So here's what President Obama's Department of Labor has determined about wages:
- In Laredo, Texas, pipefitters make $11.47/hour. But pipefitters in Laredo working on federal contracts make a minimum of $36.49/hour plus benefits.
- In New York City, the median salary for window installers is $18.87/hour. But government contractors--even the most inexperienced installers--make $42/hour.
- In Philadelphia, lathers make $19.26/hour. Federal contractors are paid a minimum of $39.90/hour, plus an additional $25/hour in fringe benefits.
How can this be?
Well, rather than using data from the Bureau of Labor Statistics, President Obama's Department of Labor sets the prevailing wage after surveying employers and unions.
But, it's even worse:
- 75% of wage determinations are based on < 25 responses. 20% of wage determinations are based on < 5 responses. That's 95% of wage determinations based upon 25 or fewer responses.
- Guess who's doing the responding? Labor unions are disproportionately represented. For example, while 14% of construction workers have union representation, ~67% of wage determinations use the union rate.
- Audits from the Government Accountability Office and the Inspector General of President Obama's Department of Labor indicate error rates in the wage determinations of up to 100%. Perhaps that's the only perfect score that can honestly be assigned to this Administration!
If Davis-Bacon was repealed, the federal government could save $40B over the next 10 years.
What are the odds of that happening?
Let the discussion begin...
To read the Washington Examiner report, click on the following link:
"Math mistakes lead government to pay contractors up to 3 times market rate under Davis-Bacon."