America's Work Force Union Podcast

Union members pay off $10 million in training center construction debt

Written by awfblog | October 19, 2022

Barry Davies, Business Manager and Financial Secretary/Treasurer of Ironworkers Local 512, joined the America’s Work Force Union Podcast and discussed how an hourly contribution by members paid off $10 million in debt taken out to construct several training centers.

With a jurisdiction that covers Minnesota, North Dakota and a third of Wisconsin, Local 512 represents 1,450 journeymen, 200 apprentices and 600 retirees.

Up until 2000, the JATC performed all of its training at local community colleges. In 2000, construction was completed on a training center in St. Paul, Minn. A second training center in Hermantown, Minn. opened in 2008 and a $3 million expansion occurred at the St. Paul facility in 2015. Two years ago, the JATC opened a training center in Bismarck, N.D. Davies then explained how a $1 per hour contribution from members’ hourly wages paid off all the construction debt by the fall of 2021.

He also spoke about changes to the Local’s retirement plan, which went from being 67 percent funded in 2009 to 99.6 percent funded this year. In order to improve the plan’s fiscal health, union leaders raised the retirement age, increased the penalty for early retirement and took $2 off the Defined Contribution Fund and added it to the Pension Benefit Fund.

Listen to the entire episode to learn more about these topics.