AWF Opposes Ohio GOP Prevailing Wage Push
FOR IMMEDIATE RELEASE CONTACT: John Kartch
20 NOVEMBER 2008
202-785-0266
20 NOVEMBER 2008
202-785-0266
Group Urges Ohio GOP to Reconsider Prevailing Wage Initiative
Efforts should focus on removing over-inflated, pro-union wage structure
Efforts should focus on removing over-inflated, pro-union wage structure
WASHINGTON, D.C. — Today, the Alliance for Worker Freedom (AWF), a non-partisan organization dedicated to combating anti-worker legislation and promoting free and open labor markets condemned the recent prevailing wage push by Ohio Republicans.
State prevailing wages are determined by self-reporting surveys of construction firms that collect wage data. However, these surveys do not represent a statistically random sample like the Bureau of Labor Statistics’ unemployment or wage surveys. Rather, the surveys’ results indicate that the prevailing wage is determined by union manipulation of the survey system. This means unionized construction companies can decide the rate of any federal project at a national average wage of 22 percent higher than the true market rate.
According to AWF Executive Director Brian Johnson, “prevailing wages are the difference between having the money to build only four schools or six schools. The higher the wages, the less projects can be built, the less people can be employed and the higher the tax burden for Ohio citizens.”
Currently, Ohio Democrats, led by Gov. Ted Strickland (D) and backed by several local unions, are pushing to have prevailing wags apply to 100 percent of contracts with any federal funding. To counter, the Ohio Republicans led by state Senator John Carey (R) want the wage laws to apply to the entire contact with 35 percent or more public funding; if less, the wages will only apply to that portion.
Johnson says the Ohio Republicans are missing the point. “Prevailing wage laws are nothing more than a state-based spinoff of a federal Depression-era wage subsidy law. Since when do Republicans support inaccurate and out of date self-reported surveys, with extremely high error rates?”
AWF cites examples where carpenters in Sumter, S.C. are paid 57 percent below the market wages; while those in Suffolk, NY are paid 74 percent above the market rate. The group adds that economists estimate that prevailing wages costs taxpayers an extra $8.6 billion to cover inflated construction costs. “These prevailing wage laws force the burden on taxpayers in one city and alter market wages in another –repeal, not status quo, not compromises, is the only option,” adds Johnson.
