Flashings

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Seven unions leave AFL-CIO

The heads of seven major unions have announced their separation from AFL-CIO and formation of a separate coalition, expressing disappointment with AFL-CIO's labor movement. The new group, the Change to Win Coalition, consists of the United Food and Commercial Workers Union (UFCW), International Brotherhood of Teamsters, Laborers' International Union of North America, Service Employees International Union (SEIU), Unite-Here, United Farm Workers and the Carpenters. The coalition represents more than one-third of the 13 million union members of AFL-CIO.

At AFL-CIO's convention in Chicago July 25-28, UFCW, Teamsters, Unite-Here and SEIU unions decided to boycott the convention. UFCW, SEIU and Teamsters also have resigned their unions from AFL-CIO. SEIU was AFL-CIO's largest union with 1.8 million members. Unite-Here has been given approval to resign from AFL-CIO but has not yet done so. The Laborers' president, Terry O'Sullivan, said his union will not resign.

The coalition's anger stems from its disappointment with regard to AFL-CIO President John Sweeney's leadership and inability to revive organized labor. The dissidents emphasize the importance of organizing and lack of effect political efforts have had on union members.

"Our world has changed," says Joe Hansen, UFCW president. "The world that all workers live in has changed, but quite frankly, the labor movement has not changed to meet the changes." AFL-CIO leaders believe the coalition fosters a divided labor movement and slowing progress.

"Disunity only plays into the hands of workers' worst enemies at a time when working families are under attack," Sweeney says. "The labor movement belongs to all of us ... and our future should not be dictated by the demands of any group or the ambitions of any individual.

"But it also is my responsibility to hold our movement together because our power is vested in our solidarity," he continues. "So I want you to know I will overcome my own anger and disappointment and do everything in my power to bring us back where we belong—and that's together."

IRS wins legal battle

The Internal Revenue Service (IRS) has won a legal battle involving tax treatment of a family limited partnership. According to The Wall Street Journal, the victory was significant in light of the IRS's efforts to stop misuse of this popular estate-planning technique.

In a typical family limited partnership, a parent transfers assets to a partnership with his children. Most of the shares also are transferred to the children. Parents often retain a small ownership stake and make management decisions about the assets while the children often hold less control. This means the parents still manage the assets yet are able to reduce significant estate and gift taxes. The IRS has worked to challenge such tax-avoidance techniques.

In the most recent case, the U.S. Court of Appeals for the Fifth Circuit found that assets transferred into the partnership of a deceased Texas businessman, Albert Strangi, should be included in his estate and subject to estate taxes. The court determined Strangi didn't give up his assets after transferring them into the partnership and the partnership didn't have a substantial purpose besides saving taxes.

Partnerships should have a valid nontax reason for existence, such as managing a family business. Business owners also should explore other options, such as having an independent trustee serve as general partner.

There still is uncertainty with regard to how family limited partnerships should be set up and operated without trouble. Some issues, such as how the partnership should be managed, were left unresolved in the ruling. However, the ruling is a jumping-off point and warning to wealthy families who set up such partnerships. For more information, contact your attorney or tax adviser.

Reprinted with permission of United Media.

Who not to hire

Have you ever had an uncomfortable experience interviewing a potential employee? Take comfort in the fact that you most likely will not experience the following bizarre-but-true interviews suffered by real employers:

• One applicant walked in and asked why he was there.
• After a difficult question, a candidate asked to leave the room to meditate.
• An applicant said if he were hired, he would teach the potential employer ballroom dancing at no charge and then demonstrated.
• Arriving with a snake around her neck, one applicant said she took her pet everywhere.
• A candidate said if he were hired, the employer soon would learn to regret it.
• An applicant left his dry-cleaner tag on his jacket to show he was a clean individual.
• When asked about his loyalty, an applicant showed the employer a tattoo of his girlfriend's name.
• A candidate thumbed through a large bag of cancelled checks during the interview.
• After taking three cell phone calls, an applicant said she had a similar business on the side.
• An applicant implied that if he weren't hired, the company's future would be jeopardized for confidential reasons.
• A candidate returned that afternoon and asked whether she could redo the entire interview.

Source: Adapted from Human Resources Management as cited in The Manager's Intelligence Report, sample issue.

Keep your eyes on the road

As fall rolls around, you most likely will be spending a lot of time in your car driving to work and driving your kids to school and many after-school activities. Safety on the road is of utmost importance.

