I regular work with and PM projects using union labor in NYC. The rates here are about what I would expect for take-home pay. I.e. they take home (pre-tax) closer to $70/hr than $30/hr. One thing not made clear in the article is if the hourly rates they quote are pre or post benefits. When I budget out projects, my spreadsheets have two columns, hourly wage, and hourly + benefits. Depending on the particular union, the benefits can be as high as 60%. So the real cost to me, the PM, is $70+$42 = $112/hour straight time.

Wow, seems like I was misinformed, then. That seems unsustainable to me, but I guess time will tell.

It can certainly be painful from a management standpoint. But actually the biggest pain point isn't the hourly wages -- we all love to earn money, after all. The biggest pain point is labor minimums. If you need to hire from Department A, you need to hire a minimum of 3 people even when only 1 is needed. Or if you need to hire from Departments A and B, then you're required to also hire Departments C, D, and E (all with their minimum crew requirements).

It makes for accomplishing smaller projects near prohibitively expensive. And typically you can't gang together multiple projects in order to optimize labor usage.

Honestly, I have very mixed feelings about the arrangements I have to work with.

So this is the real reason for high costs in construction in the US. Absurd "labor minimums" ? Haven't heard about anything like this here in Europe..

Are those labor minimums union rules or are they imposed by government regulation?

Good question. I assumed union rules, but I could see OSHA being the factor here, too.

For me, they're negotiated union rules.

Why can’t you hire non-union labor? Is it unavailable?

Really? If you're familiar with rate cards, can you read this http://www.local14funds.org/forms/NewForms/Wage-Scale-082018... and tell me what portion actually makes it to the person doing the work?

Seems like you're familiar. Could you share the answer too?

I'm not. I just use that source for me to determine how construction jobs (specifically crane ops) wages are priced. I am not especially informed.

Those wages are what the union members actually receive.

Thanks. What would someone who utilizes this union labour actually end up paying? A little more than this? I'm sure it varies but I'm curious about ballpark. Like 50% more? 250% more?

Cha ching. Here's the issue.

That 70$ 'overhead' charge.

That sort of overhead should frankly be illegal. It's exorbitant. To pay the worker $30/hr, and charge a $70/hr overhead on top of it is daylight robbery.

Is it really? In my experience the overhead for salaried software developers working for contract shops is greater in both raw amount and percentage that that.

This was 10 years ago but I knew developers making $60/hour in salary while being contracted out for 3 times that amount.

> making $60/hour in salary while being contracted out for 3 times that amount

Those devs should have listened to patio11 (Patrick McKenzie)'s advise, and directed built a relationship with the companies they were being contracted out to.

Unfortunately both California and can the contracting companies are opposed to this. Most companies are not interested in working with sole proprietorships due to the legal liability.