Labor Relations for Construction

Document Type: Guide
Version: 1.0
Last Updated: February 2026
Distribute To: Owners, HR, Project Managers

Purpose

Provide guidance on labor relations considerations in construction, including union and non-union environments.

Construction Labor Landscape

Types of Contractors:

Type	Description
Union (Signatory)	Agreements with trade unions
Non-Union (Open Shop)	No union agreements
Double-Breasted	Related union and non-union companies
Merit Shop	Non-union, merit-based advancement

Union Environment

Understanding Unions:

Common Construction Unions:

IBEW (Electrical)
UA (Plumbers/Pipefitters)
IUOE (Operating Engineers)
Carpenters
Ironworkers
Laborers (LIUNA)
Sheet Metal Workers

Collective Bargaining Agreements (CBA):

Key CBA Terms:

Wage rates
Fringe benefits
Working conditions
Hiring hall procedures
Work rules
Jurisdictional assignments
Grievance procedures

Working Under CBA:

Requirement	Obligation
Wage rates	Pay scale per CBA
Fringes	Contribute to funds
Hiring	Use hiring hall
Work rules	Follow CBA provisions
Reporting	Certified payroll, trust reports

Non-Union Environment

Open Shop Benefits:

Workforce flexibility
Merit-based advancement
Direct employee relationship
No jurisdictional disputes

Open Shop Considerations:

Competitive compensation needed
Training responsibility
Retention challenges
Project requirements may vary

Project Labor Agreements (PLAs)

What is a PLA?

Pre-hire collective bargaining agreement for specific project

PLA Provisions:

All workers through union hiring halls
Union wages and benefits
No-strike clauses
Work rules
May allow non-union subs

PLA Considerations:

Usually public projects
May be mandatory
Evaluate bid impact
Understand requirements

Prevailing Wage vs. Union

Key Differences:

Factor	Prevailing Wage	Union
Requirement	By law (public work)	By agreement
Rates	DIR/DOL rates	CBA rates
Fringes	Pay or provide	Contribute to trusts
Hiring	Open	Hiring hall
Work rules	None specified	Per CBA
Reporting	Certified payroll	CPR + trust reports

Both May Apply:

On public projects, both prevailing wage AND union requirements may exist.

Jurisdictional Issues

What is Jurisdiction?

Which trade performs which work

Disputes Arise When:

Multiple trades claim same work
New materials/methods unclear
Project-specific assignments differ

Resolution:

Review CBA language
Local area practice
Joint board decisions
Owner direction
NLRB (if needed)

Employee Relations (Non-Union)

Creating Positive Environment:

Factor	Best Practice
Communication	Regular, honest, two-way
Compensation	Market competitive
Recognition	Acknowledge good work
Development	Training, advancement
Safety	Demonstrate commitment
Respect	Treat fairly, consistently

Avoiding Unionization:

Why Workers Organize:

Feel unheard
Pay/benefits concerns
Safety issues
Unfair treatment
Poor supervision

Prevention:

Address issues proactively
Fair treatment
Competitive compensation
Open communication
Good supervision

If Organizing Occurs:

Do not threaten, interrogate, promise, spy (TIPS)
Consult labor counsel immediately
Follow legal requirements
Focus on business as usual

Trust Fund Compliance (Union)

Required Contributions:

Fund	Purpose
Health & Welfare	Medical coverage
Pension	Retirement benefits
Training/Apprenticeship	Workforce development
Vacation/Holiday	PTO funding
Supplemental	Various

Reporting Requirements:

Monthly contribution reports
Payment by deadline
Correct classifications
Audit cooperation

Delinquency Consequences:

Interest and penalties
Benefit suspension
Legal action
Bond/project issues

Apprenticeship

Union Apprenticeship:

Registered through JATC
Specific hours required
Journeyman/apprentice ratios
Training requirements

Non-Union Apprenticeship:

Can register own program
Or use industry programs
State requirements apply
Public work requirements

California Apprenticeship:

Required on public works
DAS 142 forms
Training fund contributions
Ratio requirements

Labor Law Basics

Key Laws:

Law	Purpose
NLRA	Union organizing rights
Davis-Bacon	Federal prevailing wage
State prevailing wage	State requirements
FLSA	Wage and hour
OSHA	Workplace safety
Title VII	Anti-discrimination

Employee Rights:

Organize (or not organize)
Safe workplace
Fair wages
Non-discrimination
Protected concerted activity

Best Practices

All Environments:

Know your legal obligations
Treat workers fairly
Pay competitively
Communicate openly
Maintain safety
Document consistently
Consult experts when needed

Certified Payroll Compliance
Prevailing Wage Compliance
Employee Retention
Hiring Procedures

Template provided by support.construction. Strong labor relations support project success.

Purpose​

Construction Labor Landscape​

Types of Contractors:​

Union Environment​

Understanding Unions:​

Collective Bargaining Agreements (CBA):​

Working Under CBA:​

Non-Union Environment​

Open Shop Benefits:​

Open Shop Considerations:​

Project Labor Agreements (PLAs)​

What is a PLA?​

PLA Provisions:​

PLA Considerations:​

Prevailing Wage vs. Union​

Key Differences:​

Both May Apply:​

Jurisdictional Issues​

What is Jurisdiction?​

Disputes Arise When:​

Resolution:​

Employee Relations (Non-Union)​

Creating Positive Environment:​

Avoiding Unionization:​

If Organizing Occurs:​

Trust Fund Compliance (Union)​

Required Contributions:​

Reporting Requirements:​

Delinquency Consequences:​

Apprenticeship​

Union Apprenticeship:​

Non-Union Apprenticeship:​

California Apprenticeship:​

Labor Law Basics​

Key Laws:​

Employee Rights:​

Best Practices​

All Environments:​

Related Documents​