Can New Electric maintain existing contracts and be competitive at the IBEW’s higher rates?
January 14, 2020
There have been questions raised as to whether New Electric can maintain existing contracts and be competitive at the IBEW’s higher rates.
The IBEW currently performs work for many of the same customers and clients that New Electric often services. Many of you have noticed that all the other skilled trades on site are union. Their employee wages are very close to that of an IBEW contractor.
Why then do those clients use Union contractors when far cheaper non-union alternatives exist? The answer is simple:
- Relationships that have been built
- Service that is provided
- Quality of work
- Work ethic
These are the reasons for New Electric’s success. None of the above will change should the employees of New Electric decide to work under a collective agreement.
There are many examples of IBEW organized electrical contractors that have not only continued their relationships with former clients and customers but grown post certification. Two such examples of similar sized companies to New Electric can be found under the employer section on the website.
We also understand that New Electric has commitments for projects that may have charge out rates that maybe can’t initially support our wage schedule. In these situations, the IBEW will seek to transition this work. What that means is that the IBEW will use money from our stabilization fund to compensate the employer for a portion of hourly wages to bring New Electric employees wages up to the rates in our Collective Agreement.
Our members success is ultimately tied to our employer’s success which is something we wish to continue should New employees make that choice.