Gambino said:
all the major commerical construction companies are always union and turn a fat profit. Most of these peeps on this thread, union = UAW...
All of them are union? The guys building my condo in Palm Beach are not union. Many of the commercial builders around here (north FL) are non-union.
I know the construction biz. Between being in it as a builder, an investor and seeing it on the insurance / financial / legal side (residential and commerical) I know that the majority of joibs would be just as profitable without the union intervention.
Your example just doesn't make sense. COnstruction is going ot be profitable beacuse the costs are always passed on. SO the builders make their money as soon as the loans are approved. The checkpoints for commerical construction financing are always based on cosntruction progress, so the money is always there.
Once the project is done, the builder is paid. The project may fail entirely, but the builder usually escapes criticism when this happens, even though the costs of construction were the real cause of the project's ultimate failure.
We'll close with an example:
In the state of NY, a commerical concrete worker costs $47 / hr. T A builder can hire non-union, but if they do, they have to pay the same rates. I know guys who do residential concrete work for $18 an hour.
Roughly the same skill sets apply for concrete work on a residential or commercial job. Why is on 2.5 times more expensive? Unions.
These same companies would be much more profitable absent unions, and unions would dry up absent protectionst legislation like the example I just cited.