Presidents of the 15 construction trades unions may not be earning the same salaries as corporate executives. But they still enjoy many perks that add a sizable amount to their compensation packages, as revealed by a new U.S. Labor Dept. electronic posting of long-required union financial details...
WELL PAID? Michael Ketner, president of Michael Ketner and Associates Inc., a construction compensation consulting firm in Pittsburgh, says union president salaries "are a fraction" of what construction company executives earn. A construction company executive presiding over a staff of 10,000 employees would be likely to earn between $400,000 and $700,000, he claims.
The highest compensation total listed for a building trades' president in the Labor Dept. database‚ including allowances and disbursements for official and unofficial business, was $374,400 in 2000 for Michael Sullivan, president of the sheet metal workers' union. "My sense is that these union presidents have got a bunch of outside-the-umbrella perks" that are tax free, adds Ketner. "They could be getting allowances for housing. They may get free air travel for personal use. Under these circumstances, you'd gladly settle for a meager wage," he says.
Several of the union leaders' overall compensation jumps significantly when allowances, disbursements and "other" expenses are factored in. For 2000, Terence M. O'Sullivan, general president of the laborers' union, earned an annual salary of $250,000, ranking him at the top of the 15 trades. But when other perks are added, the sheet metal workers' Sullivan takes the lead despite his base salary of $236,605. O'Sullivan slips to second overall with a total package of $357,710.
Roofers' union President Earl Kruse is at the bottom of the salary pool with annual wages of $142,721. But with allowances and disbursements, his compensation package jumps to eighth in the ranking, totaling $245,718.
The president of the AFL-CIO's Building and Construction Trades Dept., Edward C. Sullivan, earns a salary of $248,762. His allowances total $18,250 and disbursements for official business are $45,386, for a total of $312,398. Sullivan's successor as head of the elevator constructors' union takes home $182,290 in salary and $29,069 for disbursements for official business, for a total compensation of $211,359.
Each of the presidents receives additional allowances for his service as a BCTD "vice president." For the year ending June 30, 2001, those amounts range from $10,100 for former ironworkers' President Jake West and operating engineers' union chief Frank Hanley, to $3,500 to Michael Monroe, former president of the painters' union...