Union Construction Labor Cost Trends and Outlook 2014clrcconsulting.org/samples/2014/Union...

Copyright © 2014 Construction Labor Research Council

Union Construction Labor

Cost Trends and Outlook 2014

Union Construction Labor Cost Trends and Outlook 2014

Construction Labor Research Council

[email protected]

1250 Connecticut Avenue NW, Suite 200

Washington, DC 20036

202-347-8440

www.clrcconsulting.org 1

This report contains both general and detailed data on union labor rates for craft

workers in the construction industry. Data are presented for the nation as a whole and

for nine geographic regions for 17 different craft breakouts. In addition, the report has

trend lines which show the union craft labor cost history as well as the results for

already negotiated future increases.

Section I: National Results

The average percent increase for union construction workers in 2013 was 2.6

percent and the average wage and fringe benefits rate was $51.59.

As shown in Exhibit 1.1, the average percent increase has fluctuated between 2.4

and 2.7 percent since 2010. Contrast these recent increases with those from 2005 to

2009 which were much higher, ranging from 3.9 percent to 4.4 percent, 1.2 to 2.0

percent higher.

Exhibit 1.1

Average increases shown as percents

* The rates for 2014 and 2015 are likely to change

as new settlements are negotiated.

3.9% 4.2%

4.4% 4.4%

3.9%

2.7% 2.5% 2.4%

2.6% 2.7% 2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%



[email protected]



202-347-8440


It should be noted that for any given year in this report the results reflect all wage and

fringe benefits adjustments that occurred during that year, not just those negotiated in

that year. For example, for 2013 the 2.6 percent increase was determined by

averaging the first year of settlements negotiated in 2013, the second year of

settlements negotiated in 2012, the third year of settlements negotiated in 2011, and

so on. CLRC’s companion report, Settlements Report, focuses on just first year

settlements.

Because multiyear contracts extend fixed increases into the future, they can be slow

to respond to the overall economic climate. For example, the economic downturn of

2008 is not fully reflected in the results shown in Exhibit 1.1 until 2010 because many

rate increases for 2008 and 2009 were negotiated in multiyear deals before the

economic crisis hit. The data now show the “new normal,” with increases hovering in

the mid 2.0 percent range for a number of years.

Exhibit 1.2 shows the average annual value of the increases for union construction

workers in dollar amounts.

Exhibit 1.2

Average increases shown as dollars

* The rates for 2014 and 2015 are likely to change

as new settlements are negotiated.

$1.50

$1.72

$1.88 $1.97

$1.81

$1.31 $1.22

$1.46 $1.41 $1.44 $1.52

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50



[email protected]



202-347-8440


Section II: Future Results

The average already negotiated increase for 2014 is 2.7 percent ($1.44) and for

2015 it is 2.6 percent ($1.52), as shown in Exhibit 2.1. Although these results are

shown as a glimpse into the future, they are likely to change some as new settlements

are added. For example, the increase shown for 2014 does not yet reflect the first

year increase of settlements to be negotiated in 2014 and the 2015 value does not yet

reflect the second year of increases to be negotiated in 2014 or the first year of

increases to be negotiated in 2015. Thus, these rates are useful, but incomplete,

indicators of the union construction wage forecast.

Exhibit 2.1

Summary of already negotiated future increases

Exhibits 2.2 and 2.3 provide more detail about how

the future increases were distributed. As a percent

(Exhibit 2.2), the most common increase range was

2.0 – 2.9 percent for both 2014 and 2015.

Exhibit 2.2

Details of already negotiated future settlements shown as percents

0

20

40

60

80

100

120

140

0% or less 0.1 - 0.9% 1.0 - 1.9% 2.0 - 2.9% 3.0 - 3.9% 4.0 - 4.9% 5.0 + %

Nu

mb

er o

f Se

ttle

me

nts

2014

2015

Dollar Percent

2014 $1.44 2.7%

2015 $1.52 2.6%



[email protected]



202-347-8440


As dollar figures (Exhibit 2.3), the most common increase ranges were either at the

lower end of the scale (e.g., <$1.19) or in the $2.40 - $2.99 range.

Exhibit 2.3

Details of already negotiated future settlements shown as dollars

Section III: Craft Specific Regional Results

Exhibit 3.1 (next two pages) shows the dollar amount of the wage and fringe benefits

package for each craft for each region and for the United States for 2009 and 2014

(five years later), and the amount of the increase during that time.

Exhibit 3.2 (the two pages after Exhibit 3.1) shows the five year and one year

increases as percents for each craft for each region and for the United States.

