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Wage increases take a slight dip

Date Posted: July 25 2003

Average first-year contract settlements for wage and benefits in the U.S. construction industry in the first half of 2003 have resulted in increases of $1.45 or 4.3 percent - a slight decline from levels a year ago.

The Construction Labor Research Council (CLRC) reported that the number of construction contract settlements for the "East North Central Region," which includes Michigan, led the nation. But the actual dollar amount increases for this region mirrored those of the national average.

For the same period in 2002, pay increases averaged $1.51 or 4.5 percent.

The CLRC said the pattern of longer-term collectively bargained contracts "has subsided," while three-year deals "increased in favor."

During the last five years, PAS Inc. surveys of nonunion construction worker show pay increases peaked at 5.3 percent in 2000, and then the percentages have dropped the last three years. Among nonunion construction workers in 2002, average pay increases for all crafts went up 3.9 percent, but are on track for a lower increase of 3.59 percent this year.