In its latest Settlements Report, the AGC-supported Construction Labor Research Council (CLRC) advises that construction-industry collective bargaining agreements settled from January through June of 2022 provide an average increase in wages and benefits of 3.6 percent or $2.17 in the first contract year. Along with the written report, CLRC has released a four-minute video highlighting key findings.
CLRC reports that “there has been noticeable growth in the size of increases the past year and a half.” Following a modest dip (0.2 percent) in the size of increases in 2020 – which CLRC attributes to COVID-19 – there was sharper growth in 2021 and so far in 2022 (0.8 percent). “It appears that high inflation has impacted union craft pay rates more than two other recent factors—the craft labor shortage and COVID-19,” CLRC suggests.
Increases measured by dollar amount are trending similarly over the period. After a slight dip in 2020, the average increase jumped by $0.54 jump from 2020 to June 2022. CLRC projects first-year wage-and-benefit increases to average approximately $2.40 in 2024.
CLRC further notes that many settlements shifted to higher ranges in the first half of 2022. While the mode of first-year settlements was 2.6-3.0 percent in 2021, the mode during the present period was over 5.1 percent. For January-June 2022, 55 percent of all settlements were for 3.6 percent or more, while only 23 percent fell in that range last year.
AGC members can access the full report in the Labor & HR Topical Resources area of AGC’s website under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreement Data.” (Be sure to first login as an AGC member in the top left corner of the webpage.) It covers much more information, including data by region and craft. Note that the first half of the report provides an analysis of data from newly settled agreements as discussed above, while the second section also covers data from previously negotiated agreements that are currently in effect and increases planned for subsequent contract years.
The report is the first of three Settlements Reports planned for publication based 2022 data. CLRC expects to publish the second one in September 2022 and the third in January 2023.
Collective bargaining chapters are reminded to please send new contract data directly to CLRC promptly upon settlement of collective bargaining negotiations. Chapters and members are also reminded that CLRC offers consulting and custom research services on local matters at a discount to AGC affiliates. This includes market share analysis, union/nonunion wage and fringe benefit comparisons, collective bargaining agreement language cost analysis, workforce/labor analysist and projections, and more. See this separate article on a new custom study offering just launched by CLRC.