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News Briefs

Date Posted: July 21 2006

Tentative pact for UA Local 636
As we went to press, a tentative agreement had been reached between members of Detroit Pipe Fitters, Steamfitters, Refrigeration and Air Conditioning Service Local 636 and the Mechanical Contractors Association following a six-day strike. Both sides failed to reach a collective bargaining agreement on July 12.

The money presented for the two-year contract was not the stumbling block. At issue, union leaders said, was MCA's insistence on introduction of low-paid, low-skilled helpers on the job, at a ratio that was unacceptable to the Local 636 Negotiating Committee.

'Tepid' employment for construction
Washington, D.C. - "A tepid construction job report in June reflected the mix of a hot nonresidential construction job market with a fast-cooling residential scene," said Ken Simonson, chief economist for The Associated General Contractors of America (AGC), earlier this month.

Simonson was commenting on a July 7 report from the Bureau of Labor Statistics that showed overall construction employment was essentially unchanged for the fourth straight month, at a seasonally adjusted total of 7.5 million.

"The seemingly stagnant job pool results from cross-cutting currents," said Simonson. "Residential building and specialty trade construction employment fell by 25,000 since February, including a drop of 9,000 jobs just in June. "Meanwhile," Simonson continued, "nonresidential building and specialty trade contractors added 44,000 workers over four months, including 9,000 in June.

He said June 2005 to June 2006 comparisons show overall construction employment expanded at a 3.1 percentage rate - more than double the non-farm employment growth rate.

However, he noted a shift in construction employment. Manufacturing, energy and mining, and hospitals are adding jobs, while the once-hot single-family and condominium construction sector is slowing, and will drop faster once the backlog of current projects is finished. He said highway construction is also "vulnerable," due to high material and fuel prices.

In the meantime, construction spending dropped in May for the second straight month, the AGC reported. A July 3 Census Bureau report said that U.S. building activity dropped 0.4 percent in May, following a 0.2 percent drop in April.