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There is/was a time and place for unions, but is unionization right for my (construction) shop?
The proposed 3 year agreement states, in part: (1) Journeyman’s wage of not less than $24.95 per hour (first year, with annual raises) – foreman are $2.50/hr higher and the union tells you how the journeyman/foreman ratio you must have, (2) Two weeks of annual paid vacation, (3) eight (or 9) paid Holidays, (4) $15.72 per hour for union fringe benefits (which includes a medical/dental/vision package far superior than what is available for most employers on the open market), (5) Employer must provide at least 8 hours of continuing education for each union employee – and they get paid and fringes for attending training, (6) if the worker shows up for work and no work is available, they get paid for 2 hours just for showing up, (7) the employer pays the union steward up to one hour per week for performing union duties during work hours; (8) in ND you can work up to 48 hours before getting OT, but the union agreement limits it to 40 hours, (9) if the employee uses their own vehicle to drive to a jobsite, the employer must reimburse them at TWO times the approved IRS rate currently in effect…there’s more, but these are the “high lights”.
Let’s say everyone was already making $25 per hour (or $52,000 annually). Now they get a $15.72 per hour (or $32,697 annual) raise. This is hard for me to swallow – especially since I didn’t see a $33k+/- raise after I got my CPA license.
$52,000 + 32,697 = $84,697 PLUS another $15k or so for FICA, SUTA, FUTA, workers’ comp and general liability insurance. So if the guys can’t turn a profit without belonging to the union, now I’ve added THOUSANDS of dollars per year to an already unprofitable situation and made it worse. Have they just unionized themselves right out of a job (because the employer can’t stay in business)?
Plus, there’s the cost of my time for union compliance – which is no easy task if you’ve ever had to do it.
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