May 16, 2014 at 1:54 pm by Ross Eisenbrey http://www.epi.org
A recent story from NPR’s Andrew Schneider, about a construction boom and skilled labor shortage in Texas, is missing some of the links needed to understand what is happening there and why. The elements are all there: the huge loss of construction jobs following the financial crisis in 2008, the energy boom creating jobs regionally even while construction employment nationally remains about a million and a half jobs lower than its peak, a decline in unauthorized immigration, and contractors grudgingly increasing pay to attract workers.
The two missing links are the role of the construction owner, like Chevron, in crushing the unions that provide skilled journeymen in the construction trades, and a clear discussion of the wage levels needed to attract skilled workers from parts of the country the recovery hasn’t reached. The story says wages are rising in Texas, but from what to what? Are wage levels high enough to persuade a journeyman electrician from Michigan or Los Angeles to relocate to Houston? Or are they unreasonably low, given the scarcity of skilled workers and the years of training required to produce a journeyman? How do union wages compare with non-union wages? The story never says.
Oil giants like Chevron can afford to have their construction contractors pay well for skilled work, but they resist. Organizations they fund, such as the Business Roundtable, have led a decades-long campaign to weaken or destroy the building trades unions that actually train the greatest number of skilled tradesmen. Chevron, Koch Industries, ExxonMobil and many other energy industry corporations fund the American Legislative Exchange Council and its legislative efforts to kill unions and eliminate labor standards. It’s hard to hear Chevron complain about a labor shortage when Chevron and other Fortune 500 companies themselves are a major cause. They don’t merely fight unionization, they also oppose the state and federal prevailing wage laws that protect construction wages from being driven lower and allow union apprenticeship programs to continue providing the best-trained workers.
Schneider is wrong to suggest that community college vocational training programs are the long-term solution to the shortage of skilled labor in Texas. The real solution is to restore the power and reach of the unions, raise wages to attract more workers, and grow the only proven way to develop the necessary skilled labor—apprenticeship programs funded by employers and jointly administered by unions and employers.