NY Can’t Afford Non-Union Pt. 1: The Cost to Everyday New Yorkers
New York City relies on union quality, efficiency and productivity to run.
By Mark Colangelo
The widely held belief that non-union construction is cheaper than unionized construction is a myth. It is not true at the level of individual projects— studies prove union training and efficiency more than balances out higher union wages, resulting in total costs that are 4% lower. But more importantly, it is untrue at the level of society. Tactics used by non-union contractors— underpaying or misclassifying workers, cutting corners on materials, wage theft, eschewing investment in training programs, et cetera— may result in savings for the guys at the top, but the rest of us pay a steep price.
We’re taking a look at some of the many reasons New York can’t afford non-union.
1. The High Price of Cheap Construction
Non-union buildings put up on the cheap can lead to a cascade of expensive repair and maintenance costs down the line. Only won’t be the developer picking up the bill. When corners are cut on worker training and materials for construction projects, homeowners and taxpayers are left holding the bag when things start going wrong.
Non-union construction worker Christopher Jackson suffered traumatic brain injuries after a crane fell and dragged him several stories to the ground at an East Harlem work site. Credit: Via Manhattan DA’s Office
2. The Healthcare Hangover
Non-union construction contractors misclassify 20% or more of their employees as independent contractors, dodging the cost of providing health insurance. When these uninsured workers get sick or injured, the burden of taking care of them is shifted onto the everyday New Yorkers. This can overwhelm our healthcare system and increase costs for taxpayers.
"Savings" that developers realize by hiring supposedly cheaper non-union labor often create mammoth expenses that get pushed onto taxpayers.
3. Straining The Social Safety Net
Injured on the job without the benefit of paid leave, non-union workers are forced to resort to unemployment, the Supplemental Nutrition Assistance Program (SNAP), and other social safety net programs just to survive. This stretches thin resources even thinner and forces everyday New Yorker’s to subsidize the employees of non-union contractors.
11 Greene Street in Manhattan, a supposedly luxury condo renovated by non-unions, has been so rife with construction problems that over half the tenants have stopped paying rent.
4. Dangerous, Depreciating Assets
Owning a home should put everyday New Yorker’s on a path to financial security. But if non-union negligence ends up resulting in major issues—like a sinking foundation and structural instability— it may drastically, and permanently, devalue your home. Your path to financial security just turned into a road to financial ruin because a non-union contractor chose to save a few bucks on cement.
5. Tax Dodging Tactics
Non-union contractors that misclassify workers also skirt payroll taxes, depriving the city of revenue needed for schools, roads, and bridges. This increases the burden on the rest of us.
Mark Colangelo is a writer and a blogger.
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