President suspends Davis-Bacon Act

osage

Diamond Member
Jul 16, 2000
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:disgust: This to me just seems to be kicking these ppl of the gulf coast when they are down. Many have been wiped out, and now when the rebuilding starts they will not be able to make a decent wage doing the reconstruction of the area. The large corps will be able to reap even larger profits because of this.

This makes me sad, angry, and embarrased all at the same time.

How can this be right ?

link
 

shira

Diamond Member
Jan 12, 2005
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For those of you who came in late, the David-Bacon act sets requirements on the pay of hourly laborers. Among other things, it sets a floor on the amount paid, and requires weekly paychecks.
 

Engineer

Elite Member
Oct 9, 1999
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Click me!

Bush lifts wage rules for Katrina
President signs executive order allowing contractors to pay below prevailing wage in affected areas.
September 9, 2005: 11:43 AM EDT




WASHINGTON (Reuters) - President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage.

In a notice to Congress, Bush said the hurricane had caused "a national emergency" that permits him to take such action under the 1931 Davis-Bacon Act in ravaged areas of Alabama, Florida, Louisiana and Mississippi.

The Davis-Bacon law requires federal contractors to pay workers at least the prevailing wages in the area where the work is conducted. It applies to federally funded construction projects such as highways and bridges.

Bush's executive order suspends the requirements of the Davis-Bacon law for designated areas hit by the storm.

Bush's action came as the federal government moved to provide billions of dollars in aid, and drew rebukes from two of organized labor's biggest friends in Congress, Rep. George Miller of California and Sen. Edward Kennedy of Massachusetts, both Democrats.

"The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities," Miller said.

"President Bush should immediately realize the colossal mistake he has made in signing this order and rescind it and ensure that America puts its people back to work in the wake of Katrina at wages that will get them and their families back on their feet," Miller said.

"I regret the president's decision," said Kennedy.

"One of the things the American people are very concerned about is shabby work and that certainly is true about the families whose houses are going to be rebuilt and buildings that are going to be restored," Kennedy said.

I guess if the people will work to rebuild that town for less than a "decent" wage for the work, then they're not too bright. Of course, illegals could easily snatch up the work and be happy at even half minimum wage as it's still much higher than their own country's wages. Not sure if this will effect anything or not. A curious decision indeed.
 

osage

Diamond Member
Jul 16, 2000
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thank you for the link Engineer

when I posted this I was so pissed that I forgot to provide linkage

I just e-mailed my senator and reps, I just can't see that this can be allowed to slip beneath the radar
 

zendari

Banned
May 27, 2005
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It's a good way to get the job done faster with illegals and get those people back into their homes.
 

1EZduzit

Lifer
Feb 4, 2002
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President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage.

So is he saving tax payer money by enabling contractors to hire cheap labor, or is he just making contractors more money??

Quick, decide!!
 

1EZduzit

Lifer
Feb 4, 2002
11,833
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Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

LMAO, here comes Mr. Compassionat Conservative!!! :laugh:
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
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Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

It wasn't done for the people. It was done for the business side, IMO. Most of the residents of N.O. will never return. The port side business must.

Originally posted by: 1EZduzit
Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

LMAO, here comes Mr. Compassionat Conservative!!! :laugh:

:laugh:
 

Perknose

Forum Director & Omnipotent Overlord
Forum Director
Oct 9, 1999
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Originally posted by: Engineer
Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

It wasn't done for the people. It was done for the business side, IMO. Most of the residents of N.O. will never return. The port side business must.

Originally posted by: 1EZduzit
Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

LMAO, here comes Mr. Compassionat Conservative!!! :laugh:

:laugh:
:laugh: :laugh: :laugh:

 

Jadow

Diamond Member
Feb 12, 2003
5,962
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ok, let's have un unsuspend this piece of 70 year old socialist legislation and then we can have our 50 BILLION DOLLARS BACK!
 

CaptnKirk

Lifer
Jul 25, 2002
10,053
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Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

We're you just screaming to close the borders and keep out the illegal immigrants ?


Originally posted by: zendari
-------------------------------------------------------------------------------
Originally posted by: EatSpam
This isn't a liberal/conservative thing. Bush and McCain are proposing different versions of amnesty. So is Ted Kennedy. As far as I know, most Americans don't support this. I'm quite liberal and I support a well secured border.
--------------------------------------------------------------------------------




Kind of funny. 23 years ago Texas tried to kick illegals out of public schooling.
Supreme Court liberals disagreed. If only Bush I and Reagan had enough brains to appoint real conservatives,
the country would be in a much better place today.

Personally I say to toss illegals into the Pacific Ocean somewhere.


 

Perknose

Forum Director & Omnipotent Overlord
Forum Director
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Originally posted by: Vic
Union carpetbaggers stay home.
Your emotional post is the antithesis of any logic, let alone coherency.

 

Vic

Elite Member
Jun 12, 2001
50,422
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Originally posted by: Perknose
Originally posted by: Vic
Union carpetbaggers stay home.
Your emotional post is the antithesis of any logic, let alone coherency.
Hardly. That was the purpose of the President's action. Typically, after a disaster, thousands and thousands of carpetbaggers descend on the area looking for fat government rebuilding contracts. Bush just told them to stay home. That was all.
 

