Overall 5% hike expected for wages
Wages for U.S. building trades workers are projected to increase 5 percent in 2007, an increase from 4.6 percent in 2006 and 4 percent in 2005.

The information, gathered by Personnel Administration Services (PAS), was reported by the Construction Labor Report. The PAS report cautioned, however, that due to the slump in housing industry construction, construction worker wages will vary widely across the country.

Construction costs outpace inflation
WASHINGTON, D.C. - A dip in construction material prices in November is not a trend expected to continue into 2007.

"Construction materials costs took a pleasing plunge in November, while other producer prices rose," said Ken Simonson, chief economist for The Associated General Contractors of America (AGC), commenting on the Dec. 19 producer price index (PPI) report from the Bureau of Labor Statistics. "But the next 12 months are still likely to show higher costs for construction than for the economy as a whole."

Simonson said the index for construction materials and components dropped half a percent in November, even as the overall PPI for finished goods climbed 0.8 percent. To compare, over the last 12 months, construction costs have jumped five percent, vs. two percent for the consumer price index and a skimpy 0.9 percent for the finished-goods PPI.

The retreat in construction costs included declines for diesel fuel and asphalt, plastic construction products, lumber and plywood, gypsum products and steel and copper products. But there were continuing increases in the prices of most concrete products, brick, and aluminum mill shapes. Lower U.S. residential construction will maintain downward pressure of gypsum and wood prices, but Simonson said as long as demand in industrializing nations continues, "construction is likely to face higher costs for materials that depend on world markets."

Goodyear strikers making tires again
More than 15,000 striking United Steelworkers members have reached a tentative agreement with Goodyear after a labor dispute that lasted nearly three months.

The workers had been on strike in a fight "for good U.S. jobs with good benefits promised by the company," according to the AFL-CIO.

"On behalf of 15,000 brave workers who courageously battled to last one day longer than the company, their families and more than 30,000 Goodyear retirees and surviving spouses, allow me to thank everybody who contributed to this victory," said United Steel Workers (USW) President Leo W. Gerard. "As we said from the beginning, this contract campaign went far beyond a labor-management dispute. It was a battle to make a
company live up to its commitments to past and current employees, and to secure a future for manufacturing in North America. While no settlement is ever perfect, we all deserve congratulations in successfully working together to resolve the critical issues that confronted us when the bargaining process began."

The agreement with Goodyear:

• Establishes an innovative company-financed trust of more than $1 billion that will secure medical and prescription drug benefits for current and future retirees.
• Enhances the ability of USW-represented plants to meet the challenges of global competition by having Goodyear triple its capital investments to at least $550 million in those unionized plants.
• Maintains affordable, high-quality medical and prescription drug coverage for active members and retirees.
• Requires Goodyear to rescind its demand for immediate closure of its Tyler, Texas, plant and instead provide for a one-year period of transition during which workers will have the opportunity to take advantage of sizeable retirement buyouts.

Goodyear sought to close the Tyler plant - its third plant closure in four years - despite making nearly $500 million in profit last year.