Project manager says prevailing wages will level playing field with union and non-union workers in Richmond

HENRICO COUNTY, Va. (WRIC) — A Henrico project manager said a new Richmond labor rule will have benefits for workers and contractors bidding on projects.

According to the city of Richmond website, all city-funded construction projects valued at $250,000 or more must adhere to prevailing wage requirements beginning July 1, 2025. A pay rate and level of benefits that contractors and subcontractors must pay workers, equal to what similar laborers in the area receive.

Pete Hanchey, assistant project manager for Lighthouse Electric, has experience working non-union and union labor jobs. As a union contractor, Hanchey’s workers receive a base pay rate of $37.95, which rises to $55 because of health insurance, 401k and retirement benefits. However, he said he’s lost out on project bids to non-union jobs that can hire more workers without cutting their profit margins.

“When you lose out on a job because you have to pay a higher rate to be in the union than what the nonunion people have to pay, it becomes very frustrating,” Hanchey said. “When you're bidding on a job, union versus non-union in this day and age, the non-union people are typically paying their employees a lesser hourly rate than what your union contractors are doing.”

Hanchey said non-union workers can typically be hired in less time with fewer qualifications but have no base pay rate like union workers and are paid based on skills and experience.

Hanchey said hiring workers at the same rate, regardless of whether they’re union or non-union, will allow contractors to hire workers on an equal playing field and potentially get their projects done without cutting overall profit margins.

“When you're a union contractor and you're bidding against a nonunion contractor, there's no delta in that labor factor of what you're bidding on the job,” Hanchey said.

Existing contracts and construction jobs that already follow federal wage rules won't be subject to the city rule.