IBEW (International Brotherhood of Electrical Workers)

The electrical workers' union whose wage scales often set the price of electrical labor.

Quick Answer

The IBEW (International Brotherhood of Electrical Workers) is the labor union representing electricians and related workers in the United States and Canada. Its local collective bargaining agreements set wage and benefit scales for union electrical contractors. Estimators use those scales, or prevailing wage rates, to price electrical labor on union and public projects.

The Full Picture

The IBEW was founded in 1891 and represents workers in construction and other industries; in construction, its members are mostly electricians, line workers and low-voltage technicians. The union works through local unions, and each local negotiates collective bargaining agreements with employer groups in its area. Those agreements set hourly wages, fringe contributions, work rules and the apprenticeship structure for signatory contractors.

For estimators, the important point is that union labor cost is local. Two cities can have different scales, and the scale can change on the date set in the agreement, so a bid that spans a scheduled increase has to account for it. Agreements also have work rules, such as crew composition, shift premiums and overtime, that affect productivity assumptions. Estimators generally get current scales from the signatory contractor or the local agreement rather than from published averages.

Prevailing wage is related but separate. On federal construction contracts, the Davis-Bacon Act requires prevailing minimum wages as determined by the Secretary of Labor for similar work in the locality, and the Department of Labor applies it to contracts over $2,000 for construction, alteration or repair of public buildings or works. In some markets the prevailing rate for electricians reflects the union scale and in others it does not, so the wage determination attached to the bid governs, not an assumption about unions.

Labor basis can differ between bidders: some bid union scale, some bid prevailing wage and some bid open shop rates, and a project labor agreement can restrict which applies. Because labor is a major share of electrical cost, the labor basis is one of the first things a chief estimator confirms, and bid leveling should record whether each electrical bid is on union scale, prevailing wage or open shop rates.

Real Examples

→Wage determination check: On a federally funded school project, the estimator reads the wage determination in the bid documents and uses its electrician classification and fringe amount as the labor basis. The electrical subcontractor's bid is checked against the same determination.

→Scheduled increase: A union agreement raises the scale partway through a 14-month job. The electrical subcontractor's estimate splits labor hours before and after the increase date rather than using one blended rate.

→Leveling electrical bids: Two electrical bids differ widely. Leveling shows one is priced on union scale for a project labor agreement and the other on open shop rates, so the estimator confirms the project's labor requirements before comparing prices.

Common Misconceptions

People assume: Prevailing wage and union scale are the same thing.

Actually: Prevailing wage is a legal minimum determined by the Department of Labor for covered work. It can match a local union scale, but it is set by the wage determination and may differ.

People assume: Only IBEW electricians can legally install electrical work.

Actually: Electrical licensing is set by states and localities, not by the union. Union membership concerns labor relations, and many licensed electricians work for non-union employers.

Frequently Asked Questions

What does IBEW stand for?

IBEW stands for International Brotherhood of Electrical Workers. It is a labor union that represents electricians and related workers in the United States and Canada.

How does the IBEW affect an electrical estimate?

On union projects, signatory contractors price labor at the local collective bargaining agreement's wage and benefit scale and follow its work rules. Estimators use those local scales, which can change on scheduled dates.

What is the difference between IBEW rates and prevailing wage?

IBEW rates come from negotiated local agreements. Prevailing wage rates come from Department of Labor wage determinations on covered public work, and the two may or may not match in a given area.

Where do estimators find the correct labor rate?

For union work, from the local agreement via the signatory contractor. For covered public work, from the wage determination in the bid documents. Averages from general sources are not a substitute for either.

What is a project labor agreement?

A project labor agreement is a pre-hire agreement between a project owner or contractor and labor unions that sets terms for all trades on a specific project. Bid documents say whether one applies, and it changes the labor basis for bidders.