12 años en Delaware • 1996 - 2008 • 12 years in Delaware 12 años en Delaware • 1996 - 2008 • 12 years in Delaware
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Gov. Minner Turns on Delaware Workers
Prevailing Wage Increase Will Crush Delaware Budget
Washington, D.C. -- January 28, 2008: Today, the Alliance for Worker Freedom (AWF) issued a statement opposing legislation signed by Delaware Governor Ruth Ann Minner (D) that increases the state prevailing wage without the need for evaluation for five years.
State prevailing wages are determined by self-reporting surveys. AWF policy director Brian Johnson says that these surveys create a market bias and distort true market wages. According to Johnson, "Inaccurate and out of date self-reported surveys, with an error rate of 100 percent, hardly reflect true prevailing wages. With overwhelming evidence for prevailing wage reform, in expanding these distorting practices, Gov. Minner is continuing to skew the labor market directly in favor of Big Labor unions and against the average American worker and business owner."
Economists have estimated that prevailing wage laws cover roughly 20 percent of all construction projects, and 25 percent of all construction workers. James Sherk at the Heritage Foundation contends they impose over $1 billion in extra federal construction costs and over $100 million in administrative burdens year-in and year-out. Other estimates have put the added Davis-Bacon (federal prevail wage) premium at anywhere from 25 percent to 33 percent of the cost of every federal construction project.
The Alliance for Worker Freedom contends that the prevailing wage calculation system must be fixed before it is expanded upon by state or federal legislation. "By passing legislation that requires the Department of Labor to calculate prevailing wages, using proper statistical techniques and using larger geographical areas rather than civil divisions, will generate valid random samples and will actually reflect a true market wage, " says Johnson.
"Why is Gov. Minner requiring surveys that are primarily responded to by union workers, to determine the 'prevailing wage'? Johnson adds, "She is hijacking the free market against the average worker."
Information provided Brian M. Johnson, 1920 L Street, NW, Suite 200, Washington, DC 20036. www.workerfreedom.org.