Collective Bargaining in 2012 Yields Average 1st-Year Increase of 2%

Construction-industry collective bargaining negotiations settled during 2012 resulted in an average first-year increase in wages and benefits of $0.88 or 2.0 percent, according to the year-end Settlements Report issued by the AGC-supported Construction Labor Research Council.  For newly negotiated multi-year contracts, the average negotiated second-year increase was $1.08 or 2.3 percent, and the average third-year increase was $1.13 or 2.4 percent. While comparison to prior years’ data is approximate due to recent changes in CLRC methodology, the report notes that 2012 increases, as percentages, are higher than 2011 increases for the first contract year, the same for the second contract year, and lower for the third contract year.  Zero-percent increases in 2012 were “negotiated much less often than in 2011,” CLRC reports.  Increases in the range of 2.1 - 2.5 percent were most common in 2012. The lowest percent average increase by region was in the South Central region (AR, LA, MN, OK, TX) at 1.1 percent, and the highest was in the New England region (CT, MA, ME, NH, RI, VT) at 3.4 percent.  By craft, the lowest average percent was negotiated by the Boilermakers at 0.4 percent, and the highest was negotiated by both the Millwrights and the crane operators (Operating Engineers) at 2.7 percent. The full report is available via the link embedded above and, along with other CLRC reports, via AGC’s online Labor & HR Topical Resources library at www.agc.org/topicalresources (under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreements Data”).  It contains additional data and charts, as well as information about custom research and CLRC’s consulting services. For more information, please contact Denise Gold, Associate General Counsel, at goldd@agc.org.