Prevailing Wage Bill Passes in the House

As it’s made its way through the legislative process, Senate Bill 361 has incited just as much passionate debate as any other issue on the House floor. On Saturday, Delegates approved the bill that drastically changes the way the state will calculate the prevailing wage.

The House galleries were packed with concerned construction workers and contractors, waiting for a decision regarding Senate Bill 361. Those concerned citizens waited through three hours of debate before finally getting a decision. The bill has gone through some major changes since it was first introduced in the Senate. Starting out as a full-repeal of the prevailing wage, that chamber changed the bill to include a recalculation, pulling it from the hands of the state’s Division of Labor and instead granting the calculation authority to Workforce West Virginia and the centers for economics at both Marshall and West Virginia Universities.

Many Republicans like this new version, because they say it calculate the wages of workers more effectively so those workers would receive equal or appropriate pay.

Democrats however, didn’t feel like this was accurate and say the facts were never adequately researched to prove the partial repeal would actually be effective.

“This is our money, our moral obligation,” said Delegate Stephen Skinner of Jefferson County, “I mean, are we really gonna start bringing in the contractors from Texas? From Mexico? From wherever? Are we gonna let our people thrive and be able to spend money? Where’s the data? There’s nothing. We haven’t had the evidence; it’s all anecdotal. It’s not fair. We make a decision like this, and we talk about, it hasn’t been vetted. I ask, what do you need to vet it? ‘We don’t need to vet it.’”

Democrat Michael Ferro of Marshall County says the bill is a repeal in disguise.

“Obviously I rise in opposition of this bill,” Ferro said, “because what it does is it cuts wages, it reduces safety standards for workers, it potentially puts local contractors out of work, it makes West Virginia open for business; open for business by opening the door for cheap, substandard labor, and undocumented workers.”

Delegate John Kelly of Wood County was one of the few Republicans who voted against the bill. Kelly says he opposes the minimum project cost provision in the bill, which means a government project would not be subject to the prevailing wage until it reaches a cost of half a million dollars or more.

“Part of what the committee has done is the right thing to do,” Kelly noted, “they’ve come up with a recalculation, and they’ve come up with a calculation that makes the establishment of that wage fairer. But the second thing they did is put a 500,000 dollar cap on it, and that I don’t like. I believe if the salary is computed, it’s computed fairly. We don’t need to put that wage, er that cap on it. And that cap becomes an artificial barrier within the law.”

Delegate John Shott of Mercer County and the Judiciary Chair, was confused by the accusations from members that this bill would repeal the prevailing wage.

“I’ve made it clear all along, I would not vote to repeal the prevailing wage,” Shott explained, “I think it has a place here in this state and others in protecting our workers from unfair out of state competition or unfair competition anywhere, so I went back to the bill, and I started looking through it to see what had changed from the law that currently exists, and I noticed we changed the word locality, which was defined as the county to regions; that didn’t seem to be justifying the kind of passion that we’d seen. I saw where we had changed the word workmen to workers; that certainly makes sense. I saw where we had changed the person who’s charged with protecting our taxpayers’ money from the commissioner of labor to Work Force West Virginia, in cooperation with the Bureau of Business and Economics at WVU and the Center for Business in Economic Research. And I did see the threshold, now I will, can see that that’s a change, that’s a major change, and it certainly would justify a spirited debate over that feature, but I saw nothing in this bill that makes us a non-prevailing wage state.”

Delegate Daryl Cowles of Morgan County and the Majority Leader said this bill is a good compromise.

“What’s before you is a compromise, a reform to the prevailing wage in an effort to meet the fairness that we need to provide to the tax payers,” Cowles said, “We have been responsive to the concerns, we leave in place a prevailing wage and find a way to set a fair, realistic calculation of the prevailing wage. But we must be fair to the taxpayer, we must be fair to the local governments, we must be fair to the volunteer fire departments, and we must be fair when we build water and sewer lines. The rate payers pay, it’s the rate payers that pay. We’re not in favor of raising rates. We must be fair. The inflated wage rates are unfair, and this is a step to try and calculate the true prevailing wage.”

