Opinion: How prevailing-wage laws help veterans

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Chicago Sun Times

OPINION 12/08/2016, 06:51pm

Mike Pounovich and Marc Poulos

In about six weeks, President-elect Donald Trump and the two houses of Congress will own responsibility for delivering on some big promises.

Two featured repeatedly in his campaign were fixing our infrastructure and “taking care of vets” who are being treated “horribly.”

These two issues are not as disconnected as you might think

Veterans work in construction at higher rates than non-veterans.  And the military invests heavily in training for these types of jobs — providing 22 percent of all skilled trade apprenticeships in the country today.

Research and our own experience inside the industry shows that the key policy driving many veterans and others into these middle-class construction careers is prevailing wage laws — the minimum wage for skilled construction work. Prevailing wage laws not only make veterans more likely to pursue a career in the trades, they also reduce the likelihood of a veteran in construction living in poverty by as much as 30 percent.  They promote higher workmanship, safety, and efficiency standards on public construction projects.  And by virtue of providing more working families with money to spend in their communities, they are proven to boost job creation across all sectors of the economy.

While these laws were created by Republicans and have long enjoyed broad bipartisan support, many in President-elect Trump’s party are calling for their repeal. Vice President-elect Mike Pence repealed Indiana’s prevailing wage in 2015, and Illinois Gov. Bruce Rauner has gone so far as to hold the entire state budget hostage over a similar demand.

Now, after many blue-collar construction workers helped deliver the White House to Trump over his promise to immediately rebuild our nation’s outdated infrastructure, the question is what will happen to the national prevailing wage law (Davis-Bacon) that’s ensured these projects are done right for 85 years.

On the campaign trail, Trump famously said, “Every policy decision must pass a simple test: Does it create more jobs and better wages for Americans?”  Most of the peer-reviewed evidence tells us that repealing prevailing wage laws fails this test spectacularly, and worse, would disproportionately hurt the hundreds of thousands of military veterans working in the construction industry today.

The beneficiaries would not be veterans or working Americans — but the wealthy “low road” contractors who have long supported anti-prevailing wage politicians like Pence, Rauner and Wisconsin Gov. Scott Walker.  These special interests aren’t buying politicians because they are planning to send taxpayers a rebate check.  Instead, because they know a race to the bottom on safety, wages, and craftsmanship translates to less competition and higher profits for them.

Trump surely knows prevailing wage laws have almost no impact on total project costs, since construction labor only represents about 20 percent of the average project budget.

These laws also make a huge difference for taxpayers who rely on quality roads, water systems, schools and bridges that are built correctly.

How Donald Trump’s infrastructure proposal balances the more extreme elements in his party with his promise to rebuild America’s infrastructure in a way that creates  “more jobs and better wages for Americans” will help define his presidency.

Either he will keep faith with the working people and veterans he claims to represent, or he will game the system for low road special interests.

Mike Pounovich is an equipment operator and a former specialist in the U.S. Army Reserves who spent 12 months in Iraq building roads, bridges and other critical infrastructure.

Marc Poulos is the executive director and counsel of the Indiana, Illinois and Iowa Foundation for Fair Contracting, as well as a board member of the National Alliance for Fair Contracting and the Illinois Prevailing Wage Council.

2016 IKORCC Sisters in the Brotherhood Conference

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The Indiana Kentucky Ohio Regional Council of Carpenters held its first annual Sisters in the Brotherhood Conference on October 13-14, 2016. The IKORCC SIB Chair, Teresa Moore, put together a great conference with special speakers, including Midwest District VP David Tharp, and EST Mark McGriff to name a few.  The conference was a great experience for the sisters and gave them time to network, getting involved, and valuable leadership skills so they can reach their potential in our industry. Topics included politics, Roberts Rules of Order, UBC structure, Mentoring, community service, and Strategic Priorities.


Midwest District Vice President David Tharp
Executive Secretary-Treasurer Mark McGriff

IKORCC Sisters in the Brotherhood Chair Teresa Moore
Dayton, Ohio Mayor Nan Whaley

LeNee Carroll with Building Strong Communities
Steve Hoyt Political Report

Mary Runyon General Superintendent for Shook Construction
Michelle Stallings Mentoring and Retention

Casey Zadarin Roberts Rules Presentation
IKORCC 2016 Sisters in the Brotherhood Conference

Local 200 Veterans Parade

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Members of Local #200 and their families join in celebration of Veterans Day at the Whitehall 2nd Annual Veterans Day parade on 11-12-16

Veterans In Construction Will Want To Save Prevailing Wage Law

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Wednesday, 26 October 2016

Written by

Study says wages will be reduced 7-10 percent if repealed

A repeal of a law going into effect in January will have a severely negative impact on military veterans.

That according to a study done by Midwest Economic Policy Institute (MEPI).

Prevailing wage, which makes sure those in construction get a livable wage on the job, is set to go away for local projects next year.

“Repeal of prevailing wage would actually reduce veterans income by 7-10 percent,” Frank Manzo, the policy director with MEPI, said. “(It) would lower the employer provided health coverage for vets in construction by 11-15 percent.”

Manzo says there is no evidence from other states that have passed this law that money has been saved.

In 2014 there was an estimated 200 veterans in La Crosse County employed as blue collar construction workers and this policy could put veterans in danger in these positions, especially since it cuts apprenticeship.

