Prevailing wage on private projects legislation passes committee – Legislation that would expand prevailing wages to private industry – in this case refineries – was passed out of the House Labor and Workplace Standards Committee last week.
Under HB 1173, sponsored by Rep. Dan Bronoske (D-28), a skilled journeyperson in a building or construction trade working for a petroleum refining or petrochemical manufacturing contractor or subcontractor must be paid at least a rate consistent with the prevailing wage in the applicable occupation and geographic area.
AGCW strongly opposes the bill.
“What problem is this bill trying to solve?” Ryan Likkel, CEO of AGCW-member Western Refinery Services, asked Committee members. “It proposes wage increases for workers who are already well-compensated by industry standards in our state.” Likkel cited wages that are as high as $106,142 annually for journey-level equipment operators. “In addition to competitive wages, our employees receive a comprehensive benefits package, which includes vacation and sick pay, paid holidays, medical insurance, 401(k) plans, life and disability insurance, and many other benefits.”
AGC lobbyist Christine Brewer also testified against the bill. “Our primary concern here is the precedent this bill would establish. If a project is receiving government funding, that’s one thing—but imposing this on truly private projects is another. If the government can mandate prevailing wages on private projects, could this lead to similar actions in other industries?”
The bill passed the Labor Committee on party-line vote, with Reps. Berry, Fosse, Scott, Bronoske, Obras and Ortiz-Self voting yes, and Reps. Schmidt, Ybarra and McEntire voting no. The bill is headed for the House Rules Committee but will likely reach the House floor. AGCW members should be on the lookout for an Action Alert to contact legislators at that time.
For more information contact AGCW Chief Lobbyist Jerry VanderWood.