The Prevailing Wage Act is not an unnecessary law.
Creative Conservatism is at once again in Pennsylvania. Claiming the Prevailing Wage Act is an unnecessary, expensive law that aims to limit competition the free market think tank Commonwealth Foundation, is throwing half hearted support behind Rep. Keller (R-85) HB1329, which calls for the threshold of the Pennsylvania Prevailing Wage Act to be raised for 25,000 to 185,000. I say half hearted support, because the overall goal of think tanks such as the Commonwealth Foundation is to muster support to repeal laws that treat workers more than a commodity, but I guess they will take what they can get:
The legislation being considered today—HB 1329—would not repeal this costly, unnecessary law, but simply increase the threshold above which projects are subject to the prevailing wage mandate (http://www.commonwealthfoundation.org/...)
The Prevailing Wage Act is not a costly, unnecessary law. The Prevailing Wage Act protects Pennsylvania's workers, taxpayers and strengthens the middle class.
Prevailing Wage laws have been around since 1891. When Republicans in Kansas sought to protect local wages, and prevent downward wage pressure. My how times have changed since the Republican party sought to protect everyday Americans at the expense of corporations, but that is for a later argument. The Pennsylvania Prevailing Wage Act says if you bid on a public work contract that meets the criteria of the act and is greater then 25,000 dollars, you will pay the local prevailing rate for the work. According to the Pennsylvania AFL-CIO:
Prevailing wage laws ensure that workers on public construction projects paid for with taxpayer dollars are paid a wage comparable to the local standard or “prevailing” wage(http://www.paaflcio.org/...)
Prevailing wage acts protect the taxpayers investment, while preventing the taxpayers in the area, who are working on the project from receiving less then the local wage they would be used to.
While the conservative model, with the Commonwealth Foundation and other free market libertarian think tanks like to claim prevailing wage laws raise the costs for contractors, limit competition and in the end raise the bill for taxpayers the truth is taxpayer money is not what they are concerned about the contractors bottom line and how to lower it is the foremost concern of these groups. According to the Economic Policy Institute study "Prevailing Wages and Government contracting costs":
Average labor costs, including benefits and payroll taxes, are roughly one-quarter of construction costs. Thus, even if a prevailing wage regulation raised wages by 10%, the impact on contract costs would be less than 2.5%. Thus, even if there is an increase in contract costs it is likely to be small—to the point of being undetectable. (http://www.epi.org/...)
One quarter of the production costs go to labor costs, so when we examine the Commonwealth Foundation claim that prevailing wages are going to raise taxpayers costs on a
A $42,000 bridge repair project in Carbon County
A $46,500 roof replacement in Adams County
A $134,000 traffic light upgrade in Lebanon County
Spending $44,000 to replace exterior lights and posts at the Westmoreland County Courthouse (http://www.commonwealthfoundation.org/...)
by 2.5% because the contractor has to pay the prevailing wage of the area is shrewd economics. It is a veiled attempt to give builders and contractors higher profits while allowing them to cut the one cost that affects those taxpayers who live in the community; their wages. Also, as far as competition is concerned, the contractor is free not to bid on the contract if they feel paying the local set wage is not in their interest.
The Commonwealth foundation is correct in their assumption that:
Hit with shrinking funds because of the recession, townships, counties, boroughs, cities and school districts are desperately looking for ways to use taxpayer money more efficiently. (http://www.commonwealthfoundation.org/...)
However, creating environments where contractors can circumvent local wages will not create the prosperity that middle class Pennsylvanians need to thrive. In times of economic hardship, lower wages are not the answer. It is easy to play on the emotions on people with creative titles such as "
Who Would Oppose Reforming a Costly, Unnecessary Law?" I mean, wow who could be opposed to reforming costly, unnecessary laws. However, a law that protects the taxpayers from unscrupulous contractors lowering wages, making higher profits at the expense of the local workforce and the taxpayer does not prove to be unnecessary. Tell your local Representative and Senator that when you support the local workers and the Prevailing Wage in your community you broaden the tax base and create jobs with livable wages. Wages that help the middle class thrive, not that cause more burden on the social safety net.