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by crdoconnor
2940 days ago
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The relationship between the MTA management and TWU is fractious at best. The relationship between MTA management and the scores of construction companies that curiously increased their costs 50% in recent years is curiously pretty good, but I'm sure that had nothing to do with the increased costs. Of course tried to spin a corruption problem as a union problem. Are they really going to blame themselves? |
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Construction is a labor-intensive industry, and labor costs dominate. If you look up the public companies that do civil construction work, you’ll see that the profit margins are razor thin (2-5%). These are not companies like Facebook making 20-30% profit margins.
This is not a moral issue. It's not about evil construction company CEOs. Reducing executive pay at these companies wouldn't amount to a drop in the bucket for these multi-billion projects. Nor is it about evil union workers. We're just talking about hard-working folks who are getting paid a rather more comfortable wage than their counterparts in Europe. Which is good for them, but wrecks the economics of the MTA, an entity where payroll, health, and pension make up more than half of expenditures.