Sometime during the last decade of the cold war, America’s unions began to die. Blue-collar work in America, while respected and looked upon with nostalgic eyes by nearly all economic classes as the backbone of this country, just isn’t something that America aspires to be. And in turn, many young people are passing up what may be a great career and the fastest lane to Financial Independence. Not to mention a high salary with college degree needed.

With the preconceived notion of what “success” is clouding our eyes, we may be forgetting that there are other professions out there that don’t require a degree, aren’t at risk of globalization, and don’t have the baggage of student debt. For those of you who know young people nearing high school graduation or have graduated and are struggling to find out what to do with their lives, the trades should be something that you might consider introducing into their lives. Even better if it’s union.

America doesn’t want to be middle class. And that’s a problem for everyone.

In 2019, there were around 14.6 million union members in America compared to 17.7 million in 1983. Union members also make 10%-30% more than non-union workers in the same field. Trade union money is good money. 6 Figure Money, as I alluded to in the title. Not to mention vested access to the legendary pension.

In the ’50’s, more than 30% of American workers were union members. In the last few years, the number has hovered around 11%. There’s been a number of judicial attacks on unions over the years, more recently: The Supreme court vote in Janus v AFSCME, a blow to the union’s ability to collect money from its beneficiaries and the so-called “Right To Work” laws that have been passed around the country.

The campaigns that so cunningly use “freedom” as a guise to stick it to middle class America’s ability to get a fair wage, have directly contributed to the ever-growing struggle to get ahead. A 2020 American Journal of Sociology study shows that Right to Work laws lead to greater economic inequality by reducing the power of the unions.

Blue Collar Blues

Why is manual labor seen as the work of the lower classes?

If a degree isn’t needed it must not be a good job, right?

Physically hard work isn’t something anyone wants to do for a living, hard work is for immigrants and people not smart enough for college, right?

Getting dirty at work is for poor people.

Nobody says these things, not aloud at least.

In this age of corporate outsourcing abroad for cheaper and cheaper labor pools, construction is one industry that cannot be produced overseas and imported back into America. As long as America is prospering, structures will need to be built by highly skilled workers. Yet we keep sending off our children to university and into debt because this is what has been deemed as successful in America. Not getting our hands dirty is a better way to make money seems to be the thought–and with reason–it’s definitely easier on the body to have a white-collar job.

But I argue that white collar jobs may not be a better life in some cases. With the white collar job comes a 24-7 profession. There’s no escaping the emails after work and long hours at the desk. White collar jobs blur the line between work and life to the greatest extent possible. I know, I’ve worked both sides.

In San Francisco, a union carpenter makes well over six figures a year, will have a pension for retirement, and pays nothing from an hourly wage for awesome family healthcare.

Some quick numbers for San Francisco trade union journeyman hourly wages in 2020:

• A union carpenter’s hourly wage is $55 an hour.
• A union plumber $75 an hour and they work only 7 hours a day-a general foreman plumber makes $101 an hour!!!
• A union electrician $62.

Can you imagine making over six figures at the age of 22 (if you started at 18)? With no student debt and having 5 years vested into a pension? Yes, wages are higher in the Bay Area than elsewhere in the country, but this has to do with the cost of living adjustment.

Do Your 8 and Go Home

After I transitioned into the office to sit alongside “white collar” construction management degree holders, I found the most challenging aspect to be leaving for the day. In the field, you do your eight hours and go home. There’s a whole other life that can be lived after work. But in the office, it’s seen as bad to work “only” eight hours a day. The company has it’s silent knee on your back, upheld by the “culture” and the eyes of peers.

I never realized how nice it is for everyone to “know” exactly what time they are getting off and having everyone roll up and get off at the same time. I could never imagine everyone in the office instantly start packing up ten minutes prior to 5pm, because that’s the time to get off.

How did we ever get so far off track? Salary work is the biggest hit job corporate America has ever pulled off on the American workforce.

Is working till five or six at night really that much better than a sweaty eight hour day working with your hands and getting off at 2:30 pm?

The Perfect FIRE Profession?

