With the upcoming termination of the LMCI Fund, you need to have all the right information to make the best decision for your local area. FCA International is committed to getting factual information to our contractors and Affiliates. Read on for a quick summary of what contractors need to know and do.
What You Need to Know
- The IUPAT has provided 30-day notice to FCA that it is terminating the LMCI Trust Agreement. The Fund will officially be terminated on Dec. 13, 2018.
- The IUPAT has stated it has terminated the LMCI and is creating a new labor management fund (the Labor Management Partnership Fund) because they feel FCA does not represent all finishing contractors. This is not true: FCA does represent all finishing contractors. In fact, on the IPAT Pension Fund, the FTI and the LMCI, FCA has appointed 14 contractors from varying trades and regions to represent the diverse interests of the contractors, whereas the IUPAT has appointed seven executive board members to represent their interests.
- The new fund is clearly dominated and controlled by the IUPAT. The IUPAT’s General Executive Board has already selected the Employer Trustees on the new labor management fund, and under the terms of the Trust Agreement, the Union Trustees are able to remove and replace the Employer Trustees.
- When the LMCI Trust Agreement is terminated on Dec. 13, your LMCI contributions can no longer be accepted by the fund – you cannot provide contributions through your CBA to a fund that does not exist. You have no obligation to send your LMCI contribution to another fund.
- The LMCI's almost $12 million in reserves cannot be transferred to a new labor-management fund without the approval of the majority of the fund's employer and union trustees.
- Moving forward, FCA will continue representing the interests of signatory contractors as we have done for over 21 years. We will still appoint employer trustees to the IPAT Pension Fund and the FTI.
What You Need to Do
Hold tight. Do not sign onto the Labor Management Partnership Fund. Stop your LMCI contribution after Dec. 13, and wait until you have all the information to decide what to do with those contributions. FCA is working with our contractor community to develop a plan and will send further guidance by Dec. 5. Do not hesitate to contact us at (866) 322-3477 with any questions.
CLICK HERE to read a letter from FCA CEO Anthony Darkangelo providing more information on the events that led to the termination of the LMCI.