In 2024, the construction industry in the U.S. continues to face significant challenges with workforce shortages, rising labor costs and economic uncertainty. Amid this backdrop, unions in construction are maintaining a steady presence, but the sector remains a battleground for discussions on unionization. Both unionized and non-unionized construction companies are grappling with similar issues, such as worker retention and the need for wage increases to keep up with inflation. Yet, unions provide a structured approach to addressing these challenges through collective bargaining, advocacy and training programs.
UNION REPRESENTATION IN THE CONSTRUCTION INDUSTRY
Union membership in the U.S. construction industry has remained relatively stable, despite a long-term decline in private-sector union membership. In 2023, unionization levels in private-sector construction rose by approximately 250,000, highlighting the growing interest in collective action, especially among younger workers and workers of color. The construction industry is one of the few private sectors where union membership has sustained some level of stability.
While union membership hovers around 11-12% in the construction sector, there are significant regional differences. States with historically strong union presence, such as New York, California and Illinois, continue to show higher rates of unionization. In contrast, states like South Carolina and North Carolina, with right-to-work laws, report much lower union participation, sometimes as low as 3-4%.
KEY ISSUES FACING CONSTRUCTION UNIONS
One of the primary concerns for unions in 2024 is addressing the skilled labor shortage. Both union and non-union firms are facing difficulties filling hourly craft and salaried positions. Unionized firms, however, may have an advantage in attracting workers due to the benefits and structured wage increases they offer through collective bargaining. In 2023, many unionized workers in the U.S. construction industry received significant pay increases as part of negotiated contracts. This trend is expected to continue into 2025, with unions negotiating higher wages to match inflation and rising living costs.
Another key issue is worker safety. Unions in the construction sector have long been advocates for improved safety regulations. With the rise in megaprojects and high-risk construction environments, unions are likely to continue pushing for stricter safety standards and better training in 2025. This advocacy is critical as unionized construction workers generally experience fewer on-the-job injuries compared to their non-union counterparts.
THE ROLE OF UNIONS IN WORKFORCE DEVELOPMENT
Training and apprenticeship programs are a cornerstone of union activity in the construction sector. These programs help fill the skilled labor gap by offering structured, hands-on training for new workers. In 2024, unions are expected to invest even more heavily in apprenticeship programs as a way to build a skilled workforce capable of meeting the growing demands of the industry. This is particularly crucial as new technologies, such as green building techniques and digital construction tools, require workers to have updated skills.
The trend towards more sophisticated and technical work environments is likely to push unions further into advocating for continuous professional development and skills training, making unionized workers better equipped for the demands of future construction projects.
CHALLENGES AHEAD
Despite these strengths, unions face significant challenges in maintaining their influence. Economic uncertainty, driven by fluctuating interest rates and rising material costs, is causing delays and cancellations in many construction projects. This economic volatility affects both unionized and non-unionized firms, but unions may face additional hurdles in negotiating favorable contracts when construction companies are struggling financially.
Political factors also play a role. Right-to-work laws, which prohibit requiring union membership as a condition of employment, remain a major obstacle for unions in the southern and western U.S. These laws continue to erode union power, and the political climate in many states is not likely to shift in favor of unions soon. However, the federal landscape could see some changes. If labor-friendly legislation gains traction, unions could see a more favorable environment for growth.
TRENDS FOR 2025
Looking ahead to 2025, a few key trends are emerging for unions in the construction industry:
- Increased Union Activity Among Younger Workers
Younger construction workers, particularly those under 45, are showing greater interest in unionization as they seek better wages, benefits and protections. This trend is expected to grow, especially as economic pressures continue. - Focus on Worker Safety and Well-Being
With more complex construction projects, such as infrastructure improvements and renewable energy developments, unions will likely push for enhanced safety protocols and worker protections. - Push for Diversity and Inclusion
Unions are also expected to continue focusing on diversity, particularly as minority groups make up a growing proportion of union members. In 2023, the increase in union representation was especially pronounced among Black and Hispanic workers. - Adapting to Technological Advances
As construction becomes more reliant on technology, unions will need to adapt their training and advocacy to ensure that their members are prepared for new roles in a rapidly evolving industry.
Unions remain a significant force in the U.S. construction industry, offering critical benefits to workers through collective bargaining, training and safety advocacy. While facing challenges like workforce shortages and economic uncertainty, unions continue to play a key role in shaping the industry’s future. As 2025 approaches, the ability of unions to adapt to new technologies, attract younger workers and navigate political and economic landscapes will be essential to their ongoing relevance in the construction sector.
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