Sentinel & Enterprise, April 6, 2010, Tuesday

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Sentinel & Enterprise (Fitchburg, Massachusetts)

April 6, 2010, Tuesday

Union construction boosts state economy

BOSTON -- The use of unionized construction labor on public- and private- sector projects provides a significant boost to the state's economy, according to a report funded by the Construction Institute, a consortium of building trades unions and union contractors.

The report, released Monday, found that union earnings had a $4.6 billion impact on the economy in 2007.

It said union wages not only helped blue-collar workers earn a middle-class income, but had ripple effects as those workers spent money on goods and services in their communities.

Those wages helped boost the income of all state residents by $1.74 billion, according to the report.

"I think this documents what we have always believed -- that unionization in the construction industry benefits everyone in the commonwealth," said Mary Vogel, executive director of the Construction Institute.

The research was conducted by the School of Industrial and Labor Relations at Cornell University.

The recession has hit the construction industry in Massachusetts particularly hard. While the industry posted a net gain of 300 jobs in February, jobs are still down 15.3 percent, or 18,400
jobs, over the past year.

Yesterday's report provided a sort of rallying point for construction unions as they fight for jobs against non-union workers who often work for less money and benefits.

Maria Figueroa, director of Labor and Industry Research at Cornell, said the wage differential between union and non-union construction trade workers amounted to about $13 an hour.

The difference in pay scales for predominantly private-sector construction jobs led to $930 million in increased earnings by Massachusetts construction workers and pumped $116 million in extra sales and income-tax revenue into the state treasury. Overall, union construction earnings contributed $59 million in sales-tax revenue and $228.6 million in income taxes to the state, according to the study.

"This report shows there is a middle class in America because of the people who get to work in these jobs," said Rep. Martin Walsh, a Boston Democrat who attended the press conference to announce the findings of the report.

The study reported that Massachusetts building trades unions represent about 73,000 workers, or about 60 percent of the construction work force.

The study runs in stark contrast to claims by non-union trade associations and contractors who say that non-union workers make up 80 percent of the construction industry.

Mike Berry, of the Associated Builders and Contractors of Massachusetts, said he has no doubt that non-union workers make up the vast majority of construction workers in the state.

"We believe bids and contracts should be awarded to companies based on their merit and not whether they're a unionized shop," Berry said.

"That doesn't always dictate quality or craftsmanship and the Big Dig is a testament to that. In private construction, we believe in the values of free enterprise and open competition."

The state's prevailing wage laws essentially level the playing field for compensation on public construction projects, where the tension between union and non-union labor runs hottest. As the Patrick administration explores ways to use project labor agreements on public construction projects, non-union contractors and laborers have questioned the fair-ness of forcing builders to hire union workers.

"When you consider the vast majority of the construction industry is non-union and you want to shut them out of a public project that is being funded with their tax dollars, it's a matter of fairness," Berry said. "They shouldn't have to have a PLA agreement that mandates union labor."

Frank Callahan, president of the Massachusetts Building Trades Council, said non-union contractors are free to bid on public construction projects with PLAs as long as they agree to abide by the working conditions set forth in the contract.

Both Callahan and Figueroa said using unionized labor cuts down on contractors taking advantage of workers by misclassifying them in order to pay them a lower wage, or offering little to no health-care coverage.

Tom O'Connor, president of O'Connor Constructors in Boston, said he relies on union labor because of the quality of craftsmanship and confidence that the job will be done right the first time.

"If you need a large number of qualified, skilled personnel, you have to go to the unions. They're the only ones who can give you that," O'Connor said.