. We may be sad to see you go, but the IBEW is not a cult! Everyone has to do what he feels is right for himself and his family. We just want everyone to be aware of us, know what we have to offer, and make a decision based on accurate information.
Many people think unions are no longer needed. In reality, they are needed now more than ever. Today’s workers are under attack. They are losing health care benefits, pensions, wages, job security, and workers’ rights. Most workers had all of these benefits 20-25 years ago. Now, people have to work longer hours just to survive, and their pay doesn’t even begin to keep up with inflation. Unions help raise all workers’ standard of living, protect workers from discrimination, make jobsites safer, ensure its members have a good retirement, and give workers a voice in their own future. Do you have all of these things right now?
What kind of job do you have if you can get fired for “asking questions about the union”? Everyone in America has the right to discuss the union and to join a union if they want to. Unions help protect their members from unfair and illegal discrimination like this. Besides, if a boss treats his employees well, gives them decent benefits, and pays them a fair wage, he shouldn’t feel threatened by a union. Unfortunately, many employers are not fair and honest. That’s why unions were formed in the first place. It’s the employer who takes advantage of his employees or treats them unfairly who usually fears a union. Which category best describes your boss?
This is a myth about the IBEW. Approximately 85% - 90% of Local 231’s members work year-round. In fact, many of our members have worked for the same contractor for 20-30 years or more. Good workers rarely get laid off or miss time, except when work slows down everywhere. But, doesn’t this also happen to non-union workers? It is the nature of the beast. Construction work is dependent upon the weather and the economy. The big difference is….when union electricians are out of work, they can usually find another job through the union hall.
~ It’s natural to be suspicious of something you don’t understand. And it can be scary to think about change in your life. But the IBEW is definitely a change for the better.
~ Electrical work is pretty much the same – whether you are union or nonunion. So why work for less money and fewer benefits when you can join the IBEW and have the best pay and benefits available?
~ Unions don’t control your life, and they don’t affect your daily job. IBEW electricians go to work for a contractor every day, just like non-union electricians. The employer, not the union, is their boss. The IBEW’s job is to protect the workers’ rights, secure better pay and benefits, and improve the working conditions of its members.
~ IBEW members can be as active or inactive in the union as they want to be. Some serve as union officers and committee members, some just attend union meetings, and some do nothing at all. But no matter how involved members are, every one of them gets equal representation and all of the negotiated benefits of the union contract. There is no favoritism or seniority rules, and all members are treated fairly.
~ IBEW electricians can make a good living on 40 hours per week and most don’t have to be away from home for weeks at a time. The vast majority of IBEW electricians work close to home and have dinner with their families every evening. And, they get to spend their nights and weekends doing things they enjoy – not working! Many non-union electricians have to work 60-70 hours per week, often times on the road, just to make ends meet. You should work to live, not live to work!
~ Nearly 750,000 people belong to the IBEW. Every one of them reaps the benefits of union membership. Every one of them also has the option of quitting the union, but very few do quit – because they know what the IBEW has done, and what it continues to do, for them.
~ The IBEW works hard to protect its reputation - with its members, the contractors, other trades, architects, engineers, owners, and the public. The IBEW is a truly great union and a strong advocate for all workers’ rights.
~ The IBEW is a labor organization that is dedicated to improving all workers’ lives in an ever-increasing hostile work environment where workers are often used and abused by their employers.
~ Some employees discount the importance of benefits like health insurance, pensions, paid vacations, etc (usually because they don’t have them). But as you get older and your family grows, these benefits become much more important. Local 231’s benefit package alone totals nearly $20,000 per year. Take some time to study the facts and figures. It’s amazing to see how much these benefits can affect your quality of life, especially at retirement.
~ Unions built this country in the 20th century. They created and still help maintain the middle-class lifestyle by increasing wages and improving benefits for workers in the U.S. Today, all workers benefit from the progress made by unions. Unions are responsible for bringing about the 8-hour workday, the 5-day workweek, health insurance, pensions, jobsite safety, workers’ rights, and so much more.
~ IBEW electricians and contractors are union because they want to be. They both realize the value of the IBEW. Why would IBEW members pay dues if it didn’t benefit them? Why would contractors pay higher wages and more benefits if it didn’t help them? THEY WOULDN’T! Contractors know they are hiring trained and skilled craftsmen, and the members know they are receiving top pay and benefits for their skill and knowledge. We work together because both sides realize the benefits of cooperation and common goals.
When considering lifetime earnings, an IBEW electrician will come out way ahead of a non-union electrician. Take a look at what an IBEW member could expect to earn after a 40-year career. The figures below use the current wage and benefits of Local 231 members and are based on a 2000-hour work year. Of course, all of these figures will probably increase with the cost of living and inflation, making the actual total possibly much higher.
| Wages: | $53,780/yr. x 40 years = | $2,151,200 |
| Health Insurance | $ 8,900/yr. x 40 years = | $ 356,000 |
| Local Pension | $ 6,420/yr. x 40 years = | $ 256,800* |
| Vacation | $ 4,500/yr. x 40 years = | $ 180,000 |
| Total Wages and Benefit | $2,944,000 | |
| Estimated Pension Interest | $1,155,674* | |
| ($1,412,474 - $256,800) |
Estimated Lifetime Earnings $4,099,674
*See Estimated Pension Value chart.
Don’t let rumors or negative reports from the media about “unions” influence your decision about the IBEW. Decide for yourself. Or better yet, let your pocketbook decide for you. After all, it’s your life and your career. Compare your total wage and benefit package to an IBEW electrician’s. You owe it to yourself to check it out.
For more information or answers to specific questions, feel free to contact Jim Shook – Local 231’s Membership Development Director. All contact and communication will be held in strict confidence. Jim can be reached at:
| IBEW Local 231 | (Office) 712-255-8138 |
| 5001 Harbor Drive | (Cell) 712-899-8399 |
| Sioux City, IA 51111 | (email) ibew231js@cableone.net |
The IBEW is the real deal and a great bargain.