The Construction Labor Research Council (CLRC) reports that the first contract year of new collective bargaining settlements reached in 2022 for union craft workers in the construction industry yielded an average wage-and-benefit increase of 3.8 percent or $2.34. The rate of growth in package increases between 2020 and 2022 was higher than at any time in more than a decade, CLRC observed, attributing the steep incline to inflation rather than to labor shortages or COVID effects. CLRC projects annual increases to average approximately 4.2 percent by 2024.

AGC recently submitted formal comments to the National Labor Relations Board (“NLRB” or “Board”) on a proposed rule to modify certain union representation case procedures. AGC joined with other employer groups in filing joint comments through the Coalition for a Democratic Workplace (“CDW”) and filed our own supplementary comments focused on construction-industry issues.

Includes March 2 session on complying with IRA bonus credit requirements of prevailing wage and apprenticeship

The U.S. Court of Appeals for the Seventh Circuit recently ruled that Central States, Southeast and Southwest Areas Pension Fund may continue its lawsuit against Transervice Logistics, Inc. and Zenith Logistics, Inc. seeking allegedly outstanding pension fund contributions. The case examined two consolidated appeals, each involving a nearly identical collective bargaining agreement (CBA) between each employer and a union, and trust agreements between each employer and the plaintiff fund. The court was asked to determine whether the employers were required to maintain contributions to a multiemployer pension plan pursuant to so-called “evergreen clauses” that renewed the CBAs each year unless timely terminated.

Union membership in the U.S. construction industry across all occupations declined slightly in 2022, from 12.6 percent to 11.7 percent, according to an annual report recently issued by the Bureau of Labor Statistics (“BLS”). Union representation in the industry also declined, from 13.6 percent to 12.4 percent. Still, union membership in construction remains considerably higher than the 6.0 percent rate across industries in the private sector. Union membership in general in the U.S. fell to its lowest rate on record at 10.1 percent, reports BLS.

President Biden ended 2022 with a bang by signing two new pieces of legislation into law that will impact many employers and their pregnant and breastfeeding workers: (1) the Pregnant Workers Fairness Act (PWFA) and (2) the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act). These changes were part of the Omnibus Spending Bill signed into law on December 29, 2022. Employers should become familiar with the changes and review their policies and practices to adjust for the new laws.

AGC of America will be holding a Collective Bargaining Seminar during the AGC Annual Convention. The day-long seminar will take place from 9:00 AM to 3:00 PM at the Wynn Hotel in Las Vegas, NV. The seminar is part of AGC’s Annual Convention, but AGC members and chapter staff not attending the convention may attend for a separate registration fee.

According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., construction support staff wages are to rise by an average 4.5%. The prediction is based on data gathered from over 209 companies in the 19th edition of PAS’s Construction Support Staff Salary Survey. This is up from the actual increase of 4.4% for 2021. Looking forward, PAS thinks 2023 support staff increases will likely mimic 2022 activity, unless construction conditions change.

In a decision issued on Dec. 16, 2022, the National Labor Relations Board reinstated its prior standard providing off-duty workers employed by contractors more expansive rights to access publicly accessible areas of the workplace for the purpose of engaging in union organizing activity.

The U.S. Department of Labor (DOL) recently announced that the $15-an-hour minimum wage for federal contractors under Executive Order (EO) 14026 will increase to $16.20 for 2023 because of inflation. AGC filed comments on the DOL’s original proposed rule implementing the EO.