Bal Harbour, FL
The Davis-Bacon Act remains an essential foundation of a decent standard of living for those working in the construction industry. The repeal of this legislation would have disastrous consequences for construction workers, their industry, their communities, and the federal government.
Repeal would destabilize and disrupt the industry. This is the experience in the states that repealed their prevailing wage laws, known as "little Davis-Bacon laws." These states have seen increases in the number of cost overruns and expensive change orders to rectify mistakes and shoddy workmanship.
The opponents of Davis-Bacon claim that the government would save money if the law were repealed. In fact, such a move would be penny-wise and pound-foolish. Davis-Bacon repeal would not necessarily lower the cost of federally funded construction. It would, however, increase the budget deficit, since lower wages for construction workers would result in an estimated decline of $1 billion in federal tax revenues.
It is the construction workers themselves who would bear the heaviest burden if Davis-Bacon were repealed. It is projected that all construction workers, union and non-union, would lose an average of $1,477 annually, or 5 percent of their yearly income, and that loss would be felt in their communities. Minority and women construction workers in particular would be hurt by the lowering of wages and the shrinking of training opportunities. Indeed, studies show that Davis-Bacon construction projects employ a higher percentage of minorities than other projects, and states that have repealed their little Davis-Bacon Acts have seen minority participation in apprenticeship programs decline by more than one- third.
Part of the burden on workers would be non-economic. Davis- Bacon repeal would put intense pressure on employers to cut corners in safety and health protections. This would lead to an estimated 76,000 additional workplace injuries per year, representing more than 675,000 lost work days.
It is vital that the Davis-Bacon framework remain intact. The AFL-CIO calls upon Congress to reject the effort to repeal it.