Early Collective Bargaining Yields Average First-Year Increase of 4.6% This Year
Collective bargaining negotiations settled during the first six months of this year resulted in an average first-year wage and fringe benefit increase of $1.74 or 4.6 percent, according to the latest report from the Construction Labor Research Council (CLRC). This represents an increase from the $1.58 or 4.1 percent reported for the same period last year. Second-year and third-year increases in newly negotiated multi-year agreements also rose this year, with the averages at $1.91 or 4.7 percent and at $1.97 or 4.6 percent, respectively.
A limited number of agreements covering a large number of workers is attributed to higher increases in 2006. Forty-eight of the 77 settlements included in the report came from the East North Central Region (IL, IN, MI, MN, OH, WV, WI), covering just under a third of the 68,412 workers covered. The average first-year increase in that region was significantly lower than the national average, at $1.40 or 3.8 percent.
Three years continues to be the preferred duration for newly negotiated contracts, CLRC reports. About 75 percent of new agreements were negotiated to last three or more years.
The report is intended to merely provide an early indication of 2006 bargaining results. The next report is expected to be released in September and to be discussed at the Union Contractors Committee meeting during AGC’s 2006 Midyear Meeting on September 29. For more information about the Midyear Meeting, click here.
AGC is a founding member of CLRC and supports its efforts to gather and report accurate labor-related information for contractors. All AGC chapters are asked to send new wage and fringe benefit information directly to CLRC promptly upon contract settlement. Such information may be delivered via e-mail to email@example.com, via fax to (202) 347-8440, or via regular mail to CLRC’s new location at 1750 New York Avenue, NW, Washington, DC 20006.
AGC members can search for CLRC-collected wage and fringe benefit rates on the Collectively Bargained Wage Data page of the AGC Web site. The database can be searched by city, state, or craft.
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