How do wage increases work for represented (Union) workers?
Union workers working for an employer under a Service Contract can, and do negotiate wage increases on a yearly basis. Union represented workers can also negotiate better Health and Welfare benefits than provided for in the AWD. What other benefits can unionized workers negotiate that may not be provided by their employer under a Service Contract? Pension plans, 401k plans, grievance procedures, seniority provisions and any other items the members feel are a priority. Who pays for increases in wages and benefits when they are negotiated into a union contract? The increase of wages and benefits is passed through to the Government Customer once a year so as not to have a negative impact on the Company’s profits yet still supply the skilled workforce needed to accomplish the contract. So long as those wages and benefits are not at “variance” to the norm for that locality, and the Government has the confidence that private sector contractors and their employees who engage in collective bar
