Collective Bargaining So Far This Year Yields Average First-Year Increase of 2.2 Percent
The Construction Labor Research Council (of which AGC is a member) has released its second report of the year on collective bargaining settlements in the industry. According to the report, settlements reported between January and September of this year resulted in an average first-year wage-and-benefit increase of 2.2 percent or $1.10. For newly negotiated, multiyear agreements, the average second year increase was 2.6 percent or $1.31, and the average third-year increase was 2.7 percent or $1.43. Each of these averages is higher than those negotiated in 2012. In both years, the most common settlements were between 2.1 and 2.5 percent.
On a percentage basis, the region reporting the lowest average first-year increase was the Northwest Region (AAlaska, Idaho, Ore., Wash.) at 1.7 percent. The region reporting the highest was the East North Central Region (Ill., Ind., Mich., Minn, Ohio, Wis., W.V.) at 2.3 percent. The craft with the lowest percent first-year increase was the Plasterers at 1.1 percent, and the craft with the highest such increase was the Painters at 2.0 percent.
Consistent with its earlier report in June of this year, CLRC also found that the trend toward negotiating shorter-term agreements has regressed. Only 43 percent of agreements negotiated so far this year were for one year (as compared to 68 percent in 2011), and 48 percent were for three years or more.
The full report, which contains additional information and graphs, has been sent to the Union Contractors e-Forum and is posted in the Labor & HR Topical Resources area of AGC’s website under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreement Data.” The report is a preliminary one, with yearly averages and other data likely to change as additional settlements are added throughout the year. An updated report is scheduled for release in December.
AGC’s collective bargaining chapters are reminded to please send settlements information to CLRC (email@example.com) regularly and promptly after completion of bargaining. Chapters are also advised that CLRC is presently offering a discount of 25 percent or more on custom projects for local chapters of member organizations provided that the project is ordered both before December 6, 2013, and at least three months before completion is needed. Such projects include analyses of local:
- Market share (click here for a sample)
- Contract language costs (click here for a sample)
- Union vs. nonunion wage and fringe benefits comparisons (click here for a sample)
- Wage and fringe benefits benchmarks (click here for a sample)
For more information about these services, please call CLRC directly at (202) 347-8440.
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