New shop rates effective July 1, 2019

To:  Executive Vice Presidents, Chancellors, Vice Presidents, Vice Chancellors, Vice Provosts, Deans, Directors, and Heads of Schools, Divisions, Departments and Offices

From: Ryan Gallagher, Facilities Operations Senior Director

Date: June 27, 2019

Re: New shop rates effective July 1, 2019

 

Facilities Operations, a division of Physical Facilities, will be implementing new shop rates effective July 1, 2019. Shop rates are used to assign labor costs to work performed by hourly employees for departmental and campus customers.

Two changes were made regarding shop rate calculations for FY20. First, one rate per functional craft will replace a single flat rate per department (as depicted in the chart below). Second, FY20 rates will better reflect the varying costs associated with each trade, such as training and wage adjustments in order for Purdue to remain a competitive employer and promote employee retention. The shop rates do not include administrative, equipment, support services or other overhead costs.

Two wage increases have occurred since shop rates were last re-calculated, and FY20 rates are generally higher than current rates as a result. Where possible, Facilities Operations benchmarked against local union and non-union shops for a number of trades. Purdue’s new rates are still below those in the private sector, and Facilities Operations remains dedicated to providing continued quality services to the campus community. 

New shop rates for a number of commonly requested crafts are included below, and all new rates will be provided on the Physical Facilities website in the coming weeks. 

 

New Hourly Rates by Department and Craft

 

Department	Craft	FY18/FY19 Hourly Rate	FY20 Hourly Rate
Operations and Maintenance	Carpentry	$37.29	$40.44
	Electrical		$41.84
	General Labor		$39.14
	Lock Shop		$39.32
Grounds	Maintenance, e.g. mowing, shrub cutting	$30.42	$30.14
	Specialized Maintenance, e.g. landscaping, tree work		$38.54
	Refuse and Recycling		$34.79
Building Services	Custodial	$21.34	$22.36

 

Questions about the new rates may be directed to (765) 496-0578.