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Angelo Vellake: Prevailing wage, apprenticeship programs beneficial

Published:August 8, 2009, 10:33 PM

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Updated: August 21, 2010, 1:12 AM

Based on the continuous diatribe by County Executive Chris Collins regarding the evils of prevailing wage and apprenticeship programs, it is important that our community have an honest discussion of the origin and purpose of both.

Prevailing wage policy goes back more than a century, when many state and local governments required contractors on public works projects to pay wages to protect communities against downward wage pressure and substandard building practices, by creating a level playing field for bidding.

The federal Davis-Bacon Act was passed in 1931 by a Republican Congress and President Herbert Hoover, a Republican, in response to the severe unemployment of the Great Depression and the substandard workmanship by contractors who won bids based on low pay for workers.

In 2002, Judge William B. Bryant reiterated the law’s intent: “Americans of all races were in need of aid from the government during the Great Depression. Congress enacted the DBA [Davis- Bacon Act] to assure workers a fair wage, provide local contractors a fair opportunity to compete for local government contracts and to preserve its own ability to distribute employment and federal money equitably through public works projects.”

Prevailing rates for public projects in New York are set by the Department of Labor for each locality, which means Erie County’s prevailing rates are lower than New York City’s rates. Prevailing wages ensure competition for the highest skilled workers.

Regarding overall construction costs, in a review of research, Nooshin Mahalia points out, “Average labor costs, including benefits and payroll taxes, are roughly one-quarter of construction costs.” Thus, even if a prevailing wage regulation raised wages by 10 percent, the impact on contract costs would be less than 2.5 percent.

Besides fair wages, Davis-Bacon and associated state laws also encourage a highly skilled work force through apprenticeship programs. “Apprenticeship is a proven training strategy that improves the skills of the American work force and enhances the productivity of American industries. Investment in the U. S. registered apprenticeship system represents a wise use of government dollars, paying for itself many times over,” according to a U. S. Labor Department fact sheet on registered apprenticeship.

In addition, it is the policy of New York “to develop sound apprenticeship training standards and to encourage industry and labor to institute training programs.” Apprentices generally are paid 40 percent to 50 percent of prevailing wages, decreasing contractors’ costs further.

The resulting highly skilled work force increases productivity by as much as 20 percent, significantly decreases workplace injuries and death and their associated costs and produces high quality products and construction.

Angelo Vellake is president of the WNY Area Labor Federation, AFL-CIO.

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