Senate Bill 361 passed 56 to 39.

Sen. Joe Manchin Speaks at Public Hearing on Prevailing Wage Bill

Senate Bill 361 made its way into the House Thursday. What had been a full repeal of the prevailing wage all together is now just a scale back. And this compromise received an endorsement from U. S. Senator Joe Manchin.

The House Chamber was packed with union workers, contractors, business owners and others who were interested in seeing what the House would do with Senate Bill 361.

After emotional debates over the bill on the senate floor, and a rally organized by Senator Jeff Kessler that saw over 1000 protestors who were heavily against the bill, a compromise was found in the senate that made what was originally a full repeal of the prevailing wage, to only a partial repeal.

In the House Government Organization Committee’s public hearing, twenty-five people spoke to explain their feelings toward the controversial bill.

However, many of the speakers were not fully against the bill, but for the compromise passed by the Senate.

Robert Gribben is the president and owner of Grae-Con Construction in Weirton. He says the lowering of the prevailing wage would cost his business highly-skilled workers.

“The lowering of the prevailing wage most likely we’re going to lose a lot of these workers,” Gribben said, “because they’re going to go to the states surrounding us that do have a prevailing wage rate. Some of them will stay here and they’ll work in private industry, but there’s not going to be enough work to keep all of our West Virginian’s busy.”

Donald Gatewood, the president of American Energy Contractors in Huntington says he was originally for a full repeal, but now is interested in the compromise offered by the Senate.

“What the Senate has done with 361 and the amended version is, it’s a good compromise, because what it does is it takes prevailing wage, and it should make it prevailing wage, it should turn it into the market wage, which has a lot of benefit to this state, and most importantly, not to either of my companies, but most importantly to the tax payers of this state,” Gatewood said, “and I think we all have a fiduciary responsibility in this room to make sure that the tax payers in this state are paying fair costs for their construction work. This is not about cutting wages, I’m not at all for cutting wages, it’s about letting the marketplace work.”

In a surprise visit, Senator Joe Manchin also spoke at the public hearing.

00000174-a7b1-ddc3-a1fc-bffb33ea0000“I think we all know that West Virginia has some of the best workers, and the best workforce, and the best reputation for workers in the country. We have some of the best contractors, and if you look at the history of wages and you look at the Davis-Bacon Wage Act. This is not a partisan issue, it’s not Democrat, Republican. Davis and Bacon were both Republicans. The president that put it into force, as far as nationwide, as far as the highway system was President Eisenhower building the interstate system, so when you look at it, we’re looking at how do we protect good wages, get jobs done and done correctly, and basically with the best quality of workers you can. How do you have contractors? These were all put in place to make sure that was protected, and basically you have a situation in West Virginia right now, which I would hope you would see. You have an opportunity, we’ve heard labor and business talking and working together, wanting to find adjustments to be made to make this a better piece of legislation. They’re willing to do that. Labor’s gone so far as to put a threshold of $500,000. There’s only three states in the nation that have a threshold that high. They’ve given you, basically every opportunity to work within the highest levels to make sure that we can get jobs done and don’t put a burden on your municipalities or your state jobs as far as contracts we might have. The thing I’m trying to tell you is, seize the opportunity to put something together here that’s good. Don’t throw the baby out with the bath water. You’ve got everybody wanting to sit down and work together and make something happen that’s going to be good for West Virginia, it’s going to be good for the working people of West Virginia, the contractors and business people of West Virginia most importantly, the tax payers getting the job done with local workers. I think that’s what you have in front of you right now. I would hope you would seize that opportunity. God bless all of you. Don’t let the toxic atmosphere of Washington permeate in West Virginia. We’re better than this.” – U.S. Senator Joe Manchin

Thousands Rally on the Capitol Steps Against Prevailing Wage Bill

At the capitol Monday, a rally was held to speak out against the scaling back of the prevailing wage. Senate Bill 361 passed last Thursday in the senate. The rally was organized by Senator Jeff Kessler who has spoken strongly against the bill on the Senate Floor.