0

10

20

30

40

50

60

<$0.90 $0.90- 1.19

$1.20- 1.49

$1.50- 1.79

$1.80- 2.09

$2.10- 2.39

$2.40- 2.69

$2.70- 2.99

$3.00- 3.29

$3.30+

Nu

mb

er o

f Se

ttle

me

nts

2014

2015

The following items are included in these analyses:

wage rate, health and welfare, retirement (pension,

annuity, defined contribution), vacation, holiday, and

any unallocated increases. The following are examples

of items that are not included: labor-management

cooperative committee assessments, industry

advancement funds, training and apprenticeship.



[email protected]



202-347-8440


Exhibit 3.1

Wage and fringe benefits rates by craft and region in dollar amounts

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Boilermakers

1/1/2009 $54.55 $52.55 $49.56 $50.25 $48.92 $57.36 $53.10 $52.42

1/1/2014 $62.19 $63.54 $58.51 $58.98 $58.56 $69.67 $63.19 $62.52

Increase $7.64 $10.99 $8.95 $8.73 $9.64 $12.31 $10.09 $10.10

Bricklayers

1/1/2009 $45.42 $26.29 $46.37 $41.47 $46.42 $44.17

1/1/2014 $52.32 $28.01 $52.07 $46.60 $53.33 $49.97

Increase $6.90 $1.72 $5.70 $5.13 $6.91 $5.80

Carpenters

1/1/2009 $47.40 $45.90 $27.87 $43.98 $42.86 $49.40 $43.87 $44.08

1/1/2014 $54.20 $52.29 $31.60 $49.92 $49.73 $57.42 $48.35 $50.21

Increase $6.80 $6.39 $3.73 $5.94 $6.87 $8.02 $4.48 $6.13

Cement Masons

1/1/2009 $47.53 $28.45 $43.75 $40.04 $43.45 $42.10 $43.00

1/1/2014 $53.67 $29.44 $49.27 $44.56 $51.98 $46.16 $49.16

Increase $6.14 $0.99 $5.52 $4.52 $8.53 $4.06 $6.16

Electricians

1/1/2009 $52.07 $46.38 $33.49 $55.96 $47.38 $49.34

1/1/2014 $60.07 $54.02 $36.61 $63.92 $53.43 $56.06

Increase $8.00 $7.64 $3.12 $7.96 $6.05 $6.72

Elevator Constructors

1/1/2009 $68.08 $61.82 $55.41 $64.10 $60.59 $54.61 $70.13 $62.32

1/1/2014 $80.25 $73.95 $67.30 $76.24 $72.68 $66.52 $82.57 $74.45

Increase $12.17 $12.13 $11.89 $12.14 $12.09 $11.91 $12.44 $12.13

Insulators

1/1/2009 $41.42 $32.57 $56.48 $49.42 $46.43

1/1/2014 $49.18 $36.40 $65.16 $57.65 $53.44

Increase $7.76 $3.83 $8.68 $8.23 $7.01

Iron Workers

1/1/2009 54.61 $58.33 $33.62 $49.27 $43.28 $26.57 $54.55 $49.44 $48.43

1/1/2014 62.55 $67.71 $37.50 $55.08 $50.31 $29.30 $60.11 $57.76 $54.94

Increase $7.94 $9.38 $3.88 $5.81 $7.03 $2.73 $5.56 $8.32 $6.51

Laborers

1/1/2009 $43.16 $20.31 $38.78 $34.17 $39.39 $35.69 $37.78

1/1/2014 $50.87 $23.00 $44.82 $39.50 $45.50 $38.64 $43.62

Increase $7.71 $2.69 $6.04 $5.33 $6.11 $2.95 $5.84



[email protected]



202-347-8440


Exhibit 3.1 (continued)

