By KEVIN DUNCAN
NEW YORK DAILY NEWS
MAR 20, 2019
Over a century ago, New York State established its first prevailing wage law. It was based on the common-sense principle that workers who build something for the public good be paid a fair wage for their work. It’s a deal that’s paid off for New York and for countless families who’ve been lifted into the middle class through hard work and sweat equity.
Prevailing wage laws require construction workers who do major jobs for state or local government to be paid at rates that are set through negotiations between businesses and laborers.
The problem today is that more and more big projects are being funded as public-private partnerships, blurring the line of what’s considered “public work.” Construction projects are being built throughout the state, subsidized with public funds, that are able to evade requirements to pay a decent wage to their workers.
Take the Trump Ferry Point Golf Course in the Bronx. New York City taxpayers spent over $120 million to build a golf course on the site. Trump was then selected to operate the course, and as part of that deal, built a $10 million clubhouse.
Because this part of the project was not clearly defined as “public work,” the billionaire developer was able to do so without wage requirements, keeping the extra profit for himself.
That’s why we need legislation to clearly define public work – and a bill currently under consideration in the state Legislature does just that. Supportive language was just included in one-house budget resolutions, and the governor has signaled his support as well.
A clear definition of public work will create a bright line test so there’s no more ambiguity. Under the proposed law, a project will be considered public work if: the construction is paid for in whole or in part with public funds, or the construction is performed in contemplation of a public entity leasing a portion of the space in the resulting development.
This would relieve the state of the great administrative burden of trying to determine whether or not various projects are public work. Furthermore, it would grant the Department of Labor additional enforcement abilities to better ensure that public funds are used appropriately.