AWF Urges Opposition to Davis-Bacon Filled Senate Bill

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I am writing today to express concern about the labor provisions contained in S. 1200, the Indian Health Care Improvement Act of 2008, which is scheduled for a vote on Monday, February 25th. On behalf of millions of rank-and-file American workers, I am urging you to vote no on S. 1200 as it implements inaccurate and statistically flawed wage determinations that inflate wages above market value in some states and decrease wages in others.

Contrary to rumored opinion, the Manager’s Package to S. 1200 did not remove Davis-Bacon. It is clearly stated on page 4, lines 7-15, “For the purpose of implementing the provisions of this title, the Secretary shall assure that the rates of pay for personnel…determined in accordance with sections 3141 through 3144, 3146 and 3147 of title 40, United States Code.” These referenced sections are the Davis-Bacon Act.

Currently, the Davis-Bacon Act prevailing wages are determined using self-reported surveys and wage data collected by the Wage and Hour Division (WHD) of the Department of Labor. This data is not obtained using proper random statistical sampling techniques. The result is that wage data obtained by the current WHD method reflects wages that are above and below the market wages as reported by the Bureau of Labor Statistics (BLS). I am urging you to oppose S. 1200 as it forces the continued implementation of this flawed wage determination method.

Using the current WHD method, wages are inflated on average by 22 percent nationwide. Yet in some states, wages determined using WHD data are actually lower than the market wage. For example, in Tampa, FL, the Davis-Bacon wages for electricians are 38 percent below the marker wages. The continuing implementation of a flawed wage determination system must be stopped.

Further, current WHD methods inflate construction costs by $8.6 billion per year. The Office of Inspector General found that one of more errors existed in 100 percent of the wage reports they reviewed. The evidence to reform the Davis-Bacon wage calculations is overwhelming.

Therefore, I am asking that you oppose S. 1200, the Indian Health Care Improvement Act of 2008 because it contains flawed Davis-Bacon implementation and vote “no” on final passage. 

Please feel free to contact our office to discuss future Davis-Bacon reform strategies.

Sincerely,

Brian M Johnson,
Director of Policy