Survey Background
-Survey responses are accepted from members and/or non-members.
-Survey results are current for 2010 and 2011
Statutory requirements met:
-Current data
-County specific
-Wages listed by skilled, semi-skilled unskilled
-Fringe benefit amount included
-Use of modal calculation
Respondents were asked:
-List what is a commonly paid wage, by hour on an annual basis, for each construction craft employed by skilled, semi-skilled and unskilled classes.
-List what is commonly paid as "other compensation total" -defined as an hourly cost on an annual basis that may include insurance, retirement, vacation, holidays, etc., for each construction craft employed by skilled, semi-skilled, and unskilled classes.
Summary reporting
All wage information is submitted in summary form to ensure confidentiality of proprietary interests of each company. This is also done as a protection against any anti-trust implications on part of the association. Modal calculations are used, with no averaging.
Remedy for tie vote
-If the committee cannot make a determination at the time of the hearing, of wages, classifications or fringes:
OR
-The committee is deadlocked in a 2-2 tie 5-16-7-1 2-G applies
If the committee appointed fails to act and to make a determination...The awarding agency shall make the determination and its finding shall be final.
Construction Environment
The majority of construction companies and their employees within the state of Indiana are not covered by collective bargained wages. In other words, most companies and employees are considered open or non-union environments. Seventy-four percent (74%) of all construction workers in Indiana choose not to be represented by a union. Eighty-nine percent (89%) of all construction contractors are non-union.
Why is this fact important?
-In determining the commonly paid wage and benefits, we suggest looking at what the majority of construction workers are being paid.
-The ABC survey focuses on what the 74 % are being paid.
-The union numbers come from the collective bargaining agreements paid to the 26 percent.
ABC survey court tested
The ABC survey had been challenged by the Southwestern Indiana Building Trades Unions and the Indiana Department of Labor.
Result:
May 30 2003, The Indiana Court of Appeals cited: On appeal, we reject the Appellant's (unions & I.D.O.L.) assertion that the committee made the wage determination without regard for prevailing wage rates in the locality...concluding that wage committee based their determination on substantial evidence (ABC survey).
September 19, 2003 the Indiana Supreme Court denied a petition of transfer effectively affirming the Court of Appeals decision and relevant state-wide. The City of Jasper decision is the case law that applies currently.
Keystone Building Case: Allen County
This is a current case on appeal to the Indiana Supreme Court. Being a State Court of Appeals decision is does have relevance, however in the Court’s words p.19, “Consistent with City of Jasper (case sited above), we do not hold that a wage committee acts arbitrarily or capriciously or without sufficient evidence whenever it adopts a wage scale proposed by a non-union trade group such as ABC.”
Other Questions
-Do we sacrifice quality and/or safety by adopting non-union rates?
Answer: No. Building codes with enforcing agencies are in place. Bonding requirements test contractor viability and safety modifiers. OSHA analysis of worksite fatalities are independent of union/non-union membership. Both union and ABC's training programs are certified by U.S. Labor Department.
-Do actions of other wage committees past or present in the County determine what this committee should do?
Answer: No. Each meeting of the committee to determine wages for each project stands alone for that committee's action. That was put in statute to guard against a self-fulfilling prophecy where if previous wage determinations were cited and accepted, then committees would just perpetuate the first determination.
For any additional information or questions about the ABC material, you may contact:
J.R. Gaylor
President/CEO
Associated Builders and Contractors of Indiana, Inc.
5001 N. Shadeland Ave.
Indianapolis, Indiana 46226
(800) 333-9844
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