[BrownTown]

Originally Posted by Busy Bee

There seems to be about 101 different articles in the past two years about US v. Int'l infra costs, but for the life of me I don't see a takeaway that suggests that the "greedy" labor unions themselves are the main issue here. Why don't other organized labor heavy nations (pretty much all of Europe) have these same outrageous costs? Maybe the breakdown is the accountability for efficiency/productivity and cost overruns with the private unionized contractors and the bondholders i.e. government agencies?

This article does a good job explaining in part how the unions are responsible for a lot of the cost overruns.

https://www.nytimes.com/2017/12/28/n...ion-costs.html

There are “nippers” to watch material being moved around and “hog house tenders” to supervise the break room. Each crane must have an “oiler,” a relic of a time when they needed frequent lubrication. Standby electricians and plumbers are to be on hand at all times, as is at least one “master mechanic.” Generators and elevators must have their own operators, even though they are automatic. An extra person is required to be present for all concrete pumping, steam fitting, sheet metal work and other tasks.

In New York, “underground construction employs approximately four times the number of personnel as in similar jobs in Asia, Australia, or Europe,” according to an internal report by Arup, a consulting firm that worked on the Second Avenue subway and many similar projects around the world.

That ratio does not include people who get lost in the sea of workers and get paid even though they have no apparent responsibility, as happened on East Side Access. The construction company running that project declined to comment.

The labor deals negotiated between the unions and construction companies also ensure that workers are well paid. The agreement for Local 147, the union for the famed “sandhogs” who dig the tunnels, includes a pay rate for most members of $111 per hour in salary and benefits. The pay doubles for overtime or Sunday work, which is common in transit construction. Weekend overtime pays quadruple — more than $400 per hour.

...

Several contractors said the unions are able to maintain the deals because everybody knows they are politically powerful. The unions working on M.T.A. projects have donated more than $1 million combined to Mr. Cuomo during his administration, records show.

...

The critics pointed to several unusual provisions in the labor agreements. One part of Local 147’s deal entitles the union to $450,000 for each tunnel-boring machine used. That is to make up for job losses from “technological advancement,” even though the equipment has been standard for decades.

...

France’s unions are powerful, but Mr. Probst said they did not control project staffing. Isabelle Brochard of RATP, a state-owned company that operates the Paris Metro and is coordinating the Line 14 project, estimated there were 200 total workers on the job, each earning $60 per hour. The Second Avenue subway project employed about 700 workers, many making double that (although that included health insurance).

However, you are right that unions aren't the only problem of course. The entire incentive structure is set up so that everyone involved makes more money the longer and more expensive they can make the project. Literally nobody is looking to reduce costs because the unions are so politically powerful that politicians are scared to try and take them on.