Okay, nothing is perfect, but becoming a union tradesperson comes pretty close to being an ultimate job for pursuing FIRE. The numbers I mentioned above for the hourly wage are higher than the national average-it’s really only on the coasts and metropolis’ that you will find rates like this. Keep in mind that this income is a reflection of the cost of living in San Francisco or Silicon Valley, there are tons of places to live cheaply in the Bay Area and still make this high wage.

But why couldn’t someone move to one of these locations to get the highest rate? Most kids going off to college move away from home, why can’t they do so to earn a high paying wage with access to a pension? Yes, these cities are expensive, but it is possible to live out in the suburbs and commute in like the majority of us. This is how you take advantage of the system.

Here are the Pros that sets this type of job above the competition:

• Six-figure income in 4 years with no student debt/no degree required.
• The union and its members teach you the trade. They do not expect you to know anything starting the apprenticeship.
• In 5 years your pension is vested. This is income for life after 55. The more years you work the higher the monthly pension.
• Access to a 401k
• Pay is hourly. If you need more money-work more hours if it’s available.
• Learning a craft will lead to side hustles-everyone needs a carpenter/electrician/plumber etc.
• Work is on a job to job basis. You can come and go as jobs start and end. It’s not looked down upon to leave and come back to a company multiple times.
• Work ends at 2:30 or 3:30. You get a life after work.
• Healthcare and retirement benefits are not employer dependent. It’s all through the union-you can work for a dozen companies and it will not impact or change your benefits.

And with Pros there’s Cons:

• It’s hard work. No getting around the physicality, especially in the first years.
• It can be weather dependent. If you are in the outside stage the rain can shut the job down. No hours worked no pay. (but the time is made up down the road with Over Time to maintain schedule)
• When the economy slows construction is the first indicator. If you are not an above-average worker you will be the first laid off.
• It’s dangerous work. Extremely dangerous. You can work from high up places. You may have to climb and use fall/climbing gear. There are cranes picking heavy loads around you.
• It’s hard ass work. It’s on the list twice just to emphasize. The physicality will lessen with the more technical the trade, for example, a carpenter’s or ironworker’s day is more arduous than an electrician or elevator installer.

Do You Like The Weekends? Thank The Union

The first labor unions in America began to organize in the mid to late 19th century. The railroad workers were the first to officially organize in 1863. The main goals then were to negotiate death and disability plans for workers. In the 1880’s rail workers made $1 a day (about $25 purchasing power in today’s money) and 33% of railroad workers were injured on the job annually.

As tough as it is now, things were much harder for the working classes in the 19th century. There was no social security or ability to earn money if you became disabled in the hellish working conditions of the Industrial Revolution. There were no set working hours or a set wage you could earn no matter your experience. Total power lay in the hands of the business owners and management staff. If a worker objected to conditions he would be tossed aside to make room for an eager immigrant fresh off the boats from Europe.

From the 1880’s to 1901 there were nearly 37,000 strikes. Labor unions pushed for equal pay and safe working conditions. Peter J. Mcguire of the Carpenters Union was a huge proponent of the 8 hour work day and a national holiday you might have heard of “Labor Day”.

Let’s Not Sugar Coat Things

This isn’t a propaganda piece in favor of the unions, though have no doubt that I’m totally biased. My father was able to escape the inner city projects through the carpenter’s union and become quite successful. I’ve been able to support a family, buy a house, and live with more than enough through the union.

Am I out there swinging my hammer and getting set breaks and hours? No.

It’s easy to talk about the benefits of being in a trade union and another to live it. The work is back-breaking. For the 12 years, I worked in the field as a concrete carpenter. I always had some sort of injury I was nursing. A smashed finger, bruises on some limb, carpal tunnel, a bad back. In my mid to early 20s life was good. I healed quickly, but towards my 30’s it became harder and harder to get out of bed in the morning. Luckily, I’d made my way to foreman and didn’t have to wear my bags and work as hard as a journeyman.

The union can be a great way to FIRE for the next generation of those looking to make good money as quickly as possible. Or for those who wish to take long sabbaticals or Gap Years between work as getting jobs do not require resumes. Throw in the union pension that will act as a second wind to the nest egg in retirement… and the trades look even better.

Happy Savings.