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Sunday, January 30, 2011
Prevailing Wages Protect All
By Ray M. Baca And Pat Bowen
Executive Director, N.M. Building and Construction Trades Council; President, Franklin's Earthmoving
In 2009, Senate Bill 33 was passed through the Legislature and signed into law. The new law stated that the "prevailing wage" on public works projects in excess of $60,000 would now be determined using the same wage and fringe benefit rates as those negotiated rates for collective bargaining agreements across the state — as opposed to the antiquated and inefficient system used for years.
This legislation was written to improve worker rights across the board on public works projects, regardless if those workers were covered by a collective bargaining agreement or not. This legislation serves to protect workers, both non-union and union, in their right to receive fair current-market wages and fringe benefits — those most normally associated with collective bargaining agreements.
For contractors, this legislation levels the playing field, with all of them bidding the same wage and fringe benefit rates on public works projects.
For the state, this legislation in no way inhibits the normal procurement protocol — in fact, it streamlines data collection and enforcement capabilities.
Since being signed into law, its usage has been stifled by an endless barrage of legal and political maneuvering — up to, and including the new administration's recent shake-up of the Labor and Industrial Commission.
The end result of these actions — New Mexico construction workers have suffered.
The construction industry in New Mexico, as in much of the country, is mired with an unemployment or underemployment rate that is over double the general public. So now, insult is being added to injury by stalling the enactment of this fair wage law.
Opponents of 2009's Senate Bill 33 suggest that the use of collective bargaining agreements in determining prevailing wage would unnecessarily cost the state millions of dollars in wages and benefits, and that contractors would simply pass the increased cost to the state. This should not be the case.
If the state has budgeted a certain amount of money for a public works project — based upon their engineering projections — then that is how much the state will pay, if not less.
The need for contractors to make a fair profit for the work they perform is understood and respected, but extraordinary profit should not come on the backs of their workers, if those workers are not receiving the best possible wage and fringe package.
Why is this important? It's important because it allows contractors to hire and hold on to quality workers. It improves the overall quality of public works projects as those jobs will be done by properly classified and trained workers. And by paying a fair, prevailing-wage and benefits package, many workers will then be able to provide more for their families and ultimately give back more to the economy.
In 2011, new legislation is being considered by the Legislature that would have the state return to its outdated method of collecting wage information — a system that would limit many contractors across the state from fairly competing for new, large-scale public works projects. This would be a setback for New Mexico's construction workers, their families and their communities.
As policy makers meet to consider the implementation of 2009's Senate Bill 33, we hope they do so mindful of the spirit in which the law was originally passed. This is about establishing fair wages that are negotiated in good faith. It protects working people by making sure they are compensated fairly. It also protects the public; ensuring it is getting a qualified workforce building key infrastructure projects such as roads, bridges and schools.
It is also about predictability for business, and it is about securing a fair deal for taxpayers. That's good public policy — and it's in everyone's best interest.
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