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Tuesday, July 21, 2009

Coalition of Groups Call for Suspension of Pennsylvania Prevailing Wage Law

The Commonwealth Foundation joined a coalition of organizations - including business groups, boroughs, and school boards - calling for reforming Pennsylvania's prevailing wage law. Specific proposals include:

  1. Sun setting or eliminating “prevailing wages” from school construction, road and highway work, and all other taxpayer-funded programs;
  2. Giving each municipality the option to pay the “prevailing wage” or the occupational “market based” wage for their area;
  3. Updating the “prevailing wage” threshold (which has not been raised since 1961) to an amount equivalent to today’s dollars; and
  4. Establishing the use of the occupational wage rate gathered by the Pennsylvania Department of Labor and Industry as the clear and uniform statutory definition of the prevailing pay rate.
Pennsylvania's prevailing wage law cost state and local governments an estimated $9 billion in additional construction costs each year, driving up property taxes. For the full letter, see below:

Prevailing Wage Letter


Anonymous said...

$9B, huh? 3x more than current deficit. Sounds like a no-brainer.

Anonymous said...

Yes. It is a great idea. Unfortunetly the Sandi Vito, the Secretary of Labor and Industry and other labor union supported politicians, will do what ever it takes to shoot this one down.