Data revealed that projects led by non-union firms experienced average project cost increases of over $500,000. This was more than ten times greater than the average increases reported on projects led by union signatory contractors, even though union-led projects tended to be larger and more complex. Union-led projects were also completed more than two weeks faster, on average.

After researchers ran industry standard regression analyses to control for variables such as project size, location and the type of construction work, they concluded that the leadership of union signatory prime contractors reduced project cost increases by 4.9-6.4%, and sped up completion times by 14-22% (38 to 60 days). 

“The data shows that projects led by union signatory contractors came in substantially cheaper and were completed much faster than those led by non-union firms,” said Dr. Petrucci. “These results suggest that labor standards and project performance are complementary rather than competing goals.”

Researchers noted that labor only represents about 23% of total costs on public works construction, and construction unionization has been linked with superior workforce supply, safety and productivity outcomes on projects. 

For example, one recent report showed that joint programs operated by signatory employers and California’s construction trade unions administer 92% of the registered apprenticeship programs that train the Golden State’s skilled construction labor force and attach them to in-demand careers. Other studies have found that these investments make union firms significantly less likely to suffer from costly labor shortages, much less likely to experience safety problems that result in lost work time or added workers’ compensation costs, while yielding workforce productivity gains of twenty to thirty percent.

“When it comes to construction, what ultimately matters most to the end-user is whether the project is done right and delivered on time and on budget,” added study co-author and Alma College Assistant Economics Professor, Dr. Matthew Hinkel. “The data shows that union signatory firms are delivering far more effectively and reliably than the non-union alternative on these core metrics. And these superior outcomes are evidence that the long-term investments union signatory employers make in training, safety and job quality are paying near-term dividends on the jobsite.”