NECA

A Comparison of Operational Cost of Union vs. Non-Union Contractors

Published:

2004

Description:

A Comparison of Operational Costs of Union vs. Non-Union Electrical Contractors was commissioned to investigate the main differences between unionized electrical contractors and open-shop contractors, as well as to identify the main cost drivers and how they differ between the two. Through this study we determine the impact of various cost drivers on union contractors. Their impact on cost can be ranked as: 1) Operational Model, 2) Office support, 3) Labor management and cost, 4) Crew ratio, 5) Labor hiring, training and loyalty, 6) Application of prefabrication, 7) Procurement, 8) Composite crew mix. The research was conclusive about the importance and impact of these cost drivers. This study determined that the convoluted expectations and regulations of the labor union are an added cost without providing any added value to the stakeholders. On the other hand, the open shop contractor enjoys a higher level of freedom and therefore lower cost. The conclusion of this research is both provocative and essential for the future growth of union electrical contractors. To secure your business’ future by expanding your productivity, profitability and therefore your market share.

Author: Dr. Perry Daneshgari, MCA, Inc.

Index Number:

F2210

Format:

Booklet

Size:

43 pages, 8 1/2 x 11

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