May 9, 2005

Dear Brothers and Sisters:

Your Negotiating Committee met with EMANY Thursday and Friday in hopes of reaching a new collective bargaining agreement. Unfortunately, EMANY once again left the table regressive and unresponsive to the proposals Local One set forth. There were many creative ideas presented and we felt progress was being made. Brother Hernandez will be meeting with the Federal Mediator on Wednesday in hopes of setting new negotiating dates and reviewing current proposals. We will keep you updated as events unfold.

In Solidarity,
Your Local One Negotiating Committee

May 5, 2005

Dear Brothers and Sisters:

The Local One Negotiating Committee and EMANY met today, with a meeting scheduled for tomorrow. A report will be posted after negotiations have concluded for the day. If negotiations run late, the update will be posted on Saturday.

In Solidarity,
Your Local One Negotiating Committee

Brothers and Sisters,

Your Negotiation Committee met with EMANY for the past two days. In the negotiations, the Local One Negotiation Committee laid out some creative ideas on many issues and felt progress was being made. Unfortunately, at the end of the day, the efforts of your Negotiating Committee were met with a negative response from EMANY. Further details will be posted Monday.

In Solidarity,
Your Local One Negotiating Committee

Dear Brothers and Sisters:

The Local One Negotiating Committee and EMANY met today, with a meeting scheduled for tomorrow. A report will be posted after negotiations have concluded for the day. If negotiations run late, the update will be posted on Saturday.

In Solidarity,
Your Local One Negotiating Committee

5/2/05

Dear Brothers and Sisters:

On behalf of your Executive Board, I am writing to you to address the April 28, 2005 update posted by EMANY (Schindler, KONE, and Otis) on its website. The posting contains many inaccuracies and is an attempt to mislead you and to try to undermine your resolve in combating EMANY’s lockout of Local 1 members.

EMANY claims that it continues to negotiate in good faith to secure a fair and equitable contract for Local 1 employees” but that “Local 1 negotiators have wasted valuable time by refusing to accept any meaningful proposals and offering unproductive counter proposals”.

What EMANY fails to state is that Local 1 has consistently offered counter proposals addressing the issues that are currently on the table between the parties. It is EMANY, however, that unfortunately will not make any movement on its proposals regarding global positioning, hoisting, shift work, and wages. It is apparent that EMANY’s definition of “good faith” bargaining is for Local 1 to agree unconditionally to its proposals and that a “fair and equitable contract” is one that is settled on EMANY’s terms.

In its update, EMANY explains why it initiated a lockout of its union represented employees. EMANY contends that it “Took this step only when it became clear that the Union President refused to negotiate a reasonable agreement, and because certain strike conduct was already taking place.” They also indicate that “Local 1 negotiators are keeping its own membership out of work by refusing to move on critical issues like wages, hoisting, and shift work.”

In a recent deposition of EMANY’s chief negotiator, James Walker, the issue of why Otis, Schindler and KONE chose to lockout its union represented employees was addressed. Mr. Walker claimed that the lockout was implemented because Local 1 members were engaging in “strike conduct” prior to March 17, 2005. He was asked to identify the alleged “strike conduct”. He cited to two examples of Local 1 members allegedly refusing to perform work and one example of alleged violence against an EMANY replacement worker.

The following are some quotes from Mr. Walker’s deposition. You will see from these quotes, that allegations of pre-lockout “strike conduct” or refusal by Local 1’s negotiating committee to “negotiate a reasonable agreement” are not the reason that the lockout was implemented.

When our legal counsel, James M. Mets, Esq. asked Mr. Walker if he had any role in the decision to lockout the Local 1 members, Mr. Walker replied, “Yes.” He asked if he agreed with the decision to lockout, and he stated: “YES”.

Mr. Walker was asked whether of not he had any knowledge of Local 1 members refusing to do work for EMANY members or refusing to respond to calls. Twice he responded, “Do I have personal knowledge, no.”

When counsel asked Mr. Walker if he had any knowledge of any Local 1 member committing intentional acts of vandalism he again stated, “No, I have no personal knowledge.”

