New Study from The Construction Insitute Shows Impact of Construction Unions on Massachusetts Econom

[Omaha Steve]

Got this from the BCTD


Boston, MA (April 5, 2010) – A new study released by The Construction Institute shows the total economic impact of construction union earnings on the economy of Massachusetts amounted to $4.6 billion in 2007.


Building Trades unions represent approximately 73,000 members in Massachusetts, or more than 60 percent of the construction production workforce. The Socio-Economic Impacts of Construction Unionization in Massachusetts by Cornell University, ILR School, shows that unionization of the Massachusetts construction industry results in direct and indirect benefits for workers, their communities, and the economy of the entire state.


Mary Vogel, Executive Director of TCI said, “This study confirms what we already knew to be true – unionization in the construction industry not only creates middle class career opportunities in the building trades for Massachusetts residents, but results in significant economic benefits for the Commonwealth and the local communities in which our members live and workThe new study discovered the following significant findings:


IMPACT OF THE UNION-WAGEPREMIUM

· The increase in aggregate earnings of unionized as compared to non-union construction workers has a multiplier effect on the total income of Massachusetts families. As union workers enjoy higher income levels, their ability to spend in goods and services in their communities also increases, resulting in $1.74 billion of increased income for all state residents.

· Union wage premium has a positive effect on state tax revenues. Sales tax revenues increase by $23.8 million. Additionally, state personal income tax revenues increase by $92.3 million.

· Total impact of union wage premium amounts to $1.8 billion.


IMPACT OF TOTAL EARNINGS OF UNIONIZED CONSTRUCTION WORKERS

· Total union earnings in the Massachusetts construction industry amounted to $2.3 billion in 2007, excluding non-wage compensation.

· The impact of these earnings on the total income of Massachusetts families amounted to $4.3 billion.

· The impact on state revenues amounted to $59 million in sales taxes and $228.6 million in income taxes.

· The total economic impact of union earnings on the economy of Massachusetts amounted to $4.6 billion in 2007.



REAL ESTATE INVESTMENTS OF UNION PENSION FUNDS

· Research identifies $1.56 billion of BuildingTrade pension fund investments in real estate development projects in Massachusetts. This investment creates additional employment opportunities in the construction industry and increased overall income in Massachusetts, while producing competitive returns for retirees and beneficiaries.


SOCIAL COSTS IMPOSED BY THE NON-UNION CONSTRUCTION SECTOR

· Despite state legal requirements for employees’ health benefits coverage, the coverage provided to non-union workers is mostly inadequate or virtually non-existent.

· Misclassification of workers and workplace fraud, which are characteristic of the underground economy, are pervasive in the non-union construction sector and result in millions lost in state income and payroll taxes.

· There is a widespread practice by non-union contractors to misclassify workers in lower paid occupations and categories (e.g. bricklayers misclassified as laborers, and journeymen misclassified as apprentices.)

· Existing research has found that union training programs are more effective than non-union programs in terms of enrolling apprentices and producing journey-level workers. The quality of training has important implications for workers’ productivity as well as for decreasing occupational injuries.

· OSHA records for Massachusetts construction industry reveal that 88 percent of the violations between 2004 and 2009 were committed by non-union contractors.


SUMMARY

· Construction unions have positive impacts on the economy of the state, while the non-union sector is likely to produce social and economic costs resulting from low wages and limited benefits paid to non-union workers.

· Unionization is still one of the most effective vehicles empowering workers to monitor employer’s compliance with labor laws.

· The panel of experts who participated in the release of the new study include: Jeff Grabelsky, Director of the Construction Industry Program at Cornell University- ILR School, Extension and Outreach Division, Maria Figueroa, Director of Labor and Industry Research at the Cornell University School of Industrial and Labor Relations, Extension and Outreach Division, Mary Vogel, Executive Director, The Construction Institute, Frank Callahan, President, Massachusetts Building Trades Council, State Senator Steven Tolman, State Representative Martin Walsh, Sue Mailman, President, Coghlin Electrical Contractors, Inc., Tom O’Connor, President, O’Connor Constructors, and Roger Gill, Administrator, Plumbers Local 12 Benefit Funds

[aquart]

1. Any business that declares a profit while debiting the nation is a parasite.

Parasites can kill you. Like Massey Energy.

[applegrove]

2. I bet the GOP goes nuts on this study. The truth hurts eh?