Union pay scales are the wage and fringe benefit rates set by a collective bargaining agreement between a local union and the contractors who employ its members in a specific trade and geographic area. Each scale sets a basic hourly wage plus employer contributions to health and welfare, pension, apprenticeship training, and other negotiated benefits, with separate rates for every tier from apprentice through journeyman. On a federal project, the union agreement is not the compliance standard for journeyman wages. The wage determination assigned to the contract supersedes any union agreement a contractor holds, and the rates on that wage determination remain in effect for the life of the project. However, because federal wage determinations do not have apprentice rates, apprentice rates on these projects are determined by DOL-approved Apprenticeship Programs.
One additional note we will cover later in this blog: On publicly funded projects, the only time union agreements supersede a wage determination is if there is a Project Labor Agreement (PLA) in place.
Wage Determinations Supersede Union Agreements
On a Davis-Bacon covered or state prevailing wage project, the contractor must pay at least the basic hourly rate plus fringe listed for that classification on the wage determination incorporated into the contract. That document governs. A collective bargaining agreement is a private contract between a union and an employer, and while it remains binding as a labor obligation, it carries no weight in terms of journeyman wages but is relevant for apprentices as noted above. Union rates are often higher than the assigned wage determination, and paying above it is permitted. Confirm that comparison before the project starts rather than assuming it. Where a union rate for any classification falls below the determination, the determination rate is what is owed, and the shortfall becomes back wage liability.
Why Paying Union Scale Still Gets Flagged
This is the most common point of confusion in prevailing wage payroll. A contractor pays every worker exactly what the agreement requires, files the certified payroll, and the report comes back with errors.
The flag is not a judgment about the union agreement. It reflects a mismatch between what was reported and what the assigned wage determination lists. Union job titles do not always map to wage determination classifications, a rate taken from a wage sheet may not reconcile to the base and fringe split on the wage determination, and a worker may be reported under a classification that does not appear on the project at all. The fix is to record the work against the determination classification matching the duties performed, then confirm the total paid meets or exceeds that classification's base plus fringe.
Project Rates Do Not Change During the Project
As far as the federal government is concerned, rates do not change mid-project. The wage determination incorporated at award applies for the duration of the project. A scheduled collective bargaining increase that takes effect in month four does not raise the required rate on that project, even though the union requires it.
The obligation to the union continues to run on its own schedule. Contractors need to hold both facts at once: the agreement may require a raise, and the determination still controls what compliance is measured against.
When Union Agreements Do Affect a Federally Funded Project
Union agreements drive the rate on a narrow set of public projects, which is why the rule above holds for nearly everyone.
Project Labor Agreements
A project labor agreement is a pre-hire collective bargaining agreement covering all contractors and subcontractors on a specific job, and certain large scale federal construction contracts require one. On a PLA project, contractors working under the agreement owe the negotiated union scale, including increases that take effect during construction, so the pay scale genuinely does move. PLA work is a small fraction of covered projects. Everywhere else, the determination assigned at award is what governs.
Registered Apprentices
Apprentice rates come from the registered program, which is frequently union sponsored. If the wage determination rates are higher than the Company or Union rates, the percentages should be computed against the journeyworker's basic rate found in the WD. If the rates in the bona fide program are higher, they should be used. Apprentice ratios are dictated by the union agreement always. An apprentice who works outside of the applicable ratio must be paid the full journeyman rate plus fringe for those hours. See reporting apprentices and managing apprenticeship ratios.
How Union Pay Scales Are Structured
Basic Hourly Wage and Total Package
The basic hourly wage is the taxable cash rate paid directly to the worker. The total package adds employer contributions for health and welfare, pension, annuity, and training funds, and in many agreements vacation pay and industry advancement funds. A contractor who prices only the basic wage will often underbid, because the fringe portion of a construction scale is frequently a third or more of total labor cost before taxes and insurance. Our breakdown of fully burdened labor rates walks through how those layers stack.
Apprentice and Journeyman Tiers
Apprentices are typically paid a defined percentage of the journeyman rate for their trade, stepping up at set intervals as they accumulate hours and complete classroom instruction. Fringe contributions often step up on a different schedule than the basic wage, so a pension contribution may change at a different point than the hourly rate. Journeyman is the full scale.