Wage and fringe benefits rates by craft and region in dollar amounts

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Millwrights

1/1/2009 $54.36 $36.77 $45.13 $51.57 $44.75 $48.47

1/1/2014 $63.73 $40.00 $50.64 $60.87 $52.01 $56.10

Increase $9.37 $3.23 $5.51 $9.30 $7.26 $7.63

Operating Engineers

1/1/2009 $49.74 $34.44 $44.35 $44.86 $54.35 $47.45 $46.91

1/1/2014 $58.17 $38.38 $51.34 $52.64 $62.74 $51.34 $53.81

Increase $8.43 $3.94 $6.99 $7.78 $8.39 $3.89 $6.90

Painters

1/1/2009 $48.68 $26.25 $47.13 $51.50 $46.07

1/1/2014 $54.86 $28.39 $55.65 $56.87 $52.39

Increase $6.18 $2.14 $8.52 $5.37 $6.32

Pipefitters/Plumbers

1/1/2009 54.78 $37.23 $56.30 $52.24 $32.79 $59.22 $52.04

1/1/2014 65.19 $41.84 $66.73 $59.95 $37.31 $71.18 $61.30

Increase $10.41 $4.61 $10.43 $7.71 $4.52 $11.96 $9.26

Plumbers

1/1/2009 $48.11 $45.83 $51.89 $48.19

1/1/2014 $54.47 $52.51 $59.78 $54.80

Increase $6.36 $6.68 $7.89 $6.61

Plasterers

1/1/2009 $36.28 $38.61 $37.23 $41.67

1/1/2014 $39.78 $43.60 $42.74 $48.52

Increase $3.50 $4.99 $5.51 $6.85

Sheet Metal Workers

1/1/2009 $48.14 $35.86 $51.26 $46.51 $34.70 $52.69 $50.00 $47.74

1/1/2014 $55.34 $39.14 $59.14 $51.13 $39.72 $63.67 $59.58 $55.09

Increase $7.20 $3.28 $7.88 $4.62 $5.02 $10.98 $9.58 $7.35

Teamsters

1/1/2009 $24.73 $33.17 $36.14 $45.10 $40.96

1/1/2014 $27.15 $41.30 $40.28 $51.71 $47.14

Increase $2.42 $8.13 $4.14 $6.61 $6.18

Total

1/1/2009 50.24 $48.46 $30.53 $45.37 $42.92 $31.42 $48.98 $44.04 $44.94

1/1/2014 57.45 $56.24 $34.13 $52.05 $49.34 $35.51 $56.79 $48.96 $51.59

Increase $7.21 $7.78 $3.60 $6.68 $6.42 $4.09 $7.81 $4.92 $6.65



[email protected]



202-347-8440


Exhibit 3.2

Increases by craft and region in percents

Regions New England: CT, MA, ME, NH, RI, VT. Middle Atlantic: DC, DE, MD, NJ, NY, PA. Southeast: AL, FL, GA, KY, MS, NC, SC, TN, VA. East North Central: IL, IN, MI, MN, OH, WI, WV. West North Central: IA, KS, MO, NE. South Central: AR, LA, NM, OK, TX. Mountain-Northern Plains: CO, MT, ND, SD, UT, WY. Northwest: AK, ID, OR, WA. Southwest Pacific: AZ, CA, HI, NV.

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Boilermakers

Increase: 2009 - 2014 14.0% 20.9% 18.0% 17.4% 19.7% 21.3% 19.0% 19.2%

Increase: 2013 - 2014 2.1% 2.9% 2.5% 2.8% 3.3% 3.0% 3.0% 2.8%

Bricklayers

Increase: 2009 - 2014 15.7% 6.2% 12.1% 12.4% 14.6% 12.8%

Increase: 2013 - 2014 2.5% 1.6% 2.1% 1.9% 3.0% 2.3%

Carpenters

Increase: 2009 - 2014 14.3% 13.8% 13.3% 13.1% 16.0% 16.2% 10.2% 13.6%

Increase: 2013 - 2014 1.9% 2.5% 2.1% 2.3% 2.3% 2.3% 2.3% 2.3%

Cement Masons

Increase: 2009 - 2014 13.5% 3.7% 12.3% 11.3% 19.8% 9.7% 14.1%

Increase: 2013 - 2014 2.5% 1.8% 2.2% 2.1% 2.6% 2.1% 2.3%

Electricians

Increase: 2009 - 2014 15.4% 16.6% 9.3% 14.1% 12.9% 12.3% 13.2%

Increase: 2013 - 2014 3.0% 2.6% 2.1% 2.7% 2.2% 1.3% 2.3%

Elevator Constructors

Increase: 2009 - 2014 17.9% 19.7% 21.5% 19.0% 20.0% 21.8% 17.9% 19.6%

Increase: 2013 - 2014 3.4% 3.4% 3.4% 3.3% 3.4% 3.4% 3.4% 3.4%

Insulators

Increase: 2009 - 2014 18.7% 11.8% 15.4% 16.8% 14.9%

Increase: 2013 - 2014 3.4% 1.3% 3.0% 1.6% 2.2%

Iron Workers

Increase: 2009 - 2014 14.5% 15.6% 11.4% 11.7% 16.0% 10.3% 10.2% 16.8% 13.0%

Increase: 2013 - 2014 3.5% 3.2% 1.9% 2.0% 2.4% 1.9% 3.4% 1.7% 2.5%

Laborers

Increase: 2009 - 2014 17.8% 13.1% 15.1% 15.6% 15.6% 8.2% 15.0%

Increase: 2013 - 2014 2.7% 2.1% 2.4% 2.6% 2.5% 2.2% 2.5%



[email protected]



