Over in Minnesota Reformer's regular Break Room feature, Max Nesterak's latest article, What happened with working-class voters — and other labor news, includes the section below, which undercuts some of Governor Noem's bragging about the Rushmore State:
Minnesota construction workers better paid than peers
Minnesota construction workers earn more money, are more productive and are less likely to be killed on the job than their peers in neighboring states, according to a report from the union-backed North Star Policy Action.
Minnesota construction workers made $83,300 on average in 2022, higher than their peers in Wisconsin, North Dakota, South Dakota and Iowa. Wages were 35% higher in Minnesota on average than the lowest-paying state of South Dakota even after accounting for the lower cost of living.
Health and retirement benefits are also better for construction workers in Minnesota. Over 90% of Minnesota construction workers have health insurance and half have a pension, more than any other neighboring state.
The report’s author notes two factors driving these differences: unions and their Democratic allies. Nearly 30% of Minnesota construction workers are union members, which is significantly higher than in neighboring states. Research shows that unions raise wages for all workers, not just their own, when a significant portion of workers are unionized in a given industry.
Since the Great Recession, Democrats have largely held majority control of Minnesota state government while Republicans have largely been in charge in Iowa, North Dakota, South Dakota and Wisconsin. That matters because Democrats have passed laws in Minnesota more favorable to workers and unions, which have helped raise wages and improve safety.
Nonunion builders say Minnesota’s higher labor costs drive up the state’s construction costs, meaning the state’s residents are shouldering the burden of higher wages for construction workers through higher taxes and prices. Road construction is not particularly expensive in Minnesota and actually cheaper than Wisconsin and Iowa. Housing is more expensive to build in Minnesota, and the higher costs are better explained by strict energy standards, zoning rules and land prices. Not much housing is built with union labor, and even though unions may push up wages across entire industries, there’s still often a wide gulf in labor standards and pay.
Unions also argue their workers are often better trained and more productive, offsetting the higher labor costs. Research is mixed on how construction costs and quality are affected by prevailing wage laws, which require builders on publicly funded projects to pay a union wage.
This excerpt is reprinted from the Minnesota Reformer. I recommend following Nesterak's Break Room coverage there.
Photo: Construction workers mix concrete for a bridge in Minneapolis. Photo by Max Nesterak/Minnesota Reformer.
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