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2009 Collective Bargaining Yields Lowest Increases in 13 Years

Collective bargaining negotiations completed during 2009 in the nonresidential construction industry resulted in the lowest average first-year increase in wages and fringe benefits since 1996, according to the year-end settlements report issued by the Construction Labor Research Council (CLRC).聽 CLRC reports that the average first-year increase negotiated last year was $1.23 or 2.8 percent, as compared to $1.95 or 4.6 percent in 2008 - the highest percentage increase since 1999.聽 The average second-year increase negotiated for multi-year agreements was $1.55 or 3.2 percent in 2009, and $2.25 or 4.7 percent in 2008. The lower level of increases negotiated in 2009 was influenced by the almost 10 percent of settlements for zero increase, CLRC notes.聽 Including those negotiations, 49垄 of the $1.23 average first-year increase was designated for pension fund contribution increases. Settlements varied less by region than usual, CLRC found, with a few individual states as stand-outs, such as Illinois on the high end and Michigan on the low end.聽 Also noteworthy is the greater-than-usual number of contracts negotiated for only a one-year duration.聽 Typically, about 40 percent of newly negotiated agreements are for three-year terms, but, in 2009, over half were negotiated for just a one-year term.聽 to view CLRC's full report. for information about open-shop wage increases.