Dollars and Cents Making “Sense” of the Dollars ILC_CLR… · Bargaining Results Amount Percent...

Dollars and Cents Making “Sense” of the Dollars

FCA International Leadership Conference May 17 - 20, 2017

Chicago, IL

Construction Labor Research Council Carey L. Peters, Ph.D.

Executive Director

© Copyright 2017 Construction Labor Research Council

Construction Labor Research Council

How CLRC Supports You

CLRC We Support the Construction Industry!

• Wage and Fringe Benefits • Market Share • Union-Nonunion Wage and Fringe Benefits Comparison • Contract Cost Analysis • Benchmarking • Workforce/Labor Analysis • Safety Surveys • Custom Research • Collective Bargaining Support

3

CLRC • Sponsored by 11 Management Associations

– Associated General Contractors of America (AGC) – Central States Insulation Association (CSIA) – Finishing Contractors Association International (FCA) – International Council of Employers of Bricklayers and Allied

Craftworkers (ICE) – Mechanical Contractors Association of America (MCAA) – National Association of Construction Boilermaker Employers

(NACBE) – National Electrical Contractors Association (NECA) – National Fire Sprinkler Association (NFSA) – North American Contractors Association (NACA) – Sheet Metal and Air Conditioning Contractors’ National Association

(SMACNA) – The Association of Union Constructors (TAUC)

4

Bargaining Results

Amount Percent

First Year – 2016 $1.18 2.6% First Year – 2015 $1.10 2.5 %

Second Year – 2016 $1.59 2.8% Second Year – 2015 $1.40 2.7%

Third Year – 2016 $1.61 2.9% Third Year - 2015 $1.50 2.7%

5

Bargaining Results

Amount Percent

First Year – 2016 $1.18 / $1.11 2.6% / 2.5% First Year – 2015 $1.10 2.5 %



6

Painters

Bargaining Results

Amount Percent

First Year – 2016 $1.18 / $1.22 2.6% / 2.5% First Year – 2015 $1.10 2.5 %



7

Glaziers

2016 Dollars Increase Comparison

All Crafts $1.18 Painters

$1.11

Glaziers $1.22

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

8

2016 Percent Increase Comparison All Crafts

2.6% Painters 2.5%

Glaziers 2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

9

Glaziers Pay Data

10

All Crafts Glaziers Wages - $34.41 Health & Welfare - $8.12 Retirement - $10.67 Total $55.15 $55.04

2016 Dollar Regional Settlements $1

.44

$1.4

9

$0.8

9

$1.2

2

$1.1

8

$0.9

9

$1.1

0

$1.5

7

$1.4

5

United States

$0.02 $0.22 $0.42 $0.62 $0.82 $1.02 $1.22 $1.42 $1.62 $1.82

11

2016 Percent Regional Settlements 2.

4% 2.

6%

2.5%

2.4%

2.5%

3.0%

2.5%

2.7%

2.6%

United States

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

12

First Year Settlements Trend

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

Dollar Percent

Dol

lar

Perc

ent

13


4.1% 3.8%

4.6%

2.8%

1.7%

2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

14

Average = 4.2% The Past is Gone

Average = 2.1% A New Normal Is Here


4.1% 3.8%

4.6%

2.8%

1.7%

2.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

All Craft Painters

15

Scheduled Increases

in the United States

16

All Crafts Amount Percent

2017 $1.49 2.7%

2018 $1.58 2.8%

Total Package Composition

All Crafts

63%

36%

1%

17

Fringe Benefits

Fringe benefits have become a larger percent of the total package

Wages

Other

Settlements Detail Details for First Year Settlements Shown as Percents: 2014, 2015 and 2016

18

Details for First Year Settlements Shown as Dollars: 2014, 2015 and 2016

0%

5%

10%

15%

20%

25%

30%

35%

0% or less

0.1 - 0.5%

0.6 - 1.0%

1.1 - 1.5%

1.6 - 2.0%

2.1 - 2.5%

2.6 - 3.0%

3.1 - 3.5%

3.6 - 4.0%

4.1 - 4.5%

4.6 - 5.0%

5.1%+

Perc

ent o

f Set

tlem

ents

Negotiated Settlements as a Percent

2014

2015

2016

0%

5%

10%

15%

20%

25%

$0.00 or less

$0.01 - 0.20

$0.21 - 0.40

$0.41 - 0.60

$0.61 - 0.80

$0.81 - 1.00

$1.01 - 1.20

$1.21 - 1.40

$1.41 - 1.60

$1.61 - 1.80

$1.81 - 2.00

$2.01+

Perc

ent o

f Set

tlem

ents

Negotiated Settlements as a Dollar Amount

2014

2015

2016


Carey L. Peters, Ph.D.

