I rise to speak against this amendment. Mr. Chairman, the Davis-Bacon Act requires that workers on federally funded construction projects be paid no less than the wages paid in the community for similar work. It sounds fair. The Davis-Bacon Act prevents the Federal Government, a large influential construction owner, from using precious tax dollars to undercut local wage standards through its investments in construction work. Those against Davis-Bacon say it drives up costs. Not so. Why don't we deal with facts for a change? Davis-Bacon has no effect on total costs of construction. Study after study reveals productivity makes up for any additional labor cost, essentially eliminating any cost savings if the law is repealed. In other words, projects using highly skilled workers often cost less than those using low-wage, low-skilled workers. Opponents who claim the government could save billions by eliminating Davis-Bacon protections ignore productivity, safety and the act's economic development benefits, which contribute to the real cost effectiveness of Davis-Bacon. In addition, the Davis-Bacon minimum wage must reflect the rate of contribution to retirement, health insurance, apprenticeship training, and disability insurance. By including fringe benefits and wage calculations, Davis-Bacon delivers health care and pensions for workers on these projects.
Editor's note · Context
Hirono speaks against an amendment related to the Davis-Bacon Act and its impact on construction wages.
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