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Contractors bid on U. S. Federal Construction projects and most contracts for federally assisted constructions exceeding $2,000 required to pay their employees the standard wage and benefit package that workers in the area performing similar work are earning the “prevailing wage”. Prevailing Wage typically means the local union wage. In government contracting, “a prevailing wage is the hourly wage, benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area”. The culprit of all of this is the “Davis Bacon-Act” (DBA) The act was amended several times and has been attacking by opponents claiming its racist, unnecessary, expensive and costing taxpayers and the government a lot of money. Republicans have been attacking and trying to repeal the Davis-Bacon Act on the grounds that it is outdated, expensive and bureaucratic. Their latest effort last year was claiming, the repeal will cut 2.5 trillion from the budget over the next ten years and will save 1 billion annually. Recently, this topic is also one of the issues on CNN, presidential hopeful Mitt Romney attacking his opponent “irresponsible” for voting in support for DBA. He was claiming that the law was costing American taxpayers over 100 billion in 10 years. He also quotes “one of the first things I will do is end the government favoritism towards unions on contract and will fight to repeal the DBA” The purpose of this paper is to discuss various opposing views of the public sector, analyze and weigh how it affect the government, economy and the workers, providing an effective suggestion and conclusion. The next page will provide a brief history of the DBA and more explanation on the issues. Body-Understanding of the subject 50-60% of the total paper just 3-4 points Link together each of your findings and discussion and do not present the information in a scattered way or do not jump over to points haphazardly. Focus on the facts only and justify them with measurements and references. Most importantly, this chapter is only for the discussion. DO NOT add conclusion or your personal views as you need to save something for the last chapter. This part of the document comprises up to 50% - 60% of the total paper. Prevailing wages are established by regulatory agencies for each trade and occupation employed in the performance of public work, as well as by State Departments of Labor or their equivalents. Prevailing wage regulations are an important element in ensuring that public construction projects do not destabilize the local construction industry, in leveraging public works investments for supporting local economies and local governments, and to advance other priorities such as workforce development, green building, and greenhouse gas reduction. Prevailing wages must include provisions for paying workers on-site no less than the locally The story of Davis-Bacon begins, in 1927 when a contractor from Alabama won a bid to build a Veterans' Bureau hospital in Long Island, New York. He brought a crew of black construction workers from Alabama to work on the project. Appalled that blacks from the South were working on a federal project in his district, Representative Robert Bacon of Long Island submitted H.R. 17069, "A Bill to Require Contractors and Subcontractors Engaged on Public Works of the United States to Comply with State Laws Relating to Hours of Labor and Wages of Employees on State Public Works, the antecedent of the Davis- Bacon Act. The...
References: 3. Charles S. Johnson, "Negro Workers and the Unions," The Survey 60, April 15, 1928, p. 114.
8. See generally U.S. Congress. House. Committee on Labor. Hearings on H.R. 17069, 69th Cong., 2d Sess. Feb. 28, 1927, pp. 2-4.
13. See Richard C. Weaver, Neqro Labor: A National Problem (Port Washington, N.Y.: Kennikat Press, 1948), p. 10.
14. Sterling D. Spero & Abram L. Harris, The Black Worker (New York: Columbia University Press, 1931), p. 178.
15. U.S. Congress. House. Committee on Labor. Hearings on H.R. 7995 & H.R. 9232, 71st Cong., 2d Sess., Mar. 6, 1930, pp. 26-27.
16. Congressional Record, February 28, 1931, p. 6,513 (remarks of Representative Allgood).
29. Herbert R. Northrup, Organized Labor and the Neqro (New York and London: Harper and Brothers Publishers, 1946), p. 46.
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