AUSTIN  — According to a new study, construction workers in Texas are grappling with severe financial difficulties and safety risks that are undermining their well-being and livelihood. Released on Tuesday by the Workers Defense Project (WDP) in collaboration with the University of Illinois Chicago, the report highlights the persistent hardships faced by manual laborers in the state’s $126 billion construction industry.

The study, which surveyed over 350 workers from Austin, Dallas-Fort Worth, and Houston metropolitan areas at job sites valued at $500,000 or more, paints a grim picture of the industry's foundation. Titled "Behind the Texas Miracle: The Unstable Foundation of the Texas Construction Industry," the report reveals troubling trends in wages, safety practices, and benefits for Texas workers. The findings were shared in Austin during a press conference at the WDP office, where a banner with the slogan "The people united will never be divided" hung prominently in both English and Spanish.

“These wages are so low that for many, many workers in the construction industry,” said Nik Theodore, a professor at the University of Illinois Chicago, “they simply cannot adequately meet their basic needs.”

The study reveals that employers who flout labor laws have an advantage when bidding on construction contracts, further exacerbating the struggles for workers. According to Theodore, these employers often skip paying benefits, workers' compensation, and unemployment insurance, and they avoid paying time-and-a-half for overtime hours. "Employers that break the rules, it’s making them more competitive when bidding for construction projects," he added.

Key findings from the study include:

• In Austin, workers’ pay is reported to be 83% below the cost of living.
• One in five workers reported wage theft.
• One in four workers struggled to afford groceries.
• Around one in five workers could not afford rent, mortgage payments, or medical care.
• One in four workers claimed they were not paid for overtime hours.
• 67% of workers said their employer doesn’t contribute to workers' compensation or was unsure.
• 60% of workers reported no access to health insurance.
• 24% of workers had no paid sick time.
• Over one in five workers were paid "off the books" to circumvent taxes and benefits.

Moreover, many employees are misclassified as independent contractors to avoid paying employment taxes and providing employee benefits, which further lowers labor costs. "Construction contractors that misclassify their employees are able to submit much lower bids and therefore unfairly compete against those employers that play by the rules," Theodore said. "In order to compete, businesses that correctly classify their employees must look for other ways to cut costs — and they usually do this by keeping wages low."

The financial challenges are compounded by serious safety concerns. Texas had the highest number of work-related fatalities in 2023, with 126 of those deaths occurring in construction, as reported by the Bureau of Labor Statistics. “There are literally bills in the legislature right now that are just waiting for them to take action,” said David Chincanchan, policy director for the Workers Defense Project. “To provide workers with heat safety protections, to provide workers with workers’ compensation insurance. And, you know, to really kind of catch up with a lot of other states. Because, we’re really, really far behind.”

The report also underscores the lack of proper safety training for workers. In Texas, dangerous heat conditions have become a significant risk, with Austin experiencing 142 days above 91 degrees in 2023. Additionally, there is a lack of OSHA-certified safety training, which has contributed to the high number of fatalities.

Advocates are now calling for urgent reforms, including stricter penalties for wage theft, easier processes for filing claims, mandatory workers’ compensation insurance, OSHA safety training, and legal protections for heat and water breaks. They believe that these changes are essential for improving the conditions for workers and ensuring that they receive the protection and compensation they deserve.

As this study illuminates, Texas’ construction workforce remains vulnerable to exploitation and dangerous working conditions, with no immediate sign of relief without legislative action.

Originally reported by Matt Grant in KXAN.