202-347-8440


Exhibit 3.2 (continued)

Increases by craft and region in percents

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Millwrights

Increase: 2009 - 2014 17.0% 8.8% 12.5% 17.7% 16.9% 15.5%

Increase: 2013 - 2014 2.3% 2.6% 2.0% 2.2% 1.9% 2.1%

Operating Engineers

Increase: 2009 - 2014 17.4% 11.7% 15.5% 17.3% 15.5% 8.1% 14.6%

Increase: 2013 - 2014 2.7% 2.7% 2.8% 2.7% 3.0% 2.3% 2.7%

Painters

Increase: 2009 - 2014 13.3% 8.1% 17.6% 10.6% 13.6%

Increase: 2013 - 2014 2.4% 1.3% 4.6% 2.2% 3.0%

Pipefitters/Plumbers

Increase: 2009 - 2014 19.4% 12.2% 18.3% 14.8% 13.8% 20.0% 17.3%

Increase: 2013 - 2014 3.0% 1.6% 3.4% 2.4% 2.1% 4.5% 3.2%

Plumbers

Increase: 2009 - 2014 13.3% 14.6% 15.2% 13.7%

Increase: 2013 - 2014 1.6% 1.9% 2.6% 2.8%

Plasterers

Increase: 2009 - 2014 9.6% 12.8% 14.9% 16.3%

Increase: 2013 - 2014 1.5% 1.7% 2.8% 1.8%

Sheet Metal Workers

Increase: 2009 - 2014 15.7% 9.1% 15.2% 10.1% 14.3% 20.8% 18.9% 15.1%

Increase: 2013 - 2014 2.6% 1.3% 2.6% 1.3% 2.6% 1.7% 1.8% 2.2%

Teamsters

Increase: 2009 - 2014 9.8% 24.3% 11.3% 14.5% 15.0%

Increase: 2013 - 2014 3.3% 2.4% 1.7% 2.4% 2.5%

Total

Increase: 2009 - 2014 14.1% 16.1% 11.6% 14.4% 14.9% 11.9% 15.8% 10.9% 14.5%

Increase: 2013 - 2014 2.7% 2.7% 2.0% 2.5% 2.3% 2.3% 2.6% 2.2% 2.5%



[email protected]



202-347-8440


Exhibits 3.3 – 3.7 show the average future increases for 2014 and 2015 in dollar

amount and percent figures and how those increases are distributed as percent

increases for five different regions. For the Middle Atlantic, Southeast and Southwest

Pacific regions the most common percent increase was the 3.0 – 3.9 percent range for

both 2014 and 2015. For the East North Central and West North Central regions the

2.0 – 2.9 percent range was the most common. Note that these results are

preliminary and may change as new settlements are added in the years ahead.

Exhibit 3.3

Details of future settlements as percents: Middle Atlantic region

The Middle Atlantic region tied for the highest future

increase percent for 2014 (3.4 percent) and had the

second highest percent increase for 2015 (3.1 percent).

Exhibit 3.4

Details of future settlements as percents: Southeast region

The Southeast region tied for the highest future increase

percent for 2014 and had the highest increase for 2015

(3.4 percent for both years).

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2014 0% 0% 6% 0% 88% 6% 0%

2015 0% 0% 0% 0% 100% 0% 0%

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2014 0% 2% 8% 19% 70% 0% 2%

2015 0% 0% 13% 13% 67% 7% 0%

Dollar Percent

2014 $1.95 3.4%

2015 $2.13 3.1%

Dollar Percent

2014 $2.09 3.4%

2015 $2.46 3.4%



[email protected]



202-347-8440


Exhibit 3.5

Details of future settlements as percents: East North Central region

The East North Central region’s future increases were very

close to the national average for both 2014 (2.6 percent)

and 2015 (2.6 percent).

Exhibit 3.6

Details of future settlements as percents: West North Central region

The scheduled increases for the West North Central region were

the lowest of the five regions shown in this report for 2014 (2.4

percent) and 2015 (2.3 percent).

Exhibit 3.7

Details of future settlements as percents: Southwest Pacific Region

The scheduled increases for the Southwest Pacific region

were a little above the national average for 2014 (2.8 percent)

and 2015 (3.1 percent).