However, we live in a world that provides many distractions. It is common to see people driving while eating, talking on cell phones, reading the newspaper and putting on makeup. According to the Network of Employers for Traffic Safety, such distractions are responsible for 20 percent to 30 percent of all traffic crashes. Following are some other interesting facts:

• An estimated 284,000 distracted drivers are involved in serious crashes each year.
• Drivers react more slowly to an unexpected event during a telephone conversation.
• A driver's ability to detect visual targets can be reduced by as much as 30 percent when challenged by complex mental tasks.
• About 54 percent of drivers reported having cell phones in their cars, and 75 percent of these drivers talk on cell phones while driving.
• Research reveals that talking on a cell phone is more distracting than having an intelligent conversation with a passenger but no more distracting than eating a cheeseburger.
• The cause that accounts for 16 percent of traffic crashes is drivers looking at a previous crash, roadside incident, another vehicle or traffic.
• Twenty-five percent of traffic delays occur from people rubbernecking when driving by an accident or a disabled vehicle.
• In 2003, an estimated 70,000 pedestrians were injured or killed in motor vehicle collisions.

Distractions most likely will continue to grow as we become busier and more technologically advanced. Although you may think you can handle what seems like an ordinary task while driving, you may be surprised by how much it is distracting you from the road. Take care to limit your distractions so you can keep yourself and other drivers safe.

Source: Adapted from Driver Focus by the Network of Employers for Traffic Safety.

Details

Ed Lundin Jr.
President of Lundin Roofing Co., Port Allen, La.

What is the most unusual roofing project you've performed?
We performed a reroofing job for a state hospital in 1998. There were 17 roof systems involved that ranged in size from 12 squares to 500 squares (108 m to 4500 m). Some were re-cover; some were tear-off. All were tapered spray polyurethane foam- (SPF-) based, ranging in thickness from 2 inches (51 mm) to 9 inches (229 mm). Most had some deck replacement to ensure proper attachment, and all had new perimeter and projection flashings. We were working on five or six of the buildings at a time, and keeping track of the budget, progress and billing for each building was a challenge.

Why did you become a roofing contractor?
I worked as a shop sweeper, helper, journeyman and foreman for my father's roofing company while I was in school. When I graduated, roofing was the only profession in which I knew I could make a living.

What was your first roofing experience?
Three of us had to shovel 30 yards (27 m) of gravel onto a conveyer and try to keep up with a graveling crew. I swore if I ever owned my own company, I would find a roof system to install that didn't involve gravel.

What are your favorite items on your desk?
Pictures of my family and a poster commemorating Louisiana State University's 2003 national championship football victory over University of Oklahoma. We would have liked to have played the University of Southern California, but, unfortunately, they did not make it to the championship game.

What do you consider your most rewarding experiences?
Raising my kids and starting and running my own business.

What was your first job?
Sweeping my father's shop when I was 13.

What is your favorite vacation?
Traveling anywhere with my wife and friends. The best spot to date is Alaska.

What do you consider a waste of time?
Filling out forms.

What are your best and worst habits?
My best habit is that I can delegate responsibility and give people the tools they need to do a good job. My worst habit is not thinking before opening my mouth.

What are your biggest pet peeves?
Telemarketers and junk e-mail.

If you could invite any three people to dinner (dead or alive), whom would you invite and why?
The first two people would be my mother and mother-in-law because my wife and I have a lot we would like to ask them but didn't when we had the opportunity. The third would be Catherine Zeta Jones ... but not at the same dinner as my mother and mother-in-law.

What is your favorite stress reliever?
Working in my shop or cooking. I make a mean jambalaya and can fry, boil or grill anything organic and make it taste good.

What are the most challenging aspects of your job?
Finding the time to keep up with the changes in legal, accounting and regulatory laws that can affect us. Finding good roofing applicators also is challenging.

What is your roofing industry involvement?
I have been a member and chairman of the Technical Committee for the Spray Polyurethane Foam Alliance (SPFA), as well as vice chairman and chairman of SPFA's Management Committee. I currently am SPFA president. I was one of the first members of the NRCA Spray Polyurethane Foam Committee and have served as its chairman. I also have served on NRCA's Membership Committee and a one-year term on its board of directors. I currently am serving a three-year term on the board of directors and am a member of the Spray Polyurethane Foam-based Roofing Task Force, Criteria Development Group on SPF Roof Systems and Education Resource Committee. I also am a member of ASTM International and have done work on some of its guides.

People would be surprised to know...
I like to work with wood and currently am building a boat.