Even more disturbing than Walker’s lack of knowledge with regard to any of the alleged “strike conduct” is the fact that he took no steps whatsoever to investigate these allegations. Counsel for Local 1 asked Mr. Walker:

Mr. Mets. “In your capacity as labor relations consultant and lead negotiator, aside from speaking to Mr. Hernandez, the President of Local 1, did you take any steps to investigate the claims that they (EMANY) were making to see if they were true or false?”

Mr. Walker. “No.”

Mr. Mets. “Did you assign anybody on any of the EMANY committees or any EMANY member to undertake an investigation to determine whether or not the Malane and Barrett allegations were true or false?”

Mr. Walker. “No.”

With regard to the alleged vandalism, Mr. Walker was asked if he undertook any investigation into the alleged acts of vandalism. Again Mr. Walker responded, “No.” He also did not direct any member of EMANY to investigate the alleged acts of vandalism.

It is apparent that Mr. Walker as EMANY’s chief negotiator, simply chose to believe that these allegations were true rather than conduct any investigation whatsoever into whether or not they were actually true.

Mr. Walker, chief negotiator, is well aware of the terms of the collective bargaining agreement between Local 1 and EMANY. He knows that there is a grievance procedure that the companies should have used to challenge the alleged refusal of Local 1 members to perform work. Mr. Walker was asked the following questions regarding the grievance procedure:

Mr. Mets.“Did you or any EMANY member, any company member, file a grievance against the Local with regard to these acts?”

Mr. Walker. “Not to my knowledge.”

Mr. Mets. “You would agree that these would be issues that could be brought through the grievance procedure?”

Mr. Walker. “Yes.”

Mr. Mets. “But EMANY did not file a grievance, to your knowledge?”

Mr. Walker.“Correct”.

It was apparent from the deposition of Mr. Walker that EMANY intended to lockout Local 1 members simply to attempt to gain an edge in collective bargaining and that it was not based on the alleged pre-lockout “strike conduct”. Mr. Walker admitted that he approved of the lockout but has no personal knowledge of any reasons why a lockout would be appropriate. The allegations that were brought to his attention could have been resolved through the collective bargaining agreement’s duly negotiated grievance procedure. However, EMANY chose not to pursue that route but rather to implement an illegal lockout of Local 1 members.

Let me also address EMANY’s claim that Local 1 negotiators are keeping its own membership out of work by refusing to move on critical issues like wages, hoisting, and shift work.

EMANY has proposed to increase the overall wage package (including benefits) by 7% in the first year of the contract, 0% in the second year, 7% in the third year, 0% in the fourth year, and 7% in the fifth year. They claim that this is a “fair and reasonable” proposal. This proposal increases the overall economic package of Local 1 members by approximately 4.2% per contract year. With double-digit increases in health benefit costs, and the current cost of living at approximately 3.8%, EMANY’s proposal is anything but fair and reasonable and is actually regressive.

It is nothing more that a blatant outright lie that EMANY members Schindler, KONE, and Otis are seeking a fair and reasonable agreement when the remaining EMANY members, B&G Elevator and Fujitec Elevator, competitors of Schindler, KONE and Otis, have settled with Local 1 for economic increases of 7% per year. Ask yourself: If two EMANY members agree that better economic increases are warranted, how can Schindler, KONE and Otis claim that those settlements are not “fair and reasonable”?

EMANY also wants you to believe that the Local 1 negotiating committee is refusing to move on EMANY’s proposal on hoisting. Let us provide you with some facts. EMANY is proposing to remove construction hoisting work in New York and New Jersey from Local 1 members and give that work to other unions. Throughout the year, there are approximately 700 Local 1 members employed at construction sites. If Local 1 were to agree to EMANY’s hoisting proposal, Local 1 members would lose approximately 1/3 of their jobs. Whatever pay raise Local 1 negotiators are able to secure for Local 1 members are meaningless, if you are unemployed.

EMANY also claims that the Local 1 negotiating committee is refusing to move on EMANY’s proposal on shift work. EMANY claims that customer service needs require Local 1 members to perform shift work. However, EMANY fails to include in its analysis how shift work will affect the quality of life of Local 1 members. In addition, EMANY at no time has shown that the current on call system has not been successful.

