Increase your Productivity

Profitability, and Value

BUSINESS PROPOSAL

The purpose of this document is to present the tangible benefits associated with a productive, profitable business relationship with I.B.E.W. Local #81. We do not want to manage your company in any way. We are not contractors and do not assume to be, but we are both integral parts of the same industry. Our organization is committed to your economic and operational success, and this proposal is provided as an indication of the professionalism we know is required to be taken seriously as a prospective business ally.

I.B.E.W. Local #81 has been in existence for over 110 years and covers Wyoming, Wayne, Susquehanna, Lackawanna, Bradford, Monroe, Pike and Luzerne Counties either in part or their entirety.

We know how important a good working relationship is with our contractors and their clients. Our priority is this: to support quality contractors like you by concentrating on providing an extended pool of trained, skilled, professional journeyman, apprentice or construction wiremen / construction electricians to create the most efficient and productive workforce in the world that will perform the work safely, accurately and on time.

Contractors that become signatory with the I.B.E.W. have the same management rights the day after you sign the paperwork that you did the day before you signed. You maintain the right to hire, fire, promote and demote as you see fit, it’s your company. We recognize that if you are not successful and profitable, we are unemployed.

No longer will you have the hassle of advertising or word of mouth hiring. No more interviews, no more hoping that this one works out. How many times have you invested time and resources into someone and had them walk away? We handle all of that for you. We recruit. We interview. We train. We invest the time and resources on our end so you don’t need to.

I.B.E.W. Local #81 is constantly developing new business relationships within the industry which is the reason why you are receiving this today.

The I.B.E.W. is committed to the electrical industry and and I would appreciate the opportunity to discuss with you the many advantages we bring to the table, some of which are listed below.

Safety First! - Our constant safety training focuses on zero accidents and reduced workers compensation rates

Quality and affordable health, dental and vision plans for you, your office staff, field employees and their dependents

State certified apprenticeship program Training! - Our training sets the industry standards for all classifications. Retirement strategies – multiple plans available to you and your employees, and like the

healthcare above, all administered at no cost to you.

To learn more about these and other cost saving business opportunities, please contact me Nick Waitulavich at any time with any questions or concerns regarding any aspect of this proposal.

I will be following up with you in the coming weeks to ask for a few minutes of your time to discuss this further.

Nick Waitulavich

Local Union #81, I.B.E.W.

Business Development Representative

(570) 954-2700

nwaitulavich@ibew81.org

WITHOUT THE I.B.E.W.

WHAT YOU NEED TO DO NOW: SPEND MONEY ON HELP WANTED ADVERTISEMENT SPEND TIME INTERVEIWING PERSPECTIVE EMPLOYEES SPEND VAILUABLE TIME SORTING THROUGH UNQUALIFIED APPLICANTS SPEND TIME EDUCATING AND TRAINING EMPLOYEES WITH INACCURATE SKILLS

ASSESSMENT NEGOTIATING WITH EACH EMPLOYEE INDIVIDUALLY ON WAGES AND BENEFITS HAVE THE HASSLE INVOLVED WITH ADMINISTERING EMPLOYEE BENEFITS REALIZE THE DIFFICULTIES OF STARTING A RETIREMENT PLAN YOU’RE CONSUMED IN EVERY ASPECT OF YOUR BUSINESS

WITH THE I.B.E.W.

AS AN I.B.E.W. LOCAL #81 CONTRACTOR YOU: HAVE SKILLED PROFESSIONALS COMMITTED TO EXCELLENCE MORE WORK OPPORTUNITIES FOR YOU AND YOUR PRESENT EMPLOYEES HAVE A TRAINED, FLEXIBLE WORKFORCE / MANPOWER WHEN NEEDED A HIGHER QUALITY OF EMPLOYEES / NO RE DO’s HAVE QUALIFIED SUPERVISION A COST EFFICIENT WORKFORCE THAT IS DEDIECATED TO THE INDUSTRY HAVE SAFETY SAVINGS / DRUG FREE WORKFORCE TAKE PART IN A HEALTHCARE PLAN THAT COVERS ALL MEMBERS TAKE PART IN RETIREMENT PLANS WITH FEDERAL INSURANCES ACCESS TO A STATE CERTIFIED APPRENTICESHIP PROGRAM

I.B.E.W. LOCAL #81’sCOMMITMENT TO EXCELLENCE

OUR STANDARDS ARE HIGHER THAN MOST. WE WANT TO ENSURE THAT OUR MEMBERS WORK IN AN ENVIRONMENT WHERE JOBS ARE:

