Waging War on Wages?

June 24, 2015
Editor – GX – Arturo

Here’s an interesting issue that a number of states are facing. It’s common construction wage laws—also known as prevailing wage laws. As most of you already know, in government contracting, prevailing wage is the hourly wage, usual benefits, and overtime, allegedly paid to the majority of construction workers in a particular area.

Recently the Indiana Legislature repealed the state’s prevailing wage law and now Michigan and Wisconsin have similar proposals in front of their lawmakers.

Here’s an interesting issue that a number of states are facing. It’s common construction wage laws—also known as prevailing wage laws. As most of you already know, in government contracting, prevailing wage is the hourly wage, usual benefits, and overtime, allegedly paid to the majority of construction workers in a particular area. Recently the Indiana Legislature repealed the state’s prevailing wage law and now Michigan and Wisconsin have similar proposals in front of their lawmakers. [text_ad] An article by the Associated Press’s David Eggert that appeared in the Washington Post says in part:
Conservative legislators are targeting “prevailing wage” statutes, now on the books in 31 states, that require paying the local wage and benefit rate — usually union scale — on government construction projects such as building schools, fire stations and local roads. They say the wage laws inflate costs and make it harder for nonunion contractors to compete by making lower bids.
It would be worth it for you to read the entire article. To do that, click here. Please let me know what you think about the common construction wage laws. Do we need them? Should we get rid of them? And keep an eye on this: Lawmakers passed the last stop-gap funding bill for transportation just before the Memorial Day recess. It will expire at the end of July. But keep in mind with the July 4th recess coming up, that will leave Congress with only about two weeks to come to an agreement on some sort of long term measure. As of last week, Senate Minority Leader Harry Reid and his Democratic colleagues have given Majority Leader Mitch McConnell 45 days to negotiate a long-term transportation funding bill. Will the temporary funding end as a number of summer projects are ramping up?

An article by the Associated Press’s David Eggert that appeared in the Washington Post says in part:

Conservative legislators are targeting “prevailing wage” statutes, now on the books in 31 states, that require paying the local wage and benefit rate — usually union scale — on government construction projects such as building schools, fire stations and local roads.

They say the wage laws inflate costs and make it harder for nonunion contractors to compete by making lower bids.

It would be worth it for you to read the entire article. To do that, click here.

Please let me know what you think about the common construction wage laws. Do we need them? Should we get rid of them?

And keep an eye on this:

Lawmakers passed the last stop-gap funding bill for transportation just before the Memorial Day recess. It will expire at the end of July. But keep in mind with the July 4th recess coming up, that will leave Congress with only about two weeks to come to an agreement on some sort of long term measure.

As of last week, Senate Minority Leader Harry Reid and his Democratic colleagues have given Majority Leader Mitch McConnell 45 days to negotiate a long-term transportation funding bill. Will the temporary funding end as a number of summer projects are ramping up?