brian john

I was hoping some employees, would post a response to my question of benefits to management from having union labor.

Fact is it is human nature to protect your investment either as a worker or management, the think is to try to find common ground, where both parties benefit. I do feel we (as management) in my area are better off then we were just a few years ago.

For one we now qualify for union health insurance (THOUGH COSTLY).

HCECalaska

what is your burden rate? most workers dont have a clue what it really costs for thier employment. my current burden for a union wireman is runing 87%

MDShunk

All I can say is "Wow!".

brian john

Per our accountant it runs around 85%.

HCECalaska

WOW is what most wiremen say when they see what they really cost.
they dont understand that even though they might make $35per hour scale. thier composit is $60+ so a $90shop rate is cheap..

MDShunk

No... what happened to economies of scale? I thought that larger contractors had lower labor burdens? Wow, because 85 and 87 percent sounds more like the labor burden for small operators. I thought that I read one time that in the 70's was more typical for EC's with more than 20 production employees.

brian john

I could not make a living on the T of T&M, I need to sell material, and prefer contract jobs and BLOW UPS. Though I would prefer an industry where blows ups do not occur..Been on too many blow ups where injury was involved and even if no one is hurt the cost to the property owners and tenants is huge.

HCECalaska

with the pensions, medical coverage, liability, workmans comp, and you name the othe expenses the burnden is huge.

Joe Momma

I suppose I've missed a lot of this conversation(6th page and all)

But we're a small union shop, we make 35 in our package, and only charge 65 per hour. I guess we're more fair than most too and our bread and butter is not TnM

__________________
Joe Momma was here

HCECalaska

joe, the other items that make up the burden rate is things like liability insurance costs. workmans comp, neca fees's (1%), SSI, and other payroll taxes. these costs are above the $35 package you have there.

oldman

Too many shops lose money on service and T&M work without even realizing it. They simply lump all their income and expenses together. They might make 15% on contracts and installs, and lose 10% on T&M/Service work, and thing that they make 5% NET for the year (numbers are for illustration purposes only)

T&M is a rough way to make a go of it. Customers think that $65/hr is a high price. You know you really need $100/hr...How do you bridge that gap?

A lot of companies run service like Wal-Mart used video rentals in the 80's - as a loss leader.

HCECalaska

one of the first things they get into trouble with is using contractor prices on thier materials. unless its a cost + contract where i turn over invoices trade service prices all the time.