Union skilled trades in British Columbia and Alberta are more productive than open shop labour and deliver lower total project costs for owners, according to a new independent study released today by the Building Trades of Alberta, the BC Building Trades and Western Canada Skilled Metal Trades.
The study, Quantifying the Value of Union Labour in Construction Projects, was conducted by Independent Project Analysis (IPA), a research firm that has benchmarked capital projects on behalf of owners since 1987. IPA examined 140 completed projects in British Columbia and Alberta over the past 15 years, primarily at existing refining, chemical, utility and civil infrastructure sites, and compared the performance of 79 union projects with 61 open shop projects.
IPA found that:
- Union labour was 17 per cent more productive than open shop labour.
- Construction labour costs were 16 per cent lower on union projects, despite higher average wage rates.
- Using union labour reduced total project costs by an average of 7 per cent.
- Labour shortages affecting cost or schedule were reported on just over 3 per cent of union projects, compared with 18 per cent of open shop projects.
IPA found no statistical difference in the planning and management practices of the two groups of projects, indicating that the advantage comes from the workforce itself. IPA states that it alone was responsible for the data review, analysis and findings.
The release comes as British Columbia and Alberta prepare for an unprecedented pipeline of major projects. The Province of British Columbia has reported that roughly 40 per cent of the federal government’s priority major projects are located in B.C., and BuildForce Canada projects that British Columbia and Alberta will each need to recruit more than 48,000 construction workers over the next decade.
“Every construction dollar counts, and this research shows that hourly wage rates alone cannot tell an owner which workforce will deliver better value,” said Terry Parker, Executive Director of the Building Trades of Alberta. “Alberta’s skilled tradespeople are among the most productive in the world. Investing in them is one of the most practical ways to protect project budgets and schedules.”
“British Columbia has the projects, and now we have independent evidence about how to build them well,” said Brynn Bourke, Executive Director of the BC Building Trades. “A skilled, trained, unionized workforce gets more done, at lower total cost, with far fewer delays caused by labour shortages. That’s why project proponents in BC are choosing to build with the BC Building Trades.
“UA Local 170 members deliver the infrastructure that British Columbians rely on every single day,” said Al Phillips, Business Manager with UA Local 170. “This study confirms what union leaders and members already know: training, certification and a reliable supply of skilled workers are what keep projects on time and on budget. The next generation of major Canadian infrastructure projects should be built union.”
