Bal Harbour, FL
Repeal of the Service Contract Act, an idea now being promoted by some members of Congress, would reduce living standards for hundreds of thousands of American workers while bringing little in the way of savings to the federal government. It should be rejected.
The Service Contract Act helps ensure the federal government a stable contract work force by requiring that prevailing wages and benefits be paid to the workers it covers. Before its enactment 30 years ago, federal service contractors were winning bids by lowering wages and reducing benefits. Large numbers of workers on government-contracted jobs -- janitors, housekeeping aides, security guards and food service workers -- were earning minimum wage and no benefits, resulting in massive employee turnover and poor service to the government. Meanwhile, federal radar and space centers were losing the expertise of high-skilled technicians who were continuously rotated in and out of contracted jobs.
If the Service Contract Act is repealed, the government's lowest-cost procurement mandate would again result in the awarding of contracts to employers who pay less than a living wage. Many of the 600,000 workers now covered by the act would be unable to support their families and would become an economic burden on their communities.
According to the Federal Procurement Data System, the total value of all contracts covered by the Service Contract Act is minimal in the context of the overall federal budget. Repealing the act would produce no significant savings.
Clearly, the Service Contract Act is in the best interest of the U.S. government, its contracted employees and the communities where they live. The AFL-CIO urges Congress not to repeal this commitment against using taxpayer dollars to exploit workers and depress their living standards.