Cass Ballenger: “I am joined today by many of my colleagues in the introduction of legislation to repeal the Davis-Bacon Act. In one way…”

“I am joined today by many of my colleagues in the introduction of legislation to repeal the Davis-Bacon Act. In one way or another, the act is expensive, inflationary, unnecessary, restrictive, and generally harmful to the structure and development of the construction industry. The act adds billions of dollars to Federal construction costs and the American taxpayers are picking up the tab. Enacted during the throes of the Depression, the Davis-Bacon Act requires contractors on Federally funded construction to pay the prevailing wage. Now, more than 60 statutes incorporate the Davis-Bacon wage requirements by reference. In some instances, coverage of the Davis-Bacon Act has been further extended to situations in which the Federal Government merely has an interest through ownership participation, funds guaranty, or cases where the Federal Government contributes a minimal amount to a State or local project. The rationale for special wage protection was never very persuasive but Davis-Bacon has remained in place since 1931, giving some construction workers a bonus at the bargaining table at the taxpayer's expense. For example, electricians working in Philadelphia on a Davis-Bacon project are paid $37.97 an hour compared with electricians on a private contract who are paid an average of $15.76 an hour. The Congressional Budget Office estimates that the Davis-Bacon Act raises Federal construction costs nearly $1 billion a year.”