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House Bill 1189 says if there is a federally funded construction
project that is run by the state or a unit of local government,
the higher of the federal prevailing wage or the state
prevailing wage will apply to that project.
Sean Stott, the director of governmental affairs at the
Laborers' International Union of North America, said the bill
would ensure Illinois workers' protection from action on the
federal level in regards to wage setting.
“The Illinois prevailing wage rates are set by collective
bargaining agreements, and the federal rates are as well. But
there is a ‘lag time’ and that could be as long as two, three or
even seven years,” Stott said during the House Labor and
Commerce Committee meeting. “In terms of enforcement … they must
go to the U.S. Department of Labor as opposed to the more
localized Illinois Department of Labor if they are to seek any
redress or compensation that they are due. This legislation
would address both of those issues.”
The federal minimum wage for government-funded construction
projects is governed by the Davis-Bacon Act.
State Rep. Tom Weber, R-Fox Lake, voted against the bill’s
advancement.
“When we are talking about the wage for a carpenter or an
electrician, maybe Illinois’ prevailing wage is $93 and the
Davis-Bacon wage is $90, with total benefits. This seems like a
way to nickel and dime a little more out of the taxpayers,” said
Weber. “We’re not talking $25 an hour jobs, we’re talking about
jobs that are probably up in the $70, $80 and $90 range.”
State Rep. Jay Hoffman, D-Swansea, sponsored the bill.
“Several other states follow this method including: Minnesota,
California, Nevada, Oregon, Washington and even Missouri’s
Department of Transportation follows this method,” said Hoffman.
“As you know, the prevailing wage in Illinois is set by what is
in a collective bargaining agreement. That agreement is sent to
the Illinois Department of Labor and they will change and update
the prevailing wage in a given area and for a given trade.
Unfortunately the federal government has not changed the
prevailing wage to reflect the most recent collective bargaining
agreement.”
Concerns were also raised about whether the new legislation, if
enacted, would result in federally funded construction projects
not being completed.
State Rep. Will Davis, D-Hazel Crest, asked, “If more money has
to be paid out on wages for a project, is there going to be
enough money to complete the project?”
Stott said contractors and bidders should be aware of what the
wage rates would be for any particular project.
“Labor costs on a typical construction project are going to
represent a smaller fraction of the total cost,” Stott said.
“Materials are going to be overwhelmingly the biggest
cost-driver on a project. The labor-side of things, I’m not
going to say it won’t move the needle, but it won’t move the
needle that much.”
HB 1189 passed out of committee 18 to nine. |
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