Probably the most interesting of the EMANY proposals is its request to install GPS in all of its vehicles operated by Local 1 members. Local 1 did make a counter proposal to EMANY to allow the company to put GPS in the vehicles but to also allow Local 1 members to turn the GPS off when not on duty. Local 1 also, in response to the company’s contention that GPS is necessary for the safety of Local 1 members, requested that GPS not be used for disciplinary purposes. EMANY rejected these counters.

EMANY’s claim that GPS is to be used for safety purposes is nothing but another lie. Let me give you an example. A Local 1 member working for Otis had GPS in his van. That Local 1 member parked that van in a customer’s lot for 35 days with the GPS operating. While that van sat in that parking lot for 35 days, the Local 1 member used his personal vehicle and performed his duties. While that vehicle sat there for 35 days, Otis did not contact the Local 1 member to find out if he was in any trouble or why his van was parked at a customer facility for 35 consecutive days.

The EMANY companies claim they “want their Local 1 employees back”. They state however, “they cannot bring them back until there is a fair and reasonable agreement.” Why? Prior to the lockout and even after the lockout Local 1 has consistently advised EMANY that its members would continue to work under the expired collective bargaining agreement until a current collective bargaining agreement is negotiated. EMANY has outright refused this request. It cites to the alleged “strike conduct” prior to the lockout for its refusal.

However, EMANY had no evidence of strike conduct that would warrant a lockout. In addition, at his deposition, Mr. Walker specifically admitted that I advised him that at our March 15, 2005 Union meeting, I told the membership that the union does not condone or tolerate unlawful conduct. He also admitted in a March 24, 2005 letter to me, that I told him that the Union does not condone illegal acts by Local 1’s members. He believed my representation.

EMANY tries to blame your Local 1 leadership for you being out of work. However, your Local 1 leadership has made thoughtful and reasonable counter proposals to EMANY’s negotiating committee and has reassured EMANY that Local 1 does not condone unlawful conduct. Despite the Local’s lawful conduct, EMANY put each one of you on the street without regard for your family’s welfare and the safety of the riding public.

Why has EMANY continued to lockout Local 1 members? The plain and simple truth is greed! They are trying to get an advantage in collective bargaining. They hope to break the will of the Local 1 membership and their leaders.

Why would Mr. Walker condone such conduct? What financial stake does Mr. Walker have in continuing these negotiations and the lockout? Well, his consulting firm in addition to having a $50,000 retainer with EMANY to conduct negotiations up until the time of expiration of the collective bargaining agreement, is now being paid $120 per hour to conduct all post lockout negotiations. In addition, the law firm that owns his consulting firm is being paid by the hour for all post lockout services provided to EMANY.

One final word: In its welcome message on its website, EMANY contends that it has “supplemented their workforce with experienced professionals from other locations across the country so they can continue to provide customers with excellent and responsive service during this time.” In the deposition of Carl Bauerlein, a former Local 1 member and a current manager for Schindler Elevator, he identified the quality personnel that are replacing Local 1 professionals. When Mr. Bauerlein went to a modernizing project in Alphabet City, he brought with him an assistant, a position that would have been held by an Apprentice from Local 1. He identified the assistant as Luinel Diaz. He was asked: “What was Luinel’s job before he was an assistant?” Mr. Bauerlein responded, “He was a cleaner…Somebody that cleans offices.”

We learned from another deposition, that William Samora, a KONE manager and replacement worker was asked to go to a service call at the Newport Center Mall in Jersey City. Mr. Samora testified that the purpose of the call was to repair a broken escalator. He was asked: “Do you have any training in escalator mechanics?” He responded, “No.” He was then asked, “So what was your function there?” He stated, “Helper”. He was asked what his position with the KONE is, and he responded, “Finance Manager.”

These are the types of individuals that the three EMANY companies are using to supplement their workforce. They are claiming that these are the experienced professionals that are preserving the safety of the riding public and replacing the dedicated and well-qualified professionals that are members of Local 1. Such a claim is laughable.

