Labor Department to release pro-union regulation on construction worker wages: Report
The Labor Department to Issue Controversial Pro-Union Final Rule
The Labor Department is set to issue a final rule that will have a significant impact on pay regulations for construction workers on federal projects. Acting Labor Secretary Julie Su will finalize the rule on Tuesday, according to the American Prospect.
The Davis-Bacon Act and Prevailing Wages
The rule pertains to the Davis-Bacon Act, which was established in 1931. This act requires contractors and subcontractors with federal contracts to pay prevailing wages to mechanics and laborers. Prevailing wages vary depending on the location and serve as a minimum payment standard for construction workers on public works projects.
In areas with a lower cost of living, prevailing wages may be lower compared to high-cost areas like urban centers.
Details of the Final Rule
While specific details of the finalized rule have not been released, the Labor Department initially proposed the rule over a year ago and allowed interested parties to provide input during a public comment period. The rule’s release has been delayed to ensure its ability to withstand potential legal challenges.
One key aspect of the rule is how the government calculates prevailing wages. Under the current Davis-Bacon Act, a majority of wage providers must be surveyed to determine the prevailing wage. However, the revised rule will allow a prevailing wage to be determined from a survey of just 30% of workers.
According to Sean Higgins, a research fellow at the Competitive Enterprise Institute, this change raises concerns about whether the prevailing wage accurately reflects the majority of workers’ wages. However, it also provides the administration with flexibility to potentially increase wages under the Davis-Bacon Act.
Implications and Perspectives
Prior to the 1980s, prevailing wages were considered prevailing if paid to at least 30% of workers in a given area. The Biden-era rule reverts back to this previous standard, aiming to level the playing field for non-union labor.
Advocates of the rule argue that it will lead to better wages for construction workers and support labor unions, aligning with President Joe Biden’s pro-union stance. However, groups like Associated Builders and Contractors, representing the non-union construction industry, have voiced opposition to the rule.
The final rule is expected to face legal challenges, potentially resulting in a lengthy battle in the court system. Additionally, the rule’s implementation may increase costs for federal contracts, impacting taxpayers.
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