Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 692]

EXTRACTED TEXT FROM PAGE:

1940]

UNIVERSITY OF ILLINOIS

689

Industrial Commission, whereas the only recourse State employees have to recover damages is through the Court of Claims and appropriations made by the General Assembly to pay the awards made by that Court; and (b) employees of contractors are under the provisions of the Federal Social Security Act which does not apply to State employees. The complaint in item 2 above was based on misinformation. The union has been informed that the University proposes to augment its regular employees with union labor supplied by the local plumbers and steam fitters organization in conformity with all union regulations and requirements, and under conditions entirely satisfactory to the local union on the installation of the piping in the Power Plant tunnel. Item 1 cannot properly be of concern to the union, especially when it has been shown that the State of Illinois will save at least $10,000, and possibly more, if the University does the work instead of awarding a contract on the basis of bids previously received and rejected. The only argument which the union has left is item 3 above, namely, thai under a private contractor the workmen will have certain privileges, such as those provided under the Federal Social Security Act and workmen's compensation insurance, which are not available to University employees since it is an agency of the State. In connection with this point at issue the University of Illinois Foundation has made the following offer. UNIVERSITY OF ILLINOIS FOUNDATION 725 South Wright Street Champaign, Illinois January 4, 1040 Mr. H. E. Cunningham, Secretary Board of Trustees of the University of Illinois Vrbana, Illinois

M Y DEAR M R . C U N N I N G H A M :

The Foundation has received notice of a strike which involves a stoppage of work on the tunnel which the University proposed to construct itself in connection with the erection of the Power Plant, construction of which was authorized by the General Assembly at the last session. Inasmuch as the tunnel is intended to provide steam for heating and other purposes and power for lighting and other purposes, serviced from the new Power Plant, for use in the Illini Union Building which is now under construction for the University of Illinois Foundation, pursuant to an agreement between the Board of Trustees and the Foundation entered into in IQ38, the Foundation is vitally concerned in a satisfactory program of construction both of the tunnel and of the Power Plant. As you know, the Foundation has borrowed over $600,000 and contracted to begin making payments of interest and principal this year; the University has agreed to rent the building from the Foundation at a rental sufficient to discharge the principal and interest annually payable on this loan; therefore the Foundation will be unable to meet its obligations under the loan contract aforesaid if anything occurs to delay the completion of the building and the leasing of the same for use by students prior to the date when the first payments must be made in 1940. Moreover, the unpaid portion of the federal grant for the construction of this building, amounting to $274,820.00, will be lost if the project is not completed before the deadline under the congressional act, which is I believe June 30, 1940. If the grant be lost, the building cannot be completed, as neither the Foundation nor the University has funds available for such a purpose. It will, therefore, stand useless, and the Foundation will be confronted with a large obligation, with the source for the payment of which as planned entirely cut off. In order to avoid this unmixed calamity to the Foundation, the University and the community and the State of Illinois, the Foundation submits the following proposal, calculated to meet the major conditions which, as I understand, led to the strike. T h e Foundation will employ plumbers and steam fitters in such numbers