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CT News Junkie | Perennial Prevailing Wage Debate Pits ...Town
Against Labor Unions
by Hugh McQuaid | Oct 29, 2013 CTNewsJunkie.com
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Tags: Labor prevailing wage, labor unions, municipalities, Connecticut Conference of Muncipalities, Hugh McQuaid, dh
Municipal associations asked the legislature’s Labor
Committee to support changes to the state’s longstanding and politically secure
prevailing wage policy at a public forum Tuesday in New Britain.
Connecticut law requires
contractors working on state and town construction projects to pay their
workers wages and benefits at least equal to rates posted annually by the Labor
Department. The prevailing wage law applies to all new government construction
projects above $400,000 and renovation projects costing more than $100,000.
Prevailing wage frequently pits organized labor unions
against municipalities. The unions believe the policy sets important wage
standards for construction workers, and the municipalities view it as a
burdensome unfunded mandate.
Although those thresholds have remained unchanged since
1991, they’re often challenged by legislation, usually from Republican
lawmakers, seeking to increase the thresholds or scrap the policy. More than a
dozen such bills were proposed last year and died in the Labor and Public
Employees Committee.
Efforts to change the law may face an uphill battle in the
committee, which is chaired by Democrats Sen. Cathy Osten
and Rep. Peter Tercyak.
However, for representatives of the Connecticut Conference of Municipalities and
the Council of Small Towns, the trigger modification does not seem like a big
request. Litchfield First Selectman Leo Paul, a Republican, asked members of
the committee to put aside their political allegiances and help relieve towns
of costly mandates.
“We’re not asking
that the prevailing wage be repealed. Simply, we’re just asking that it be
updated,” he said.
Paul asked the committee to support legislation raising the
threshold that triggers prevailing wage for new projects to $1 million and the
trigger threshold for renovation projects to $400,000. He also asked that the
technical distinction between a new project and repair work be clarified.
“Hometown leaders from both parties are realistic and
recognize the political sensitivities of modifying any state mandate. For this
reason local leaders seek reasonable compromises from increased construction
costs known as prevailing wages,” he said.
However, not all local officials agreed. Middletown Mayor
Daniel Drew, a Democrat, spoke in opposition to raising the thresholds. Drew
said that workers in every community are responsible for funding their
emergency responders and education system.
“If we increase those thresholds, you’re going to see
workers all over the state of Connecticut bringing home smaller paychecks,
which means less money is going into those local economies” and less money to
pay taxes for public services, he said.
Labor Commissioner Sharon Palmer, who prior to her
appointment by Gov. Dannel P. Malloy was president of
a teachers union, also opposed changing the policy. She said some towns already
have found ways to keep projects from reaching the threshold to require
prevailing wage rates.
“Municipalities have learned to play games with the prevailing
rate law,” Palmer said. “They cut down the contracts, cut them up into smaller
pieces so they never reach the threshold. So I don’t think we need to change
the law because that’s the reality.”
Paul disagreed with the assertion that towns were looking to
shortchange construction workers.
“Make no mistake, municipal officials want all workers to be
paid fair wages but the outdated prevailing wage thresholds that trigger this
unfunded mandate are long overdue for an adjustment,” Paul said.
Tuesday’s hearing served as an informational forum on the
topic. The legislature does not come back into session until February and it is
unclear whether there are any plans to raise legislation regarding
modifications the prevailing wage law.
A spokesman for House Speaker Brendan Sharkey said the
speaker is not interested in reopening the prevailing wage issue. He pointed to
an Office of Legislative Research report finding
Connecticut’s
thresholds among the highest in the country. Osten
agreed but said she heard ideas during Tuesday’s forum regarding streamlining
the prevailing wage process, which she intends to discuss with other Labor
Committee members.