Collective Bargaining So Far This Year Yields Average First-Year Increase of 2.2%

The Construction Labor Research Council (CLRC) has recently released its latest report on collective bargaining settlements in the industry. Settlements reported to CLRC between January and June 2014 resulted in an average first-year wage-and-benefit increase of 2.2 percent or $1.10. For newly negotiated multi-year agreements, the average second-year increase was 2.5 percent or $1.23, and the average third-year increase was 2.5 percent or $1.28. Each of these averages is very similar to the average increases negotiated in 2013 and slightly higher than those negotiated in 2012, CLRC reports. The percentage of settlements with no increases negotiated during the latest period was the same as that reported in 2012 but higher than that reported in 2013.

The median increases for the year to date were slightly lower than those of 2013, at 1.9 percent or $1.01 for the first year, 2.4 percent or $1.15 for the second year, and 2.5 percent or $1.24 for the third year. The report explains that the median – which is the rate at which half of the negotiated increases are higher and half are lower – is less affected by outliers.

The craft with the lowest average percent first-year increase was the Painters at 1.5 percent, and the craft with the highest such increase was the Operating Engineers at 4.2 percent.

The trend toward negotiating shorter-term agreements that began during the recession continues to subside. Forty-two percent of agreements negotiated so far this year were for one year, as compared to 68 percent in 2011, and 48 percent were for three years or more.

Contract GMCS, Wayne Gregory, wegregory@gregorymcs.com to learn more about this most recent report,  regional labor and settlement trends