Premiums and Shift Differentials
Most agreements layer additional pay on top of scale for high work, hazardous material handling, certified welding, specialized equipment, and shift work. Those premiums are contractual obligations, not optional bonuses.
Union Pay Scales Vary by Trade and Region
There is no single national union scale. Electricians, laborers, pipefitters, carpenters, and ironworkers each work under separate agreements negotiated by their own local union, and rates for the same trade shift substantially from one metropolitan area to the next.
Where to Find Current Union Pay Scales
The authoritative source for any union scale is the collective bargaining agreement itself, obtained from the local union or district council with jurisdiction over the work site. Locals typically provide wage sheets showing the rate breakdown and upcoming increase dates.
For public work, the rate that matters for compliance is on the wage determination issued for the contract, available through SAM.gov for federal and federally assisted work or through the state labor agency for state and local projects.
When a Union Rate Becomes the Prevailing Wage
The Department of Labor sets Davis-Bacon prevailing wages through a three step process. A rate prevails if paid to a majority of workers in a classification within the survey area. If no rate holds a majority, a rate paid to at least 30 percent of those workers prevails. Only if no rate reaches 30 percent does the Department fall back to a weighted average. In areas with strong union density, the collectively bargained rate frequently clears one of those thresholds, making the union scale the required minimum for every contractor on the job, union or open shop.
Even then, the rate owed on the project is the rate published on the wage determination, not the rate currently in the agreement. A prevailing wage and a union wage are not the same thing, though they often carry the same number. Our comparison of prevailing wages and union wages covers the difference, and understanding wage determinations explains how to read the document that controls your project.
Union Contractors Still File Certified Payroll
Paying full union scale does not exempt a contractor from certified payroll reporting on a covered project. The weekly report and signed statement of compliance are required whether or not the workforce is organized, and assuming the agreement satisfies the requirement can result in non-compliance.
On the WH-347 and its state equivalents, the classification recorded for each worker must match a classification on the applicable wage determination, and a worker performing two trades in one day needs hours split accordingly. Fringe contributions are reported as either payments into approved plans or cash paid to the worker, and the credit for plan contributions can only be taken for hours worked on the project. Our guidance on paying fringe benefits in cash versus bona fide plans and calculating fringe benefits covers the mechanics.
Common Union Payroll Errors on Public Projects
The recurring problems are predictable. A union rate is used as the rate without confirming it against the assigned determination. An apprentice advances a period and the step is never updated. Fringe credits are calculated incorrectly. A worker splits the day between two classifications and gets recorded under one. Overtime is calculated incorrectly as the Union rules may differ from Davis-Bacon rules. Each produces back wage liability, and on federal work can lead to withheld contract funds or debarment.
Frequently Asked Questions
What is a union pay scale?
A union pay scale is the schedule of wages and employer benefit contributions set by a collective bargaining agreement for a specific trade and area. It includes a basic hourly rate and fringe contributions, with distinct levels for each apprentice period and for journeymen.
Does a union agreement override the wage determination?
No. On a publicly funded project the wage determination assigned to the contract supersedes any union agreement, and compliance is measured against the determination.
What does total package mean in union pay?
Total package is the basic hourly wage plus all employer fringe contributions, including health and welfare, pension, annuity, and training funds. It is the full hourly cost of the worker to the employer before payroll taxes and insurance.
Do union pay scales increase during a project?
Not for compliance purposes. The rates assigned at the start of a federally funded project remain in effect for the duration, so a scheduled union increase does not raise the required rate on that project. Project labor agreement work is the narrow exception, because the pre-hire agreement obligates contractors to the negotiated scale.
Contact eMars Today
Not sure whether your union scale reconciles to the determination on your next public job? Contact eMars to see how Compliant Client validates classifications and rates against the assigned wage determination before your certified payroll is filed.
Sources: DOL Davis-Bacon rulemaking FAQs, DOL DBRA FAQ, 29 CFR Part 5 Subpart B fringe benefit provisions, DOL Davis-Bacon surveys
