Union/Labor Agreements Developments

Labor agreements shape everything in construction: cost, schedules, manpower, and your ability to take on work. Whether you’re union or open shop, every subcontractor feels the ripple effects when new agreements roll out. And lately, the trends are hard to ignore. Wage bumps, benefit adjustments, and manpower shortages are pushing the industry into a new reality.

See what’s changing and what subcontractors should keep an eye on.

Wage Rates Keep Climbing Across Major Markets

Most recent union negotiations have landed on steady wage increases, often two to four percent per year. In some regions, it’s higher. Rising pay isn’t surprising. Labor shortages are keeping the trades in demand, but it does mean subs have to price more carefully.

This is where many subs get squeezed. You win the job based on today’s numbers, then next year’s wage increase arrives before the project ends. Smart subcontractors are building escalation language or schedule assumptions into their bids so they’re not eating the difference later.

Labor Shortages Aren’t Going Away

Even with strong apprenticeship pipelines, younger workers aren’t replacing retirees fast enough. National labor projections show continued shortages through the next decade. That means GCs are watching manpower closer than ever.

Subs who can staff consistently have a major advantage. GCs don’t just ask for price. They ask, “Do you have the crew for this?” Clear communication about availability builds trust. Guessing and hoping does not.

The trend is simple: labor reliability is becoming as important as labor cost.

More Emphasis on Safety and Compliance

Recent agreements in multiple regions have included stronger safety requirements. Some unions are expanding mandatory training, certifications, and reporting expectations.

Subs can’t treat these as box-checking items anymore. Whether union or non-union, you need clean documentation, clear tracking of who is trained on what, and proof ready when the GC asks. The days of flipping through old binders on the tailgate are over.

Well-organized subcontractors move through compliance checks faster and avoid headaches when the job ramps up.

Flexible Work Rules Are Showing Up in Some Agreements

Not everywhere, but in several markets, unions are negotiating adjustments around shift work, weekend rules, and crew scheduling. Owners are pushing tighter timelines, and unions are making room for more flexible deployment while still protecting labor standards.

This trend benefits subcontractors who plan ahead. If you can forecast manpower and secure approvals early, you avoid surprises when the GC suddenly suggests a second shift to save the schedule.

Flexibility is becoming a bargaining chip, not just between unions and contractors, but inside your project planning.

Pension and Benefit Costs Continue to Rise

Benefit contributions, pension adjustments, and health plan bumps are part of the new agreements in many regions. These changes add up fast, especially on long-duration projects.

Subs who don’t price these factors accurately end up losing money before work even starts. The smartest teams are staying close to local labor updates and adjusting pricing templates early.

If you treat benefits as an afterthought in estimating, you feel the pain later in accounting.

Prevailing Wage Enforcement Is Getting Tighter

Public projects are seeing stricter audits and more electronic reporting requirements. The DOL’s updated Davis-Bacon rules have added pressure for subs to document classifications, track hours cleanly, and avoid missteps that trigger penalties.

Even subs who don’t touch public work feel the influence because private GCs start expecting similar documentation quality.

Clean record-keeping is becoming non-negotiable.

What All of This Means for Subcontractors

Union or non-union, these labor trends hit every subcontractor in some way:

• Pricing needs to be sharper and more forward-looking.
• Crew planning needs more structure.
• Compliance needs to be organized before someone asks.
• Clear assumptions matter more on every bid.
• Labor transparency is becoming a deciding factor for GCs.

Growth causes enough pressure already. Labor complexity piles on top of it. The subs who stay ahead of these shifts avoid rework, protect their margin, and build trust with GCs who are tired of chasing information.

Where Riffle Helps

Riffle doesn’t change wage rates, but it does protect you from the chaos that comes with them.

With Riffle, subs can:

• Track versions and assumptions cleanly
• Keep bids consistent when labor rates change
• Flag manpower availability early
• Organize every ITB and deadline in one place
• Eliminate the messy back-and-forth that causes bidding mistakes

Your labor costs may rise, but your workflow doesn’t have to fall apart.

What Subs Should Do Next

Three simple moves will keep you ahead of labor trends:

• Review your pricing templates twice a year
• Add assumptions about wage increases and manpower to your bids
• Use tools that keep your information clear and consistent

Labor will stay tight. Rules will keep evolving. Subcontractors who stay organized will stay profitable.

Join the waitlist at rifflecm.com.

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