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Report shows that union workers cost less
The following list of taxes and insurance rates represent taxes and insurance that a contractor must pay above the cost of the hourly wage for all employees. Please note that these charges are only applied to actual gross wages and are not assessed to funds paid to benefit plans.
Social Security 6.2%
Medicare 1.45%
State Unemployment 1.9%
State Disability 0.5%
Worker’s Comp. Insurance 20% (average for most trades assuming contractor with good safety record)
Below is a comparison of the actual amount that a contractor pays a construction laborer on a state prevailing wage job. This analysis compares the cost of a union laborer and a non-union laborer being paid full prevailing wage with no benefits (often the case). Please note that all wage and benefit amounts are as of 05/01/2003.

Union Laborer Laborer Full Prevailing Wage
$23.80 per hour wage 36.22 per hour wage
$12.42 per hour in benefits No Benefits
Per 8 hour day Per 8 hour day
$190.40 Wages $289.76 Wages
$11.80 Social Security $17.97 Social Security
$2.76 Medicare $4.20 Medicare
$3.62 State Unemployment $5.51 State Unemployment
$0.95 State Disability $1.45 State Disability
$38.08 Worker’s Comp. Insurance $57.95 Worker’s Comp. Insurance
$99.36 Benefits  
   
$346.97 Total Cost per Day $376.84 Total Cost per Day
$43.37 Total Cost per Hour $47.11 Total Cost per Hour

When prevailing wages are paid to a non-union worker with no benefits, non-union laborers cost employers (and owners) an additional $3.74 per hour when compared to a union worker.

NJ LECET
July 20, 2003

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Alliance for Competitive Contracting
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