Construction-industry collective bargaining negotiations completed during 2017 resulted in an average first-year increase in wages and benefits of $1.34 per hour or 2.7 percent, according to the annual year-end Settlements Report issued by the AGC-supported Construction Labor Research Council. This sustains an upward trend that began in 2011. For newly negotiated multi-year contracts, the average second-year increase negotiated was $1.53 or 2.9 percent.
CLRC observed that 2017 settlements followed a very similar distribution to 2016 settlements in that “a strong majority of settlements (69 percent in 2017) fell within the 2.1-3.5% range” and “only 10 percent [of settlements] were [for increases of] greater than 3.5 percent.” Also, both 2016 and 2017 settlements reflect a “noticeable drop in percent of settlements in the $1.51-1.75 range.”
Regionally, the areas that reported the lowest average first-year increase on a percentage basis – 2.3 percent – were the South Central Region (AR, LA, NM, OK, TX) and the West North Central Region (IA, KS, MO, NE). The Southwest Pacific Region (AZ, CA, HI, NV) reported the highest average first-year increase on a percentage basis at 3.3 percent.
By craft, the lowest average first-year increase on a percentage basis was negotiated with the Boilermakers at 2.2 percent. The Carpenters negotiated the highest average first-year increase at 2.9 percent.
The full report is available in AGC’s online Labor & HR Topical Resources library under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreements Data.” You must be logged in as an AGC member for full access. The posted version of the report includes a detailed addendum available only to AGC and other CLRC supporters. It also contains information about the consulting and custom research services that CLRC offers to AGC chapters, members, and others. Collective bargaining chapters are reminded to please send new contract data directly to CLRC promptly upon settlement of collective bargaining negotiations.
For more information, please contact Denise Gold, Associate General Counsel, at goldd@agc.org or (703) 837-5326.