Newly Negotiated Union Wage and Fringe Benefits Up 4.6%
Construction-industry collective bargaining negotiations settled in 2008 resulted in an average first-year increase in wages and fringe benefits of $1.95 or 4.6 percent, according to the Construction Labor Research Council’s (CLRC) annual settlements report. This is the highest percentage increase since 1999 and is slightly higher than the $1.75 or 4.5 percent average increase negotiated in 2007. The average second-year increase in newly negotiated multi-year agreements was $2.25 or 4.7 percent, and the average third-year increase was $2.16 or 4.4 percent, reports CLRC.
The largest number of reported settlements came from the East North Central region (covering IL, IN, MI, MN, OH, WV, WI), where the average first-year increase was $2.15 or 4.6 percent. The region reporting the highest average first-year increase was the Southwest Pacific region (AZ, CA, HI, NV) at $2.31 or 5.5 percent. The region with the lowest was the Southeast region (AL, FL, GA, KY, MS, NC, SC, TN, VA) at $1.04 or 3.8 percent.
Variation by craft was not significant, with most unions negotiating average first-year increases between 4.5 and 4.8 percent. The Boilermakers negotiated the highest average first-year increase of $2.75 or 5.5 percent, while the Bricklayers negotiated the lowest average first-year increase of $1.34 or 3.4 percent.
AGC members and chapters can view the full report, as well as CLRC’s recently released Construction Labor Rate Trends and Outlook report and other CLRC reports, via the Labor & HR Topical Resources page of AGC’s Web site at www.agc.org/hr/topicalresources. Select “Collective Bargaining” from the first pull-down menu and “Collective Bargaining Agreement Data” from the second pull-down menu.
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