In closing, your Union leadership would like to thank each and every one of you for persevering and standing tall in the face of the adversity and financial hardship that the three EMANY companies have caused you. Stay strong and you and Local 1 will prevail.

In Solidarity
Raymond Hernandez
President/ Business Manager

April 26, 2005

Dear Brothers and Sisters:

We are pleased to announce that Local One has won the Annuity Arbitration of April 14th. If you have been locked out by Otis, KONE or Schindler, you are authorized to take loans or special financial need withdrawals as long as you are otherwise eligible under plan rules. Please contact our Annuity Fund at 201-592-6800 for eligibility and further instructions. You can read the Arbitration decision by clicking here.

In Solidarity,
Your Local One Negotiating Committee

April 21, 2005

Thank you Brothers and Sisters of our great local! By an overwhelming vote of 949 to 25, our membership has once again shown our solidarity by voting to adopt our $250 per-month assessment for all working members.

We are proud to represent you at the table. You continue to show your support and we know you have our backs. We continue to try and reach an agreement with EMANY and as soon as they are willing to see these negotiating sessions as a two way street, we are sure an agreement can be reached. Bargaining must be done collectively. EMANY just wants it their way. We are not willing to concede to their demands and by your show of support tonight, we know our membership isn’t either.

Thank you again for your support!

In Solidarity,
Your Local One Negotiating Committee

April 20, 2005

Dear Brothers and Sisters:

The Local One Negotiating Committee and EMANY met today with no progress to report. We will be reconvening Thursday morning with EMANY in hopes of making progress toward a new collective bargaining agreement. We are disappointed with the EMANY group in their propaganda campaign and reiterated that at the table today.

We look forward to the membership meeting Thursday night to discuss the contract negotiations and any other membership issues. Please make every effort to attend.

In Solidarity,
Your Local One Negotiating Committee

April 17, 2005

Dear Brothers and Sisters:

We will be back at the table on Wednesday and Thursday of this week to continue negotiating. We also have an arbitration on April 27th to determine what the cost of health care will be after our current eligibility ends. The Employer Trustees of the National Elevator Industry Benefit Plans want you and your family to pay the COBRA rate of nearly $1,000 a month to maintain your Health Coverage. Your Union Trustees opposed this mean spirited attempt of crushing working families. EMANY wants to bring your family to their knees financially. They don’t want you to have the ability to pay for health care by denying loans from your Annuity Fund. It is hypocritical to send letters to your homes calling you “valued employees” when their goal is to deny you Health Care and Annuity Loans. If we were truly valued, EMANY would have allowed us to continue employment while we negotiated instead of LOCKING US OUT!

Please keep supporting your union. We will prevail in this battle for justice!

In Solidarity,
Your Local One Negotiating Committee

April 14, 2005

Dear Brothers & Sisters:

Your Union Trustees (Brothers Hernandez, Legotte & Carudo) attended an Annuity Fund Arbitration today on your behalf. The Employer Trustees of your Fund (James Walker, Joe Zaffuto and Charlie Gutowski of EMANY) argue that their employees should NOT be entitled to a weekly compensation for the current lock-out. Local One could not disagree more. Our position is that our members are locked-out and are not being given an opportunity of employment. Therefore, we feel our members should be entitled to the $300 per week involuntary unemployment compensation as outlined by our Plan. We should have the Arbitrator’s decision by months end. In the meantime, please feel free to contact the Annuity Fund Office (201-592-6800) regarding unemployment applications.

There are negotiating meetings set up for next Wednesday and Thursday. We hope for progress and are prepared to continue negotiating in good faith. We are hopeful EMANY will start to live by that motto also.

A big THANK YOU to IUEC Local 4 (Boston) for sending a busload of members today to join us on the picket line set on 6th Avenue. Your presence is appreciated in our fight for justice. Thank you Business Manager Langer, officers and members of Local 4! We’d also like to thank IUEC Local 138 (Poughkeepsie) Business Representative Ken Harris for joining us today.

We need to continue our presence at all pickets, rallies, etc. for us to succeed. We thank you for your continued show of solidarity. We will prevail!

