Prevailing Wage Controls Costs
A study of 3 states – including Kentucky – found no meaningful cost difference on school construction comparing states with and without prevailing wage.*
Why do the costs not go up with prevailing wage?
- Labor only makes up 21% of total building construction costs in Kentucky. Reducing wages doesn’t produce any savings without paying workers illegally below minimum wage. However, productivity does drive the cost of construction. Skilled workers on prevailing wage jobs are 15% more productive than less-skilled workers.
- Kentucky taxpayers get better project quality and self-sustaining jobs at no additional cost to the taxpayer. Lowering local standards for construction wages attracts a lower skilled, out-of-area workforce which results in large productivity losses, costly errors on the construction project, inefficient use of expensive materials and fewer jobs for Kentuckians.
*Kentucky’s Prevailing Wage Law, Phillips, P., 2014.
Class representative addresses crowd at graduation banquet
Jerome Stanford completed the apprenticeship program with hundreds of others from Indiana and Kentucky and were honored with a completion ceremony in December 2015. As the selected speaker to represent the graudation class, Jerome addressed the members and guests that night.
Why should politics matter to you?
American workers have felt a slow decline in their wages since the early 1980s, meaning wage increases have been slightly lower than the cost of living increase. This means less money for groceries, clothing, your children and the everyday essential you may need for raising a family or saving for retirement.
Union wages for the construction industry are no different, except unions have contracts that include wage increase, healthcare and retirement plans. With ongoing training programs for apprentices and journeymen this allows the workers to be more skilled than the nonunion workers. Productivity levels are higher, accidents are lower, and attitudes on job sites are more positive than ever before because of the investments in training by the members and their union. These union contracts are agreements between Labor and Contractors. The more highly skilled workers usually result in better wages, better working conditions and better benefits for their family.
On the other hand, payroll fraud is spreading rampant through the construction industry. This is where unscrupulous nonunion contractors choose to hire hourly workers and pay them cash or as independent contractors (1099s) by not withholding the employee’s state or federal tax deductions, FICA withholdings and Medicare deductions, leaving this responsibility on the workers to pay.
Who are my legislators in Kentucky?
The Kentucky Legislative Research Commision provides a map to reveal the elected officials in your area. You can use the search by address at the top or select your location. By clicking on his/her bio page, you can find contact information including phone, email and mailing adress. We encourage everyone to reach out to your elected officials regarding issues of concern.
Prevailing Wage Controls Costs
A study of 3 states – including Kentucky – found no meaningful cost difference on school construction comparing states with and without prevailing wage.*
Why do the costs not go up with prevailing wage?
- Labor only makes up 21% of total building construction costs in Kentucky. Reducing wages doesn’t produce any savings without paying workers illegally below minimum wage. However, productivity does drive the cost of construction. Skilled workers on prevailing wage jobs are 15% more productive than less-skilled workers.
- Kentucky taxpayers get better project quality and self-sustaining jobs at no additional cost to the taxpayer. Lowering local standards for construction wages attracts a lower skilled, out-of-area workforce which results in large productivity losses, costly errors on the construction project, inefficient use of expensive materials and fewer jobs for Kentuckians.
*Kentucky’s Prevailing Wage Law, Phillips, P., 2014.
Class representative addresses crowd at graduation banquet
Jerome Stanford completed the apprenticeship program with hundreds of others from Indiana and Kentucky and were honored with a completion ceremony in December 2015. As the selected speaker to represent the graudation class, Jerome addressed the members and guests that night.