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The downward pressure on wages is waaaay out of control, so far out of control that a non-union person can work their fingers to the bone holding three jobs and not make ends meet. That's just wrong. We aren't talking lazy people, we're talking regular folks, hard working folks, people that deserve to live without constantly worrying if they can pay the damn water bill.
Wages NEED to increase... a hell of a lot. I can't believe you guys roll over on that and blame people who are just like you, people who want to WORK for their living. It's the corps begging for handouts, not the people.
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In Ohio most public works projects are required to be paid at "prevailing wage". This was brought into law by Union's trying to level the playing field with non-union contractors.
http://en.wikipedia.org/wiki/Prevailing_wage
I love these projects because all pay rates and benefit costs to the contractor are the same. XXXX Tree Service cannot undercut my prices because they pay less or don't have benefits. To work these projects you must have workers comp and in most cases a State approved drug free workplace program. We get nearly all of these jobs we bid. We get high prices for the work and I gladly pay the prevailing wage rates.
I agree that pay is too little in our industry. It needs to increase. In fact we are not the only industry with this problem. Our economy is based on competition. I can only charge what the market will bear. I lose jobs daily because I charge too much.
In our climate we average 200 work days due to weather, vacation, holidays etc. If you are a 3 man tree crew and gross $1800.00 per day ($75 per man per hour). You would generate $360,000.00 in revenue. As a business if you are paying over 35% of this in payroll you are on the short road to being insolvent! In fact most schools of thought will tell you to be at no more than 30%.
At 30% this totals a payroll of $108,000.00. Divide that by 3 and you get $36,000 per employee. At 35% you get $42,000 in pay to average amongst the crew. Hmmm... to increase pay in our industry you have to be able to generate more revenue.
In my eye's then only way to raise revenue is to level the playing field! Get rid of the competition that is keeping 80% of their gross revenues because they pay cash, hire illegals and have no benefit cost. As an employee refuse to work for companies that pay cash and cheat... they are dragging our wages down!
Let's get a "tree worker" union. As long as everyone doing tree work has to abide by the wages and benefits I'm in! Wait... this is sounding like what the USSR tried! When you reward non-productivity and penalize productivity (pay everyone the same regardless of their production) you get a big mess!