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Proof prevailing wage a good deal

On March 6 in Elgin, Gov. Bruce Rauner said of his income state tax proposal, "Any local loss of revenues would be offset by reforming prevailing wage laws, which can increase costs by 25 percent." This couldn't be further from the truth. Rauner fails to understand the total costs and economic effects of public works projects.

An overwhelming majority of research on prevailing wages has concluded that a state prevailing wage law has no statistical impact on the overall cost of public construction projects. Numerous studies show prevailing wage laws encourage the use of local, in-state contractors, requires market rates to be paid increasing worker incomes between 2 percent and 8 percent, but, increases productivity 14 to 33 percent. In addition, that wage paid to local workers lifts consumer demand and increases spending at local businesses, stores, restaurants, bars and professional service offices.

Research also proves it generates millions of dollars in state and local tax revenues through increased consumer spending reducing the reliance on government assistance. As a result, prevailing wage stimulates job creation and the local economy.

Repealing prevailing wage laws decreases wages, increases worker accidents and deaths and increases out-of-state contractors taking these wages and all associated benefits elsewhere.

Research results prove any initial higher costs associated with requiring that market rates be paid is offset by increased productivity, better final product quality, lower construction accidents and fewer deaths.

Rauner, are you listening? Prevailing wage laws do not ultimately increase costs.

Mark Palmer

Executive Director

Finishing Contractors Association of Illinois

Aurora

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