Closed and Open Shop Union Productivity

Member for

21 years 4 months

John,

I was involved in a large construction project in the American Mid-West a few years ago, where we tried to have only non-union labor. We couldn’t get non-union labor in all trades, and where we did have to engage union labor, the differences in theoretical productivity were insignificant. Costs, however, were a different matter. I would agree with Bernard’s comments that union labor involves more attendant and ancillary workers to get the same job done by non-union workers. Furthermore, supervision of workers is theoretically (and from a cost point of view) higher with union workers than it is with non-union workers.

For measuring productivity we used "Estimator’s General Construction Man-hour Manual" by John S. Page.

Cheers,

Stuart



www.rosmartin.com

Member for

22 years 11 months

I have observed that turnarounds employing union labor vs those with non-union labor require much greater coordination to manage resources. The productivity losses were not so much from the individual’s performance as the inefficiencies of requiring 3 different skills [people] (with attendant mobilization issues) to do a job that one multi-skilled non-union type can perform in non-union shops.



Bernard Ertl

InterPlan Systems - ATC Professional Shutdown / Turnaround Management System

Member for

21 years 3 months

Dayanidhi,



Thanks for the link. Actually, I am more interested in productivity figures and comparative unit costs, rather than simple hourly rates. I wonder if there is recognized study on this.



I suspect that there is a "double hit" operating here, with union productivity also lower. Along with the higher hourly rates you have confirmed, this results in the final unit cost for union labor being far higher than non-union.





John