DONE WITH QUALITY WORKMANSHIP IN MIND SAFE, AND WORKERS ARE TRAINED IN ALL SAFETY PROCEDURES ON TIME AND ON BUDGET DONE RIGHT THE FIRST TIME DONE WITH CUSTOMER SATISFACTION IN MIND FOR REPEAT CUSTOMER

BASE TIME IS MONEY / YOUR PROFITS GO UP WHEN YOU ARE AN I.B.E.W. LOCAL

#81 CONTRACTOR I.B.E.W. LOCAL #81 HAS ADOPTED THE I.B.E.W. CODE OF EXCELLENCE

TRAINING AND EDUCATION

We have just spent in excess of $1.5 million on a new state of the art training center to provide our journeymen wiremen, apprentices and (cw/ce) construction wiremen / construction electricians with ongoing training. OSHA awareness is a big concern of ours, as well as it should be for you and your client. The OSHA 30 HOUR training along with NFPA-70E we provide undoubtedly eliminates fines that could occur without the proper training.

Readily accessible to our membership are training updates to today’s changing industry.

The following courses are offered to I.B.E.W. Local #81 members:

Electrical Work Related Safety Practices – NFPA-70E

OSHA 30 Hour Training First Aid / CPR

8 Hour Scaffold Training Motor Controls

Fire Alarm Virtual Blueprint Reading

Code Updates Aerial Lift Safety

Foreman Training Hilti Powder Actuated Tools

Grounding & Bonding Fire Stop Certification

Amp Act I & II Siecor – Connectorization

Conduit Bending Transformers

CAD Welding Fiber Optics

Programable Logistic Controllers (PLC’s) Solar / Photovoltaic Systems

Security & Data Any Specialty Training the Client Needs

APPRENTICESHIP PROGRAM CURRICULUMJOINT APPRENTICESHIP TRAINING COMMITTEE (JATC)

Our Instructors are Journeyman Wiremen who work in the field during the day and teach the apprentices at night. The instructors also attend the National Training Institute (NTI) at the University of Michigan in the summer. The JATC consists of 6 trustees, 3 contractor representatives and 3 union representatives. The program is overseen by our full-time Training Director, who is a Local #81 member and the I.B.E.W.’S / (NJATC) National Joint Apprenticship Training Committee. Starting in September 2013 our apprentices will be learning at our new training center. Their curriculum includes the following:

INSIDE WIREMAN DIVISION APPRENTICESHIP

FIRST YEAR: Blueprint readingCables and WiringConduit Bending and FabricationDC TheoryMathematics Essential for NJATC CoursesResidential Blueprints

SECOND YEAR: Applied CodeologyElectrical Raceways and Other Wiring MethodsCommercial BlueprintsTransformers and MotorsTest Instruments for Today’s Electrician

THIRD YEAR: Industrial BlueprintsIndustrial Motor ControlSemiconductorsSoares Book on Grounding

FOURTH YEAR: Air Conditioning and RefrigerationDigital ElectronicsElectronic Variable Speed DrivesProgrammable Controller ConceptsCod Calculations

FIFTH YEAR: Configuring & Installing Structured Cabling SystemsFire AlarmsFundamentals of InstrumentationNotifier AFP – 200 Analog Fire AlarmsPhotovoltaic Power SystemsSignificant Changes to the (NEC) National Electrical CodeSentrol Security System

IBEW IS COMMITTED TO A SAFE WORK ENVIRONMENTThe safety of our members has been one of the principal objectives of the IBEW since it’s founding when on-the-job accidents claimed the lives of one out of every two workers.

The IBEW Constitution states:Each Local Union shall have a safety and health committee which shall: investigate and report serious accidents and fatalities…..promote safety & health and cooperate with safety organizations as determined by the Local Union………IBEW Constitution, Article 16, Sec. 15.

Safety Training * * Percentage of worksites requiring safety training.Union Worksites 76%

Non- Union Worksites 33%

Safety Performance **

Union Worksites 56%

Non-Union Worksites 41%

** Percentage of worksites rating high in safety perfromance.

According to a study published in the Journal ofOccupational Medicine: Union [worksites] distinguish themselves by better training, morestable employment, a workplace where regularsafety meetings are held…… They also had betterknowledge of safety practices and felt they hadmore control over their own safety.

IT’S ALL ABOUT WORKING TOGETHER!

We in the I.B.E.W. know how important a good working relationship is with our contractors. Without our contractors, there is no work for our members. That’s why we concentrate on providing an extended pool of trained, skilled, professional electricians, to create an efficient and productive work force to support your business.

