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News Briefs

Date Posted: March 17 2006

Status quo for construction pay
Pay and benefit increases in the U.S. organized construction industry are expected to continue at a pace similar to the past two years.

A 2006 outlook report released last month by the Construction Labor Research Council did not predict percentage increases, but CLRC Executive Director Robert Gasperow told the Construction Labor Report that increases in existing agreements are good indicators for the future.

The CLRC found that in existing contracts across the U.S., pay/benefit increases for 2006 average $1.68 per hour or 3.9 percent. For 2007, the average increase is $1.73, and also 3.9 percent. Average construction industry first-year settlements in 2005 were $1.53, at 3.9 percent.

In recent years, the CLRC said average U.S. pay/benefit increases have been $1.50.

Asbestos bill won't fly without support
U.S. Senate Majority Leader Bill Frist said on Feb. 17 that he won't place an asbestos bill up for a vote unless 60 senators sign a letter indicating their support.

"Once that public assurance is given, I will look to schedule the bill at the earliest possible opportunity," said Frist, a Tennessee Republican, said in a statement.

The controversial legislation would take asbestos injury claims out of the courts and pay them instead from a $140 billion fund financed by asbestos defendant companies and their insurers.

The bill lost in a 58-41 Senate vote on Feb. 14, but Frist used a procedural move to keep his options open for reintroducing the measure.

Supporters and detractors of the bi-partisan bill are all over the map. Some labor groups support it, others don't. Same with Republicans and Democrats. Congress has
struggled for years to come up with a compromise money package that will help asbestos-affected workers - including thousands of construction Hardhats - while keeping a lid on costs and not sending more asbestos-related companies into bankruptcy.

Construction up, but not in Michigan
Predictions for a robust year for U.S. construction seem to be on track in 2006, with an Associated General Contractors economist calling industry gains this year "well distributed across industry segments and regions."

"Construction again led the employment report in February with a gain of 41,000 jobs, one-fifth of all private-sector jobs added during the month," said AGC Chief Economist Ken Simonson, commenting March 10 on seasonally adjusted jobs figures released by the Bureau of Labor Statistics (BLS).

"This is just the latest in a long string of employment gains," he added. "Since February 2005, construction employment has risen by 346,000, or 4.7 percent - triple the overall growth rate for nonfarm payroll jobs.

On a statewide basis, from January 2005 to January 2006, BLS figures show that construction employment rose in 46 states and was unchanged in another. In Connecticut, Louisiana and Michigan, construction employment dropped during that period.