A significant issue in the labor community is independent contractor classification. Employers classify workers as independent contractors to avoid paying additional taxes, workers’ compensation and other costs associated with hiring employees.Independent contracting is dangerous for workers, affecting their eligibility for benefits and lowering their wages. This practice is often used in the trades when a company needs temporary labor to complete a job, resulting in enormous consequences. Employers classify workers as independent contractors to pay fewer taxes. A worker classified as an independent contractor receives a paycheck, but the employer fails to withhold beneficial taxes. Independent contractor classification also allows employers to avoid Social Security and Medicare. Additionally, they do not have to provide any benefits, such as healthcare or retirement benefits.
Independent contracting is physically dangerous for workers to endure. The purpose behind wrongly classifying workers as independent contractors is to avoid the costs associated with hiring someone as an employee. Therefore, employee training is likely to be skipped. Training in the pipe trades is vital, as one wrong decision could shut down an entire project due to injury or death.
Benefits of collective bargaining
Compared to being classified and working as an independent contractor, employees working under collective bargaining agreements tend to fare much better. Collective bargaining provides employees with an agreed-upon wage between labor and management. Additionally, collective bargaining yields benefits enjoyed by family members and into retirement. Healthcare in the U.S. is one of the most significant expenses a family may have to budget for if not covered by their employer. Under a collective bargaining agreement, benefits such as family health insurance are agreed upon, allowing Americans to avoid one more expense. Collective bargaining is also great for local communities. By working under a collective bargaining agreement, a local workforce is utilized. This workforce is more likely to spend money in the community they are working in since they live in that community or nearby.