As an I.B.E.W. contractor, you’ll be part of a national and international organization, with all of the strengths that come with a broad-based association, and you’ll have all this with no additional administrative costs.

That is why more and more leading contractors are becoming I.B.E.W. contractors.

We Can Achieve

Profit Productivity Value

By Working Together

Business Manager Business Development Representative Training DirectorPaul Casparro Nick Waitulavich Mike Brust431 Wyoming Ave. 431 Wyoming Ave. 4 Skyline Drive EastScranton, Pa 18503 Scranton, PA 18503 South Abington Twp., PA 18411Phone: (570) 344-5711 Phone: (570) 344-5711 Phone: (570) 319-1721

Business Representative Mike McDermott431 Wyoming Ave.Scranton, PA 18503Phone: (570) 344-5711

Advantages of being a 'union' companyBy VICTOR SALERNO - 11/6/2009

The Sept. 4 issue of the Rochester Business Journal included the results of that week’s RBJ Daily Report Snap Poll regarding readers’ opinions of unions and the role—positive, negative or neutral—they play in the local economy.

The overwhelming response was, not surprisingly, very negative. In the readers’ comments, the only exception was the remarks by a local architect and his positive experience in his dealings with union craftsmen.

Our affiliation with the International Brotherhood of Electrical Workers is one of the reasons I believe our company has been so successful for almost 100 years.

I cannot speak for unions representing other industries or government employees. The problems we have seen in other areas are quite obvious to most of us (auto, steel, New York budget and so on).

The construction trades are an entirely different situation. We can thrive and compete in most markets, private as well as public works, based on the outstanding training and productivity of our electricians, including apprentices.

Here is a list of some of the reasons our union affiliation is a strategic advantage:

We have a five-year apprentice program paid for by contributions from affiliated contractors, educating the next generation of craftsmen, with the latest high-tech training required to be successful today and in the future. The training approved by the state includes classroom as well as on-the-job training. I invite any skeptics to come and visit our training facility at 470 Metro Park. You will be impressed. Our apprentice and journeyman training allows us to complete most tasks with fewer labor hours than the competition. Our highly motivated apprentices allow us to average our labor rates to a very competitive level in light of our high productivity.

Safety is without a doubt one of the primary concerns of all of our contractors as well as union craftsmen. We work collaboratively to minimize accidents and prevent injuries in this potentially dangerous field.

Our craft workers are highly motivated in part because they have medical as well as retirement benefits. They are not and will not be a burden to society. They are not part of the current medical insurance problem; they are part of the solution. When they retire, they will be able to pay their own way and not be another “problem” for the taxpayers. Our jointly administered health fund is run very efficiently, holding average cost increases to just 5 percent a year over the last five years. Our benefit program allows the contractors to offer good fringe benefits without the normally high administrative cost of providing them in-house. The administrative cost can be spread very efficiently over all the affiliated contractors.

A key benefit provided by our union affiliation is the ability to expand and contract our work force as our volume dictates. We can meet customer demands with a phone call and are able to provide highly skilled, union-trained craftsmen. This could involve ramping up employment to respond to an ice storm for our local utility, install a new assembly line for a food processor requiring dozens of skilled workers seven days a week over several weeks, or assist with a maintenance shutdown at the Ginna nuclear plant requiring a substantial number of workers in various trades. It would be extremely difficult to meet these requests without our union affiliation.

Our construction workers are paid very well. Their high skill level allows this. Before you get too critical and try to compare the various construction unions to the public employee unions, be aware that our workers are paid only when they work. In most situations, they are not paid for sick days, holidays or vacations. Their pay rate has to reflect this.

O’Connell Electric is currently the 43rd-largest U.S. electrical contractor. Our sales this past fiscal year exceeded $133 million. We were able to meet customer needs locally and as far away as Alabama and Louisiana. As a veteran of 38 years in the electrical construction industry, all with O’Connell Electric, I can make these comments without hesitation and look to the future confident of our ability to succeed. If we did not have our trained union work force, I do not believe I could take this position.

Although my vantage point is in the electrical industry, I am sure that most if not all the above applies to the other construction trades—carpenters, operators, plumbers, fitters and laborers, to name a few.

I know we do not live in a perfect world; some jobs have problems, and we do not always agree with our union representatives. However, we do resolve most issues professionally and always in the best interest of our mutual customers.

Victor Salerno is CEO of O’Connell Electric Co. Inc.