b'WAGE-PRICECOUNCIL- CONSTRUCTIONINDUSTRYANALYSIS TheWhiteHouseCouncilonWageandPriceStabilityhasjust released astudyprovidingbackgroundinformationrelevantto1976collectivebargainingineightmajorindustries,includingtheconstructionindustry. Theanalysisfirststatesthattheconstructionindustryis"quite differentfromotherindustriesintheUnitedStates"becauseitischaracterizedby(l}differentsectors(residentialbuildings,industrialbuildings,highways,etc.},(2)30%oftotalworkisgovernmentfinancedand subjecttoprevailingwagelaws,(3)manyconstructionfirms,(4)lackof standardizationofendproduct,(5)competitionbetweendifferentgeographic labormarketsisextremelylimitedbecauseofthefixedgeographiclocation ofconstructionsites,(6)anenormousmanpowerturnoverwithtypicallyabout threetothreeandone-halfmillionconstructi onworkerswithnearlytwice thatnumberemployedintheindustryatsometimeinanaverageyear,(7) eighteenormoredifferentconstructioncraftsrequi ringdifferentskills, trainingandoftendifferentlabormarkets,and(8)highlyfragmentedbargainingunits. TheCouncilreportsthattherearemorethanfivethousandcollective bargainingagreementsintheconstructionindustryandthatabouthalfof theagreementswillbenegotiatedinthespringandsummerof1976.The reportaddsthatconstructionsettlementsasawholeweremoremoderate in1975thanin1974(controlsterminatedinthespringof1974withnew agreementsnegotiatedin1974providingforrecoveryofportionsofnego-tiatedincreasesthathadbeendeniedbytheConstructionIndustryStabilizationCommitteeduringtheperiodofwagecontrols),andcitesasan explanationforsuchmoderationthesevereimpactoftherecentrecessionon theconstructionindustryandlargeconstructionindustryunemploymentresultingfromreductionsinconstructionspending.Thereportindicatesthat totalemploymentincontractconstructionwasaboutthreemillionin1965, reachedalmost3.3millionin1973andwasdownto2.9millionasofJ uly, 1975.In1971,thecontractconstructionunemploymentratewas10.4%of constructionworkersascomparedwith5.9%ofallworkersbyaratioof1.76. Forthefirstelevenmonthsof1975,theconstructionunemploymentrate reached18.7%ascomparedwith8.5%ofallworkersforaratioof2 . 20. Newconstructionexpendituresonaseasonallyadjust edannualr ate totalled$138billionasofJuly1974,including$39.7b illionofpublic spendingand$98.3billionofprivatespending.AsofMar ch,1975,total expendituresweredownto$125.5billion,withallofthereductioncoming fromtheprivatesector($39.8billioninpublicspendingand$85.7billion inprivatespending}. Fortheten-yearperiodJuly1,1965throughJuly1,1975,average buildingtradesunionhourlywageratesincreasedfrom$4.42to$8.91,an increaseof101.6%.Fringebenefits,ontheotherhand,i ncreased379.4%, from34onJuly1,1965to$1.63onJuly1,1975.Asaresult,fringe benefitsnowaccountfor15.5%oftotalcompensationasopposedto7.1% tenyearsago.'