On the recordJanuary 24, 2017
I rise to speak of legislation I am introducing today--the Transportation Investment Recalibration to Equality Act, or the TIRE Act. The TIRE Act would suspend the Davis- Bacon prevailing wage requirement on all transportation-related infrastructure contracts. This would free up billions more in taxpayer dollars to be spent on jobs and on projects. For those who are not familiar, Davis-Bacon is a Depression-era law that requires contractors on Federal construction projects to pay workers no less than the so-called local prevailing wage. Now, since its enactment over 80 years ago, the Department of Labor has been unable to devise an effective system for determining prevailing wages. In fact, a 2004 Department of Labor inspector general report revealed that Federal wage reporting surveys, which are a key metric used to determine prevailing wages, are fundamentally flawed. Of all the wage report surveys reviewed by the IG, 100 percent contained flaws. Let me say that again: 100 percent of all the surveys were flawed. In addition, some of the wage surveys have not been updated since the 1980s. The bottom line is that every time Davis-Bacon applies to a Federal project, less money is going to construction and more money is going to meet onerous wage requirements. According to the Beacon Hill Institute, Davis-Bacon forces taxpayers to pay 22 percent above the market rate for labor on Federal infrastructure projects.…
Source
govinfo.gov




