Independent Project Analysis · September 2026

Quantifying the Value of Union Labour in Construction Projects

Independent research from Independent Project Analysis (IPA) looked at 140 completed industrial projects in British Columbia and Alberta over 15 years. It found that union skilled trades are more productive and lower total project costs for owners, even with higher wage rates.

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Key findings

What independent research found about Western Canada’s union skilled trades

  • 17%

    more productive

    Union productivity indexed at 117 versus 100 for open shop.

    About one-sixth more work done for the same labour effort.

  • 16%

    lower construction labour cost

    Union construction labour cost 16% lower than open shop.

    Even though union wage rates were higher, because the work got done more productively.

  • 7%

    lower total project cost, on average

    Union total project cost 7% lower than open shop.

    About $70,000 saved on every $1 million. Labour averaged 43% of total project cost.

  • 3% vs 18%

    of projects hit by labour shortages

    About 3 in 100 union projects versus 18 in 100 open shop projects.

    About 1 in 30 versus nearly 1 in 5.

  • 15 years of completed projects in B.C. and Alberta, authorised between 2010 and 2024.
  • 79 · 61 union and open shop projects compared, mainly at existing refining, chemical, utility and civil sites.
  • 25,000+ projects in IPA’s database. IPA states it alone was responsible for the analysis.

Why it matters

Labour typically makes up 30–60% of a project’s total cost, so even small productivity gains have a meaningful effect on the bottom line. This study builds on earlier IPA research in the United States. It reached the same conclusion for Western Canada: union labour is more cost-effective than open shop labour.

The data can’t isolate a single root cause, but the findings support the view that the skill, supply and stability of union-sourced labour all contribute to better productivity and better project outcomes.

About IPA

Since 1987, Independent Project Analysis has benchmarked capital projects for owner organizations worldwide. IPA works on behalf of owners rather than contractors.

The value of skilled work is measured by what gets built. Canada’s major projects deserve the most productive workforce.

Project labour agreements with the building trades give owners direct access to this skilled, available workforce.

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Source: Independent Project Analysis, Quantifying the Value of Union Labour in Construction Projects, September 2026, prepared for Western Canada Skilled Metal Trades.