These U.S. Workers Are Being Paid Like It’s the 1980s

Source: Josh Eidelson, Bloomberg, May 25, 2018
 
Thanks to a web of loopholes and limits, the federal government has been green-lighting hourly pay of just $7.25 for some construction workers laboring on taxpayer-funded projects, despite decades-old laws that promise them the “prevailing wage.” Over the past year, the U.S. Department of Labor has formally given approval for contractors to pay $7.25 for specific government-funded projects in six Texas counties, according to letters reviewed by Bloomberg. Those counties are among dozens around the nation where the government-calculated prevailing wage listed for certain work—such as by some carpenters in North Carolina, bulldozer operators in Kansas and cement masons in Nebraska—is just the minimum wage. …

Related:

Inviting Private Sector to Build Roads Raises Wage Questions
Source: Chris Opfer and Jasmine Ye Han, Daily Labor Report, April 13, 2018 (Subscription Required)
 
The Trump administration wants the private sector to take the wheel on many U.S. road and other upgrades, raising questions about whether construction workers will still get the compensation required under federal contracts. The Davis-Bacon Act obligates contractors to pay workers on federally funded construction projects a local prevailing wage and certain benefits set by the Labor Department. The law is meant to ensure that the government doesn’t shortchange workers. But some Republican lawmakers, businesses, and conservative advocacy groups say “prevailing wages” exceed market rates and bloat taxpayer-funded construction projects as a handout to labor unions. Although the law isn’t likely to be scrapped anytime soon, lobbyists have stayed busy pushing to get Davis-Bacon provisions explicitly included in new spending legislation. That activity ticked up following a post-recession infrastructure spending binge and kept the questions coming about which projects require prevailing wages. …

Trump’s Davis-Bacon Quote Turns Construction Industry Heads
Source: Elliot T Dube, Bloomberg BNA, April 14, 2017
 
Construction industry stakeholders got a jolt when President Donald Trump recently approached what a U.S. Chamber of Commerce official called a “third rail issue” for building trades unions: changes to the Davis-Bacon Act. Trump said in a New York Times interview published April 5 that he was “going to make an announcement in two weeks” regarding Davis-Bacon. The law requires contractors on federally funded construction projects to pay prevailing wages for a given area. …


Trump’s promised announcement on labor law unnerves unions
Source: Lindsay Wise, McClatchy, April 10, 2017
 
President Donald Trump shocked organized labor by saying he would soon have an announcement to make about a law that guarantees wage levels for workers on most federally funded construction projects. And since then, the White House has declined to reveal his position publicly.  But behind closed doors, the Trump team appears to be scrambling in recent days to calm nerves among the very unions whose workers helped power the president’s Election Day victory. After a meeting with White House staff on Monday, Sean McGarvey, president of North America’s Building Trades Unions, said he was confident the president was misquoted or misspoke when he told The New York Times he would make an announcement about the 1931 Davis-Bacon Act. … Signed by President Herbert Hoover during the Great Depression, the Davis-Bacon Act requires contractors hired by the federal government for public works and building projects to pay certain classes of laborers and mechanics at prevailing wage rates. The Department of Labor calculates the rates by county, based on data it collects on similar projects in the area. Conservatives in Trump’s own Republican Party would be delighted if the president announced plans to repeal or replace the law. They say it artificially drives up costs for taxpayers and gives a competitive advantage to unions. Unions are anxious to protect Davis-Bacon, and ensure its wage protections are enshrined in Trump’s promised trillion-dollar infrastructure plan. Any move by the president that threatens the law could jeopardize their support for a Trump infrastructure bill, and thwart its prospects for winning votes from congressional Democrats, the unions’ traditional allies. …

Trump Says He May Use His $1 Trillion Infrastructure Plan as a Political Incentive
Source: Reuters, April 5, 2017

U.S. President Donald Trump said on Wednesday he was considering packaging a $1 trillion infrastructure plan with either health care or tax reform legislation as an incentive to get support from lawmakers, especially Democrats. Trump also said in an interview with the New York Times he may move up the unveiling of a plan to rebuild the country’s deteriorating roads, bridges and tunnels, which had been expected later this year. … Some of the infrastructure projects may be built through public-private partnerships, Trump said, declining to say how the total spending would split between public and private sources. But he also said that with interest rates low, the government may be better off financing the projects itself. … Trump said he would make an announcement in two weeks about whether he would seek changes to a wage law for federal projects blamed by conservative groups for inflating costs, though he declined to say what the announcement would be. Conservative groups have pressured the White House on the law, known as the Davis-Bacon Act, which requires contractors on federal projects to pay local prevailing wages – a measure backed by labor unions and Democrats. …

Congress: 3 bills target Davis-Bacon Act
Source: Ater Wynne LLP, Oregon Business Report, February 16, 2017

Federal legislators have renewed steps to repeal — or at least undermine — the prevailing wage requirements under the Davis-Bacon Act, which mandates payment of prevailing wages and benefits to workers employed under federally-funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. U.S. Senator Jeff Flake (R-Ariz.) recently introduced the Transportation Investment Calibration to Equality (TIRE) Act, which would eliminate prevailing wage requirements under the Davis-Bacon Act on all federal highway construction contracts. In addition, U.S. Senator Mike Lee (R-Utah) introduced a bill to repeal all prevailing wage requirements under the Davis-Bacon Act (S. 244), and Representative Steve King (R-Iowa) re-introduced a companion bill in the House (H. 743), entitled the “Davis-Bacon Repeal Act.” Federal law also requires federal contractors who provide certain services and manufactured goods to the Federal Government to pay prevailing wages under the McNamara-O’Hara Service Contract Act and the Walsh-Healey Public Contracts Act, respectively. Although previous steps to repeal these laws failed (see., e.g., S. 1229 (1993), co-sponsored by Senator John McCain (R-Ariz.)), it seems likely that repeal efforts will be renewed under the current administration. …