Industry Spotlight: 2025-2026 Negotiations Cycle

The next 60 days will launch a series of 18+ union contract negotiations across the state through 2026. This means the unionized construction industry’s economic and competitive conditions for the next three (3) to six (6) years will be determined in the next few months. Since past negotiations provide insight on future bargaining, here’s what to expect:

What happened last round?

The 2022-2023 bargaining cycle was heavily impacted by macroeconomic issues: COVID, inflation, increased regulatory demands, etc. While management achieved some cost-saving measures, most agreements settled at historic economic increases. At the same time, UCON successfully generated and negotiated enhanced legal protections with improved PAGA waiver and statutory claims provisions, subcontracting relief, greater alignment of provisions across crafts and contracts across the state, and even some cost-saving measures, namely fringe benefit relief on certain types of training and modified duty. Since then, overall industry hours have remained relatively stable over the past 3 years. At the same time, private work and various submarkets have experienced notable dips due to higher interest rates and shifting market conditions.    

What factors are at play now?

While what happened last bargaining cycle can be viewed as a response to economic changes that already occurred (COVID, inflation, etc.), these upcoming negotiations will have to consider future uncertainty. Higher interest rates, new tariffs, sticky inflation, uncertain federal funding, immigration reform, and general political uncertainty create more questions than answers on what the next few years will hold for construction.

Even with all the uncertainty, much of the available workforce remains busy servicing fire clean-up, road and highway projects funded through SB1 and other measures, high-speed rail, and other major infrastructure projects, and key city-based projects, like the 2028 LA Olympics. However, any of the issues mentioned above could rise up to significantly impact what happens at the table over the next 18 months. While the union industry sustainability relies on growing market share, the fact that worker shortages persist means that we anticipate union economic proposals beyond the historic 3.5-4% averages we’ve seen over the past 20 years. We also anticipate that various unions’ desires to maintain and / or expand scopes will continue to drive jurisdictional issues.

What can contractors do?

Here are some ways to prepare or get involved to impact your future:

1. Make sure your wage forecasts align with expected increases. Not sure what those are, contact UCON to access wage increase histories and insight on where things are going.
2. Identify contract-based issues that can be changed to improve your operations and business. Remember, there are many issues we can’t impact through bargaining. Yet, there are numerous opportunities to improve your company’s bottom line and the industry’s competitive framework through contract changes. Help us identify your needs so we can bargain better outcomes for your business.
3. Complete bargaining surveys to give input on what bargaining priorities need to be. UCON sends surveys to contractors for each craft we represent you for. If you need a survey resent or want to share your issues or ideas, contact UCON’s Labor & Member Services team, (925) 855-7900.
4. Participate in bargaining prep and / or negotiations. Any UCON member can join us in prep or at the bargaining table. We spend years cultivating our bargaining teams and honing their skills. If you want to step up your leadership skills and industry impact, reach out to UCON Director of Labor Relations Derek Borghi to learn more about how to get involved, (925) 775-5874.