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2014 0% 2% 22% 51% 25% 0% 0%

2015 0% 0% 13% 53% 33% 0% 0%

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2014 0% 0% 10% 55% 35% 0% 0%

2015 0% 0% 7% 57% 36% 0% 0%

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2014 0% 5% 16% 26% 47% 5% 0%

2015 0% 0% 17% 17% 50% 17% 0%

Dollar Percent

2014 $1.35 2.6%

2015 $1.42 2.6%

Dollar Percent

2014 $1.18 2.4%

2015 $1.19 2.3%

Dollar Percent

2014 $1.65 2.8%

2015 $2.58 3.1%



[email protected]



202-347-8440


Exhibits 3.8 – 3.12 show how future settlements are distributed as dollar amounts for

the five different regions.

Exhibit 3.8

Details of future settlements as dollar amounts: Middle Atlantic region

Exhibit 3.9

Details of future settlements as dollar amounts: Southeast region

Exhibit 3.10

Details of future settlements as dollar amounts: East North Central region

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2014 9% 0% 21% 9% 19% 2% 36% 4% 0% 0%

2015 13% 0% 7% 7% 0% 0% 53% 7% 7% 7%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2014 6% 0% 6% 0% 0% 76% 12% 0% 0% 0%

2015 0% 0% 0% 0% 0% 0% 100% 0% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2014 28% 31% 15% 5% 2% 3% 13% 4% 0% 0%

2015 23% 27% 10% 3% 3% 3% 10% 20% 0% 0%



[email protected]



202-347-8440


Exhibit 3.11

Details of future settlements as dollar amounts: West North Central region

Exhibit 3.12

Details of future settlements as dollar amounts: Southwest Pacific Region

The following associations sponsor CLRC:

Associated General Contractors of America (AGC) Finishing Contractors Association (FCA) International Council of Employers of Bricklayers and Allied Craftworkers (ICE) Mechanical Contractors Association of America (MCAA) National Association of Construction Boilermaker Employers (NACBE) National Electrical Contractors Association (NECA) National Fire Sprinkler Association (NFSA) North American Contractors Association (NACA) Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) The Association of Union Constructors (TAUC)

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2014 20% 45% 5% 5% 0% 0% 25% 0% 0% 0%

2015 14% 36% 14% 0% 0% 0% 29% 7% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2014 11% 16% 5% 21% 11% 5% 11% 11% 5% 5%

2015 17% 0% 17% 0% 0% 0% 0% 33% 17% 17%



[email protected]



202-347-8440


Additional reports are available upon request. Companies/contractors, chapters, and local affiliates who are members of CLRC’s sponsor associations (see p. 12 for a list) receive discounted rates.

Report Description Benefit

Market Share Analysis

Shows what percent of a given industry (e.g., plumbers/ pipefitters, carpenters) is worked by union contractors.

Allows management and labor to more precisely define their share of the market, and more importantly, the trend over time. Also, can document the impact of specific programs (e.g., market recovery, new classifications).

Union – Nonunion Wage

and Fringe Benefits

Comparison

Compares a specific local’s wage and fringe benefits package to nonunion data for that craft in the same geographic region.

Tangibly shows the difference in both dollars and percents between union and nonunion pay and fringe benefits.

Contract Costing

Provides a detailed cost analysis of 8–12 categories in a contract (e.g., 2nd shift, foreman ratio, clean-up time) on a per employee per hour and total contract cost basis.

Helps the parties in collective bargaining better understand the real costs associated with contract language clauses.

Wage and Fringe

Benchmark Comparison

Graphs actual wage and fringe benefits rates compared to indexes (e.g., CPI, nonunion) over time to show the trend.

Compares actual pay to what it would have been using an index.

Custom Tell us what you are looking for, we can probably help you.

Offers you greater understanding and useful data to use during collective bargaining or internal business decisions.

Construction Labor Research Council 1250 Connecticut Avenue, NW Suite 200 Washington, DC 20036 202.347.8440 www.clrcconsulting.org

This report has been prepared from information collected and maintained by CLRC. Reasonable efforts have been made to ensure the accuracy of the data, summaries and analyses. However, accuracy cannot be guaranteed. CLRC disclaims any liability from damages of any kind which may result from the use of this report.

Union Construction Labor Cost Trends and Outlook 2014clrcconsulting.org/samples/2014/Union...

Documents

Transcript of Union Construction Labor Cost Trends and Outlook 2014clrcconsulting.org/samples/2014/Union...