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Union-represented contractors build 80 percent of large commercial and industrial construction projects across the country, yet their market share is only 20 percent.

One local union is seeking to boost that percentage by engaging union contractors willing to take on smaller projects 鈥� like tenant improvements and residential construction 鈥� for less pay.

鈥淒uring boom periods, (unions) gravitate towards the larger work because unions often have the advantage of available labor,鈥� said Clif Davis, business manager for the International Brotherhood of Electrical Workers Local 48, the union making the push toward smaller projects. 鈥淏ut when things start to go bad these larger projects tend to go away first, leaving us with less of an advantage to get the work that’s left 鈥� the smaller projects.鈥�

With unemployment within Local 48 at 36 percent, Davis spent most of 2010 searching for solutions. He identified 30 market sectors where union representation was 30 percent or less; most were below 20 percent. These include gas stations, restaurants, small mixed-use complexes, residences, small retail spaces and tenant improvements.

Such projects don’t require the same level of certification as most of the larger, public projects. Davis and his business development manager, Mike Dutton, realized it was feasible to dovetail an effort to gain market share with recruitment of members. The union can use these projects not only to put members back to work, but also as experience for workers considering whether to join.

鈥淚’m not going to sit here and lie and say I didn’t get push-back from the members,鈥� Davis said. 鈥淏ut I explained that I don’t like failure as much as the next person, but in this business you’ve got to take calculated risks.鈥�

Davis said that some members expressed concern that those with less seniority could gain work before those with more. He added that some complained about the pay cut they would have to take to submit competitive bids. On average, these projects would pay between $20 and $25 less per hour than a typical union job. An inside wireman usually gets paid about $52 an hour, not including benefits.

Dutton faced similar push-back from the firms when he pitched the idea. But after nearly a year of educating members and firms on the potential benefits, Davis and Dutton have put the plan into practice.

Members of IBEW 48 recently started work on renovations of multiple local Target stores as well as the tenant improvement for the new Ruth’s Chris Steak House in downtown Portland. Those projects let 15 unemployed members return to work, and 12 nonunion individuals gain experience.

鈥淵ou know, I don’t think it’s the ultimate solution. But this is a start and we’ve gotten a positive response from members and good reports about the performance of the other workers,鈥� Davis said.

The union totaled 7 million man-hours of labor in 2002, and just 4 million in 2010. But Davis expects that number to rise this year. Unemployment has dropped to 22 percent, slightly above the rate for the entire construction industry.

Local 48 may be the first union in the area to take this approach, but it likely won’t be the only one. Several other construction-based unions are looking into similar ways of regaining market share, but IBEW 48 is the first to create a specific program and direct resources toward it.

鈥淭hings have been picking up with the announcement of the Intel project, as well as a few other big projects in the area, but those aren’t the consistent projects that will keep us afloat during the down times,鈥� he said. 鈥淭his is a way to diversify, and I have faith that the numbers will show it’s working.鈥