Over 1,000 people showed up to support the rally on the steps of the capitol building. The majority of protestors were union workers who were angered by the bill which initially repealed the wage altogether.

A number of Democrats from both the House and Senate spoke to the crowd including Delegate Tim Manchin.

“The snow out here it looks like Christmas, and it is. It’s Christmas from the Chamber of Commerce, and guess who’s buying the presents? You are! You’re paying for the presents. You’re paying for the presents, because they’re taking away the safety that you’ve come to expect after 60 years under Democratic rule. This is not a new agenda. They’ve been proposing these bill for the last ten years since I’ve been here. We’re the ones that have stopped them,” Manchin said.

Credit Liz McCormick / West Virginia Public Broadcasting
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West Virginia Public Broadcasting
Sen. Jeff Kessler speaking at the rally he called at the Capitol to protest changes to the state’s prevailing wage.

Anthony Jividen was one of the many protestors who felt like the scaling back of the prevailing wage would hurt workers and their families.

“They’re basically taking food off our tables and our livelihood; taking food from our families,” Jividen said, “I mean, they get voted for us, the working man, they say, for that they need to show it. All these bills they’re passing, it’s not right. It’s just telling us, they don’t care.”

Laurie and Sheila are teamsters from Wheeling, and they both feel like the prevailing wage is good and to lose it is detrimental.

“It affects our wages. The thing with the union is, you know, you get treated fairly, good wages, it’s made a huge difference in my life, and I know it has in Sheila’s also. And just want to support it,” Laurie said.

“You know I can make all the noise on the floor of the Senate that I’d like and over in the House the same way. Politicians understand one thing and that’s the voice of their voters and the voice of their people, and quite frankly I think many of them think they came down here, they won their election, and they have a mandate, because if you look at the votes that are being cast, you know, I don’t call it a mandate, I call it a mistake. Because there are so many things that are running out of there that are not good for the people of our state. I challenge anybody to go out there and say, I can’t remember any of the new majority that ran on a platform issue of right to work, and prevailing wage repeal, and shutting down the seventh amendment right to have access to the courts. I don’t remember any of that, I don’t remember anybody out there advocating those type of issues, and yet those are the things that are shooting right out of the box, and ram-rodding through." – Senate Minority Leader Jeff Kessler

Senator Kessler says he was very glad to see the turnout for the rally, and he hopes it sends a message to his fellow legislators.

Senate Bill 361 has been sent to House Government Organization for Consideration.

Bill to Scale Back Prevailing Wage Passes Senate

State Senators have approved a bill to scale back the state’s prevailing wage law and change the way it’s calculated.

A bill that would have repealed the state’s prevailing wage completely was altered and then approved by senators on a final vote of 23 to 11 Thursday with only Democrats voting against it.

The approved version moves the calculation of the wage from the Division of Labor to Workforce West Virginia in conjunction with economists from West Virginia and Marshall Universities. The bill also requires a half a million dollar minimum cost on public improvement projects for the wage to kick in.

Democratic Senator Doug Facemire opposed the bill saying no one has provided him enough information about what the change would do to the wages of the dozens of union workers who packed the galleries during the floor session.

“Look up in them chambers, these people with coveralls on, work clothes. You reckon’ they think this is good,” he said during a floor speech.

“We don’t know what we’re getting ready to do to these people. Nobody has given me any kind of a figure that says what’ going to happen to these people. I don’t think that’s good government. I think that’s reckless government,” Facemire said.

Other Democrats remarked they would vote against the bill because no one knew for sure the effects the legislation would have on workers’ wages, but Majority Leader Mitch Carmichael said that’s true under the current system.

“It should be absolutely clear to everyone in here, we don’t know what the prevailing wage is going to be next year. It’s a survey method and it can change from year to year under the current system,” he said during his remarks.

“So, nobody in the balconies and nobody in here knows what the current rate, or what the rate for the prevailing wage will be next year under the current system.”

The bill now moves on the House where Speaker Tim Armstead said he expects intense discussion on the bill.

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