HCS HB 576 -- PREVAILING WAGE

SPONSOR:  Hunter

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 8 to 6.

This substitute:

(1)  Excludes public works projects with a total cost of less
than $250,000 from the prevailing wage law;

(2)  Limits the geographic area on which the prevailing wage is
based to the county where the work is performed unless it is a
contract with the Highways and Transportation Commission;

(3)  Restricts the application of the prevailing wage law to
actual construction only and to public works that are fixed works
that are both constructed for public use or benefit and directly
paid for wholly or in part out of public funds;

(4)  Requires that when no wages are reported for a particular
locality, the Department of Labor and Industrial Relations
establish the wage rate at 1.5 times the most recent hourly wage
rate for the locality as published on or before March 10 of each
year by the Missouri Economic Research Center or its successor.
The requirement that applicable wage rates established by
collective bargaining agreements be considered is removed;

(5)  Limits the alteration of any annual wage order for a
particular occupational title in a locality to once a year; and

(6)  Limits violations of the prevailing wage law to willful
violations.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill is not a repeal of the
prevailing wage law but a correction; 70% of wages across the
state are set with no hours being reported; wages are too high
and should be what is generally paid in the area; and unions do
not need the protection.

Testifying for the bill were Representatives Ruestman and Hunter;
Greg Hoberock; Mark Mayo; Larry Snyder; and Associated Builders
and Contractors.

OPPONENTS:  Those who oppose the bill say that the prevailing
wage law stabilizes wages, prevents contractors from cutting
wages to get a bid, helps promote a stable and highly trained
workforce, and is good for the economy; limiting the competition
will make prices go up; and the bill will destabilize the
construction industry.

Testifying against the bill were St. Louis Area Contractors;
Associated General Contractors of Missouri; Missouri State
Building Trades; Missouri Laborers; Missouri AFL-CIO; Carpenters
District Council of Kansas City and St. Louis; and Missouri Pipe
Trades.

Other witnesses testifying on the bill was the Division of Labor
Standards.

Mark Pioli, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am