“Veterans who come home from fighting overseas,” Manzo explained, “now face an increased risk, if they’re working construction, when prevailing wage is repealed, because they’re colleagues are less trained, less invested in their community.”

The study says the law will strip 400 veterans of their health insurance. Over 8 percent of the construction workers in the state are veterans.

Manzo says if you are against prevailing wage being stopped, you should make your voice known at the polls in two weeks.

The move is expected to double the number of veterans living below poverty level.

Get Out To Vote

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Union members who don’t vote elect anti-union officials. Thanks to our many members who continue to show the importance of voting in the upcoming election!

Letter: Apprenticeship programs benefit state

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Posted Sep. 4, 2016 at 8:02 PM

A study released Aug. 24 by the Illinois Economic Policy Institute and the University of Illinois at Urbana-Champaign School of Labor and Employment Relations determined in dollars and cents the actual benefit of apprenticeship programs in Illinois.

These benefits don’t extend solely to those who participate in the apprentice programs but also to the federal, state and local governments that receive the tax revenues and the members of the communities that benefit from increased investment.

According to the study, apprenticeship programs in Illinois “directly provide 2,871 jobs” and “provide $1.25 billion in long-term economic benefits to the state.”

Not only this, but apprenticeship programs educate and prepare the well-trained individuals who provide quality craftsmanship, who take pride in their work and complete it in a time-efficient and cost-effective manner.

The Chicago Regional Council of Carpenters knows that these benefits are important not only to the bottom line, but to the outcome of a project. That’s why the CRCC provides a robust training and apprenticeship program that boasts tens of thousands of highly trained and skilled workers who receive wages and benefits that allow them to support their families and grow their communities.

The study also found that the construction industry is going to keep growing, adding more than 25,000 new jobs in the next decade. Let’s make sure those jobs go to the trained women and men who are not only dedicated to their field, but produce a positive economic impact on our state.

Frank T. Libby

The writer is president/executive secretary-treasurer of Chicago Regional Council of Carpenters

Indiana Interim Study Committee Reviews Payroll Fraud Issue

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Yesterday the Indiana Interim Study Committee on Employment and Labor heard testimony from construction contractors on the issue of#payrollfraud. Contractors asked the Indiana Legislature to consider options to investigate and prosecute businesses who break the law and steal from taxpayers. Stay tuned for actions the legislature takes to stop cheating businesses from robbing taxpayers of $400 million/year and raising costs on law-abiding business.

2015 Omnibus Bill Includes Delay on ‘Cadillac Tax’ So Families with Healthcare in US are Protected for Now

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Members of the United Brotherhood of Carpenters (UBC) and participants in other employer sponsored health care plans in the U.S. can rest a little easier now that implementation of the “Cadillac tax” on those benefits has been delayed until 2020. This provision was included in the $1.1 trillion omnibus spending bill that was signed into law by President Obama. The House of Representatives passed the bill on a 316-113 vote, while the U.S. Senate passed it 65-33.

It is hoped that this delay in implementing the Cadillac tax, which would impose a 40% excise tax on the portion of group health plan premiums that exceed $10,200 for single coverage and $27,500 for family coverage, will lead to a full repeal down the road.

“When people take a closer look at the so-called Cadillac tax, they see how unfair it is for employers and employees,” said UBC General President Douglas J. McCarron. “We have been working hard with law makers and this two-year delay helps us on our way to a full repeal.”

Read this article here.

EXCLUSIVE: Attorney General’s office recovers nearly $5.7M in owed pay for New York low-wage workers

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ALBANY — State Attorney General Eric Schneiderman’s office recovered nearly $5.7 million in owed pay and damages for more than 3,300 low-wage workers since last Labor Day, the Daily News has learned.

The recoveries are included in a third annual Labor Day report Schneiderman’s office is set to release Monday.

The recovered wages by Schneiderman’s Labor Bureau went to fast-food employees, home health aides, taxi drivers, restaurant employees and construction workers.

“As Attorney General, I remain steadfastly committed to ensuring that workers are paid for the work they do, that their pay lifts them out of poverty, and that undue obstacles aren’t placed in their path to job security and economic advancement,” Schneiderman said.

Read the full article here.

Ashland contractor cited $117K over police station project wages

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SAM BONACCI

Ashland subcontractor On-Time Construction Services, Inc. and its owner Jonatas Vicente De Brito Barcelos have been cited $117,082 in restitution and penalties for intentionally violating the Massachusetts prevailing wage law and failing to submit true and accurate payroll records, Attorney General Maura Healey announced Monday.

The allegations stem from a project at the Acushnet Police Station for which On-Time was a subcontractor, according to a release from the AG’s office that began an investigation last July into the situation.

The investigation revealed that at various times between March and August of last year, On-Time failed to pay three workers the correct prevailing wage rate, according to the AG’s office. One worker was not paid any wages until after the investigation commenced. On-Time also certified on a weekly basis to the awarding authority that its workers were paid the prevailing wage rate even though they were not. Under the Massachusetts Prevailing Wage Law, contractors and subcontractors engaged in public construction projects must pay their employees a special minimum wage, according to the AG’s office.

Since the investigation began, On-Time has paid $78,987 in restitution to the employees.

Click here for the full article.