Labor & Open Competition
Davis-Bacon Prevailing Wage Rate Reform
The Davis-Bacon federal prevailing wage law is a Depression-era regulation that requires the payment of the locally prevailing wage -- the wage paid to a majority of workers or the average wage in a given classification in given area -- on all federally-funded construction projects. The Davis-Bacon wage rate is supposed to be based on the information gathered via voluntary wage surveys. In reality, due to inefficiencies and inaccuracies with this archaic program, the federal prevailing rates are often the local union rates and not the prevailing market wage rates.
As a federally-supervised law, Davis-Bacon also requires significant paperwork and reporting. Many smaller businesses avoid bidding for projects that include Davis Bacon requirements because of the added paperwork and reporting requirements. The prevailing rate is an inaccurate, cumbersome system that adds more red tape and bureaucracy for those merit shop contractors who want to bid on federal jobs.
Davis-Bacon prevents the taxpayers from getting the best bargain on federal construction projects by eliminating true competition from the contracting process.
Status of Legislation: The 110th Congress considered several bills expanding Davis-Bacon into private sector and state-funded projects, including loan guarantee programs at the Department of Energy and tax credit bonds for energy production. This trend is expected to increase with the new administration and expanded majorities in the 111th Congress.
IEC Position: IEC opposes any legislation that would further expand the Davis-Bacon prevailing wage rate. IEC supports updating the federal prevailing wage so that accurate wage rates are obtained and the uncertainty and inefficiency is removed from the process.
Mandatory Paid Sick Leave
Legislation was introduced in the 110th Congress that would make drastic changes to current labor law and mandate that employers provide seven days of paid sick leave for all employees. The Healthy Families Act would create a new federal mandate requiring all businesses employing 15 or more individuals to provide 7 days of paid sick leave annually to all employees. Currently employers are not required to provide sick leave, though a vast majority do so on a voluntary basis as an employee benefit.
Status of Legislation: Yet to be introduced in 111th Congress.
IEC Position: IEC opposes the Healthy Families Act and any one-size-fits-all approach to this issue. Each business is unique and must be able to address personnel needs in a practical way.
RESPECT Act
The Re-Empowerment of Skilled and Professional Employees and Construction Tradeworkers (RESPECT) Act seeks to make drastic changes to the NLRA definition of a supervisor. The RESPECT Act would remove the duties of assigning and responsibly directing other employees from the definition of supervisor. The RESPECT Act also specifies that supervisors must "hire, transfer, suspend, lay off, recall, promote, discharge, reward, or discipline other employees" for a majority of their work time. These two semantic changes would eliminate almost all employees from the supervisor classification and potentially place them into a collective bargaining unit.
In order for a company to run effectively, it needs to know its supervisors are loyal to the company and that they will make decisions based upon efficiency and merit, not internal union politics or work rules. By the same measure, supervisors need to know that their decisions are subject to the authority of their employer and not to a union official. Effectively, this legislation would deny supervisor status to many hard-working Americans who have risen through the ranks and succeeded in becoming leaders in their workplace.
Status of Legislation: Yet to be introduced in 111th Congress, but expected to be among the first labor bills introduced and acted on.
IEC Position: IEC opposes the RESPECT Act and any attempt to strip away a standard that has long been a key part of the balance between management and labor.
The Davis-Bacon federal prevailing wage law is a Depression-era regulation that requires the payment of the locally prevailing wage -- the wage paid to a majority of workers or the average wage in a given classification in given area -- on all federally-funded construction projects. The Davis-Bacon wage rate is supposed to be based on the information gathered via voluntary wage surveys. In reality, due to inefficiencies and inaccuracies with this archaic program, the federal prevailing rates are often the local union rates and not the prevailing market wage rates.
As a federally-supervised law, Davis-Bacon also requires significant paperwork and reporting. Many smaller businesses avoid bidding for projects that include Davis Bacon requirements because of the added paperwork and reporting requirements. The prevailing rate is an inaccurate, cumbersome system that adds more red tape and bureaucracy for those merit shop contractors who want to bid on federal jobs.
Davis-Bacon prevents the taxpayers from getting the best bargain on federal construction projects by eliminating true competition from the contracting process.
Status of Legislation: The 110th Congress considered several bills expanding Davis-Bacon into private sector and state-funded projects, including loan guarantee programs at the Department of Energy and tax credit bonds for energy production. This trend is expected to increase with the new administration and expanded majorities in the 111th Congress.