In Solidarity,
Your Local One Negotiating Committee

Wednesday, April 13, 2005

Dear Brothers and Sisters:

The Local One Negotiating Committee met with EMANY on Monday, April 11, and Tuesday, April 12, 2005. The discussions did not go too well because the three companies in question, Kone, Otis and Schindler remain holding a hard line. We brought changes to the table, we were willing to move in certain areas, but the companies are NOT willing to accelerate. We even withdrew the J.I.T. Language (Apprentice Language) knowing this was a sticking block for EMANY - still no acceleration. We are looking forward to obtaining a contract with Kone, Otis and Schindler. We need a fair and equitable contract for our members, our families and the employers. We need a fair and equitable cost of living increase.

We are preparing a full explanation and up-to-date informational letter to be mailed to your homes in the next few days. We want you, our membership, to be 100% knowledgeable of what is transpiring. We are acting as one unit at Negotiations.

The Local One IUEC Members who were locked out by Schindler Elevator Corporation received correspondence dated April, 8, 2005, from Scott Stadelman, President of Schindler. I refer to the last paragraph where Mr. Stadelman refers to you as "valued employees of Schindler and we want you back at work. No one wins in a work stoppage situation." Valued Employees? We want you back? YOU LOCKED US OUT, MR. STADELMAN! We were willing to work (without a contract) during negotiations. We continue to want to work as skilled trades people. Work stoppage? YOU LOCKED US OUT, MR. STADELMAN!

UNION BUSTING TACTICS ARE OUT THE WINDOW!
WE WILL SUCCEED!

UNION BUSTING TACTICS ARE OUT THE WINDOW!
OUR FAMILIES WILL SUCCEED!

UNION BUSTING TACTICS ARE OUT THE WINDOW!
LOCAL ONE, IUEC WILL EMERGE THE VICTORS!

Brothers and Sisters, we are a UNION, NOT a LARGE GREEDY CORPORATION! We would NEVER lock out a Brother or Sister! Our sole purpose is to represent you against such tyranny. Our voice is your voice......one voice

A CHAIN IS ONLY AS STRONG AS ITS WEAKEST LINK!
UNITED WE STAND - DIVIDED WE BEG!

In Solidarity,

Your Local One IUEC Negotiating Committee

April 8, 2005

Dear Brothers and Sisters,

EMANY's latest web site update proves that their smoke and mirrors campaign continues. On Thursday, April 7th Local One Negotiating Committee met with EMANY with no progress. Local One made serious offers that would be to EMANY's advantage and they have been rejected.

New dates have been set for Monday April 11th and Tuesday April 12th.

United We Stand - Divided We Beg!

In Solidarity,
Local One Negotiating Committee

March 31, 2005

Dear Brothers and Sisters:

The smoke and mirror campaign that EMANY tries to represent to their employees, customers and the riding public needs to be made clear to all. Let us review the latest EMANY website update so you may know the truth.

EMANY: The negotiation teams from EMANY and Local 1 met yesterday for the first time since the current contract expired at midnight on March 16.

THE TRUTH: EMANY walked away from the negotiating table in the early hours of March 17th and locked out their employees before officially notifying the union. Your negotiating team did not want a work stoppage and implored the companies to continue negotiating. President-Business Manager Raymond Hernandez reached out to EMANY directly or the Federal Mediator to return to the negotiating table on a daily basis since the lock-out incurred. EMANY refused to return to the table and only through the efforts of a federal mediator did we return on March 30th.

EMANY: EMANY reiterated and explained the details of its last contract offer, which would provide Local 1 employees with a 22.5% wage and benefit increase over the life of a 5-year contract, including an immediate 7% raise. EMANY is also insisting on changes in work rules that would result in improved efficiencies, labor costs and customer service.

On average, the last contract offer would allow the following wage adjustment:

Construction Mechanic (Current)____$40.89
Construction Mechanic (In 5 Years)__$48.96
Service Mechanic (Current)________$32.73
Service Mechanic (In 5 Years)______$38.94

THE TRUTH: More smoke and mirrors from EMANY. As stated to Mr. Walker on March 30th, his proposal misrepresents the real world we live in today. First, his proposal eliminates any raises to our Annuity Fund over a 5-year period. Last year our Construction Mechanic made $5.40 an hour in Annuity. That number would remain the same until 2010 under the EMANY proposal.

