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View Diary: Obama bypassing Congress to raise minimum wage for federal contract workers (104 comments)

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  •  Well, contracts are approved by Congress (3+ / 0-)
    Recommended by:
    Odysseus, coffeetalk, lina

    Changing the hourly wage for new contracts throws out the window the amount of work that can be done for a fixed budgeted amount.

    For instance - let's say Congress budgeted $2,000,000 for janitorial labor to maintain the Capitol building. (These are totally made-up numbers, but you get the idea)

    Now, the contractor calculates it takes 100 full-time workers to do this job.  That's 205,000 man hours.

    If they were making $8.50 per hour, the labor costs would be $1.74 Million

    Now, labor costs $10.10 per hour.  The same number of hours will cost the contractor $2.07 million.

    But Congress has not budgeted that much.

    The contractor won't bid, or will cut the number of people assigned to the job, or cut some people to part-time.

    The bottom line is this.. Some laborers will probably lose their jobs as a result of this action.

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