Executive Director (202) 347-8440

www.clrcconsulting.org

[email protected]

19 © Copyright 2017 Construction Labor Research Council

mailto:[email protected]


Union Craft Labor Supply Study

Highlights from the 2017 National Labor

Survey Conducted by CLRC for TAUC


Growth/Contraction Detail: 2015-2017

21

3%

2%

6%

3%

14

%

14

%

37

%

11

%

9%

7%

5%

8%

7%

16

%

14

% 16

%

11

%

17

%

3%

1%

2%

4%

12

%

22

%

22

%

13

%

21

%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very Strong Contraction

Strong Contraction

Contraction Modest Contraction

No Change Modest Growth

Growth Strong Growth

Very Strong Growth

Pe

rce

nt

of

Re

spo

nse

s

2015

2016

2017

2015: 71% Growth 2016: 58% Growth 2017: 78% Growth


Overall historical union craft labor supply 2014 - 2016

22

11%

41%

31%

17%

8%

44%

32%

16%

12%

45%

32%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Large Shortage Small Shortage Right Size Surplus

2014 2015 2016

2014: 52% Shortage 2015: 52% Shortage 2016: 57% Shortage

2014: 48% Right Size or Surplus 2015: 48% Right Size or Surplus 2016: 43% Right Size or Surplus

23


-40%

-38%

-29%

-30%

-33%

-30%

-38%

-24%

-27%

-24%

-18%

-21%

-18%

-20%

-13%

-25%

-18%

-25%

-22%

-19%

-20%

-11%

-24%

-18%

-17%

-21%

-16%

-16%

-10%

-7%

4%

7%

4%

8%

9%

8%

8%

8%

8%

11%

4%

9%

10%

9%

5%

6%

6%

9%

8%

14%

8%

6%

5%

9%

8%

11%

4%

8%

12%

18%

-70% -50% -30% -10% 10% 30% 50% 70%

Carpenters & Millwrights

Boilermakers

Electricians

Iron Workers

Plumbers/Pipefitters/Steamfitters

Sheet Metal Workers

Operating Engineers

Roofers & Waterproofers

Average

Laborers

Plasterers & Cement Masons

Heat & Frost Insulators

Painters & Allied Trades

Bricklayers & Allied Crafts

Teamsters

Percent of Responses

Shortage Large Shortage Surplus Large Surplus

Union Craft Labor

Shortage by Craft

in 2016

24


Summary 1. Strong & Increasing Growth Projections

2. A Growing Shortage of Union Craft Workers

3. Management vs. Labor: Two Different

Perspectives

Questions, Comments or Mild Criticisms

???

© Copyright 2017 Construction Labor Research Council





[email protected]




Assistance

Four Examples of Tools CLRC has Developed to

Assist Associations Executives and Contractors

Example 1

UNION - NONUNION WAGE AND FRINGE BENEFITS COMPARISON

Union-Nonunion Wage and Fringe Benefits

Comparison

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Nonunion Source: Bureau of Labor Statistics

Nonunion Cost Difference Pct Difference Category Union Low High Low High Low High Wages Base Wage $33.00 $20.44 $30.67 $12.56 $2.33 38% 7% Fringe Benefits Health & Welfare $8.00 $1.70 $2.55 $6.30 $5.45 79% 68% Retirement * $9.25 $1.09 $1.63 $8.16 $7.62 88% 82% Total $17.25 $2.79 $4.19 $14.46 $13.06 84% 76% Other Costs Training $0.50 $0.00 $0.00 $0.50 $0.50 100% 100% Industry Fund $0.25 $0.00 $0.00 $0.25 $0.25 100% 100%

Labor-Management Cooperation Committee $0.20 $0.00 $0.00 $0.20 $0.20 100% 100%

Other $0.15 $0.00 $0.00 $0.15 $0.15 100% 100% Total $1.10 $0.00 $0.00 $1.10 $1.10 100% 100% Total $51.35 $23.24 $34.85 $28.11 $16.50 55% 32% * For nonunion this reflects all retirement payments (i.e., defined benefit and defined contribution).

