Letter to the editor: Restoring prevailing wage would save taxpayers money (WV)

Posted by National Alliance for Fair Contracting on

Jan 16, 2020

As West Virginia continues to fall short on revenue collections, Gov. Jim Justice said his budget proposal is “very conservative” in his State of the State Address. But Justice missed an important opportunity in his speech to get ahead of budget shortfalls that would put students first, hire West Virginia workers and save taxpayers money.

Restoring the prevailing wage should be one of the tools state government uses to get West Virginia through the leaner times ahead. Since prevailing wage repeal, students have suffered from new schools not opening on time and with faulty school construction. This costs taxpayers dearly.

Taxpayers have lost millions of dollars from the repeal of prevailing wage. Multiple new school facilities must be redone or fixed using our government dollars. Contractors who benefit their own bottom line with shoddy school construction built by unskilled workers from out of state cost us local jobs and the state tax revenues from not having more West Virginians employed.

While taxpayers shell out money later this year to redo floors at two new schools in Fayette County, the governor and Republican leadership in the Legislature will be looking for ways to head off shortfalls with spending cuts. But government leaders should also look at the positive impact of bringing the prevailing wage back. This law will employ more West Virginians to build our schools and eliminate wasteful spending from “do overs” caused by poor school construction.

Charles Parker
President, West Virginia State Building and Construction Trades Council

(Read More)

Lake County commissioners OK updated responsible contractor checklist

Posted by National Alliance for Fair Contracting on

By Andrew Cass, The News-Herald
POSTED: 04/30/18, 3:22 PM EDT

A sizable group of labor union representatives packed into the Lake County commissioners’ chambers to show support for a resolution updating the county’s responsible contractor checklist for infrastructure projects

Commissioner John Hamercheck said the resolution was part of a yearlong process, gaining steam in the past three months. It passed unanimously at the board’s most recent meeting.

“It sets the rules for how we’re going to do capital improvements at the county level,” Commissioner Daniel P. Troy said.

Troy also said he thinks that it ensures that the taxpayers – who are paying for the projects, be it through federal, state or local funds – are getting the best return on their investment.

“The way I look at it, it’s putting this in place so we’re not sitting here trying to determine who is the lowest bidder and who is the best bidder,” he said. “It’s still the law, but sometimes that becomes very difficult.”

Basically, he added, they’re setting criteria that is going to help ensure they pay “the right people the right amount of money to do the job the right way the first time.”

“What we’re looking for in this responsible contract language is furnishing of records as to that contractor’s performance on other projects, how they have complied with statutes that we have to comply with in terms of prevailing wage, payments of benefits etc.,” he said.

(Read More)

Employers steal billions from workers’ paychecks each year

Posted by National Alliance for Fair Contracting on
Survey data show millions of workers are paid less than the minimum wage, at significant cost to taxpayers and state economies
Report – By David Cooper and Teresa Kroeger
May 10, 2017

What this report finds: This report assesses the prevalence and magnitude of one form of wage theft-minimum wage violations (workers being paid at an effective hourly rate below the binding minimum wage)-in the 10 most populous U.S. states. We find that, in these states, 2.4 million workers lose $8 billion annually (an average of $3,300 per year for year-round workers) to minimum wage violations-nearly a quarter of their earned wages. This form of wage theft affects 17 percent of low-wage workers, with workers in all demographic categories being cheated out of pay.

Why it matters: Minimum wage violations, by definition, affect the lowest-wage workers-those who can least afford to lose earnings. This form of wage theft causes many families to fall below the poverty line, and it increases workers’ reliance on public assistance, costing taxpayers money. Lost wages can hurt state and local economies, and it hurts other workers in affected industries by putting downward pressure on wages.

What can be done about it: Strengthen states’ legal protections against wage theft, increase penalties for violators, bolster enforcement capacities, and protect workers from retaliation when violations are reported.

Introduction and key findings
For the past four decades, the majority of American workers have been shortchanged by economic policymaking that has suppressed the growth of hourly wages and prevented greater improvements in living standards. Achieving a secure, middle-class lifestyle has become increasingly difficult as hourly pay for most workers has either stagnated or declined. For millions of the country’s lowest-paid workers, financial security is even more fleeting because of unscrupulous employers stealing a portion of their paychecks.

Wage theft, the practice of employers failing to pay workers the full wages to which they are legally entitled, is a widespread and deep-rooted problem that directly harms millions of U.S. workers each year. Employers refusing to pay promised wages, paying less than legally mandated minimums, failing to pay for all hours worked, or not paying overtime premiums deprives working people of billions of dollars annually. It also leaves hundreds of thousands of affected workers and their families in poverty. Wage theft does not just harm the workers and families who directly suffer exploitation; it also weakens the bargaining power of workers more broadly by putting downward pressure on hourly wages in affected industries and occupations. For many low-income families who suffer wage theft, the resulting loss of income forces them to rely more heavily on public assistance programs, unduly straining safety net programs and hamstringing efforts to reduce poverty.

(Read More)