Construction unions agree to cut labor costs

Building contractors and unions have agreed to cut labor costs after six months of negotiation. But developers say they expect to save only 8 to 15 percent, not the 25 percent they had hoped for. Labor costs make up 45 to 60 percent of the costs of a project, but even the 15 percent decrease might not be enough to spur projects in this economy. “It doesn’t seem to go far enough to deal with the problems of today,” Steven Spinola, president of the Real Estate Board of New York, said of the proposed agreement.