The Effect of Prevailing Wage Repeals on Construction Income and Benefits

Posted by National Alliance for Fair Contracting on

Feb. 2018

Journal of Public Works Management and Policy

Ari Fenn, Zhi Li, Gabriel Pleites, Chimedlkham Zorigtbaatar and Peter Philips – University of Utah

While considerable research has examined the effects of prevailing wage law repeals on construction wages, little has been done on the repeals effect on benefits. Based on state-level data from the quinquennial Economic Census for construction from 1972 to 2012, we find that depending on sample and model specification, statewide annual average construction blue-collar income fell by 1.9% to 4.2%. Statewide annual average legally required benefits (social security, workers injury-compensation insurance, and unemployment insurance contributions) for blue- and white-collar construction employees combined fell from 3.8% to 10.1%. Statewide annual average voluntary benefits (primarily health insurance, pension contributions, and apprenticeship training) for blue- and white-collar construction employees combined fell from 11.2% to 16.0%. Because prevailing wage laws govern only blue-collar construction remuneration, blue-collar benefits probably fell more than blue- and white-collar benefits taken together.

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Study: Construction workers in southern US lack employment benefits

Posted by National Alliance for Fair Contracting on

Kim Slowey
May 11, 2017

 

Dive Brief:

  • A study has found that construction workers across the southern U.S. receive little to no employment benefits and have relatively low pay, according to the Houston Chronicle.
  • The Workers Defense Project report found that 40% of construction workers in Houston had no health insurance, retirement savings, paid vacations or sick leave. More than 30% were not offered breaks during the day and reported that their employer did not provide drinking water on the job.
  • Only 5% of the 1,435 workers interviewed in six Southern states said workers’ compensation covered the cost of their work injuries, and 57% said they earned less than $15 an hour.

Dive Insight:

The results of this study reinforce a complicated issue plaguing the industry. On one hand, contractors across the country are facing the consequences of skilled-labor shortages and say they’re pulling out all the stops – including raising pay – in an effort to recruit workers. However, this report reveals that, at least in the South, many companies aren’t making the necessary changes in compensation and workplace culture to be an attractive option for new workers.

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(Full PDF of Report)