Video: Indiana GOP Leader Admits Repealing Prevailing Wage ‘Hasn’t Saved a Penny’

With Senate Committee Set to Vote on Repeal Bill, April 24 Video Debunks Prevailing Wage Supporters’ Claims about Savings
PRESS RELEASE · MAY 2, 2017
MEDIA CONTACT | MIKE BROWNE
DEPUTY DIRECTOR

MADISON, Wis. – With the Republican-controlled Senate Labor Regulatory Reform Committee poised Wednesday morning to vote for a misguided repeal of prevailing wage laws for public works projects, video has surfaced from a forum April 24 in Milwaukee where Republican Indiana House Assistant Majority Leader Ed Soliday angrily reveals that similar legislation passed in Indiana which went into effect in 2015 “hasn’t saved a penny.”

“We got rid of prevailing wage and so far it hasn’t saved a penny,” Soliday says during the question and answer session last week hosted by the Wisconsin Transportation Development Association in Milwaukee. “Probably the people most upset with us repealing [prevailing] wage were the locals. Because the locals, quite frankly, like to pay local contractors and they like local contractors to go to the dentist in their own town.”

One comprehensive analysis showed repealing Wisconsin’s prevailing wage laws will result in a projected $500 million in construction value being completed by out-of-state contractors on an annual basis and a yearly total of over $1.2 billion being lost due to reduced economic activity. A second analysis revealed 885 public construction jobs left Indiana after repeal of prevailing wage and 770 jobs popped up across the border in Kentucky.

One Wisconsin Now Executive Director Scot Ross said he “wasn’t surprised the Wisconsin Republicans are using lies and deception to level yet another attack on Wisconsin workers.” Ross said the list of Republican co-authors on the bill was “a who’s who of Wisconsin’s anti-worker extremists.”

(Read More)

(See a Copy of Video Here)

Contractors Make Case Against Prevailing Wage Repeal

Published by Frank Manzo IV, MPP
APRIL 3, 2017

JEFFERSON CITY, Mo. — Union and non-union contractors are voicing their opposition to a Missouri House proposal to eliminate a minimum wage requirement for public works projects.

The Coalition of Construction Contractor Associations, representing around 100,000 Missouri workers, told reporters in Jefferson City Wednesday what a proposed repeal of the prevailing wage could mean for workers.

Currently, local government organizations must pay workers more than the state’s $7.70-an-hour minimum wage for construction projects. Prevailing wage is determined by the Department of Labor and is based on the number of hours worked and the wages paid to contractors.

Wages are unique for each county. A general road construction laborer would be paid $31 an hour in St. Louis, but $25 in the northwestern corner of the state.

The main concern construction contractors have is that repealing prevailing wage will encourage companies to hire cheap, out-of-state labor, taking away jobs that would normally go to local contractors.

Government construction contracts are awarded to the lowest bidder, and without a prevailing wage requirement, out-of-state contractors could potentially bid much lower than those in Missouri.

(Read More)

EXCLUSIVE: Cuomo to propose bill that clamps down on wage theft from out-of-state companies (NY)

KENNETH LOVETT
NEW YORK DAILY NEWS
Saturday, January 7, 2017, 9:00 PM

 

ALBANY – Gov. Cuomo is set to propose legislation that will allow the state to aggressively go after wage theft in New York, the Daily News has learned.

The bill, to be announced as part of the governor’s State of the State agenda he’ll be releasing this week, would hold the top 10 officials from out-of-state limited liability companies, or LLCs, personally financially liable for unsatisfied judgments for unpaid wages.

The legislation will empower the state Labor Department commissioner to enforce such liabilities.

The idea, Cuomo said, is to recover more money employees were cheated out of when businesses went bankrupt – and went on to create spinoff limited liability companies registered in other states or hid their assets in other ways.

“New York is committed to ensuring a fair day’s pay for a fair day’s work and has zero tolerance for those who seek to exploit their workers,” Cuomo said.
“With this proposal we will help ensure that no matter where bad actors try to hide, they will not be able to skirt their obligations to hard-working New Yorkers. ”

(Read More)

Ohio cities could stop paying prevailing wage to construction workers

POSTED ON FEBRUARY 24, 2017
BY LIMA NEWS

 

COLUMBUS – Local governments could opt out of paying Ohio’s prevailing wage on public construction projects under a new proposal from state Sen. Matt Huffman.

State law requires counties, cities, villages and townships to pay minimum wages and benefits, called prevailing wages, to construction workers on projects exceeding a certain cost.

Huffman plans to introduce a bill next week that would allow jurisdictions to decide whether they pay prevailing wages and for what projects. He said the bill has the support of the Ohio Municipal League and Ohio Association of County Commissioners.

The Affiliated Construction Trades of Ohio, which represents Ohio’s skilled trades, opposes the idea.

Executive Director Matt Szollosi said Huffman’s proposal would cause drive more work to out of state contractors who pay their employees less. Szollosi said that would drive down participation in trade apprenticeship programs, are funded with a portion of hourly pay.

“Labor costs are 23 percent of overall costs so the notion that you can elicit significant savings on the labor side by cutting wages and benefits for workers is unfounded,” Szollosi said.

(Read More)