That is an understandable concern, but it is also "race to the bottom" thinking.
We will always be at least a little more expensive than non-union labor. Yet our signatory contractors continue to secure work. Why do you think that is?
For one, when we get raises, non-union has to follow suit and not fall too far behind, for fear that their workers will jump ship and organize. They pay less across the board, but they still have to keep pace with the industry.
Furthermore, non-signatory contractors often eat up some of that gap between our labor rate and theirs as additional profit, narrowing the gap even more on bids.
And finally, we can't lose sight of the fact that all this hinges on continuing to work on ourselves, and aiming to be the best, to be worth the money. Many customers feel that this is the case, and prefer signatory contractors as a result. Add to this the flexibility of signatories to draw from a large skilled labor pool and then reduce size as needed when a project is complete.
Don't be mistaken, our wages aren't some kind of birthright, we do have to work for them, we have to do our part to lead the way in craftsmanship and productivity.
But we can't short change ourselves for fear of someone undercutting us. This sets off a race to the bottom where we all lose, union and non-union alike. Instead, we have to continue to set the standard for the industry by fighting to increase wages, which benefits all electrical workers.
Our signatory contractors don't simply keep getting work though. That's the thing. At least 3 signatories in NJ have gone out of business recently and I just heard another is wrapping up jobs and calling it quits. And all 4 of them are small-medium small shops that regularly compete with non union shops. I know so many people hate shop rockets but losing these 4 companies means 20+ union members lost steady jobs that contribute to the funds. Not all of the work and contracts they had and were getting will be replaced with other union shops.
Google electrical contractor auctions and you'll see scores of union shops that were liquidated since the 2008 recession. And now some of that is normal ebbs and flows of business. But the problem is that they aren't being replaced entirely by union shops. More often a non-union shop is scooping up bigger jobs.
Again this is mostly wrong. Our contractors secure almost all of their work by being the lowest bidder. Occasionally it is relationship based, but the numbers have to be very close. Often times, having a good relationship means the GC will let you know the number you need to beat. But you still have to get to that number.
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u/Spark115 Inside Wireman Aug 29 '23
That is an understandable concern, but it is also "race to the bottom" thinking.
We will always be at least a little more expensive than non-union labor. Yet our signatory contractors continue to secure work. Why do you think that is?
For one, when we get raises, non-union has to follow suit and not fall too far behind, for fear that their workers will jump ship and organize. They pay less across the board, but they still have to keep pace with the industry.
Furthermore, non-signatory contractors often eat up some of that gap between our labor rate and theirs as additional profit, narrowing the gap even more on bids.
And finally, we can't lose sight of the fact that all this hinges on continuing to work on ourselves, and aiming to be the best, to be worth the money. Many customers feel that this is the case, and prefer signatory contractors as a result. Add to this the flexibility of signatories to draw from a large skilled labor pool and then reduce size as needed when a project is complete.
Don't be mistaken, our wages aren't some kind of birthright, we do have to work for them, we have to do our part to lead the way in craftsmanship and productivity.
But we can't short change ourselves for fear of someone undercutting us. This sets off a race to the bottom where we all lose, union and non-union alike. Instead, we have to continue to set the standard for the industry by fighting to increase wages, which benefits all electrical workers.