Year-to-Date Collective Bargaining Yields Average First-Year Increase of 2.3 Percent

The AGC-supported Construction Labor Research Council (CLRC) has released its second report of the year on collective bargaining settlements in the industry.  Settlements reported between January and September 2014 resulted in an average first-year wage-and-benefit increase of 2.3 percent or $1.14.  For newly negotiated multiyear agreements, the average second-year increase was 2.6 percent or $1.35, and the average third-year increase was 2.4 percent or $1.32.  The percentage of settlements with no increases negotiated during the latest period – 8 percent – was the same as that found in 2013 but less than the 13 percent found in 2012. Looking at regional differences on a percentage basis, CLRC reports that the lowest average first-year increase – 1.6 percent – came from the New England Region (CT, MA, ME, NH, RI, VT) and the Southeast Region (AL, FL, GA, KY, MS, NC, SC, TN, VA), while the highest – 3.0 percent – came from the Southwest Pacific Region (AZ, CA, HI, NV).  Looking craft-by-craft percentages, the craft with the lowest average first-year increase – 1.7 percent – was the Painters, and the craft with the highest – 3.4 percent – was the Operating Engineers. CLRC further reports that the trend toward negotiating shorter-term agreements that occurred between 2008 and 2011 continues to subside.  Fifty-seven percent of agreements negotiated so far this year were for one year, as compared to 60 percent in both 2012 and 2013, and 68 percent in 2011.  Likewise, the percent of settlements with terms of three years or more – 35 percent – has increased slightly this year. The full report, which contains additional information and graphs, has been sent to the Union Contractors Forum and will soon be posted in the Labor & HR Topical Resources area of AGC’s website under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreement Data.”  An updated report is scheduled for release in December. AGC’s collective bargaining chapters are reminded to please send settlements information to CLRC at clrc@clrc.biz regularly and promptly after completion of bargaining.  Chapters and members are also reminded that CLRC is also available to assist with custom projects, such as analyses of local market share, contract language costs, union vs. nonunion wage and benefits comparisons, and wage and benefits benchmarks.  For more information about these services, please call CLRC directly at (202) 347-8440.