Collective Bargaining in 2014 Yields Average First-Year Increase of 2.3%

Construction-industry collective bargaining negotiations settled during 2014 resulted in an average first-year increase in wages and benefits of $1.07 per hour or 2.3 percent, according to the annual year-end Settlements Report issued by the AGC-supported Construction Labor Research Council.  For newly negotiated multi-year contracts, the average negotiated second-year increase was $1.31 or 2.4 percent, and the average third-year increase was $1.37 or 2.5 percent.

For all three contract years, the average increases negotiated in 2014 measured by dollar amount were higher than those negotiated in 2013.  On a percentage basis, the first-year average negotiated in 2014 was modestly higher than that negotiated in 2013, while the second- and third-year averages negotiated in 2014 were modestly lower than those negotiated in 2013.  The number of settlements for a zero-increase in compensation continued to decline from the recent high point in 2010.

Regionally, the area reporting the lowest average first-year increase in 2014 by dollar amount was the South Central Region (AR, LA, NM, OK, TX) at $0.66, and the area reporting the highest was the Southwest Pacific Region (AZ, CA, HI, NV) at $1.53.

By craft, the lowest average first-year increase by dollar amount was negotiated by the Bricklayers at $0.76, and the highest was negotiated by the Operating Engineers at $1.41.

The full report is available via the link embedded above and, along with other CLRC reports, in AGC’s online Labor & HR Topical Resources library at http://www.agc.org/topicalresources (under the main category “Collective Bargaining” and subcategory “Collective Bargaining Agreements Data”).  The report contains additional data and charts, as well as information about custom research and CLRC’s consulting services.

Source: AGC of America