(Missourinet) – The Missouri House has advanced a measure to limit worker pay on public projects in Missouri.
The proposal, which is a combination of three bills from Republican representatives would impact employees on projects for cities, school districts, and local governments. It would do away with the current “prevailing wage” policy where workers are paid based on where the project takes place.
The bill will require one more vote before it can move to the Senate.
GOP House member Jeffrey Justus of Branson, who’s sponsoring the legislation, said the existing arrangement needs to be done away with because it’s a drain on local tax dollars.
“The purpose of getting rid of prevailing wage is that our constituents tax dollars, not the state’s tax dollars, our constituents, the ones who pay it can get more out of their money than what they’re getting now,” said Justus.
The measure, which received initial approval in the Republican-dominated chamber by an 86-63 margin, repeals the prevailing wage law and requires contractors and to pay employees state or federal minimum wage, whichever is higher. Minimum wage in Missouri is currently $7.70 per hour.
Proponents of the legislation, which include many cities and counties, claim the current law leads to money being siphoned from local jurisdictions to pay for high labor costs. They say it artificially raises wages and makes public works projects cost prohibitive in rural areas, leading to the abandonment or neglect of important projects.
In Cole County, which is home to the state capitol in Jefferson City, pay ranges from $14.35 per hour for a marble finisher, to $47.07 for an elevator constructor. Many of the positions have basic hourly rates between $25.00-and-$35.00. Prevailing wage is determined by the Department of Labor and is based on the number of hours worked and the wages paid to contractors.
Democratic Representative Doug Beck of St. Louis said local communities would be better served if contractors were required to report their worker pay.
“It’s all voluntary,” said Beck. “All the reporting on prevailing wage is voluntary. And that’s the part of the problem I see.”
Opponents of the measure contend that if worker pay was reported then the prevailing wage would better reflect local economies and would be lower in rural areas. Organized contractor associations and labor unions oppose the legislation to repeal the law. Contractors like prevailing wage because it keeps skilled workers from taking jobs in other states.
Passing a prevailing wage roll-back is a priority for the Republican super-majority legislature. After years of frustration, the GOP finally advanced a business-friendly right-to-work proposal into law last year with a like-minded head of state, GOP Governor Eric Greitens.
A prevailing wage bill passed the House in 2017 but stalled in the Senate, which became dysfunctional and consumed with infighting toward the end of the session.