IEC Position: IEC opposes any legislation that would further expand the Davis-Bacon prevailing wage rate. IEC supports updating the federal prevailing wage so that accurate wage rates are obtained and the uncertainty and inefficiency is removed from the process.
Mandatory Paid Sick Leave
Legislation was introduced in the 110th Congress that would make drastic changes to current labor law and mandate that employers provide seven days of paid sick leave for all employees. The Healthy Families Act would create a new federal mandate requiring all businesses employing 15 or more individuals to provide 7 days of paid sick leave annually to all employees. Currently employers are not required to provide sick leave, though a vast majority do so on a voluntary basis as an employee benefit.
Status of Legislation: Yet to be introduced in 111th Congress.
IEC Position: IEC opposes the Healthy Families Act and any one-size-fits-all approach to this issue. Each business is unique and must be able to address personnel needs in a practical way.
RESPECT Act
The Re-Empowerment of Skilled and Professional Employees and Construction Tradeworkers (RESPECT) Act seeks to make drastic changes to the NLRA definition of a supervisor. The RESPECT Act would remove the duties of assigning and responsibly directing other employees from the definition of supervisor. The RESPECT Act also specifies that supervisors must "hire, transfer, suspend, lay off, recall, promote, discharge, reward, or discipline other employees" for a majority of their work time. These two semantic changes would eliminate almost all employees from the supervisor classification and potentially place them into a collective bargaining unit.
In order for a company to run effectively, it needs to know its supervisors are loyal to the company and that they will make decisions based upon efficiency and merit, not internal union politics or work rules. By the same measure, supervisors need to know that their decisions are subject to the authority of their employer and not to a union official. Effectively, this legislation would deny supervisor status to many hard-working Americans who have risen through the ranks and succeeded in becoming leaders in their workplace.
Status of Legislation: Yet to be introduced in 111th Congress, but expected to be among the first labor bills introduced and acted on.
IEC Position: IEC opposes the RESPECT Act and any attempt to strip away a standard that has long been a key part of the balance between management and labor.
News
Jul 29, 2010
High bids for deaf, blind schools raise labor issue (The Columbus Dispatch)
The commission doesn't think the project labor agreement is to blame because "the PLA is going to be built into the estimate anyway," Savors said, meaning the problem is likely in the design or the materials the state wants contractors to use. When the commission's director, Richard Murray,...
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Jul 28, 2010
Critics claim guest workers taking jobs from Americans (Sun Sentinel)
Other guest-worker programs draw highly skilled foreigners to fill specialized niches."The basic problem is that there is insufficient concern in Congress for low-wage workers in the United States. They got what they asked for."Not so, says Bruce Bachand. By that time, many employers were...
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Jul 28, 2010
Critics claim guest workers taking jobs from Americans:: (Sun Sentinel)
Other guest-worker programs draw highly skilled foreigners to fill specialized niches."The basic problem is that there is insufficient concern in Congress for low-wage workers in the United States. They got what they asked for."Not so, says Bruce Bachand. By that time, many employers were...
more...
Jul 26, 2010
Construction Unions Look To Council For Help (The Hartford Courant)
Union leaders insisted that the city should add "project labor agreements" as part of the bid documents.
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Jul 22, 2010
McKeesport Area board officially decides to build new Cornell (Pittsburgh Post-Gazette)
At the special board meeting following the hearing, the board voted to close the current Cornell Intermediate School. There was no opposition to the project. Pierce said that at the new Cornell school, the academic programs will be divided in K-3 and 4-6 programs. Pierce said. The construction...
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Jul 21, 2010
Bristol Rejects Pro-Union Pacts (The Hartford Courant)
...contractors, applauded speakers who opposed the deals. Bristol is planning to construct two $55 million schools, and at issue is who will build them. Communities that sign project labor agreements ensure that only union members work at the job site; non-union contractors may be able to land...
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Jul 20, 2010
School district turning to solar (Las Vegas Review-Journal)
They formerly sold for as much as $9 to $10 per watt. The district spends about $65 million on electricity a year. "So we know any (solar) watt will generate $4.40 worth of energy at today's price," Gerner said.
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Jul 16, 2010
Construction strike now affects tollway work (Chicago Tribune)
...toll authority has a multi-project labor agreement that prohibits strikes, work slowdowns or stoppages and lockouts by employers. Tollway projects were not supposed to be affected by the current strike because the labor pact guarantees no disruptions in return for prevailing wages and no...
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