July construction retreats 11 percent
The value of new U.S. construction starts fell 11% in July to $588.1 billion, according to an Aug. 22 report by McGraw-Hill Construction.

Nonresidential building experienced "an exceptionally strong June" but returned to a slower pace, the report said. Residential building "continued to weaken" the report said.

For the first seven months of 2007, total construction on an unadjusted basis was reported at $363.2 billion, down 13% from the same period a year ago. If residential building is excluded, then new construction starts during the January-July period of 2007 would be up 2% compared to last year.

"July's slower activity for nonresidential building was expected, since June had been boosted by the start of several massive projects," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The year-to-date figures show that
nonresidential building, up 1%, is performing fairly well in 2007. For residential building, however, the July report shows that this market continues to lose momentum, and that the correction for homebuilding is turning out to be deeper and more extended than initially believed.

By region, the Midwest was down 11% in July.

Construction gains 4.6% in bargaining
Collective bargaining settlements among all U.S. construction contracts through mid-July showed that the average first-year wage increase was 4.6 percent, compared with 3.9 percent in 2006. The information was compiled and released last month by the Construction Labor Report.

In collective bargaining among all industries, average first-year increases so far this year were 3.6 percent, compared to 3.2 percent in 2006.

In the meantime, another group, the Construction Labor Research Council, via the Construction Labor Report, issued similar numbers for all of unionized construction, saying that first-year wage-benefit increases were up 4.7 percent, or $1.90 per hour through June 2007. That compares to $1.74 a year ago.

The CLRC said most construction first-year increases fell between 3.0 percent and 5.9 percent. In Michigan and the rest of the "East North Central Region," the CLRC said the average increase was below the rest of the country: $1.72 (or 4.2 percent) for wages and benefits in the first year, and $1.72 (3.9 percent) for the second year.

Send Wal-Mart back to school
WASHINGTON (PAI) - With rallies in 100 cities and radio spots in 26 markets, union-backed Wake-Up Wal-Mart launched a new drive August 16 to get consumers to stop buying school supplies at the monster anti-worker retailer Wal-Mart, unless it cleans up its act.

"Send Wal-Mart Back to School" featured community leaders, activists, teachers and students with blue T-shirts and black chalkboard banners, seeking consumer pledges to boycott Wal-Mart unless it starts paying a living wage, ends discrimination against women, "adopts a zero tolerance policy on child labor," and provides affordable health care to its workers rather than forcing taxpayers to foot half the bill.

AFT signed a letter calling on Wal-Mart CEO Lee Scott to address the company's irresponsible business practices. "As the nation's largest private employer, with profits of $12 billion in just the past year, Wal-Mart can afford to do better by its employees, its customers, taxpayers and the children of America," the union wrote.