The Hidden Costs of Non-Union Labor: What HVAC Business Owners Need to Know

I’ve spent my whole life in and around construction. My grandfather was a general contractor, and I grew up on job sites, learning the trade from the ground up. When I found my way into the sheet metal industry nearly two decades ago, I realized how much craftsmanship, skill, and experience matter in this business. Over the years, I’ve worked in just about every part of the industry, service, installation, project management, training apprentices, on both the non-union and union sides. Now my team and I are helping businesses like yours find success.

I know firsthand that running an HVAC or sheet metal business is tough. Finding skilled workers, staying compliant with public works regulations, and handling things like healthcare and retirement benefits can be overwhelming. That’s why I want to talk about something that doesn’t always get discussed: the hidden costs of non-union labor. On paper, hiring non-union might look like a cheaper option—but the reality is, cutting costs upfront can cost you much more in the long run.

1. Productivity: Faster Jobs = More Profit

Time is money in construction, and every delay costs you. Union-trained workers complete jobs faster because they’ve gone through rigorous apprenticeship and journeyman upgrade training programs. They know how to work efficiently, problem-solve on-site, and collaborate seamlessly with other trades.

I’ve seen projects where non-union crews struggled with basic tasks due to lack of training or experience, leading to delays, expensive change orders, and rework. On the flip side, union crews are accustomed to working under tight deadlines while maintaining high-quality results. The faster your job gets done without errors, the sooner you can move on to the next project and keep the cash flowing.

2. Supervision Costs: Who’s Watching the Job?

Labor costs don’t stop at wages. If you have to hire extra foremen or spend your own time micromanaging workers, that’s an added expense eating into your profits.

A well-trained union crew requires less supervision because they’re skilled, disciplined, and know what’s expected of them. Instead of wasting time correcting mistakes or explaining basic concepts, you can focus on managing the big picture—bidding on new work, keeping clients happy, and growing your business.

3. Employee Turnover: The Hidden Drain on Your Business

High turnover rates can cripple a business. Every time a worker leaves, you’re stuck with costs for:

• Recruiting and hiring replacements

• Training new employees

• Lost productivity while the new worker gets up to speed

Union workers have access to strong wages, benefits, and job security, which leads to higher retention rates. This means you spend less time filling positions and more time keeping projects on schedule. A stable workforce also improves jobsite morale and teamwork, reducing conflicts and inefficiencies.

But beyond retention, union contractors have a major advantage when it comes to workforce flexibility. Instead of hiring extra workers in anticipation of future projects—or carrying unnecessary labor during slow periods—you can scale your workforce up or down as needed.

Need more workers for a big job? Tap into the union’s skilled labor pool and get qualified professionals quickly.

Workload slowing down? No need to keep excess manpower on payroll—workers can be dispatched to other union jobs.

This flexibility ensures you always have the right number of workers without the financial burden of carrying extra employees when they’re not needed. And when a new project kicks off, you’ll have immediate access to trained workers instead of scrambling to hire and onboard new people.

By partnering with Local 104, you’re not just getting a stable workforce, you’re gaining access to on-demand manpower that allows you to be more competitive, efficient, and profitable.

4. Rework Costs: Cheap Labor Can Cost You More

Cutting labor costs often leads to higher rework costs. If workers lack the proper training, they’re more likely to make mistakes that require expensive fixes later. Poor workmanship can also lead to warranty claims, client dissatisfaction, and even legal liabilities.

Union apprenticeships are rigorous, ensuring that every worker—whether they’re a first-year apprentice or a journeyman—has mastered the skills necessary to deliver quality work the first time. That means fewer callbacks, fewer warranty issues, and a better reputation for your business.

5. Long-Term Financial Impact: The Bigger Picture

At first glance, non-union wages may seem like a cost-saving advantage. But when you add up:
- Lower productivity
- Higher supervision costs
- Increased turnover
- Rework expenses
- The cost of providing healthcare and retirement benefits on your own

You’ll see that partnering with a union provides long-term financial stability. Union workers come with built-in benefits, meaning you don’t have to worry about negotiating healthcare or retirement plans on your own. Plus, many public works projects require union labor or prevailing wages—giving you access to more lucrative contracts.

The Bottom Line

I understand that running a business is tough, and every dollar matters. But I’ve seen firsthand how union partnerships lead to higher productivity, lower turnover, fewer headaches, and stronger long-term financial stability.

If you’re interested in learning more about how partnering with Local 104 can help your business, let’s talk. I’d love to hear about your challenges and see if we can find a solution that works for you.

Info@Trade-Tradition.com