HB 1478 -- PREVAILING WAGE

SPONSOR:  Ruestman

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 10 to 6.

This bill prohibits an employer from bidding for or performing
work on a public works construction project in which the bid or
work performance includes any wage subsidies or rebate from
employees, labor organizations, or any third party to subsidize
the employer's labor costs on the project.

The employer is required to certify to the Department of Labor
and Industrial Relations that wages paid comply with the
prevailing wage specified for the project and that he or she is
not receiving any prohibited rebate or subsidy.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that unions are pooling money to
target contracts to keep union members employed.  Targeting a
contract was explained as the union paying a bidding union
contractor pooled union money to enable the contractor to submit
a lower bid to get the contract.  This practice was regarded by
open shop contractors as an unfair advantage in contract bidding.

Testifying for the bill were Representative Ruestman; Associated
Builders and Contractors, Heart of America Chapter; and
Independent Electrical Contractors.

OPPONENTS:  Those who oppose the bill say that pooling money to
keep union members employed is not unfair.  Targeting contracts
is the only mechanism available for steady employment of union
members other than the guarantee of superior work accomplished on
time.  State government does the same thing with tax credits,
variances, and other incentives used to attract or keep
businesses in Missouri.

Testifying against the bill were Fred Weber, Inc.; St. Louis Area
Contractors; Missouri State Building Trades; Carpenters' District
Council of Kansas City; Carpenters' District Council of Greater
St. Louis; Missouri Laborers; and Missouri AFL-CIO.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am