Philadelphia construction unions enforce their wage agreements in the city, while competing at non-union-scale wages in the suburbs.
"The unions are just strong enough to control the labor market in the city but not strong enough for the suburbs. They can enforce their wage scales in town, where political judges and sympathetic police will help. But in the suburbs, the unions offer their lower "B rate" wages when they have to compete with other workers. The result of this city/suburb cost difference is that residential construction is priced out of existence in the city for all but the very high-end market."
Thanks to Mark Alan Hughes
FULL STORY: Unions Need to Be More Constructive
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Harvard GSD Executive Education
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