Incentive Compensation for Contractors - Union vs Open

The wins of a great incentive program tend to be the same for both union and open shop employers.

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Contributors Sue Weiler-Doke David Brown

The wins not only include retention of the employees that you already have, but recruitment of new employees.

Every organization needs to dig a bit deeper into incentive programs when rolling them out in a union environment. Although not impossible to implement, special attention should be paid to the specific language of the master labor agreement to make sure no articles are being violated.

Another consideration when using a cash-based incentive program is the possibility that the payments being made could ultimately be considered as a wage and could become part of a prevailing wage package. This is not a common occurrence, but should be considered when rolling out a program into a union environment.


In this video series Courtney Stearns, Sue Weiler-Doke, and David Brown discuss the most common questions we get from contractors about incentive programs, including a bunch of great questions from the audience.

This is Part 8 of a 20-Part Series


Topics Covered in the Series Include:

  • Who Benefits?
  • Calculations
  • Prerequisites
  • Mitigating the Talent Shortage
  • Succession

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Incentive Programs for Contractors
Every successful and profitably growing contractor we work with has a comprehensive and integrated set of incentive programs in place at all levels of the organization. These programs reinforce the daily actions and behaviors that make them successful. ...

Incentive Programs for Contractors
Every successful and profitably growing contractor we work with has a comprehensive and integrated set of incentive programs in place at all levels of the organization. These programs reinforce the daily actions and behaviors that make them successful. ...

What Must Be True...
Asking the right strategic questions will ensure profitable growth in all economic conditions. Daily operational management is about adapting to what is currently true. Effective executive leadership creatively bridges the gap between the two.
Cash Flow Explained
Contractors run on very thin profit margins however cash flow is even more important for sustainable growth. Poor cash flow is a primary reason for contractors failing or their profitable growth being seriously constrained.
Our Results
We are invested in our clients and their success by all measures, both are everything to us. No matter how we are compensated for our services, we will act as if we are an equity partner in your business.