Second, the EMANY proposal only includes an .80 (cents) per-hour increase to the Health, Pension and Education Funds. Over the last two years, these Funds have increased at $1.05 per-hour. How could we logically believe it will be less than that five years from now? The escalating costs of Health Care were one of the fundamental reasons why we settled on a three-year contract with ThyssenKrupp. In this day of rising health care it is almost impossible to project out health care costs over a five year period. We learned that lesson with our current contract.

Mr. Walker’s proposal of under-funding our benefit packages could cost only one person in the long run- the working member. If his projections ended up being light, the difference would be taken from your wage. He didn’t mention that on his website.

Based on EMANY’s current proposal of 22.5% wage and benefit increase over a five year contract, we project the following. Please keep in mind that EMANY’s proposal has two years built in with no wage or fringe increases so our projections show the following:

Construction Mechanic (Current)____$40.89
3/17/05__________________________$43.29__________Increase of $2.40 per hour
1/1/06___________________________$41.24__________Rollback of $2.05 per hour
1/1/07___________________________$43.41__________Increase of $2.17 per hour
1/1/08___________________________$41.36__________Rollback of $2.05 per hour
1/1/09___________________________$43.83__________Increase of $2.47 per hour

Total EMANY increase would be $2.94 over 5 years or 1.53% per year over 5 years

We projected these numbers based on a $1.05 increase an hour to Health, Pension and Education and a 50 cent per hour increase in annuity the first year and $1.00 an hour each subsequent year. We need to insure our members benefit contributions are stable with little chance of rollbacks to our hourly wage.

EMANY: In addition, our Local 1 employees would continue to enjoy excellent health and pension benefits.

THE TRUTH: The truth be said, we need to project increases for the future as stated above to ensure long term benefits for our families.

EMANY: Despite the presence of a federal mediator, the Local 1 negotiating committee made no effort toward trying to resolve our remaining issues.

THE TRUTH: Local One continues to bargain in good faith. We were at the table at the scheduled starting time of 10 am on March 30th. As usual, EMANY was late, showing up at noon. We were more than willing to negotiate EMANY’s issues. However, EMANY was not willing to negotiate our issues. Collective bargaining is a two-way street!

EMANY: Although Local 1 proclaims that our customers will easily accept the increases it has negotiated with other Local 1 signatory companies, EMANY believes otherwise. EMANY believes that the contract between Local 1 and other signatory companies shows total disregard for the realities of the New York market and our customers.

THE TRUTH: The Elevator Constructor’s total package is ranked ninth by the Department of Labor in New York behind the Electrician, Operating Engineers, Steamfitters, Carpenters, Iron Workers, Sheet Metal Workers, Boilermakers and Plumbers. This data has been provided to EMANY.

Local 1 and its signatory companies show total regard for the realities of the New York market and its customers by negotiating in good faith, agreeing on a contract, and providing skilled tradesman to install, repair and service elevators and escalators in New York and New Jersey. EMANY would rather spend their money on unskilled, untrained labor which can not provide the services our customers are accustomed to. That’s total disregard for the market, their customers and the riding public.

EMANY: We are disappointed in the lack of good faith bargaining on behalf of the Local 1 negotiating committee and currently there are no new meeting dates scheduled. EMANY indicated its willingness to continue meeting with the Local 1 Negotiating Committee as long as progress is achieved.

THE TRUTH: Local 1 is totally committed to negotiating a fair and equitable contract for its members and contractors. Local One’s willingness to continue bargaining through the contract expiration and keep everyone working is bargaining in good faith. Our willingness to get back to the table anytime and anywhere is also bargaining in good faith. No new meeting dates being scheduled is EMANY’s choice, not ours. Brother Hernandez reaches out every day in an attempt to return to the table.

United We Stand - Divided We Beg!

In Solidarity,
Local One Negotiating Committee