Unions, contractors trying to cut labor costs

Unions and contractors are trying to reach an agreement on how to cut labor costs in the city. Developers have warned that with high labor costs and difficulty in getting financing, many planned projects will have to be scrapped. Labor can comprise about 50 percent of the cost of a construction job, and developers are hoping costs will decrease 25 percent. Stephen Ross, chairman of the Related Companies, said at a recent Real Estate Board of New York meeting that if labor costs are not successfully cut, he might have to use non-union labor for his planned 58-story tower on 42nd Street.