Our Construction Wages
The Federal Davis-Bacon law sets a wage floor for federal construction projects that prevents government spending from undermining local wages and living standards. Illinois and twenty-seven other states also have “Little Davis Bacon Acts” or state prevailing wage laws that apply to state-funded construction projects.
Prevailing wage laws ensure that all contractors bidding on public construction projects will pay family-supporting wages and that these projects will be built to the highest standards by skilled, safe, well-trained construction craftspeople. The projects built under the Davis-Bacon Act have stood the test of time while enabling generations of tradesmen and women to build better, stronger lives for themselves and their families.
Corporate interests and their advocates sometimes claim that Davis-Bacon increases taxpayer costs, but numerous studies have shown they do not. Employers who oppose prevailing wages do so because they want to cut workers’ paychecks and pocket the pay-cuts as profits.
Prevailing wages protect paychecks for Laborers and all construction workers.
- Prevailing wage rates aren’t necessarily a “union wage.” They are set by a survey of actual wages and benefits paid to union and nonunion. But, in Illinois, the prevailing wage rate for construction laborers is the Laborers' union package (wages, benefits, and training) because our union, LIUNA, is strong and we make sure most of the construction done in our area is done by union Laborers and our signatory contractors.
- Without prevailing wage, construction workers earn less and more families will need some form of public assistance to supplement their income.
- Low road contractors who are working to repeal or weaken the state prevailing wage law are really out to cut workers’ paychecks and pocket the pay-cuts as profits.
- Without a prevailing wage rate, LIUNA members could see their wage and compensation package plummet by more than 60%.
Bottom of the barrel contractors are pushing repeal so that they can cut workers’ pay and pocket the profit.
- Responsible contractors understand that they are making an investment that helps their business succeed by fairly compensating a skilled and trained workforce.
- It’s the irresponsible contractors who are eager to cut workers’ wages who are pushing repeal.
- And, don’t be fooled when low quality contractors pay less in wages, they do not pass savings on to taxpayers—they pocket the profits.
Prevailing wage rates protect taxpayer investments by ensuring that public projects are built to the highest standards.
- Prevailing wage rates often include investment in training and apprenticeship programs which not only provide a career path for workers but also ensure that projects are built to the highest standards of quality.
- When irresponsible contractors, paying the least in wages and benefits, build our roads and bridges, there are more likely to be mistakes, workplace accidents, change orders, and cost over runs.
- Lowering wages actually reduces on the job productivity. For example, in a study of highway and bridge work in 10 states found that when high wage workers were paid double that of low-wage workers, they built 4 more miles of roadbed and 32.8 more miles of bridges for $557 million less