Quote:Tucked within the 407-page law is a requirement that laborers and mechanics employed on government stimulus projects be paid "prevailing wages," which is defined as the salary and fringe benefits for corresponding work on similar projects in the area. The prevailing wage is usually on par with union wages and higher than the average wages for the same category of employees in the same county.
The ignorance here is breathtaking. Prevailing wage requirements have been around for decades, and are required for government projects from the level of municipalities, counties and states, as well as those of the Federal government. That remark about wages being higher than the "average" wages for the same category of employees in the same county is willfully misleading, too. For example, in the state of Ohio (the state in which i have most recently filed prevailing wage reports), the prevailing wage is published by county, so that in fact, in some counties, the prevailing wage required works out to be less than "average" wages paid for that category of work, because they are
below the union rate in those counties.
Furthermore, employers who provide benefits such as health insurance, cafeteria plans for medical costs, pension plans, sick pay and personal days are allowed to deduct those amounts from the prevailing wage they pay. So, for example, if you pay a certain amount for health insurance, you are allowed to pro-rate that amount and deduct it from the prevailing wage that you pay. If you provide sick days, you are allowed to pro-rate the annual allowance of sick days to an hourly rate (there are 2080 hours in a standard 40 hour/week working year, so the math is really simple), and deduct that from prevailing wage. If any of your employees are not certified by the union or a crafts organization (if you employ someone as a carpenter, but they have never taken a union-run carpentry course, for example), you are allowed to list them as apprentices, and pay a percentage of the prevailing wage rather than the full prevailing wage--and once again, after deducting the pro-rated value of benefits programs provided by the employer. Since many contractors employ non-union labor, they are able to meet the contracting organization's requirements by providing just one person certified with the skills, and listing all other employees on the project either as common laborers or as apprentices, greatly reducing prevailing wage costs. Believe me, i've filed literally thousands of pages of prevailing wage reports, because every state in which i've worked as a business manager has required wage reports for each week, regardless of how you pay your employees.
This is a classic case of the demagogue playing upon the ignorance and credulity of their target audience to attempt to arouse indignation. The Federal government passed it's first prevailing wage requirement in 1931 (when a Republican was in the White House), and has been extending it to various categories of projects in the ensuing 78 years, under both Democratic and Republican administrations. The states began writing prevailing wage legislation soon after.
But i have no illusions that this one will be worked to death by the Chicken Little, Obama is a dangerous Socialist
and a Nazi crowd.