Construction labor: union or non? Key organization leaders present cases for both sectors.

• Author: Parmalee, Catherine
• Position: Statistical Data Included

Industry experts estimate there are about $4.7 billion worth of construction projects in the works around the state this year. Some of the construction activity beginning or in progress in 2002 is scheduled to continue through the next few years, and some will stretch as far out as 2005. In planning this and future work, a major decision project owners and managers must make is selecting the labor they believe best fits their needs. Furthermore, individuals experienced in, or who want to become experienced in, construction crafts must also select the sector they think best suits their skills.

Alaska Business Monthly spoke with advocates of both union and nonunion ("op or "merit" shop) hire and asked each to present some advantages of their positions. Spokespersons included Mano Frey, executive president, Alaska State AFL-CIO; Eden Larson, executive director, Associated Builders and Contractors Inc., Alaska Chapter; and Richard Cattanach, executive director, Associated General Contractors of Alaska.

ALASKA STATE AFL-CIO

The Alaska State AFL-CIO is an umbrella organization for the unions in Alaska. Sixty-two unions belong to the Alaska State AFL-CIO, which represents more than 50,000 members. "We're like the Chamber of Commerce of unions," Frey said.

Not all of AFL-CIO's activities in the state are necessarily slanted toward union hire. For example, the organization sponsored a recent petition to raise the state's minimum wage. Legislators approved the measure, which will go into effect on Jan. 1, 2003.

Frey presented a myriad of advantages of union hire that benefited both the worker and the employer.

"Clearly the wage and benefits packages that unions negotiate with various contractors are in general higher than the nonunion sector," Frey said. "A person can make more money and the level of fringe benefits is higher-for example, a 'live' pension that lets someone retire with dignity."

An additional benefit for individuals, according to Frey, is that unions provide apprenticeship programs offering classroom and on-the-job-experience learning opportunities. "The limited amount of nonunion training is not the same," said Frey. "They don't have the facilities and longtime experience, nor the same amount of funding to support the amount of training unions can provide."

Equally important, Frey maintains union hire is also advantageous to project owners. "There is no question that the productivity of union construction workers is higher," he said...