Prevailing wages cost W.Va. a lot
THE state established its prevailing wage laws in 1935. They prevail still, although they are fraudulently determined and work neither in the interest of the public or organized labor.
Enacting tomfoolery is one of West Virginia's most damaging political character flaws. Refusing for decades to correct it is another.
Father Thomas Acker, who works with Forward Southern West Virginia, has made a one-man mission out of tilting at this windmill.
The 1935 legislation stipulated that prevailing wages should be based on at least 40 percent of the people engaged in the same trade. In 1961, legislators weakened even that, deciding that the Division of Labor should use its own discretion, following an investigation, to determine prevailing wages.
This easily gamed non-system was challenged in 1992, but Acker said the court held that the department can set rates using any methodology it wants.
"It only requires investigation, but the Department of Labor may ignore any of the results of the investigation in making their final determination," Acker told the state Chamber of Commerce recently.
Given such a dishonest system, most contractors don't respond to surveys. Organized labor does, so prevailing wage rates closely reflect organized labor's contractual rate.
Acker said this is in the top 10 percent of wages paid and represents only 15 percent of workers.
THE state established its prevailing wage laws in 1935. They prevail still, although they are fraudulently determined and work neither in the interest of the public or organized labor.
Enacting tomfoolery is one of West Virginia's most damaging political character flaws. Refusing for decades to correct it is another.
Father Thomas Acker, who works with Forward Southern West Virginia, has made a one-man mission out of tilting at this windmill.
The 1935 legislation stipulated that prevailing wages should be based on at least 40 percent of the people engaged in the same trade. In 1961, legislators weakened even that, deciding that the Division of Labor should use its own discretion, following an investigation, to determine prevailing wages.
This easily gamed non-system was challenged in 1992, but Acker said the court held that the department can set rates using any methodology it wants.
"It only requires investigation, but the Department of Labor may ignore any of the results of the investigation in making their final determination," Acker told the state Chamber of Commerce recently.
Given such a dishonest system, most contractors don't respond to surveys. Organized labor does, so prevailing wage rates closely reflect organized labor's contractual rate.
Acker said this is in the top 10 percent of wages paid and represents only 15 percent of workers.
The resulting high rates hurt taxpayers, costing them money that otherwise could be used to build and maintain roads, schools and other things.
"In 2007, the West Virginia Division of Highways spent over $600 million," Acker said. "A true prevailing wage would yield new jobs to 500 more laborers at $50,000 a year, resulting in 25 additional miles of road, all for the same price."
The current system also hurts union laborers, because they lose contracts in bidding on some jobs, he said.
Acker contends that an honest average wage could be found by using the "excellent" scientific surveys from the West Virginia Department of Commerce.
"The manner by which the West Virginia Department of Labor sets the prevailing wage is discriminatory against the majority of workers, an abuse of its discretion, shortsighted, contrary to good economics and harmful to the citizens of the great state of West Virginia," he said.
Acker expects a prevailing wage case in Raleigh County Circuit Court to wind up in the state Supreme Court. Maybe that would help.
But perhaps not as quickly as forthright legislation.
West Virginians hardly need to be costing themselves projects, jobs and progress at this point. Why do elected officials put up with such nonsense?
For Farix, yes I read it, did YOU? This is just another blatant attempt at attacking Davis-Bacon by an anti union rag, with the typical talking points. The wage is set by Div of Labor via a survey which non-union contractors are equally afforded the chance to respond. To suggest otherwise as the Daily Mail does, is simply disingenuous.
How about that Cheney promise to "rebuild" Georgia?
Say what?
These folks are in "Bozoville".
How about rebuilding "America" first?
Do the people in this country, "our" country count for anything?
God Help Us.
But if you take a more libertarian approach, it should not be the state government's responsibility to set wages in the private sector.