Sub Specialty Contractor

  • 1.  Field Wage Change by Project

    Posted 07-01-2021 15:51
    Hello All,
    We are a small plumbing contractor in the Phoenix area.  We have been awarded a portion of a large semi-conductor project.  Though we are happy with the award, we are concerned about employee poaching on this project.  There will be other Plumbing/HVAC contractors on the job and with the labor shortage as it is, we believe this could be a serious issue.  Have any of you seen this happen in the past?  How have you dealt with it?  We are considering raising the wage 20% of those of our employees working on that job.  Is this a good solution?  And what about the employees not working on this project?  And if we do offer increased wages, my boss wants to call it a "loyalty" bonus whereas I prefer a commitment increase.  

    Thoughts please.  

    Thanks!

    ------------------------------
    Marjorie Weber CCIFP CFO/Treasurer
    Irontree Construction, Inc.
    Mesa AZ
    (602)763-1345
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  • 2.  RE: Field Wage Change by Project

    Posted 07-02-2021 12:06

    Marjorie,

     

    We hand a handshake deal on such a project with the other contractors to not take each other's employees.  Have your boss contact his counterparts and try to broker a "cease fire".  We're all in the same boat and need our people.  I don't think anyone wants to start a poaching war.  It causes the price of labor to escalate unnecessarily for every contractor, and the employees laugh all the way to the bank.  

     

    I would advise against any sort of compensation that is not companywide.  If employee "A" is getting 20% more to avoid losing them, employee "B" on a different job is going to call your competitor and ask for a position on the lucrative job, and you'll wide up losing employees anyway.  IMO.

     

    I wish you the best of luck, because you are not in an enviable position. 

     

    Be safe and be healthy,

     

    Kevin M. O'Shea

    Chief Executive Officer

    Shamrock Electric Co., Inc.

    1281 East Brummel Ave., Elk Grove Village, IL  60007

    (P) 847.593.6070 Ext 112 | (C) 847.343.7190           

    kevin@shamrockelectric.com

    #itselectric

     

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