Quote:
Originally posted by WOODPIE
Here's the link, mul
I'd like to ask how you people feel about the Gulf Coast Wage Reduction, especially in light of the fact that this was one of the first things Bush did after Katrina. And please, don't ask me to post a link. I don't have good computer skills, and I have doubts about the function of the link I put here. Just do a search.
Ed
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Mul has mentioned that wage controls destroy jobs and make businesses unprofitable. So, he apparently has not reviewed the research. I have worked with prevailing wage issues for fifteen years, and I can answer your question.
Dubya did this because he hates labor unions like Mul does, and this tactic simply allows contractors to drive down wages, and places non-union companies at a competitive advantage. It's part of the war on workers, and the cronie-ism you see from Dubya constantly. It's not about people, it's about profits. If the president were more about people and less about profits, you wouldn't have seen an executive order of this kind.
What we find in all the legitimate research is that large companies with the experience and equipment and bondability to address large projects, all have a few things in common. First, they pay higher wages whether they are union or non-union. We have a couple of excellent, large non-union companies in Washington State (at least one, anyway). This company and a fistful of others (that are union) are prepared to handle large projects, and believe me, they are WAY WAY cheaper than the bargain-basement mom-and-pop businesses, unless you're just erecting a lawnmower shed.
Dr. Phillips has done the most comprehensive research in this regard. His studies show that low-wage states actually pay more to build and to maintain a mile of roadway than do high-wage states. That jives with my experience with many many construction contractors on large projects. If you are the taxpayer, the last thing you want to do is award a large contract to a small contractor than plans on paying $5 per hour to the workers. I can predict the course of a contract as I see the paperwork go across my desk, and so can the engineers. Ask any civil engineer who has overseen these kinds of contracts. Dubya is simply setting the stage for cronies to set up construction companies that will bilk FEMA by underbidding the contractors that already know how to efficiently address the challenge. Labor unions are probably Dubya's most potent political enemies, and the more he can keep money away from them, the less he has to worry about them in the political process. They represent people. Dubya represents corporations.
The thing that separates the men from the boys in large scale projects is contract administration and management. Direct wages only account for about 20% of the cost of a project. Never ever more than 30%. Paying good wages gets you good, efficient workers, and also has community benefits. Construction workers earning so little that they are also on public assistance is just a way to get the taxpayer to pay part of what the contractor should be paying. The wage we are talking about in NO is $9 per hour. Apparently, Dubya thinks that is extravagant. Here is the link:
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/08/AR2005090802037.html
And if you really want to learn the truth about the many reasons that Davis-Bacon wage policy is good for the nation and the taxpayer, here is a link. By the way, Davis and Bacon were Southern legislators.
http://www.lecet.org/Legislative/prevailing_wage/law_studies.htm