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$26.99

$33.00

$20.44

$30.67

$17.25

$2.79

$4.19

$1.10 $51.35

$23.24

$34.85

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Union Nonunion Low Nonunion High

Other Costs Fringe Benefits Wages


Comparison

31

Wages 64%

[CATEGORY

NAME] 33%

[CATEGORY

NAME] 3%

Union

[CATEGORY NAME]

85%

[CATEGORY NAME]

15%

Nonunion


Comparison

Example 2

BENCHMARK ANALYSIS

$25.00

$44.42

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

33

Benchmark Analysis

$25.00

$44.42

$37.75

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Union

Nonunion

34

Benchmark Analysis

$25.00

$44.42

$37.75

$35.55

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Union Nonunion CPI

35

Benchmark Analysis

-1%

0%

1%

2%

3%

4%

5%

6%

3.7% 2.6% 2.2%

Plumbers/Pipefitters Nonunion CPI 36

Benchmark Analysis

Example 3

MARKET SHARE

Market Share

38

37%

39% 39%

44%

40%

34% 34% 33%

30%

32%

25%

30%

35%

40%

45%

50%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market Share

39

8% 5% 4%

-2%

-16%

-5%

6%

1% 3%

14%

5%

18%

-11%

-29%

-5%

3%

-8%

10%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013

Total Industry Union

Annual Percent Change

Example 4

CONTRACT LANGUAGE COSTING

Contract Language Costing

41

Category Low High

2nd Shift +10% per hour; used 2% of the time +10% per hour; used 5% of the time

3rd Shift +15% per hour; used 1% of the time +15% per hour; used 2% of the time

Foreman +10% per hour; 10:1 ratio +10% per hour; 5:1 ratio

General Foreman +15% per hour; 20:1 ratio +15% per hour; 10:1 ratio

Other 1% of W & F rate 2% of W & F rate

Overtime at 1.5x 48 hours a year per employee 96 hours a year per employee

Overtime at 2x 16 hours a year per employee 32 hours a year per employee

Pick-up Time 10 min a day; used 50% of the days 15 min a day; used 75% of the days

Reporting Pay 2 hours pay; 2 times a year 2 hours pay; 5 times a year

Steward 10 min a day; 40:1 ratio 20 min a day; 20:1 ratio

Subsistence $75 a day; 5 days a year $100 a day; 10 days a year

Tools $100 a year; for 50% of the employees $200 a year; for 75% of the employees

Travel $25 a day; 10 days a year $40 a day; 20 days a year


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Category Low$ Low% High$ High%

Pick-up Time $0.52 1.4% $1.17 3.3%

Other $0.50 1.4% $1.00 2.8%

Overtime 1.5x $0.49 1.4% $0.99 2.7%

Foreman $0.36 1.0% $0.72 2.0%

Overtime 2x $0.33 0.9% $0.66 1.8%

Subsistence $0.21 0.6% $0.57 1.6%

General Foreman $0.27 0.8% $0.54 1.5%

Travel $0.14 0.4% $0.46 1.3%

Reporting Pay $0.11 0.3% $0.29 0.8%

2nd Shift $0.07 0.2% $0.18 0.5%

3rd Shift $0.05 0.2% $0.11 0.3%

Steward $0.03 0.1% $0.10 0.3%

Tools $0.03 0.1% $0.09 0.2%

Total $4.32 12.0% $8.38 23.3%

Per Hour Per Employee


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$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40

Pick-up Time

Other

Overtime 1.5x

Foreman

Overtime 2x

Subsistence

General Foreman

Travel

Reporting Pay

2nd Shift

3rd Shift

Steward

Tools

Per Hour Per Employee





[email protected]




Dollars and Cents Making “Sense” of the Dollars ILC_CLR… · Bargaining Results Amount Percent...

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