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Today's lesson for ABC: How to get away with paying workers substandard wages

Date Posted: November 10 2000

Building trades unions say black. The Associated Builders and Contractors say white. Trade unions are oil. The ABC is water. The sky is blue in the unionized world, but in the ABC's realm, we suspect it may be chartreuse.

The ABC was set up to fight unions and their contractors on just about every front in the construction industry, and there is little in common in the way either side conducts their business.

Once in a while - and it happened again last week - an article crosses our desk that perfectly illustrates this disparity, and leaves us scratching our head in amazement.

The article appeared in one of the publications we frequently cite, the nonpartisan Construction Labor Report, which is published by the Bureau of National Affairs. The article said Roger Liska, chairman of the Clemson University (South Carolina) Department of Construction Science and Management, spoke to about 125 members of the ABC's 2000 Electrical Contractors' Conference in late September.

He was obviously preaching to an anti-worker, anti-union choir, but it was still amazing to see the ABC's fundamental strategy spelled out in black and white: how to improve company profits, keep valuable workers from fleeing the company, all the while keeping wages as low as possible.

It was published under the heading, "Contractors told to focus on safety, training to attract, retain skilled workers." Hmm…notice anything about improving worker wages and benefits in that heading? No, we didn't either, and it will become obvious how low on the scale of importance those items are to the ABC.

According to the article, Liska mentioned several studies that showed turnover among construction workers directly affects a company's bottom line. He said every 10 percent change in a company's turnover rate results in a 2.5 percent increase in overall labor costs.

So what is a nonunion electrical contractor to do about retaining workers? Should they bring wages up to union standards? Look into providing better insurance health insurance plans for workers? Start up employee pension plans or 401k programs? Institute a quality, federally approved training program? Start a system of collective bargaining so that workers and management can express their desires, assess their differences and come to a mutual decision on wages, working conditions?

Naaah.

Liska said the contractors with good worker retention rates:

  • Should maintain a safe working environment.
  • Recruit at trade shows, high schools and community colleges.
  • Pursue workers who have been laid-off from other projects.
  • Work with other contractors for hiring.
  • Use written tests and performance.
  • Conduct supervisor human relations training.
  • Have documented wage progression that is tied to skills.
  • Offer long-term preferential treatment to tenured workers. ("Such a practice is not favoritism," the article said Liska noted, "but rather an incentive to retain younger workers who want a menu of benefits.")
  • Informing employees of a project's progress, because the new generation of younger workers wants to be involved in that progress.
  • Promote the family side of construction, offering family or company picnics. "Workers like that; they feel less like a commodity," Liska said, as quoted in the report.

Believe it or not, folks, that's the latest in nonunion workforce retention and recruitment in the electrical industry.

Maybe that's why the Electrical Workers have been one of the top unions for organizing nonunion workers over the last several years.