Hayabusa Rider

Admin Emeritus & Elite Member
Jan 26, 2000
50,879
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Originally posted by: Vic
Originally posted by: Perknose
Originally posted by: Vic
Union carpetbaggers stay home.
Your emotional post is the antithesis of any logic, let alone coherency.
Hardly. That was the purpose of the President's action. Typically, after a disaster, thousands and thousands of carpetbaggers descend on the area looking for fat government rebuilding contracts. Bush just told them to stay home. That was all.

But did he? What prevents Halliburton and others from coming in and paying less, sending the profits elsewhere?

As I said in the other thread, there is nothing here that says that can't happen. In fact if I were in the market to come in, I'd be drooling at the thought of cheap labor.
 

cKGunslinger

Lifer
Nov 29, 1999
16,408
57
91
Originally posted by: 1EZduzit
Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

LMAO, here comes Mr. Compassionat Conservative!!! :laugh:

Hmm..

Originally posted by: 1EZduzit

Yes, all those dead are laughing also. They have never seen anything so amusing in their whole life.

Now, we just need conjur to come in and explain to us that you are showing your true colors by laughing at the plight of the victims of Katrina and this little Web 'O Hypocricy will be complete.
 

zendari

Banned
May 27, 2005
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Originally posted by: CaptnKirk
Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

We're you just screaming to close the borders and keep out the illegal immigrants ?

Might as well make the best use of them while they are here.
 

rahvin

Elite Member
Oct 10, 1999
8,475
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Originally posted by: zendari
It's a good way to get the job done faster with illegals and get those people back into their homes.

It's also a good way to encourage abuse of workers, embezzlement of funds and lousy quality work. Davis-Bacon has always ensured that qualified people work in highway construction because most people don't want the bridge they are driving on to fall down because some untrained moron getting paid minimum wage didn't tie any of the steel together.

I should also add that construction workers generally dump all their money right back into the local economy (ones that can save are quite rare). To remove davis-bacon is going to end up impacting the economy and enourage the use of illegals who will take all that taxpayer money and send it to mexico instead of back into the local economy.
 

GroundedSailor

Platinum Member
Feb 18, 2001
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Here's my post in the locked thread. Keep imn mind that, ultimately, the taxpayer is footing the bill for reconstruction.

The Davis Bacon act specifies the minimum prevailing wage to be paid for each trade on a federally funded project. The prevailing wage is in most part the same as the local union rate for that trade and includes benefits. The Dept of Labor decides this and they just pick up the union rate and publish that as the prevailing wage.

In one sense it's a good thing as it prevents contractors and others from underpaying their workers and levels the playing field for all companies who bid on federally funded projects.

I agree that in times like this the prevailing wage should be suspended for the reconstruction effort. This will help reduce the overall cost of rebuilding the devastated area.

But, and this is a big but, this SHOULD NOT BE ACCOMPANIED BY NO-BID CONTRACTS otherwise the contractor is going to make unhealthy profits. This is what I fear will happen, given this administrations track record.

I'm familiar with all this as I help run a union contracting company and we bid and work on federal projects. While we don't make large profits it's enough to pay for our overheads and our salaries.


Ferocious
The $23 per hour for general labor is feasible as the total includes benefits. For union workers the benefits are paid to the union but for non union workers working on prevailing wage the benefits are paid in cash to the worker directly. E.g., if the wage is $15 and the benefits are $8 per hour, a union worker will be paid $15 and the benefits are paid to the union (which is supposed to take care of medical cover, annuity, pensions etc.). Non union contractor employees doing the same job will be paid $23 per hour but they have to look after their own health cover etc.


 

rahvin

Elite Member
Oct 10, 1999
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Originally posted by: GroundedSailor
But, and this is a big but, this SHOULD NOT BE ACCOMPANIED BY NO-BID CONTRACTS otherwise the contractor is going to make unhealthy profits. This is what I fear will happen, given this administrations track record.

I'm familiar with all this as I help run a union contracting company and we bid and work on federal projects. While we don't make large profits it's enough to pay for our overheads and our salaries.

It's not really supprising that someone in the contracting industry would want to get away from low-bid contracting as they can make a lot more money that way but you seem sincere that you actually think that would keep profits in check and if that's true I hope for your employers sake that you aren't in charge of anything.
 

Pabster

Lifer
Apr 15, 2001
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Repost

The idiots here slamming this don't even understand what the Davis-Bacon Act is, how it works, or why suspending it now is actually a good thing. Then again some people who sweep the streets feel they ARE worth $25 an hour.
 

osage

Diamond Member
Jul 16, 2000
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"The idiots here slamming this don't even understand what the Davis-Bacon Act is, how it works, or why suspending it now is actually a good thing."

a good thing for who ?

for the local guy that can't go back to his old job cause the marina-gas station-welding shop-grocery store or whatever he worked at does not exist any more ?

for the large contractors who will get the contracts to rebuild hiways, bridges, motels etc: ?

who benifits from this ?
 

Vic

Elite Member
Jun 12, 2001
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Originally posted by: dmcowen674
Everything that could be done wrong is being done wrong by this Administration.

How can any American support these thugs is beyond me.
Because the perception among the majority is that the other gang of thugs is even worse.