AWF Urges Andover to Oppose Prevailing Wage
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FOR IMMEDIATE RELEASE CONTACT: Brian M Johnson
8 NOVEMBER 2007
202-785-0266
Labor Group Urges Andover to Oppose Prevailing Wage Laws
AWF Condemns Mayor Mike Gamache’s Support
Washington, D.C. — Today, Alliance for Worker Freedom (AWF) Policy Director Brian M. Johnson issued the following statement in response to Andover’s City Council considering prevailing wage laws for city construction projects costing over $150,000.
“Prevailing wage is most often synonymous with the Davis-Bacon Act”, Johnson says. “Bottom line, this is a Depression-era wage subsidy law enacted in 1931. Its time has run out. In the 21st Century, especially in the new competitive global economy, it is essential to allow the free-market system to determine wages. Command-and-control government regulations do not foster a free and open society. Rather, further regulatory policies will result in a stagnation of the labor market with the benefits reaching only a few special interests.”
Economists estimate that the Davis-Bacon Act covers 20 percent of all construction projects, and 25 percent of all construction workers. It imposes over $1 billion in extra federal construction costs and over $100 million in administrative burdens year-in and year-out. Various estimates have put the added Davis-Bacon premium at anywhere from 25 percent to 33 percent of the cost of every federal construction project.
“Why is Mayor Mike Gamache supporting a law that requires surveys which are primarily responded to by union workers, to determine the 'prevailing wage'? Johnson adds, “Prevailing wage laws do nothing more than hijack the free market.”
To schedule an interview call 202-785-0266 or email jkartch@atr.org
