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SLO-BOB SLO-BOB is offline
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Join Date: Aug 2004
Location: Wisconsin
Posts: 4,362
The cost of union labor

As some of you know, I'm a medical equipment contractor. That means I work for a vendor(s) and install surgical lights and equipment columns among other things. As you might imagine, the equipment is very specific and requires quite a bit of training - none of which the trades have. In past threads I've bemoaned the fact that in some areas that I don't want to mention......

CHICAGO

...the union trades give us a hard time. The plumbers feel they should install the anethesia columns, the electricians the surgical lights, and if it isn't spoken for by one of them, the millwrights want it. They even crowd the guys installing MRIs and Xray equipment. Sometimes the hospital puts it's foot down and tells them to shut up, but other times, like now, the hospital buckles under the pressure for fear of a walk out. While that is at least annoying, there is another factor - Cost.

Here are some extra costs that are a due to union interference. This, of course, filters down to you and I. I'll start small.

-$1250 for cancelled hotel rooms next week. They are blocking us from the job so we have to sit tight while they hash it out. We were starting 3 weeks late because the union refused to allow non union techs on the site.

-Three guys with nothing to do all week - lost wages.

-once it is resolved - and it will be resolved...

-overtime for the 3 guys because we will have to play catch up. That and I want to make it up to them for previous week.

-union wage for a union worker to "hold our hands" while we do the work. They will assign a "shadow" at union labor rate for each crew. Multiply this cost (union labor charge- not wage) 4-6 union guys minimum. Then multiply that figure times three weeks.

-union overtime to match our overtime x 6

Now figure the cost of a 4 week delay of opening a hospital wing with 7 Cath labs and 12 ORs. I'm not sure how much revenue just one OR generates each day, let alone 12! Multiply times 30.

Factor in the insult of "negotiating" with a union rep who acts like a 250 lb five year old except that his vocabulary is, shall we say, more colorful.

Little wonder I factor in a 1.3 multiplier when working that area. It isn't enough - trust me.

So the next time you get a big hospital bill, add your local union to the people you thank.
Old 02-21-2008, 05:29 PM
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